Present: Stan Goldstein, Laurie Hadley, \u00a0Fran Parks, Treasurer Mike Daley<\/p>\n
Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I\u2019m going to call the April 13th<\/sup> 2015 meeting of the Cotuit Fire District Prudential committee to order. Our first order of business is the 2016 budget review.\u00a0 Amy Kates is recording<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Everybody got their work paper?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I don\u2019t.<\/p>\n Laurie;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 This is a workshop. We\u2019re just going on first blush out of it. It\u2019s not like it\u2019s a published document.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 These are drafts.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All right. We\u2019re going to use the same work paper as we did last year. As it\u2019s shaping up right now, I\u2019ve assigned a number so that you have sense of the numbering sequence. The first page covers all of the articles. It presents you with the actuals of \u201913, the \u201914, the current \u201915 budget and then the requests for \u201916. It shows you what the delta of the change is from last year to this year. In some cases like you\u2019ll see in the first grouping at the top when it\u2019s administration.<\/p>\n We had two articles last year, one for 5000 and one for 314,000. They both happened to come during the special but they\u2019re still part of that history. We have placeholders if there were articles in that budget group this year and there are. Three will be the reserve fund, which has historically been that number. Four will be the finance administration. Five will be the fire department which is pretty much the way it ran last year.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Question, Mike. The reserve fund \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Let me just \u2026 This is just a summary. I\u2019ll take each one. As we drill in we\u2019ll go over each one of these. Okay?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Just trying to get you familiar with the format. Fire has two capital articles this year. They had three last year. They had one the year before. You can see those in their grouping. The water department, same thing. They have their operating budget and they have asked for two articles this year, which is pretty standard for them. They generally tend to have two articles or at least they have the last four years. Public works, we have what I\u2019m calling public buildings budgets this year, because it\u2019s encompassing two buildings. Then last year, we actually had two articles relating this building.<\/p>\n There\u2019s one this year, so there\u2019s a placeholder. Our streetlights fall into public works as well and it has its own article. Library comes in behind that. Principle and interest, debt interest, comes in next. Employee benefits fall in next. What we finance types call transfers and other type of activity that the district votes. Then last year we had a citizen partition article. We\u2019re likely not to have one but in order to hit all the summary totals, I\u2019ve got to put in the history in that place obviously [my guess 00:03:53]. As it sits right now with a lot of amendments to come, we have $6.6 million in front of you compared to just under 5 last year and just under 4 the year before and just under 3.4 the year before.<\/p>\n We\u2019re looking in spending an excess of 33% greater than last year\u2019s spendings. We\u2019ll talk about it. The second page I break is it gives you the other side. It takes the total appropriations and then it modifies the appropriations by things the district doesn\u2019t get to vote. For instance, we have to reserve what we call an overlay as a reserve for payments and exemptions. Sometimes we have granted exemptions and we don\u2019t have any overlay, so we have a small deficit or two to raise. I\u2019m budgeting level funding, basically the overlay, at 22,000 just to get something bringing into the model.<\/p>\n When we add in the odds and ends, the total appropriation, we\u2019re going to be talking about setting a tax rate for, is currently sitting at about 6.625 million. Also what I do for you is I boil down how we pay for it. As it sits right now, we\u2019ll skip over the levy for a second. Local revenue, there\u2019s nothing really spiking in local revenue, I\u2019m just level funding it at 175. That may change by next November. When we set the tax rate, we have to certify to the state what we actually collected in the prior fiscal year. Generally they don\u2019t let us estimate above what we actually banked last year.<\/p>\n We\u2019ll be right around 175. That won\u2019t change much. Water revenue, I\u2019m just bumping it up $5000. It\u2019s been gradually coming up. I think we\u2019re safe there. I keep track of free cash, both non-recurring and recurring; because I want to focus the non-recurring stuff where it\u2019s more useful. We in the district off of recurring use of free cash in operating expenses and we\u2019ll talk about that again. Other sources of funds, we\u2019ve been transferring for the post-employment benefit cost from the trust fund. While we\u2019re funding the trust fund, we\u2019re also taking out of the trust fund.<\/p>\n Then debt funding is just saying we\u2019re going to sell debt. We\u2019re going to deal with paying it tens of years ahead. That\u2019s what really revs up the big spending week to the 34% mainly tied around the fact that two years ago the \u2026 Three years ago the district voted no debt. Two years ago voted 200,000 in debt. Last year voted 549,000 that [inaudible 00:06:48] is being asked for about 2.65 million in debt. That\u2019s going up. Then I do a little summary analysis to show you the trending. The longer trend, spending is about 15% over the four years. It\u2019s about 23 almost 24% on the three year.<\/p>\n It\u2019s up about 25\/26 \u2026 27 actually, on the two year. Also the levy, because that\u2019s the most important part of the job we\u2019re doing, setting the budget, is looking at what\u2019s going on with the levy. On that page it says, \u201cTotal two year levy. Total two year levy,\u201d at the bottom in black. First one should say, \u201cOne.\u201d I\u2019ve fixed that in the next version. As it sits, the way we\u2019re going to talk this evening, we\u2019re looking at something on the magnitude of 2.28% levy increase \u2026 which is very consistent with expectations of the municipal world. As a point of information, the town on average almost to the digit has been raising taxes 3% per year, for the last 6\/7\/8 years.<\/p>\n We\u2019re allowed to raise last year\u2019s base, 2\u00bd. We\u2019re also allowed to adjust that base by taxation. It wasn\u2019t in there last year, in new growth taxes. It\u2019s always more than 2\u00bd unless you don\u2019t spend as much as you\u2019re allowed to by law. We\u2019re certainly trending in the levy\u2019s side, where you would want to be. Page 3 of 14. First page is the reserve fund. Now, the reserve fund is established under mass general law. It is the care and custody of the executive body of the governing unit, in this case credential committee. It is bound by statute to be only used for what\u2019s considered extraordinary and unforeseen expenses.<\/p>\n What I plugged in to this model this year, is a reduction down to 35,000 for you to contemplate. It has been traditionally 50. The year \u201913 was extremely \u2026 What would you call it? \u2026 a transitional year. You were living out of that as you hear problems that erupted during that period. The actual use last year was under 30. This year it\u2019s maybe eight or nine. We\u2019ll probably have a little bit more. We had some winter issues here, clearly nothing on the magnitude of 50. There are 35 in the placeholder, you can move it up or down at your leisure. That\u2019s a decision that you\u2019ll vote an article at your two weeks [out 00:09:43] meeting and will plug a hard number in there.<\/p>\n That\u2019s one that you can play with. Next page 4 of 14. As you know, the district has a bylaw that mandates the motion and that requires that the motion included at the bottom of each of these budget worksheets \u2026 you\u2019re going to see that motion framing itself up in a box. We have to vote laboring salaries. That\u2019s voted as a separate appropriation. It\u2019s not fundable with the other appropriations. These are the limiting votes that your district likes to vote upon its management team. Our laboring salaries is going to be broken out in the motion.