Budget & Advisory Committee DRAFT Minutes 11.28.2023

Budget Advisory Committee

Draft Minutes

November 28, 2023 Meeting

Town Offices Lower Level, Francestown, NH

Attendees: Tom Andersen, Stewart Brock, Brad Bull, Marsha Dixon, Jamie Pike, Cindy St. Jean.

Meeting opened 5:30 PM. Departmental meetings are scheduled for next Wednesday and Thursday, Dec. 6 & 7.

Review of the minutes: Motion to approve minutes by Stewart Brock, seconded by Brad Bull. Approved.

Review of the budget as it stands today with Town Administrator Jamie Pike. Attachments include current working budget and a spreadsheet depicting payroll/utilities.

4215-00  Ambulance: There is a $25K increase and it is final, set by Peterborough. Historically, this expense has increased every year. There have been past inquiries about alternative sources of the service but right now, this is the amount at this time for the year. The next option is Wilton Lyndeborough but there is concern that the response time would be longer. This expense is a flat fee based on last year’s incidents (blend of incident number and population). The ambulance service dropped the transfer service this year and therefore lost the revenue in brought in. Contrary to expectations, the cost of ambulance service did not decrease, in fact, it went up. Six towns use Peterborough. The formula has been consistent over time.

4155  Insurance:  This expense increased significantly, up nearly $10K. Francestown changed insurance prior to Jamie Pike’s tenure. Employees contribute 20%. Francestown participates in a municipal policy (catalog plan) as part of a conglomerate of other towns. The policy is tailored for five employees. Most towns are in similar plans. When discussing the plans, it was noted that other towns are becoming more employee centric, and are sometimes covering 100% of premiums, or budgeting to cover the employee’s deductible.

4194-80  Internet: Each department is on its own contract, and only one internet provider.

Discussion explored where can the town potentially offset or balance out increases. Currently, the budget has gone from 6.5% down to a 4.7% increase. Jamie Pike explained that an adjustment from increased revenues balanced out the ambulance hit. The town’s new treasurer is currently looking at investment options which would balance and offset expenses. The town might invest in NH PDIP (public deposit investment pool) with a potential to return $90-100K in interest. Currently, the town only has money in savings accounts earning interest. The town’s investment options are limited to bank, PDIP, or federal funds as a municipality. The current rate is a 5.8% return. Francestown has participated in NH PDIP before but not in a while. Historically, the budget is low on revenues. Last year, interest on investments (3502) returned $6K, the year before only $1200. This is year has been a banner year because interest rates are currently high. Since 2012, only four years, including this year, have returned over $1600 in interest.

3508  Contributions and Donations: FIHS donated $10K toward tennis court rehab.

Regarding donations in general, some townships facilitate giving, private donations, etc. Is it possible to donate to the town directly, possibly Gofundme, and to communicate the tax advantages of donating to the public? Heritage Commission funds are from donations, Rec Commission receives considerable private infusions, private funding for the town hall generated nearly $500K. Donations can be earmarked for the general fund but spent on a specific special thing. Regarding soliciting fund donations, it was felt that there was a need to weigh public perception vs specific need.

4155-08 Employee retention: Former BAC member and current Select Board Member Charlie Pyle’s CPI calculation uses an annualized average of 12 months of CPIs and has been used for many years. It’s a look back, therefore is always a year behind. A question was posed: does it make sense in this economic climate to use this format right now? Social Security uses one that is not a lookback. CPI is trending at 3.5, and we will know mid-January. In answer to the question of why last year’s number increase is in this year’s budget, it is a budget bucket shift from retention to wages this year. Up until 2018, there used to be an annual appreciation dinner at a cost of roughly $2K, and it was felt that it was due to come back. It made people feel good, a thank you from the town. The guest list was about 10% of the population.

4550  Library: This budget is an outlier. Jamie Pike explained that the payroll increase involved 4 hours of increased staff time to bring staffing to two people whenever the library was open. Also, it includes 25 additional hours for substitute hours to cover vacations, and giving all employees 2% merit increases starting Jan 1. It is difficult to manage three floors of a building with only one person. There was a question as to the basis for the merit increase, in addition to the town-wide increase. Last year, the library’s final adopted budget increase was 11%. The other departments were 6.28%. Each department was trying to hold to level service. Most came in under 6%. It was noted that the library administers its budget, and while the BAC and the town can support a lower overall budget number, they can’t mandate individual budget spending. The BAC would like to understand what is driving the library budget: why is there a need for the people, the hours, the merit? Perhaps now is not the time for a significant spend in their budget. It was pointed out that the library has a trust fund. Is it available to cover other expenses? Some of these library services were covered by COVID grants which are now done. Other library expenses are also seem disproportionally increased. Why is the electricity so high? Geothermal is expensive, plus the elevator is an enormous user of electricity. Questions that need to be asked of the library include how has your circulation and patrons changed year over year? Do the numbers track? Digital subscriptions that were used to be funded by COVID grant or covered by trustees are now before the town to assume the cost. What are the numbers utilizing the different services? Books had been budgeted at $10K forever before COVID, and last year it was reduced to $9K to bring budget down, and now it’s back up. Increasing the budget on both print and digital, shouldn’t one offset the other?

Jamie Pike sees increases coming to the budget. Town Meeting may be voting on adopting an emergency alert system text messaging service. Start up costs for that are $500 plus annual subscription of $2500 per year, making it a budget item. Paul Lawrence wants to bring up a purchase of a ballot counter, which involves an initial purchase, plus annual expenses. It is a time saving convenience item, not a cost saving item.

Transfer Station mercury contamination: Total expenses minus payroll or mercury is expected to be $72K and the town budgeted $200K from undesignated fund surplus. However, it is expected expenses will come out of operating budget.

4324  Solid waste collection per household. Odd year item offset by elections.

4220  Fire Department: The proposed budget is flat or slightly under. There is a big truck expense coming up. They’ve lowered their budget this year and the Mt. Crotchet Association helps. Uniform decrease because of bulk purchase through CIP, and they bought new radios last year.

4312  Highway Department: It was noted that they are at/under budget. Diesel fuel will be the unpredictable expense. Every dollar change in fuel costs is a $10K hit to the budget.

General fund expenses: There was a donation request from the Cornucopia Project, which provides garden services to schools. Tabled by Select Board because it is also covered by ConVal, and they don’t do FES.

Stewart Brock made motion to adjourn, Tom Andersen seconded. Motion carried. Adjourned at 6:40PM.