Budget Hearing Minutes

TOWN OF LYMAN - Budget Hearing - February 09, 2010

To the Inhabitants of the Town of Lyman, in the County of Grafton, and the State of New Hampshire, qualified to vote in the Town affairs:

You are hereby notified to meet at the Town Hall in said Town on TUESDAY, the NINTH day of MARCH 2010; polls to open at ELEVEN O'CLOCK in the morning and will not close before SIX O'CLOCK in the evening in said Town Hall, to act on Article 1, the remaining Articles to be considered at SEVEN O'CLOCK in the evening.

Article 1. To choose all necessary Town Officers for the ensuing year.

On Tuesday, the 9th of February 2010, there was a Budget Hearing held at the Lyman Town Hall. The meeting was called to order at 7:00 pm by Jim Trudell Selectman Chairman. He welcomed all and he introduced the other selectmen, Elaine Sherry and Steve Moscicki, as well as Administrative Assistant, Donna Clark and Town Clerk/Tax Collector, Carol Messner.

To begin, he announced that sand had been put into the oil tank of the 10-wheeler. Indications are that it will be covered by our insurance policy. The new motor could run $15-20,000 so he is pleased we do not have to include that cost in our budget. It has been an easy winter so that means saving salt, sand and wear and tear on the trucks. Lyman's Road Agent, Tom Smith, has recommended replacing the 1988 backhoe. We have $80,000 in our equipment capital reserve fund for this purpose. This would cost approximately $75,000 of the $80,000. The backhoe will be paid, the grader will be paid off in 2011, and the truck payments and school bond are down. These are all positives.

He announced that our Budget Hearing procedures in the past were incorrect per Town Council. Lyman had always held what amounted to 2 town meetings. To correct this situation, there would not be voting or motioning at this meeting. This meeting would be to disseminate information and to receive questions, recommendations and thoughts. This met with some disapproval and charges that the change at this time seemed "a little fishy".

The audience viewed the "2009 Net Appropriation - Actual" "2010 Budget Summary - Proposed" on the overhead projector. Trudell began by showing the audience of 27 people that the estimated amount of taxes to be raised in 2010 @ $371,446 will be $27,159 under taxes raised in 2009 @ $398,605. This takes into consideration all estimated revenue, grants, donations and bonds. It amounts to approximately $.45 less in the tax rate.

He then displayed and read aloud the "Proposed Financing" prepared paragraph regarding the bond concerning the land purchase in Article 2. The most attractive option is taking a loan from Woodsville Guaranty Savings Bank for $346,000 @ 5% interest rate. This would require a flat annual payment of $26,562 for 20 years beginning one year from the date of the loan. The closing is estimated to occur in early 2011. There would be a one-time processing fee of $500. The "Estimated Tax Impact" summary was displayed and read aloud. For the average Lyman home valued @ $157,000 tax impact would be approximately $70/year.

He then displayed the "Profit and Loss Budget vs Actual Jan 1 thru Dec 31, 2009" on the overhead projector showing the 2009 budget, 2009 expenses and proposed 2010 budget. The individual warrant articles, not including the land purchase proposed in Article 2, total a $6,642 (or 1%) increase over 2009. Trudell went line by line down through the figures.

Article 2. To see if the town will vote to authorize the Board of Selectmen to acquire 1,081 acres of land located on Under the Mountain Road ("the Parcel") and to raise and appropriate $980,000 for the purchase of the Parcel, and to fund the appropriation by authorizing the issuance of not more than $346,000 of bonds or notes in accordance with the provisions of the Municipal Finance Act (RSA 33) and to authorize the municipal officials to issue and negotiate such bonds or notes and to determine the rate of interest thereon; furthermore to authorize the selectmen to accept up to $634,000 in grants to further fund the purchase of this property and to pay for fees and expenses associated with the purchase; and furthermore to designate this land as a town forest pursuant to RSA 31:110 and to authorize the Board of Selectmen to convey a conservation easement over the Parcel for conservation purposes. This warrant article is contingent upon the town receiving sufficient grants to fund the balance of the purchase price in excess of the bonded amount. (2/3 ballot vote required) (Recommended by the Selectmen)

This Article was held until the end of the evening for discussion. Any discussion noted here actually occurred after discussion of the other warrant articles.

