NOTES OF JANUARY 15, 2015 RYE BUDGET COMMITTEE MEETING

Final Revision B – Provided by the Rye Civic League

Present (clockwise around the table): Town Finance Director Cyndi Gillespie, School District Representative Peggy Balboni, Rye Water District Representative Ralph Hickson, Selectmen’s Representative Craig Musselman, Chairman Paul Goldman, Jim Maheras, Doug Abrams, Jenness Beach Village District Representative Randy Crapo, Ray Jarvis (all are Budget Committee members except Cyndi Gillespie).

Town employees present in the audience: Police Chief Kevin Walsh, Interim Fire Chief Tom Lambert, Town Administrator Mike Magnant, Public Works Director Dennis McCarthy, Recreation Director Lee Arthur.

Present from the public: Mae Bradshaw, Peter Crawford (left early), Jeanne Moynahan, Brian Early (Portsmouth Herald)

Editor’s note: For ease in finding particular sections using the archived video and audio on the Town website, the elapsed time is indicated. Use the slider and the elapsed time indicated at the bottom of the video window to fast forward to the desired section. Videos on the Town website may currently be accessed at www.town.rye.nh.us by clicking on “Town Hall Streaming” at the bottom left of the screen. Follow the link for “Town Hall Live Streaming,” then find the meeting by date under “Previous.”

The video begins at 6:30:28 p.m.

Summary

1. Increase to Town Clerk/Tax Collector budget for third full-time employee was unanimously recommended.

2. Addition of $25,000 to the capital outlay budget to permit Route 1A parking space striping was recommended 7-1.

3. Town Hall project for $4.1 million was unanimously recommended.

4. Firefighters union contract was unanimously recommended. The Town already paid $20,000 to settle grievance over unfilled shifts.

5. The $3000 Master Plan Expendable Trust petitioned warrant article was not recommended after it was asserted that a portion was unlawful.

Town Clerk/Tax Collector budget (3:51 elapsed)

Ms. Gillespie explained that there is a new figure of $260,594, reflecting the third position in that office transitioning from part-time to full-time. That adds health insurance and additional retirement costs. There was discussion about the reason for the minimal difference. Ms. Gillespie stated that another person in the office is converting to single health insurance coverage. The motion by Doug Abrams to recommend this budget line item carried unanimously.

Addition to capital outlay budget for pavement striping (8:40 elapsed)

Ms. Gillespie stated that this addition is $25,000 and it is not certain that all of it will be spent. Having the budget will permit actions to be taken restricting parking within a certain distance of driveways, crosswalks and intersections.

Selectman Musselman referred to the recent parking study. That also had recommendations relating to meters and remote parking. Those are not part of the budget. A determination remains to be made on those, he said. They will need to make sure that the meters would raise more revenue than the cost. The remote lots may never be implemented. State approval would be needed. However, the State will not pay for the striping, he said.

The vote to recommend the new capital outlay budget of $95,000 was unanimous, except that Doug Abrams voted against, stating that permit revenues should pay for this.

Warrant Article 12: Town Hall renovation (19:09 elapsed)

Chairman Goldman read the warrant article, which is for $4.1 million and provides for bond financing. He stated that he was on the Town Hall Committee and had served as Chairman. He believes that he can deal with the issue impartially. Chairman Goldman summarized the three criteria (1) provide much-needed office and storage space, (2) preserve and renovate the historic building and (3) keep any addition subservient.

In response to a question from Jim Maheras, Ms. Gillespie stated that there would be no tax effect until 2016. There was then discussion about additional ongoing expenses. Selectman Musselman pointed out the increased insulation of the existing building and the use of LED lighting in both new and old buildings. It was determined that an estimate of the ongoing costs would need to be made.

Selectman Musselman said that the building should be suitable for the next 50-75 years. It was not overdesigned but provides adequate space assuming limited growth in population and services. If he had his druthers it would be a bit larger. Both the old building and the addition will be very nice. Of approximately 12,500 sq. ft. 3500 sq. ft. is associated with the “reopened” meeting room, he said.

All were in favor of recommending this warrant article.