<\/p>\n Then maintenance is broken up to operations and miscellaneous. We\u2019re going to see those framing in each article that you\u2019re going to take up and deliberate. In this case, this is a [inaudible 00:10:45] department; we\u2019ve got to address the elected officials. If you\u2019re not going to change the elected officials\u2019 salary, which requires the setting of the salary, then that\u2019s pretty well wrote in stone. It\u2019s the cost of nine elected officials at 12.50 and one elected official at 2.50. The treasury line is level funded. We didn\u2019t know \u2026<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We\u2019re right here on this page?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 On the second line.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The clerk is level funded at the salary you\u2019ve paying there. There\u2019s enough in that level funding at the clerical position to be adequate. I think I show you her limit is 18 hours a week. She\u2019s currently at 20.60, started 20 and gave her a 3% raise. I\u2019ve taken the current and I\u2019ve budgeted another three into the budget. You can do what want with that. It\u2019s still under the 30, under 20 rather. It\u2019s a turn \u2026 We plug the 20 and we you\u2019re getting half the employee. All right. Everything up there is done. Everything is pretty straightforward in expense group. The telephone has been boiled down to 71 bucks a month.<\/p>\n It should be okay. Our payroll services, we\u2019ve tested and checked that number. Legal, I dropped it from 10 to 7500. You can put anything you want there. We haven\u2019t touched it this year. You had legal expenses for the purchase of the property, but that was separately budgeted and charged to the appropriation. At the moment, you haven\u2019t spent any. I just stuck 7500 in the placeholder. If you want to change, I\u2019d be happy to make the adjustment.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Mike, when we don\u2019t expend something that\u2019s been budgeted but \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Closest to surplus.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u2026 the profitability.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The next one, I sent you a email. I\u2019ve got it plugged at 12.750. The auditors have given you \u2026 If you recall the night they were here; we asked them for a quote. They\u2019ve given you a one-year quote to do this year. In fiscal \u201916 there\u2019s a budgeting for or they\u2019ve given you a three-year quote, that would include the \u201816, \u201817 and \u201818 appropriations which would be \u201815, \u201816 and \u201817 audit. I think I got a copy of their email. I can\u2019t remember the \u2026<\/p>\n Female:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Did you bring this?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I have it here yes. That was \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I think that they said, if you\u2019re going to do the one-year, I think they\u2019ll go with 12.750. It\u2019s budget at the single 12.750 rate. If you want to go and execute a three-year agreement with them they will charge you 12.250 next year, go up to 12.750 in the trailing year and then 13.5 for the third year. The choice is yours. We\u2019re plugged in at the one year. If we were going to go for the two year, we could take $500 out next [March 00:14:13]. If you want to take a vote, probably put this on the agenda since it\u2019s a procurement vote for your regular monthly meeting.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If you go for the three year then we can drop that down by 500 bucks. That\u2019s a choice you have to come conclusion on.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That would need to go out to bid though, wouldn\u2019t it?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Mass general log chapter 30B has procurement requirements. Exempted professional fields are attorneys, CPAs, engineers; banking. A board is allowed to hire the auditor that it feels comfortable \u2026 Bottom-line auditors aren\u2019t always the best, if you get my drift, as is bottom-line lawyers. Lawyer is a protected class as well. You can hire any lawyer you want.<\/p>\n <\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Enough on that. No, it doesn\u2019t have to go out. The board can hire whomever it wants. You can do it now because we\u2019re setting that budget up or you do it after the first year. You can go out to bid and see what\u2019s out there. There\u2019s nothing. Once you entered into the agreement with them, then you own the contract.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You\u2019re locked in. Yeah.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Thank you.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I had some pretty lousy auditors in the past.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 These guys do a decent job. They\u2019re one of several. They\u2019re out there. We see them all. We work with them all. Treasury services, I banked it up a little bit. That one\u2019s still a misnomer. I know you\u2019re working on the bid. We\u2019ll just let it hang there with a placeholder for the time being. Stenographer, we\u2019ve been running some expenditures. I bumped it up to 100 a month. I think that\u2019s fair.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That\u2019s going to be more than enough, I think.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes, because somebody was \u2026 Are you going to do the district meeting too?<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I think it\u2019s done separately.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It\u2019s done separately.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Female:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All right. 100 bucks a month per whatever you \u2026 I guess it was whether there were any request by the boards to record and go out and post and so forth.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Right, but both the other boards have clerical services available to them. We don\u2019t.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay. If you\u2019re good with that, that\u2019s fine. The banking expenses, I bumped it up a little bit more. The disclosure, I\u2019m carrying 1500 for that. They serve as a paying agent. They\u2019ve been surprisingly with thee little add-ons, where you \u2026 I\u2019ll go get you that disclosure document that we filed with the SCC.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The night we completed the audit, the next morning, the auditors sent the bank an undraft audit. They added it to the report and shipped it to the SCC. I haven\u2019t seen the final draft at present. Website, I level funded. I remember last year you changed it. She gave you \u2026 It should be okay?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Female:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It should be fine.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Banking, we\u2019re constantly getting retailed to death on banking. You can see what we paid in \u201914 versus what we\u2019ve budget. We\u2019ve made some changes to cut cost but I\u2019ve bumped that up a little bit more. Legal advertising, you have two. You have the tax rate hearing with the ADM, I believe. That\u2019s what we\u2019ve put in there. Postage is level funded. We seem to be doing okay with 650 last year and 553 the year before. Office supplies, we\u2019re trending downward. We did some extra \u2026 We got a printer this year, so I think we\u2019re okay at 15. Then the computer copy expenses, I\u2019ve level funded that. [Do some 00:18:00] memberships, I\u2019ve level funded that.<\/p>\n I\u2019ve stuck placeholders in there. We can talk a little bit in general about insurance, but we\u2019ll pass that for a second. Unemployment as slacked off. Everyone paid about 2500 this year. We\u2019re carrying 12.5 based on what we saw the previous two years. We\u2019re good to go, I think in five, for the time being. The payroll taxes, they\u2019ve been growing as we add in. We\u2019re going to pick up probably a retro payment for the firefighters in \u201916 plus adjustment payment, so all that hits my Medicare costs. I\u2019ve bumped that a little bit to cover some of the \u2026 what would have been normal in this year\u2019s budget.<\/p>\n Employer systems has been running the same. It\u2019s a contract price. We\u2019ve left it alone. The town doesn\u2019t bump that charge for he services. They do our assessing, they do our tax collect and then they charge us 6800 bucks, 6808 actually. In our report, we\u2019ve level funded election ballots. We\u2019ve level funded election cost. We\u2019ve level funded \u2026 That\u2019s the payroll cost basically, for the [ward and 00:19:19] so forth. Then 50 bucks for miscellaneous.