Resident, David Simpson asked if the budget reflected an increase in liability insurance coverage to protect the Town from suits brought as a result of owning the forest land. Resident, Lisa Linowes offered that no additional insurance would be needed as the state is very protective of the land owner. Only structures and bridges would warrant additional insurance as long as we do not post the land. Resident, John Murray, disagreed saying the town will need lawyers and additional insurance in place and that we need more answers before we vote. Planning Board Chairman, Bruce Beane requested that Murray make a list of questions and Beane would answer each. D. Simpson said the use of OHRVs on the property may affect our need for insurance. Trudell said that OHRV drivers must accept as a matter of law the inherent danger in OHRVing per RSA.

Dave Falkenham, Grafton County Forester, spoke on his findings during his walk over 75% of the proposed land to see about timber resources. He found that it has been heavily timbered. There is a road in place but it needs work. It's nice land with a snowmobile trail. There is an immediate potential for cutting high altitude timber although the cost will be high. Softwood (spruce, fir and pine) is valuable for homebuilding. The trees cut have regenerated and will continue to regenerate to valuable softwood. The timbered forest regenerates quickly meaning in 20-30 years or so. Owning the land means you have control of it.

Many residents were concerned about the strings attached to the use of the land via the easements. They worried that the donors may have more control than the town or that the donors will set the conditions under which the town can then operate on the land. Beane said the two biggest contributors have the bats and the water as their main concerns. Trudell announced that easements will not be restrictive and that a Selectmen's meeting at 6pm on February 22nd with Rebecca Brown from ACT (Ammonoosuc Conservation Trust) and a 5-person Forest Committee would outline our easement language. Planning Board member, Al Gombas said easement terms from LCHIP, (NH Land & Community Heritage Investment Program), our largest donor, along with public access, are that you cannot subdivide, you cannot build and you must stay wild. The town can place restrictions on usage such as you can or you can not allow horseback riding.

Resident Terry Simpson asked if we have money in the budget to cover the forest management costs to which Trudell replied that the money is included in the grant. Resident, Wanda Hubbard expressed concerns about monitoring 'open to the public' land and the possibility of losing donors if the easement terms were not met. Trudell said monitoring will be shared by the Selectmen, ACT, the 5-person Forest Committee and any one who visits the land. Linowes explained that ACT will have money held in a fund to correct any harm to any of the covered easements. At a minimum, annual walks over the land by the Forest Committee would be part of the maintenance and monitoring. Per Falkenham, the town would have the management responsibilities. The easement basically restricts development and mining. ACT would hold those rights. If any easements were violated the donors would want the town to fix it, they would not walk away with their money.

Trudell said the land may hold the possibility of crushing ledge or developing a gravel pit which could offset some of the costs. Over the years the town has purchased gravel at Joe's pit and has ended up spending many times over the original land purchase price that the town turned down when offered.

T. Simpson said it is all happening very fast without concrete facts. The loan would take 20 years to pay off with no money set aside for purchasing land. Towns should not buy real estate. Towns are not money makers as they operate on tax dollars. She thinks we should have money available before we spend it.

Trudell said he had recently looked at the tax rate from 2000 to 2004 which increased $5.00/$1,000 in that time period which is a hefty increase. From 2005 to 2010 the tax rate has only increased $.65/$1,000. What do we have to show for the years 2000 to 2004? Much has been accomplished in the last few years. Trudell said the town management is good and the town is in good shape for a purchase of this sort. We came in under budget by $75,000 in 2009.

Gombas and Sherry said the land was pursued based on the answers residents gave on the circulated Planning Board questionnaire. This was what residents wanted based on their answers. They wanted to preserve the ridgeline and maintain the town as it is.

Beane retold the history of his dealing with Mr. Merrill regarding the property. He said we will pay $.35 on the dollar if we vote in favor of the purchase. If we do not, the land will be sold to someone else.

