2020-01-25 Commissioners Public Hearings and Budget Hearing
Village District of Eidelweiss January 25, 2020 7:30pm Madison Library
Public Hearing on the Budget Over Expenditure per RSA 32:11
The Board of Commissioners held a public hearing on the Budget Over Expenditure per RSA 32:11
at 7:30pm January 25th, 2020. In attendance were Commissioners Adam Leiser, Kathy Koziell and
Jay Buckley. Video taped by Tim Hughes and 15 people attended.
At 7:30pm the meeting was called to order by Chairman Adam Leiser.
Kathy Koziell makes a motion to open the public hearing. Adam Leiser seconds.
Motion passed 2-0. Jay Buckley enters the meeting.
Kathy Koziell explains the Budget Over Expenditure process. The DRA was notified by the Commissioners and was told per RSA 32:11 that they had to hold a public hearing to explain the Over expenditure to the public. As of 12/31/2019 the Over Expenditure was $27,041.00 plus what the Audit will find as 2019 expenses that were paid in January. A letter was written to the DRA explaining the unanticipated expenses of NH Retirement buy back for Kelly and Nancy of $12,200.00, Nancy’s separation agreement of $10,000.00, Additional legal payroll & bookkeeping costs $2,500.00 and Grader repairs $9,700.00.
Paul McKenna questions the by-laws regarding the $10,000.
Larry Leonard states that made us more over budget.
Kathy Koziell states that it was decided after discussion the NHMA legal and our District Attorney that the separation package was reasonable and that it was a wash by the Commissioners not taking their stipend.
Ron Sandstrom states that the NH retirement buy back was available all along.
Jay Buckley states that every three years the employee can opt to take the buy back and both Kelly and Nancy chose 2019 to take the buy back.
Kathy states that no line item to budget for that possibility. Mike Smith states that he wanted to add 20K to the 2019 budget ad that Adam refused, Adam states that was not true. Dorothy Wondolowski brought up the F550 and thought it should have been approved. She said it was crazy that the warrant article was defeated. Adam stated that at the last annual meeting the Board did not forthcoming on the expenses for that truck. Ron Sandstrom, Adam and other agreed that we do need a new truck. Discussion on Grader mechanical failure.
Paula Doyle discussed the bad management of the budget. Commissioner should have known what bills were outstanding. She stated that the BOARD OF COMMISSIONERS was spending funds without regard for the line items. For example the hiring of a part-time office assistant. Next year I expect that the BOARD OF COMMISSIONERS have a better plan to aggressively manage the budget. Adam restated the 4 things that were unanticipated and “cooked us”. Paula stated that better management of budget was needed. Larry Leonard not fond of the postcard mailing that was $600. Kathy stated it was under $300.
Dorothy asked what the repair costs were this year for the F550. BOARD OF COMMISSIONERS stated close to $20K. Mary Alice asks if we have a “rainy day” fund. It was explained to her how the unassigned fund works. Larry states that the current unassigned fund balance is around $170K.
The unassigned fund cannot be used unless voter approval on a warrant article or permission from the DRA as it pertains to the over-expenditure.
Ron Sandstrom explains that the unassigned fund balance is used to secure the TAN loan. Mike Smith states that the DPW should have been asked to slow down spending and that we should have know about sand and salt that was delivered in 2019 and billed in 2020.
Kathy makes a motion to adjourn the Over Expenditure public hearing at 8:05, Adam Leiser seconds, passes 3-0.
Adam Leiser makes a motion to open the Public Hearing on the Dam Management Policy at 8:05pm, Kathy Seconded, passes 3-0
Jay presents the proposed Dam Management policy. Explains that it is a policy not an ordinance.
Current policy was vague and we needed to modify for clarification. Chief Clark and Deputy Chief Kribby attended a 9/28 commissioners meeting to discuss the impact of lowering the ponds on the hydrant. Lowering of the pond greatly jeopardized fire suppression by lowering the ponds by removing boards at the Dam. Chief Clark attend in December stating his concern with the dry hydrant. John Cancelarich stated that our insurance rating is an E-9 the worst is a 10 and that without the hydrant we could become a 10. It was stated that this could impact homeowners insurance rates by a 30% increase. Adam discussed that DES needed the policy to be very specific.
Larry Leonard states that the plan he has from the website states that we keep the water levels as high as possible with fall draw down. During a drought the level can be lowered by 4” to protect wildlife down stream. Chief Clark will be looking into moving the Hydrant strainer to deeper water to allow for draw downs.
Concern about the effect on the Loons was discussed. Mike Smith indicates that on 1/17 he contacted John Cooley of LPC and he did not promote the floating nests and the Commissioners were accomplishing anything.
Kathy states that we included the Fire Chief in the Dam Management Policy.