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What\u2019s employee bonds? That\u2019s always blank but what is it?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It\u2019s a bond on the treasurer but it\u2019s part of the regular liability coverage, so there\u2019s no funding for that. It\u2019s an old one that they had in there that we can probably delete. We don\u2019t use that line anymore. We rev up about \u2026 just shy of 140 on the expense side. Comes in at just under 175 which is where it was this year. Still moving debt [chairs 00:19:50] around but I think we\u2019re okay. We\u2019re basically looking at a third of a percentage point less for the department next year.<\/p>\n Until we play around with that insurance and we talk about fire and water, we talk about whether you want to move that or not. There are no articles for finance or admin or anything this year, at this point in time. Where you\u2019ll see last year was the purchase of a building and not ownership of the building. That was pretty straightforward. We\u2019ll button it up tonight. We come back around, if there is anything you have concerns about just flag them and we\u2019ll fix them.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can I ask just one question? There is nothing in here for your computer support.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah, it’s in there. It\u2019s computer copy expense $7000.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay, all right.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That\u2019s the software license that\u2019s in it.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You don\u2019t have to ask me. We\u2019ll get to that when we get to the article. Everything that was on the front page, you will see all by itself with lots of lines. You have to be careful about talking about that because you have a conflict of interest.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I asked a question.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Are you on the library board?<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No.<\/p>\n .<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In my case I went to the ethics board and said, \u201cI used to be on the board<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Doesn\u2019t matter, you\u2019re fine. If you\u2019re on the board we\u2019re going to have to separate. Because you can’t be advocating for \u2026<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I told Jenny \u00a0to do this.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Anyway they came back and said, \u201cNot a problem. Just file the disclosure which is which I filed with the clerk.\u201d<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay. We\u2019re going to skip fire then we\u2019ll come back to\u00a0 We\u2019re going to skip water. We\u2019ll come back to that. That takes us to \u2026actually there\u2019s two pages of water. We\u2019re going to go out to page nine. Nine is this public building article that we talked about. Your custodial has been running in hot. It will be hot I think again this year. I think we have a small reserve from transfer. We calculated them. Leaks a small adjustment and wire that to 3,500 to cover you 12 months, that will be just under 300 a month for the custodial service.<\/p>\n That should hold you through next year even if you do adjust the salary, which we did adjustment last year for the gentlemen as well. Electricity, we\u2019ve bumped it up, rates are doing a little bit of this and that. You also added air conditioning, so we have to compensate for that. If we can get a better number from the installer, as to roughly what that might add. We can secure the number but I think the number is adequate.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Besides which \u2026 As of July 1st<\/sup> I expect the rate to go down<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That\u2019s right.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It was adjusted up because it there was shortage again.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I understand. I do it all the time. The bottom line is expected but there is no guarantee.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All right. We\u2019re raising the consumption in this building, not lowering.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay, hear you.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Water is two bills a year for the minimum 36. We budget 75, so there is a big slash fund there. We\u2019re doing gas heat and we\u2019ve checked the utilization for the last several months. We think the 5,500 they were proposing in there will adequately cover the gas bill. The whole purpose of the conversion was to save money. It may be more savings than what we\u2019re showing, but at least we\u2019re bringing it down.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In the library it went down by about half.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 When we went to gas.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Grounds, we bumped up because 200 more [plough or shovel 00:24:00] just placed adequately. Never mind in a bad winter. We brought that up. Phone seems okay at the level funding. The alarm we\u2019ve bumped up just to cover any cost adjustment out into \u201816. It’s been pretty flat for the past year or so. Building supplies we spent 142 last year. We got 150 so I thought we bump it up to \u2026 use of the building is increasing, we\u2019re trying to stimulate it. I think that that\u2019s fair.<\/p>\n Whoever funded the custodial supplies had plugged a number in for insurance. It’s almost 12% up. We\u2019ll talk about insurance in general and then the miscellaneous is flat. With the salary bump pushing \u201817 and about 4\u00bd on operations. The 10,000 figure also includes coverage for the other building on High Street. We\u2019re looking at a total budget increase on public buildings, of somewhere around 4 to 4 1\/2% right now before any final changes.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can I just let you know I asked Gary about the maintenance cost for the system? He said it probably be about 850 a year.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 850, for the HVAC?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Right.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Do you want to put that up?<\/p>\n Female:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes. When we discussed it we only \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We go to 850 from the six?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Could I have a pencil? Just going to change right here. You want to go to HVAC. Okay, that fixes. 850. Now it’s up about 5.36, no big deal. Then you\u2019ll see the box again. The motion will be for the labor and salaries, the maintenance, the operations the miscellaneous et cetera. There is one capital outlay article proposed for this budget. That\u2019s going to be 30,000 to finish up the interior of this building. You\u2019ll need to vote that as you put your rope one together on the night when we do this out in the regular meeting. We have covered that. Next page is still DPW, it’s the streetlights.<\/p>\n The electricity is budgeted down \u2026 it was budgeted down this year, because of the change to LEDs. It’s budgeted down more because we\u2019re trending now. We\u2019ve got a budget of 900 a month and we\u2019ve been running 815, so I think we\u2019re adequate there. If the rates do turn as we go forward, we should be good through \u201816. The maintenance, we\u2019ve gone to a 95-dollar-a-month contract. When we put in that we basically have 1,200 bucks. Then lights, a budget of about 700 bucks to put up a light. You already have the contract in place to cooperative.<\/p>\n Basically if somebody comes and wants a light added here, there anywhere, you\u2019ve got the capacity in this budget to add about two lights a year. Then the last line item, I think I pointed it out last year. I point it out again, I don\u2019t believe we need $4,000 of insurance to insure streetlights in case they fall down and hit a moving target. Because that\u2019s about what it is. You have general liability coverage, it’s adequate. You\u2019ve been \u2026 I don\u2019t know how many years you\u2019ve done this. In the last 10 you\u2019ve spent $40,000 just to insure yourself. In case a streetlight hurts somebody or some property, it’s just beyond my \u2026<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You said that under the general liability policy we\u2019re covered?