01-11-2021 Annual Budget Hearing Meeting
The 2021 Annual Fairlee Budget Hearing was held on Monday, January 11, 2021 via Zoom. The hearing was called to order at 6:30pm by Elizabeth Wilson, Budget Committee Chair.
Present were:
Elizabeth Wilson, Budget Committee Chair Dan Ludwig, Budget Committee Member Stephen Bentley, Budget Committee Member Georgette Wolf-Ludwig, Town Clerk
Peter Berger, Selectboard Chair Catherine McGrath, Selectboard Member Joshua Hickman, Selectboard Member Tad Nunez, Town Administrator
Lisa Hinsley, Treasurer Noel Walker, Lister
Jason Bachus, Police Chief/Delinquent Tax Collector Lance Colby, Head Water Operator
Chaz Hinsley, Cemetery Commission Chair Samantha Hickman, Library Director Charlotte Williams, Library Trustee
Chris Brimmer, Zoning Administrator Sandra Smith-Ordway, Auditor
Members of the Public Glenda Gregoire Arlene Guest
Simon Holdaway Sondra Farnham Lillian Gahagan Barbara Lantery Jane Chambers
Budget Committee Chair Elizabeth Wilson began the hearing with the Administration Budget.
Administration
Budget Committee Member Dan Ludwig questioned how many property tax delinquencies the town has. Delinquent Tax Collector Jason Bachus confirmed there are 14 properties that are delinquent with half of those under a payment contract. The total of delinquent property taxes is approximately $48,000.00, which is much less than other years.
Budget Committee Chair Elizabeth Wilson noted that this budget reflects no cost of living increases.
Simon Holdaway questioned the increase in the Health Insurance line item. Treasurer Lisa Hinsley explained the amount was a place holder and included the Librarian which she moved to the Library Budget. She added that the administration health insurance increase was due to the addition of another employee.
Budget Committee Member Dan Ludwig asked the Selectboard to explain why there was no cost of living increase for town employees in the budget. Selectboard Member Cathy McGrath explained being that it’s been an unusual year for many who have been furloughed or unemployed the thought was when making this decision was what is available in the pockets of our taxpayers. She added that this decision was in no way a reflection on the staff. Budget Committee Member Steve Bentley responded that he had gone through the budget carefully and determined a cost of living increase would only add up to about $11,000.00 or
.83% of the total budget. He added that the town should not balance the budget on the backs of the employees, but they should get paid what they are worth. Selectboard Chair Peter Berger agreed and added he had tried to have a clear point of discussion with his other members and was in favor of a 1.5% to 3% cost of living increase. Selectboard Member Cathy McGrath added that this budget reflects a 3.2% increase from last year and it was the hope for a flat budget that drove strong feelings towards no cost of living increase. Selectboard Chair Peter Berger commented that Fairlee has seen fewer property owners who haven’t paid their property taxes this year. Budget Committee Member Dan Ludwig stated that this was not right, as the Librarian and town staff have continued to be open and work during COVID-19 with the danger of exposure and a cost of living increase was not a raise, not giving a cost of living increase was in effect a pay cut. He added that asking for an additional $30,000.00 to hire an Orange County Deputy but not giving our own Police Chief a cost of living increase when he goes out and is exposed to unmasked motorist is not right either. Budget Committee Chair Elizabeth Wilson agreed with the cost of living increase to recognize the town staff and for the Police Chief. Selectboard Member Joshua Hickman added it was only a financial reason for not including a cost of living in the budget. Simon Holdaway questioned the increase in the Police Budget from $12,000.00 to $13,000.00 which is a 8.3% increase. It was explained this was not a cost of living increase but an increase in hours. Arlene Guest supported the cost of living increase for the town employees and to reduce the budget in other areas. Selectboard Member Cathy McGrath said they would like help identifying where the town can reduce costs so a cost of living increase could be budgeted. Budget Committee Member Dan Ludwig added for the Selectboard to keep in mind that most of the town staff are Fairlee taxpayers as well.
Budget Committee Chair Elizabeth Wilson questioned the increase in the General Liability Insurance line item. Treasurer Lisa Hinsley explained that all of the town’s insurance across the board increased adding that there was no increase last year.
Arlene Guest questioned why only a total of $17,900.00 was budgeted under Administration Revenue when the actual for 2020 was $55,395.53.Treasurer Lisa Hinsley revenues were high this year due to COVID-19 Grant and the Records Digitization Grant which are one time grants for 2020.She went on to explain Delinquent Tax Revenue has always been budgeted on the conservative side and Interest on Delinquent Taxes line item is not budgeted.