Warrant Article 17: Firefighters Collective Bargaining Agreement (50:14 elapsed)

Chairman Goldman read the warrant article and the associated table of increases. Selectman Musselman provided the background. In December 2013, new Collective Bargaining Agreements were reached with the Police and Public Works employees unions, but not with the Firefighters union. The primary issue was a dispute regarding language in the prior contract relating to filling shifts when a firefighter was absent. The Town and the firefighters had construed this provision differently. The Town asserted that whether or not to fill the shift was a management prerogative. However, the Town lost on this issue before the Public Employees Labor Relations Board. It would have cost $20,000 to appeal to the New Hampshire Supreme Court, and it was believed that the probability of success would be less than 50 percent. There was the potential that the Town would owe $60,000 for back wages if it lost. So, the matter was settled for $20,000, two of the three Selectmen agreeing. That agreement has been completed and has now been signed. Editor’s note: Although it was not stated which Selectman was opposed to the settlement, Selectman Mills voted against recommending this warrant article.

Selectman Musselman then summarized the new collective bargaining agreement. It provides the same concessions on health care as the Police and Public Works contracts. It resolves vacation and accumulated sick leave issues. It changes the language on the unfilled shifts position to make it clear that the Town has the right to determine whether or not to fill shifts.

Randy Crapo asked when agreement had been reached. Selectman Musselman said that it had been within the past month. Randy Crapo asked why the liability had not been accrued as of year end. Selectman Musselman said that there was not an agreement at that time.

There was further discussion about the $20,000 settlement. It was revealed that this is unrelated to the $20,164 which appears in the warrant article and that, whether or not the warrant article passes, the settlement stands.

Jim Maheras asked about regionalization. Selectman Musselman stated that they are not prepared to discuss that yet. There will be subsequent meetings on that issue.

The motion by Doug Abrams to recommend this warrant article carried unanimously.

Article 21: Operating budget (67:49 elapsed)

Chairman Goldman read the warrant article which sets forth an operating budget of $8,740,834 and the default budget of $7,822,076.

In response to a question from Randy Crapo, Ms. Gillespie stated that the actual figures are up to the minute. It was agreed that the spending was about 7 percent under the budget. Editor’s note: The spreadsheet passed out at the meeting refers to a 2014 budget of $8,395,538 and actual of $7,933,236 at the General Fund level, with even larger surpluses at the Operating Budget and Grand Total levels. However, the actual figures do not include “encumbered” funds, which are amounts in the 2014 budget which had not yet been spent, but there is a contractual commitment to spend the money in 2015. The total encumbrances at the end of 2014 exceed $200,000.

The motion by Doug Abrams, which was seconded by Ray Jarvis, to recommend the operating budget, carried unanimously.

Article 22: Master Plan Expendable Trust (70:46 elapsed)

Selectman Musselman stated that this is a Petitioned Warrant Article that the Selectmen have not met on. Town Counsel has reviewed it and is of the opinion that it is unlawful in part or in whole.

Chairman Goldman asked why they should vote on the warrant article if any part of it is viewed as unlawful. He also asked why the warrant article would not have come from the Planning Board if they are the organization responsible for keeping and updating the Master Plan.

Ray Jarvis moved to not recommend the warrant article. Paul Goldman asked whether the article would still be on the warrant. Selectman Musselman stated that it “absolutely” would be. He noted that another warrant article was completely unlawful.

All were in favor of not recommending the warrant article.

Around the time of this discussion, Selectman Musselman is heard on the video asserting to Ms. Gillespie that the Conservation warrant article is unlawful.

Editor’s note: At the January 31, 2015 Town Deliberative Session, after language in this warrant article requiring that the Planning Board update the Master Plan annually, on a chapter by chapter basis was deleted, the Budget Committee revoted 5-1 to recommend the article.

Article 25: Pay-as-you-throw program (83:17 elapsed)

Randy Crapo asked about this warrant article. Ms. Gillespie stated that there is not supposed to be any cost to the Town associated with this warrant article. Mr. Crapo referred to the cost of the bags as an “alternative tax.” Ray Jarvis complained that the language of the warrant article makes a farce of having educated voters. Selectman Musselman suggested that he make a motion to amend the warrant article to a study. Chairman Goldman chuckled.

Public hearing (91:54 elapsed)

Chairman Goldman opened the public hearing, then enumerated an exhaustive list of categories in the budget. There were no public comments or questions. The public hearing was then closed.

Approval of minutes (98:26 elapsed)

The minutes of the November 13 and December 10, 2014 meetings were unanimously approved, with abstentions by certain persons who had not been present.

Adjournment (105:24 elapsed)

Whereupon the meeting adjourned.