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah. It’s an additional insurance coverage, specific to streetlights. It’s a specialty market. It’s bought and paid for. I believe the original theory was that, it was a contract or requirement.\u00a0 I don\u2019t buy it in West Barnstable. Streetlight people don\u2019t come and say, \u201cWe\u2019re going to disengage from you doing business with us, because you don\u2019t have the specialty streetlight.\u201d I can guarantee you that I can go to Common they don\u2019t have it. I can go to Barnstable and they don\u2019t have it. I can go to High Ends and they don\u2019t have it. It’s there it’s your choice if<\/p>\n Stan\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Should we consider to dropping it?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Definitely.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Absolutely.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Again when we come back around we\u2019ll vote these budgets the night we bring in \u2026<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 When would be the time to make that decision if we<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You could do it right now if you want. If you want to cancel that coverage, I\u2019ll take the 4,000 out right now and template will be set to go.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Let’s do it.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Do I hear a motion?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I will make a motion that we drop the insurance for the streetlights.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You second?<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Second it.<\/p>\n Female:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All those in favor? Unanimous<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Good job. Next one is library.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I have a request that I was given from the library.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You can put it in. You can take the vote you want right now. The template\u2019s holding it at 2\u00bd% increase. You can put whatever number you in there, it’s your warrant.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Basically the request from the library is to increase it from \u2026What was last year\u2019s?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It’s been currently 18,450.<\/p>\n Female:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 From 18,450 to $20,000.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That\u2019s an 8.4% increase.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah, it’s a small amount though. You can do as you want.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You want 20,000 in there?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I would be in favor of that.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I can’t vote.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You should stay away. You should leave the room, just being in the room you can influence. The two of you are going to have to come to some terms, as to what you\u2019re going to put in.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If we give the same raise as, same increase that we gave last year. They will get $18,910.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah. I think in round figures it was 249, whatever the number was I don\u2019t remember. 18,910 \u2026 18,910 is a 2.49. It should be slightly more than that but we can do 18,925. That takes it up to 2.57. You\u2019re in that zone 189, 189.10, 189.50<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What’s your objection, Fran? What point?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I think there are a lot of other increases that we\u2019re going to be having along. I know everybody likes the library. I like the library, I served on the board. There are lots of other needs. The district\u2019s going to need fire trucks. They\u2019re going to need a huge new water tower. I think to a certain extent \u2026 I think more people who use the library could probably give more money to it, as opposed to the taxpayers.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I look at the library as a community good. When we did the surveying and we got the stakeholders in the town. They consistently said they want the library to be a community place to meet, and it certainly is. Other than Freedom Hall the two are the only other place in the community to meet. In addition, they\u2019ve taken on a lot of additional responsibilities, like for Angel House. They bring the women, the homeless women in. Not only do they do things for the kids.<\/p>\n If a woman needs to generate a r\u00e9sum\u00e9 they help out with that. These are the things that they\u2019re doing. An outreach program for people that can’t get out of the house to \u2026 so they can bring books back and forth, all of these things. None of them add a great deal of amount but taken together they add. I totally appreciate your consideration to go up to 20. Although the percentage looks large the dollar amount really is like $1,000, $1,100.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I\u2019d be willing to go up to 19. I think any more than that \u2026 I think that might give the library unrealistic expectations for the future. I\u2019d be willing to bump that up to 19 but I think that\u2019s as high as I go.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I know. I\u2019ll go along with that.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Is that a move second to vote it?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Is there a motion?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Do we need a motion for this because this is a draft?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No. This is going to be the real one.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We\u2019re just going to re-ratify it. The more you can knock out today the less time you\u2019re going to take on the next one.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Why don\u2019t you make a motion for him?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I\u2019ll make a motion to increase the library disbursement for 2016 to $19,000.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I\u2019ll second it.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All in favor?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Aye.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Aye, so moved.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That one\u2019s changed. Now the next page 12 of 14, I\u2019m going to keep you at the top for the minute. At the top part you see that we have long term, short term. You can see the trend. Fiscal \u201813 was actually down 1% from the prior year. There was a small short term interest expense. Basically the two top lines, is the principle and the interest of the already existing bond. Will cover water tank one if you will? That\u2019s been pretty flat across the years. You can see it’s 105 the principle paid down every year. The interest goes down because you\u2019re paying interest only on the outstanding balance.<\/p>\n Every time you pay a principle payment down, the next year of interest costs you less. We\u2019ve been running notes now for couple for years, as these little 200\/300,000-dollar projects have been getting voted. Some of them actually go back to \u201811 and \u201812 they were voted. They\u2019re just starting to hit the road with the rubber. What we have in there is we have $268,000 in the \u201815 budget. That\u2019s pretty much done. In the \u201816 budget the 3,050 \u2026 $100 is just for the he bottom number. I\u2019m going to go up. I’ve dropped that from 350 to 100, because we\u2019re really not doing much in the way of payments. We\u2019re not having anybody hit us for interest.<\/p>\n We have to have that little number up just in case somebody does. The $3,050 \u2026 Just this week we sold 600,000 in change worth of notes. You signed them at your last meeting. That 600 in change is coming due next April when it’s going to cost $3,050. To pay the interest on a note we just sold. What I have budget for in that 160\/$200, is what I\u2019ve planned to write down next year at the anniversary day. It’s going to be three water notes and a pay down on the building on High Street. That budget is pretty much locked and loaded. There is not a lot of give me and then.