Budget Committee Member Dan Ludwig questioned the Professional Fees line item. Treasurer Lisa Hinsley explained $5,000.00 was put in the line item every year just in case it’s needed. Town Administrator Tad Nunez added that the funds are used for attorney, architect, and engineering consultant services.
Cemetery
No discussion
Community Organizations
No discussion
Emergency Services and Building
Simon Holdaway questioned why in 2020 $71,124.00 was budgeted and only $60,901.90 was spent and in 2021 $72,895.64 was budgeted again. Treasurer Lisa Hinsley explained early on in the year due to COVID-19 a conscious decision was made not to spend any money that wasn’t absolutely necessary with the knowledge that if property taxes weren’t paid the town would still have to pay the school and didn’t want to borrow the money. She went on to explain that this is the case across the board in many of the department budgets, even though property tax collection was good, time ran out to do certain projects. Town Administrator Tad Nunez added the Selectboard deferred specific expenditures in the General Budget and Capital Fund to assure money was on hand to pay town obligations. Budget Committee Chair Elizabeth Wilson questioned where the money that was raised and not used. Treasurer Lisa Hinsley explained the that the unused funds resulted in available cash on hand, which needed to be discussed with the Selectboard at their meeting next week. Selectboard Member Peter Berger confirmed that the Selectboard is unaware of this number.
Fire & Rescue
Simon Holdaway acknowledged his questions on this budget were answered under the Emergency Services and Building budget. He added how very impressed he is on how Fairlee keeps control of the town budget unlike the RA School. Treasurer Lisa Hinsley thanked him and added the budget is watched very carefully.
Highway
Town Administrator Tad Nunez explained how he and the Treasurer took a different approach this year when working on the Highway Budget. Treasurer Lisa Hinsley explained they went back three years in the budget to determine real budget numbers such as under Summer Rd – Maintenance line item which had been under budgeted every year with an amount of $30,000.00, so for 2021, we budgeted $42,000.00 which is a much more realistic number. Town Administrator Tad Nunez added they spent time with Road Foreman Mike Wright to crunch the numbers. He added that Mike is on board to fulfill projects with budgets that are approved. Budget Committee Chair Elizabeth Wilson asked a note be added explaining the 3 year average used to help explain the increase in this budget. Arlene Guest questioned if the Howdy Rd work in the Town Forest is in this budget and where the trails grant funds is listed. Treasurer Lisa Hinsley explained Town Forest funds are not funded by taxpayers and are not part of this budget. Selectboard Peter Berger went on to explain grants and funding for town forest roads and trails are not reflective of the highway operating funds in roads and maintenance.
Library
Treasurer Lisa Hinsley pointed out how high the Electric line item actual was in 2020 but the budget number hadn’t increased in 2021. This is due to the fact the town has joined into a solar program and is due money back. Town Administrator Tad Nunez confirmed the Town has joined with Thetford Solar Community for the Library and HCT Solar Enterprises out of Norwich for our town buildings.
Listers
Lister Noel Walker explained the Town is in a reappraisal, which has been extended for two more years. She added that any additional hours, supplies and mileage in the Listers’ Budget this year due to the reappraisal will be covered by the Reappraisal Reserve Fund.
Lake (Milfoil) & Town Forest
Arlene Guest questioned why the Town Forest was including in this budget heading when there are no figures. Town Administrator Tad Nunez explained this department budget has the Town Forest listed so a budget can be established. Discussion ensued on the Milfoil Contractual expense line item which is used for divers and Solitude consultant fees. Budget Committee Chair Elizabeth Wilson questioned why this line item went from $25,000.00 in 2020 to $15,000.00 in 2021. Selectboard Chair Peter Berger explained last year’s lake treatment did not meet with the desired expectation and the Lake Morey Commission is working closely with Solitude and the Chemical Company to treat the lake again this year for a reduced cost. Town Administrator negotiated the reduction in the line item with the Lake Morey Commission.
Other
Budget Committee Chair Elizabeth Wilson questioned why the County Tax line item was highlighted. Treasurer Lisa Hinsley explained the amount in the line item is a place holder and normally she doesn’t get the real figure until right before the town report goes to print. Budget Committee Chair Elizabeth Wilson acknowledged the Fireworks line item wasn’t budgeted for in 2021 because the town has a credit from 2020 but she was concerned about the ramifications not budgeting this line item. Treasurer Lisa Hinsley agreed it would be noticed next year. Lister Noel Walker questioned what the Grant-Expenses-Emergency Management actual line item was used for. Selectboard Member Chair Peter Berger explained it was used for compiling the Town’s Local Emergency Hazardous Mitigation Plan. Lister Noel Walker questioned the large increase in the Election actual line item. Town Clerk Georgette Wolf-Ludwig explained the expense was to due expenditures that were made with elections grant money. Lister Noel Walker asked a note be added to explain the elections grants.