Article 3. To see if the Town will vote to raise and appropriate the sum of Three Hundred Sixty-One Thousand Three Hundred Sixty-Three Dollars ($361,363) to defray Town charges for the ensuing year. (Majority vote required) (Recommended by the Selectmen)

Trudell read the figures as displayed. Any elaboration of importance is noted here. Financial Administration: D. Simpson commented the auditing fees were raised again. Clark said she had budgeted the high end of the auditors proposed fee range. T. Simpson asked if Cartographic Associates continues to update the maps. They do. The maps have been paid in full. Map maintenance such as subdivisions, lot line adjustments etc. has had $1,000 budgeted but we may not need the full amount. Personnel Administration: All medical and dental insurance has been taken from the individual recipient's category and placed in this category per Hippa regulations. The town offers 2-person insurance coverage for 4 employees. This year the employee co-pay was increased, the deductible was increased, the emergency room co-pay was increased and the prescription cost to employees was increased. Planning Board: Linowes asked if the town receives revenue to offset some of the costs. Per Clark we do but revenue offsets were minimal this year. General Government Buildings: In 2009, the office portion of the building received a new metal roof, the 'squishy' section of the main hall was supported with lally columns in the basement, the plastic enclosed ramp section was permanently enclosed and sided and also a concrete pad was installed at the base of the ramp door. In 2010, hopes are to put siding on the building front, put metal on half the roof and add an outdoor light in the parking area. The proposed $20,000 generator cost was underestimated last year due to a mis-quote as noticed by D. Simpson. He asked if the 2009 budgeted $10,000 had been spent and was told it was not. We will still get 50% of the total back through a grant. Trudell said we did not spend approximately $75,000 of 2009's budget so the fund balance is in good shape. The increase in the office phone budget is for high speed internet. Emergency Management: Linowes asked if we have an emergency plan now and was told we do. The official emergency plan binder was circulated through the audience. Selectmen will advertise for an Emergency Management Director who should be a Lyman resident. It will be a lot of work and will be a paid position @ $1,500/year. D. Simpson asked if Lyman received the anticipated $5,000 for completing the emergency plan and was told yes. Trudell also informed that he would not be running for School Board again this year. He will continue to work with the school as a Selectman on the Lyman budget but that position will also be open. Sanitation: We pay 21% of costs and get 21% of revenues (approx. $20,000). It pays to recycle. Health: Health Officer will also be a new paid position up to a maximum of $1,000year. Stan Borkowski, the Lisbon & Bethlehem Health Officer is the most likely choice. Trudell then read aloud the list of the 2010 Health Agency Appropriation Requests, their requested amount and the number of Lyman residents assisted by them in 2009. Parks & Recreation: Anonymous volunteers plan to work on Mitchell Park in 2010. Patriotic Purposes: This is for flags on the graves of veterans. Other Culture: As a 2009 donation recipient, Alumni Hall Director and Lyman resident, Mark Chain, thanked Lyman and noted that a resident won a 2nd place prize in a poetry contest. Debt Service: Loans are for the grader, the dam and the truck. Interest payments are down.

Article 4. To see if the Town will vote to raise and appropriate the sum of Two Hundred Forty-Nine Thousand Seven Hundred Twenty-Two Dollars ($249,722) for maintenance, expenses, salaries, supplies, and equipment for the Highway Department for the ensuing year. (Majority vote required) (Recommended by Selectmen)

Trudell began by saying that Road Agent, Tom Smith and Road Crew, Scott Stuart do a great job. They are up all hours of the night and they keep us safe. Nothing was spent on temporary help last year. Attention will be paid to Moulton Hill, Under the Mountain and Hunt's Mountain Roads this year. We are in good shape with sand & calcium chloride. Linowes asked if calcium chloride has a shelf life and was told yes but it lasts and we will use it before it expires. The budget for diesel is reduced because our diesel needs have decreased and the price on diesel fuel is less now than previously.

Article 5. To see if the Town will vote to raise and appropriate the sum of Fifty Thousand Dollars ($50,000) to be placed in the existing Highway Equipment Capital Reserve Fund. (Majority vote required) (Recommended by the Selectmen)

The audience viewed the 2010 Equipment Replacement Plan. It showed current highway equipment and the replacement plan based on adding $50,000 per year to the Highway Equipment Capital Reserve Fund. In 2010 we would purchase a new CAT backhoe to replace the 1988 backhoe. This purchase after adding the $50,000 appropriated in Article 5 would leave the fund with approximately $55,000. Resident Richard Hubbard, noting the earlier mentioned problem with the 10-wheeler, said the town should always have a backup truck. Trudell agreed saying he gives thanks we had the Sterling available. The loan on the grader has a maturity date of 2011 and the 10-wheeler a maturity date of 2014.