<\/p>\n What I want to show you down below is, I\u2019ve built this schedule. What it shows you is by project, what I think is going to happen in \u201817, \u201818, \u201819 and \u201820. I\u2019m giving you a four-year look forward with some assumptions. As you can see, the current principle is on the tank. We\u2019ve been carrying temporary debt for roads. Which I\u2019m assuming that what we\u2019re going to do is, we\u2019re going to have a vote in this district meeting to do a water tank project. We\u2019ll do notes on that and we\u2019ll eventually bond it. We\u2019ll bond it more than likely during \u201817. We\u2019re certainly not going to bond it in \u201816, because we\u2019ll still be building it.<\/p>\n We won\u2019t bond it till we finish building it, so we know what we spend. We\u2019ll just use notes. I\u2019m assuming a bond sale in \u201817. I have 105 existing and a 58250 and even in \u201817 we\u2019ll sell it at the April date. When our notes come due \u2026 What we usually do is bond to pay off all the notes. We\u2019ll have temporary pay downs; short term principle on the water security which is just beginning, which is a vote that goes back a while ago. They\u2019re just starting to spend some money. The fire truck that is on this warrant will start paying principle for that in that year on short term basis.<\/p>\n The water tank principle will borrow for the year, so we\u2019ll pay down 100. Then assuming interest rates are going to be fairly flat again another year. I’ve plugged in a reasonable interest rate. Then I’ve plugged in the cost of selling a bond into this particular budget. What I\u2019m trying to do is grow from 330 this year to 430 next year. Because in a year when we sell the bond and we have all the permanent debt loading on, I\u2019m thinking you\u2019re going to be spending in excess of $500,000 just on fixed principle and interest. Which will then curl down slightly to 496, and then curl down again to 482.<\/p>\n You\u2019re looking at the magnitude of $500,000 a year going forward. What I want you to think about is, as these debt votes keep coming there is a time you have to pay it. You can see these votes go back into district meetings of \u201811 and \u201812, \u201813 and \u201814 and \u201815. What I also was showing down below is that \u201814 debt was up 15%, \u201815 was up 16%, \u201816 is up 17%. I’ve pushed it harder next year to drive it up, so that the jump doesn\u2019t go from the threes to the fives in the trailing year. To get some of it paid down in the note world before it gets into the bond. There is no guarantee any of this is going to happen as an absolute.<\/p>\n It gives you a visual. It also at the very bottom \u2026 I want you to be in the focus on where your capital costs are being generated. Your general government you can see is going to start costing about 30,000\/35,000, that\u2019s mainly developing. Public safety is going to be in the 40s. Because we\u2019re just going to get that truck, I\u2019m not sure I got that truck right. Because that truck I can put it out for 15 years \u2026 Or what did I do? It’s 16 years. Is it 16? No, the tank. The truck, it doesn\u2019t really matter. The fact of the matter is the fire truck is going to be your only debt. There 42,000 for 10\/15 years is how you\u2019re going to pay for your 550,000 fire truck. It’s really the water system that has loaded all the debt on and is loading it on<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You can see that it’s going to grow into \u201818. Once the bond is sold, it’s going to be in the mid to lower fours. I\u2019m just giving you this insight into what\u2019s coming. ASs these votes to issue debts keep coming and coming. That water has also got that restriction that’s still hanging out there. That we haven\u2019t sold any debt for that isn\u2019t an absolute. It’s safe to assume it’s going to happen. That\u2019s in there driving the water debt up as well. The budget we\u2019re going to seek to approve is the 331 this year. It’s going to quickly go up substantially in the next couple of years.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Just looking at some ratios. What \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I\u2019d rather not. I don\u2019t do ratios real well. I don\u2019t have anything in my head. I agreed I\u2019d meet with you. You want to get into ratios or something I\u2019d be happy to.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No. That\u2019s something \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I want to get us through this document tonight. Then we can start side of into the areas we want covered.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Forget our ratios. What’s out total debt look like compared to our income?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I don\u2019t know, I don\u2019t know. I just told you I don\u2019t have your numbers in my head. Any \u2026 You want to do a quick ratio or ask ratios. Any ratios you want to do \u2026You just got the balance sheet right?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 There you go. You got an income statement in there, you got \u2026 There\u2019s fiscal \u201814 audited at GAP. It\u2019s not very accurate as far as what we\u2019re doing here, because it’s going to be treating depreciation and everything else through that model. You can answer your ratio questions, just pull that up and look at it. With the next page 13, we\u2019re going to look at the benefits. I also gave you a separate schedule of benefits. Now the thing about benefits is we\u2019re actually proposing about a 5% reduction, believe it or not for benefits. A lot of it has to do with personnel changes. One employee, long time employee, family man just came in one day and said, \u201cI don\u2019t want any insurance.\u201d It\u2019s gone, okay thank you very much. Several employees retired<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [Inaudible 00:43:17].<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No, don\u2019t do anything. Just say thank you very much.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Another pair of employee\u2019s new hires, young people don\u2019t want health insurance, on mom\u2019s insurance, because I\u2019m not 26 yet, so we have two more employees no more insurance. Believe it or not we\u2019ve actually experienced a reduction in the census. Not to say that they can’t change. The model you see, starts you right up with the water employees. You see the very first water employee is only buying dental and life insurance.<\/p>\n The second water employee is only buying dental and life insurance, the third water employee is a full boat. The fourth water employee is a full boat. The last water employee is just buying life insurance. Now if you pull this model up from last year one, two, three, four, five. Fire you can see the model shows you whether they have dental. First fire employee has both dental and health. Some have life, some don\u2019t have life.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can I interrupt for a second there and ask a question about the life, because the life insurance is a requirement of the contract. Have these people voluntarily said they don\u2019t want it or \u2026?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Life insurance is \u2026 Also you got to be healthy to get it, so some of them don\u2019t want take the exam.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay, thank you.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Some have failed the exam. They have to wait a year with several new fire department employees who are still in there one year. Why they ever change from the same as everybody else, when you come in, you get it. When you come to work for this employer except in this one contract somebody got smart and said, \u201cWe’re going to wait a year, but you’re going to have to pay 100%.\u201d Somebody said, \u201cOkay. For $3.70 a month, I’ll pay 100% and wait a year.\u201d<\/p>\n Now they wait a year, then they have to take an exam. Some of them don’t want to go through the hustle. At the one year anniversary, some of them will hit it this year and probably buy it. We have actually chased down every person because when I do these models and I find these deficiencies, we fix them. There were a lot of deficiencies in this schedule.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What you’re telling me is a fire department employee can refuse the life insurance. Then they get killed in a fire \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It’s a 5,000 minimum coverage, the state law that covers them in a fire.<\/p>\n Female:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I still [inaudible 00:46:04].