Police
Simon Holdaway questioned the increase in the Subcontractors line item. Treasurer Lisa Hinsley explained this figure would be used for a dedicated patrol officer for 20 hours per week. She added this amount will be voted on separately as an article on the Town Meeting ballot. Selectboard Chair Peter Berger added that this had come about due to concerns on public safety issues and break ins. Police Chief Jason Bachus added that the main purpose for the 20 hours would allow the deputy to do proactive community policing and not just reactionary policing. Selectboard Chair Peter Berger he would like to have an informational meeting with Jason and Sheriff Bohnyak for public questions. Town Administrator Tad Nunez will work on organizing a meeting and on the article wording for the Town Meeting Warning.
Railroad Station No discussion
Recreation Council No discussion
Town Hall & Parks No discussion
Trash & Recycling
The increase to the Contracted Services budgeted line item for $1,440.00 was questioned. Treasurer Lisa Hinsley explained these funds are for a year round porta potty at the transfer station. Town Administrator Tad Nunez added the Town hopes to hire a year round Recycling Coordinator this year to oversee the transfer station.
Tri Town Commission
Selectboard Chair Peter Berger who sits on the Tri Town Commission explained that the Commission is trying to initiate a capital budget plan. He added that the Thetford Road Crew is currently doing the maintenance on the Lake Fairlee Dam, but the Commission would like to see Dubois and King do an inspection on the dam every three years.
Zoning Administrator Chris Brimmer mentioned the Town was awarded a Municipal Planning Grant in 2020. He added that the ESRI software, which is used for license and zoning map revisions, was flat funded this year and if permitting goes up in 2021 so will revenue.
Head Water Operator Lance Colby questioned the new line item Salaries & Wages – Accounting under expenses for $10,400.00. Treasurer Lisa Hinsley explained this is an estimated figure for a person to assist with the billing for water meters. This number may go down and will be tracked carefully. Lillian Gahagan questioned the Professional Fees and legal matter in 2020. Selectboard Chair Peter Berger explained the legal matter was discussed in executive session and can not be discussed. Auditor Sandra Smith-Ordway questioned the new meter system. Treasurer Lisa Hinsley explained meter billing will be done quarterly and their will no longer be a discount.
Summary Budget
Lister Noel Walker questioned if the additional hours for the proposed deputy were included in the bottom line of the Summary Budget. Treasurer Lisa Hinsley explained it is not included in the 3.9% increase. She continued to say how a lot of time was spent on this budget to fine tune it and she welcomed any outside comments. Town Administrator Tad Nunez noted the cash on hand figure will still be put in. Treasurer Lisa Hinsley estimated a figure of $20,000.00 but would need to have a discussion with the Selectboard. Discussion ensued on using some of the cash on hand for a cost of living increase. Selectboard Member Joshua Hickman added that if there is a cost of living increase added back into the budget then the increased stipends that were removed in Fire Department and Fast Squad Budgets should also be restored.
Capital Budget Plan
Treasurer Lisa Hinsley guided a review of the Capital Budget Plan for 2021.
Town Buildings and Land Reserve Fund under budgeted expenses for 2021, Town Hall Windows
$28,000.00, RR Station – sills & renovation $8,000.00, Transfer Station Pole barn for pre work $20,000.00 was added, EMS Facility for repair to exhaust evacuation system $10,000.00, Library parking-paving
$16,000.00, Village Enhancement $6,000.00 for an Arborist and tree pruning.
Emergency Equipment Reserve Fund under budgeted expenses for 2021, Engine purchase down payment
$150,000.00.Selectboard Member Joshua Hickman confirmed the Fire Department will make a decision on the fire truck this year.
Town Highway Reserve Fund under budgeted expenses for 2021, Lake Morey Rd $306,390.00, General Paving $85,000.00 for Terry Hill Rd and Mallary Rd, Culverts/bridges/structures $18,500.00.
Lake Reserve Fund under budgeted expenses for 2021, Lake Morey Treatment $53,000.00.
Being there was no other discussion. The Budget Committee Chair Elizabeth Wilson declared the hearing adjourned.
Approved by the Budget Committee on January 15, 2021.