Article 6. To see if the Town will vote to raise and appropriate the sum of Eight Thousand Dollars ($8,000) to be placed in the existing Property Revaluation Capital Reserve Fund. (Majority vote required) (Recommended by the Selectmen)

The Article was read aloud by Trudell. The State requires a reevaluation and update every five years and 2010 is the year for Lyman. The update will cost $27,000 of this Capital Reserve Fund which at 12/31/09 had a balance of $51,400.83. A full valuation may be needed in 2015 at twice the cost of the statistical update. Selectmen recommend that we continue to add to this fund.

Article 7. To see if the Town will vote to establish a Capital Reserve Fund under the provisions of RSA 35:1 for the purpose of Building Repair & Maintenance and to raise and appropriate the sum of Three Thousand Dollars ($3,000) to be placed in this fund and to name the Board of Selectmen as Agents to Expend. (Majority vote required) (Recommended by the Selectmen)

Trudell explained that it would be wise to start a fund for maintaining the building. The specific maintenance items completed in 2009 and planned for 2010 that were discussed in Article 2 under 'General Government Buildings' were repeated.

Article 8. To see if the Town will vote to raise and appropriate the sum of One Thousand Five Hundred Dollars ($1,500) for the installation, operation and maintenance of a streetlight at the intersection of Lyman Road and NH Route 302 in Lisbon. The State of NH and Town of Lisbon have granted permission for said streetlight. (Majority vote required) (Recommended by the Selectmen)

Trudell stated that the intersection is dark and dangerous. This would be a street light, not a traffic light. The State has been clear they will definitely not approve a traffic light. Selectmen had talked to the Dept of Transportation, the State representatives and the town of Lisbon. The State knows the intersection is a problem but if Lyman wants the light, Lyman must pay for it. The annual maintenance cost is $250. This article generated much discussion over the fact that the State should be responsible to foot the bill. Selectmen have tried every imaginable avenue for years to no avail. Residents who work for the State have also complained about the visibility situation. Trudell said for $250/yr it is not worth having residents in danger. Trudell will check with legal council to see if Lyman could incur any liability if the light goes out and someone gets hurt. T. Simpson volunteered to continue pursuing the State although she acknowledges that this has been sought for years.

Article 9. To see if the Town will vote to approve the following resolution to be forwarded to our State Representative(s), our State Senator, the Speaker of the House, and the Senate President. Resolved: The citizens of New Hampshire should be allowed to vote on an amendment to the New Hampshire Constitution that defines "marriage". Inserted by Petition.

The person who delivered the petition was not present to speak on its behalf.

Article 10. To see if the Town will vote to donate a painted curtain advertising 20 Lisbon businesses to the Lisbon Area Historical Society which will apply for a grant to have this historically significant curtain conserved and properly stored until its future safe display. (Recommended by the Selectmen)

The value of the curtain located in the Grange would be limited to Lyman and to Lisbon per Archie Steenburgh, local auctioneer. That would limit the possible buyers interested in it. He would charge $200 to appraise it. Trudell was told by an outside source that it could be worth as much as $10,000 without restoration. It needs restoration. The guess is that it was painted in the 1930s. Resident, Bruce Beane asked if we could say we would loan it rather that to say we would donate it. T. Simpson offered that we might want to check with resident, Richard Portner, for his thoughts as he has ties to NY theaters.

Discussion on Article 2 was now begun.

Article 11. To transact any other business that may legally come before the Meeting.

Resident, Diane Veilleux addressed the audience. She would like to insert a warrant article to vote on raising and appropriating $6,300 to contract with Lisbon Fast Squad for 2010. This amounts to 21% of their $30,000 annual budget. Resident, Brian Santy said from his recent personal experience that Ross Ambulance arrived quickly. Her personal experience was they could not find her house and took 30-45 minutes.

Chain asked about obtaining a paper copy of the budget as it was displayed on the overhead projector for studying.

Trudell thanked all for coming and closed the hearing at 9:35 pm.

Given under our hands and seal this 22nd day of February, 2010.

Respectfully submitted,
Carol M. Messner, Lyman Town Clerk