<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We don’t insure them if they get killed in the fire. We don’t. The State automatically deals with that. In the pension plan, that we have, deals with that. We don’t carry life insurance [inaudible 00:46:14]. Nobody, we don’t carry life insurance for anybody. They buy it, we provide it, we give them the access. They can buy $5,000 of accidental death and dismemberment. That’s it, and that’s by state law. Nothing to do with in the line duty injuries. That’s what chapter 32 \u2026<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I get the same thing; in sort of state retirement.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 When we run these balances up, what this model shows you is that I have budgeted one extra life, one extra dental and one extra phobo health. In the numbers that you see on the spreadsheet, for that article, just in case a demographic changes. We have some potential retirements in the fire department which would save the new employee that old coverage would continue and pick up the new coverage. The budget as it’s built … If you look at that model; it shows all the details at the very bottom. It shows you that I’m carrying an excess of about $22,000. It’s enough to cover one life, one dental and one family best you can buy kind of health insurance.<\/p>\n That budget, even though it’s down 4.7%, it’s good to go. Now, the last page is the stabilization fund. That’s been historically $25,000. That’s been building with no grand scheme of how to use. It’s something on the magnitude of 500,000 in change in the stabilization fund. This perceptually is a continuous 25 in. If you think in terms of what you going to do with that, it’s specifically for capital purposes. Ambulances are more like a 7-10 year life, on that vehicle. You bought any ambulance this year, we used free cash, and it’s in the 250 range. If you going to replace that ambulance in 7-10 years, it’s likely you’re going to need to have $300,000 at the time.<\/p>\n Or you’re going to have to issue debt. It might be prudent to thinking in terms of bumping up the contribution to link it to the replacement of a big ticket item like an ambulance or like a fire truck. Anyway, that’s where it’s at right now. If you want to change that, we can change that as well. That would be something that you would probably change as you get closer to balancing the equation. Trying to keep that 2.5, or keep that tax levy increase into that proper range. That’s the first blush through all about water and fire. Let me just go back to first file with you.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can I just ask a question? There was [inaudible 00:49:21] are there any general guidelines for a town this size or a budget this size, what the stabilization fund shouldn\u2019t like \u2026?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No. The GFOA of the United States and Canada Government Finance Officers Association, they talk about fund balance. They don’t care what you call it. In Massachusetts we have all these fancy names. That is a fund balance reserved for capital appropriation, if you will. It requires 2\/3 votes to put money in, requires 2\/3 vote to take it out. It’s not liquid as \u2026 As liquid as regular surplus. We would count that as part of the overall reserves. We have undesignated fund balance which is really \u2026 It’s a liquid equity of the cooperation. There are other fund balances, but those are the two big ones. The general rule of thumb is that you should at least 60 days of cash. If your real operating budget is, let’s say 3.6 million.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3.6 yes. In between \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Then you would be looking at 300 grand a month. You will want 600,000 to have two months\u2019 worth of \u2026 If the bills don’t go out, the assessor doesn’t assess, the bills don’t go out, the cash flow dries up. If the cash flow dries up for 60 days,\u00a0 and we haven’t got two months\u2019 worth of \u2026 Because we only get paid four times a year. The general rule of thumb is the guidelines say we as a professional organization recommend to our leaders is at least 60 days of expenditures in fund balance.<\/p>\n Now fire, I’ve taken the budget that they’ve developed and drafted into your template. The one thing that is highlighted here is that all of the salary wages \u2026 Salary wages are up 3% over last year. That’s mostly step raisers. The fire commissioners have amended the chief’s budget by 3%. Then the second line, permanent, fulltime. We have 12. That’s just up 2.2%. That’s just steps only. People who are getting steps from bettering the existing contract at the amounts that are in the existing contract.<\/p>\n The current contract, the fiscal \u201815 budget, is at the old contract rates. It’s extending \u2026 In fact at a special meeting we added 25,000 to continue the efforts to try to bring a deal to the table. If the contract isn’t settled and funded in \u201815 is becoming less likely than it is, then the \u201816 is going to have to pay back the \u201815 plus carry the second year of the contract in it. The commissioners have not put anything in this budget to reflect either a \u201815 or \u201816 salary adjustment. Clearly the \u201816 budget is, in theory, understated by whatever the second year of the contract requirement is.<\/p>\n The \u201815 budget is understated by whatever the first year of the contract negotiation is. That’s the way we presented it. We’re just going to keep it as a placeholder in the model for now. The rest of the budget is in the way they’ve presented it. Any of their notes that they added to their template are in your template. You can review this at your leisure. The second page brings it to conclusion. As they’ve presented to you right now it’s about 4.6% up over the prior year. The expense side is up about 10\u00bd%. The labor side is up 3%. That’s before adjustments.<\/p>\n Now when you take a look at the capital outlay, last year they had three articles. This year \u2026 The third one was the 25 that was at the special. They had two at the annual and one at the special last year. They’ve asked for 37 for chief’s vehicle and 550 for a truck. The debt that I showed you, assumed that the truck would be bonded. I brought up the stabilization fund because there is enough in there or there will be enough in there to do the truck presumably from the stabilization fund. You can pay cash and drain down the stabilization fund for the truck.<\/p>\n You could do some appropriation and authorize some level of that. That’s going to be a decision now that we’re probably going to have to hit the night of your meeting as well. When we pull all this together we’ll see better what it’s doing to the levy and what those future \u2026 If you can knock that future debt down, you can say, \u201cWe saved to buy the truck.\u201d We’ll commit to a 30\/40,000-dollar year program to get a new ambulance going. Then what you’ve done \u2026 I don’t know what other trucks are in the queue. If there’s a ladder truck<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I think we’re going to want a second truck \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Eventually they will but we’ve never have had a full vote capital plan for the whole district that shows what everybody’s got in the queue. Water gives a little bit every year, a little bit more for next year and year after. Fire tells you what they want, but I’ve never seen any comprehensive capital plan. The building was bore down out of the sky. There was no plan for that. These are critical pasts that need to be …<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If reelected, I hope you will have five year plan<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 These are the push-shove areas that we’re going to \u2026 That’s why we’re doing this workshop. In this case, the free cash will fund the truck, the chief’s vehicle or whatever. Then I’ve just said stabilization debt funding, lease funding \u2026 They even talked about leasing. Leasing is more expensive than doing a bond.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The interest was ridiculous.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It’s market rate. They’re not tied to the fed fund or anything else \u2026<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 They didn’t realize that.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No, of course not. We can borrow at much lower rates than we can lease out. A two or three year police vehicle lease is a lot different than a 10\/15 year. That truck goes out the door the day the lease ends or you buy it, you better have another one ready. It’s all on the table. You’re the advisory committee. We’ll figure it out as we get closer. Fire’s in there, they’re presumably in there. They\u2019ll presumably be at your next meeting we’ll have work through how we’re going to pay for some of these big ticket items. Then we still got to address these two years of unsettled contracts.