Gloria Aspinall asked about the RSA 482:13 referenced in the Policy and was concerned about possible flooding of her property and who to contact. Adam states the in an emergency to call 911 and they will contact DPW. BOARD OF COMMISSIONERS explained that once the policy was adopted that a public hearing was only required when there was a “significant” lowering of the pond levels.
Ron states that this is a shift in policy from Loon Protection to Fire Suppression. There was questions regarding the commissioners asking the DPW to make modifications to the levels. It was explained that the DPW has the final say in the management of the Policy.
Adam states that he would support the lowering of the pond for the 5 weeks during loon nesting season.
Paula asked if there could be a meeting with the LPC, Fire Chief and DES. Adam states that he as given the contact information to Chief Clark to do just that.
Larry Leonard and others stated that floating Loon nests have been successful in other areas. Bob Ingram agreed but stated that it might that 2-3 years for the Loons accept. After much discussion about the floating nests, Paula states that it is up to the LPC not the VDOE.
Mike Smith states that the LPC considers our Loon pair one of the most successful.
Discussion on how that dam was managed in the past. Ron re-states that the Fire Chief has thoughts on other ways to not have to keep the water high. Jay stated that there are 3 dry hydrants , 2 within the district. Discussion regarding ISO rating with insurance companies.
Adam Leiser makes a motion to adjourn at 8:50, Kathy Koziell seconds, passes 3-0
Motion by Adam Leiser to call to order the Public hearing on the acceptance of the Groundwater grant per RSA 31:95-b, KK seconds passes 3-0.
Kathy explained that RSA 31:95-b was adopted by the VDOE inn 1990. This give the commissioners authority “to apply for, accept and expend, without further action by the town or village district meeting, unanticipated money from the state, federal government….”.
The requirement is the have a public hearing to inform the public.
Mike Smith asked if there were any requirements in taking the grant. Kathy states that there is no offsetting contribution and that projects must be for drinking water upgrades and approved by Rick Skarinka of DES. Adam adds that since the tank project was part of the application, any amount not spent on Reinach as a percentage that same percentage would be deducted from the grant. In order to receive the full grant the full $869,400 must be spent. Ron is concerned about projects not approved by the voters being added into the loan. Bob Ingram says that voters get to decide on projects. Adam talked with NHMA and was told that as long approved amount isn’t over budget and that the additional work is part of the overall Reinach tank project. Ron states that everything doesn’t need to be now – lets do it right not immediately.
Mike suggests a new warrant article about the grant. Bob Ingram just want to make sure it is approved.
Adam states that the actual tank bid has come in and the second part is being sent out to bid.
Adam makes a motion to adjourn at 9:10pm, Jay seconds, passes 3-0
Adam calls to order the Budget Hearing at 9:10pm. Jay seconds, passes 3-0
Discussion on budget totals vs line items.
Ron asks what the tax rate would be if all warrants passed. Could be $9.35/thousand. Adam states that 8.9% is in the ball park.
Mary Alice questions several line items in the budget. Paula askes about the 6% increase in salaries.
Paula asked about the additional part-time DPW line item. Adam states that our DPW can do more projects in house with the additional part-time labor. This is for when either Kelly or Jeff are on vacation we will still have a 2-person crew using the part-timer.
Paula expresses concern that raising taxes will effect property values.
Adam states that the increased line items allow us to get more projects done.
Ron questioned the increase in the gravel and asphalt line items and the $80K warrant to pave Eidelweiss drive. Can’t do it all now.
Mike Smith has a list of priorities from the past asset management committee that had not been looked at. Jay stated that he has looked at it and had many conversations with Kelly which is why the Eidelweiss Drive paving is on the warrant.
Ron expresses concern over the tax rate and asked to balance the needs of the district with the tax payer – needs to be affordable.
Dorothy wanted to go line-line through the budget as in the past. She states that we should have had a separate budget hearing.
Larry Leonard concerned about higher taxes and work needs to be spread out and questions overtime and bonus amounts.
Mike Smith calculated that if everything passed the tax rate was $9.54 and a water rate of $300.
Diana Dolan stated that we should all work together.
Adam discussed the interest only loan and that the payments will increase the water rate.
Jurij Czernow stated that paving now is cheaper that waiting as costs go up and road will require more work.
Paul McKenna states that you need to have loans.
Discussion on financing the new plow truck for 108K. Paula suggests looking a 5-year average on costs.
Proposed budget without the Reinach tank is a 3% increase. Ron Sandstrom discussed the road maintenance cycle for asphalt and gravel. Jurij states the winter conditions effect roads and conditions change all the time. Mike states that we need to take into consideration the water lines when doing road pavement.
Heated discussion between Adam and Mike regarding water tank project.
Bob I. states that the BOARD OF COMMISSIONERS need to have more detailed information on the budget for the public. Bob states that with so much to do we need to have a plan.
Adam thanks for Bob for the input.
Adam makes a
motion to adjourn at 10:15, Jay seconds, passes 3-0
Respectfully Submitted
Donna MacKinnon – Admin Assistant