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Is there some reason that they haven’t included that \u2026 The \u201815 \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The general rule of thumb is they don’t want to tip their hands. The point that didn’t get made before when you saying, \u201cIt doesn’t matter if you go up 8\/9% for the library.\u201d It sends a signal to the employees, that they should get 8\/9% because it’s not that much. The reason that people try to be altruistic across the universe of the appropriations, is because there’s ramifications back into the employee ranks. They don’t want to show a number that’s too high while they’re at the table trying to negotiate something. That’s the general strategy.<\/p>\n It still has to be conversed. They still have to know that, there are unknowns out there who plan for that. If you don’t appropriate at this district meeting for those two contract year settlements sometime during \u201816, you’re going to have a district meeting to do it, a special district meeting which is okay. It’s just is another meeting and you tell the district, \u201cWe’re raising your taxes to this.\u201d Once we set the tax rates there’s no more votes from the levy, it\u2019s going to come out of surpluses. We have to be careful how much we close out this deal within our surplus as well.<\/p>\n Water. Same thing with water, that’s page 7 of 14. Water generally gives you everything at the front end. This year for some reason they hedged on salary and wages. Not when they presented their water the night they were here, on the mandated bringing the budget night. They didn’t put any salaries\/wages in because they weren’t sure of what they wanted to do. I don’t think the chairman was very clear. What I did just to get something in, so that we can see the bigger picture, is I took what the individuals are earning now, and calculated it and assumed a 2\u00bd% adjustment to the current year’s wages. Just to get a number in there.<\/p>\n They had given us the \u2026 We call over time which is their on-call. For unknown reasons they showed up short on that. It’s a substantial amount of money. The bottom side of that, the expenses are, as they presented it, with their footnotes in the right-hand column. Still have to hammer out a final salary wage budget with the water commissioners at your meeting. It’s pending on because they haven’t come forward with what they want to recommend to you. At least you can see \u2026 That’s why I say the front page rolls out of all these back pages. I’m trying to do is get you to a good vision of overall what’s going on. In this case I’ve uploaded a little bit of extra in there just to get it into the model.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Interesting. \u00a0Percentage.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Because I always link that language to the same levy. I’m always targeting the levy not to go up more than 2\u00bd. I never like to see any budgets going up more than 2\u00bd or at least trading one down for one up, because you can raise taxes into infinity and nobody can do anything except throw you out of office. Now we have a water budget that present with some estimated salary wages. On the next page, 8 of 14, this is where we bring in the capital. As you can see, their request this year is they want a truck for 30,000.<\/p>\n They want a water tank for 2.1 million. They are requesting 2,130,000 capital outlay, which is enormous lift over last year because of that large tank. Then I boxed in, so you can see the motion as it’s framing up. What I also wanted to do for you because it hasn’t been brought to bear in much conversations since I’ve been around. As I show you down at the bottom, the actual operations costs for 2013 and 2014. I show you the budget for ’15 and ’16. I show you the capital costs and then I’ve gone back and I show you what the actual annual debt costs were over the debt budget.<\/p>\n You can see that in 2013 it actually cost you about $860,000 to operate the water. The recap revenue we budgeted was 481,000. It comes in pretty close to what we put on every cap. I haven’t done deep, dark analysis, but it’s good enough for what we’re doing here. The following year, it boiled up over 900. The debt grew and I started doing a better revenue estimate because this is the first year that we had good numbers. We went to 535, and that was \u2026 Still 41% taxes went into the water operation.<\/p>\n The revenue that we budgeted for this year is 540, the budget we created this year was a million 120. In the year we’re in, we’re currently subsidizing the water operation at about $580,000 with tax levy. That’s about 52%. Now the one that we’re looking at, based on the numbers I dropped in above, that’s one reason why I did this, because I wanted to see what we’re looking at. The small truck is the 30. The debt cost that I have brought forward is just pinned on notes; it’s only 269\/267\/268. Those other figures I showed you, ramping up into the force, are going to kick in, in a year or two.<\/p>\n This year looks like \u2026 Because we paid \u2026 used free cash last year for that 120,000 engineering for the [inaudible 01:03:00]. That was all subsidize by the tax base. That’s what drove last year up to over 52. I think we’re settling back down into that 40-45 range that we’ve been trending over the prior two years. Again it’s just insight into your decision-making that at some point, and I have no idea how far ago in the past it was, rates might need to be changed to take some pressure off the tax levy. Rate changes need to be done in such a way that we can prove to the DOI that whatever we’re estimating, when we set the tax rate, we’re actually going to collect.<\/p>\n Normally, if you’re going to bump up the estimate, like we’re doing ’16, the rates will have to have been voted in ’15 and in place on day one of ’16. I’m not sure if that’s doable. I just want you to be in thinking in terms of the process when you talk to the water commissioners, that if the district wants to continue just collecting 4\/500,000 a year for water and putting it all on a levy that’s okay too. You can do that. People tend think that my water bill takes from my water expense about half, maybe a little bit more. That’s what I want to show you in water.<\/p>\n At this point, we’ve covered everything that’s in your package. We’ve got a pretty good insight into where things are or still in flux, the fire folks will be in to see you on your regular monthly meeting. The water folks will be in to see you. We all have to put the one at that night. We know we have this number of articles; petition articles could show up still. Although most petition articles generally don’t have money associated on them. Last year we had one of those as well. I think you’re in pretty good shape. You can see that we’re tracking in the 6.6 million-dollar voting range. We’re tracking in the 2\u00bd -3% tax increase. There are some things we need to decide about resources for big ticket items. How do you want to pay for your truck; the big truck? How much more debt is behind what we already know. Those are about the biggest ticket items and challenges.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What did you say the amount of in stabilization?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I think it’s about 500,000. I had it before the meeting, so let me just check. I will update all these to the meeting we’re going to go to. We had 589 at the close of business on December 14th<\/sup>, about 590. You can do the whole truck as a CD that’s earning. We’re going to put another 25 in. You would still have 125 or more because it’s 40 in there, above the 550 plus the 25. You’d be in the 60s. You’d be building \u2026 You have 100 towards your next big ticket item. It may be prudent, as opposed to letting that debt go up like it’s going to go up, to not do the debt on the truck.<\/p>\n Just use the free cash for the ambulance this year. Free cash is trimming down. I’ve got overlaid surplus. It’s an available fund of 192,000 will be certified with the assessors. It’s going to cross to free cash. That’s going to give us a nice start for free cash next year. These will be \u2026 I will prepare some more detail of what’s available for you for your next meeting. I’ll try to give you some guidance. I think I’m leaning towards stabilization for the truck. Get that future debt down a little bit and might allow us to even spread it out a little bit longer and stabilize that especially if it’s no more in the queue for a few years.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How much would you use out of stabilization for the truck?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I take the 550 and but the truck with it.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You said we need \u2026 We should direct recommendation is we should have two rolling months stabilization fund to cover across \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No, no. Stabilization fund is only one of a number of fund balances, I said. Stabilization and undesignated fund balance are what we call free cash. Quite frankly, I don’t think the stabilization is a place to pay your operating bills. That’s why it’s a 2\/3 vote. It’s not there for a rainy day fund. It’s locked up in the CD. It’s not liquid. You’re asking about what is the normal reserve? It’s 60 days of cash flow; two months. That’s what would normally be in free cash if you’re going to live up to that. Most cities and towns have 5-10% because they don’t want to save that kind of money. They want to \u2026 Give libraries money.<\/p>\n Everybody wants to give their favorite but they don’t want to give them their non-favorite. They want to save but they don’t want to save to the limits we recommend. I’m thinking right now, unless somebody convinces me otherwise, the stabilization fund is right there where the track is. It takes 550 off the debt schedule and leaves some money in the fund. A new contribution maybe gets up, and I would direct that to make sure there was enough to buy the next ambulance from the stabilization fund. We’re allowing the state law to have specific stabilization fund, so the district could actually create an ambulance stabilization fund.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We had one once upon a time.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 May have. If you did, then there’s a documented vote by the district that says it’s still there. Regardless, we could do it the right way and you can say 300 a year for \u2026 30 a year for seven years is 210 and 40 a year is 280. Then you know that every year you have a tax payer equity issue when you do these save ups. All these tax payers have contributed to it. Then you don’t use it. You just sit on it. You got tax payers in this generation paying taxes to bank money that some future generation is going to have a field day with it. I believe when you’ve got 550 and you need 550, it’s magic.<\/p>\n It works. Leaves you 30\/40 put another 25 in, and then you build the fund balance for another ambulance seven years down the line. The free cash needs to be protected for cash flow purposes more than stabilization does. I’m thinking you pay for the truck out of that. It reduces that impact of that debt going forward so your levy is softer. Interest rates aren’t going to go up very fast. It’s a good time to be selling debt than getting it. If there’s any more to come people should probably say, \u201cI need it now.\u201d Get it done so that you can sell it at this low rate, because rates are going to start picking up.\u201d<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Do we have more than one loan in the outstanding \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No. Just one.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Just one? When is the last time when we financed that?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It’s never been refunded. It was actually funded two years ago.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Two years ago?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It’s market rate. You’re not going to get a refunding when you cross]. No, there is no incentive to refund that particular piece of debt. Refunding was a game we played 5 or 6 years ago and even longer but not happening now.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The other question I would have is, one of the statements you made is you wouldn’t want to go out and bond something today when we don’t know exactly what the final cost would be \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We use notes. The district is going to authorize $2.1 million to tear down two tanks to build a tank. They’re going to elect three contracts and probably a couple of engineering contracts. They will have an engineering contract and a tear down. They’ll have an engineering contract in the build and they’ll have an engineering contract and a tear down. Those six contracts will boil up to some amount. Can’t be more than 2.1, but they might come in at 1.75, might come in at 1.8.<\/p>\n Now you want to go and borrow 2.1, to find out I’m sitting on 300,000 because then I have what is called Arbitrage Rebate. Because now I’ve got borrowed proceeds in a tax free market and I’m investing in the market. I have to give all income I earn on that to the IRS. We avoid that, by taking notes as we construct, button up construction, punch list is done, we know exactly what we need to borrow. That’s what we sell the bond for. We pay off the notes.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Thank you for verifying that.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Go ahead.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Insurance.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Insurance. In your fire department budget on page 6 of 14, just above the total fiscal year budget, you’re going to see insurance property and liability. You’re going to see insurance vehicles. You’re going to see insurance accident and sickness and umbrella. There are three lines in the fire department. They’ve put in 30, 9, 8 and 6,000 \u2026 I’m sorry, 12,000. That’s where coverage for the fire department vehicles, the accidents and sickness and the buildings and liability are there. That also covers the bond you asked about earlier. That’s in there, workers’ comp. You’re going to have the water because fire doesn’t really do workers’ comp, they do accidents and health.<\/p>\n That’s part of our insurance plan. If you go to water, page 7 of 14, near the bottom of there, [inaudible 01:13:31] list. You got insurance property and liability of $56,000, vehicles of 5,300 and workers’ comp of 87. Now the workers’ comp for you three folks, that’s in the war department. The workers’ comp for a gentleman that cleans this building, it\u2019s the only place we have workers [inaudible 01:13:50]. When I first got here, you didn’t have workers’ comp nor did the custodian. No officials did nor did the female employee in the fire department that does clerical work.<\/p>\n Not did any of the females that worked in the accounting office have workers’ comp coverage. We had a workers’ comp. I make sure that at least everybody’s payroll was included in the there. Everybody is fully covered. You have this miss-match. Everybody’s running around with insurance money, I think the brokers \u2026 Then we have the insurance and the electric lights. We also talked about. There is, I believe, an economy of scale that could be accumulated by putting the insurance in one place in the avenue and procuring a package of coverage for all of the district’s buildings, all of the district’s vehicles, all of the district’s liability and all of the district’s workers’ comp.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It’s been discussed in the past and they have never got it.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 May be \u2026<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Bottom line.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Again, you go in the district committee, you recommend your budget, if they want to take your budget apart and make it their budget, then that’s what the attendees are there for. I’m just suggesting that I don’t believe that I have found risk exposure in that there were literally a dozen or more people who were not insured for workers’ comp. Because water only worries about water and the only place I can find a workers’ comp appropriation is in water. Maybe we should put a second workers’ comp policy and buy two. Because every policy you buy has an admin clause in the frontend and then it has its coverage component. I just believe that the district can\u2019t do worse than what it’s doing by consolidating. Again, it’s your thought.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I have presented it and they discussed it before. But I couldn’t get them to vote.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 At your meeting when you review these two departments, their budgets, you can have the conversation. The models are all built, take them from one, put them in another, leave them where they are, makes no difference to me. I think you can do a better job making sure that you don’t have exposure for uninsured risks and save some money. That would be \u2026 requiring one comprehensive request for coverage. I believe a lot of them use the same \u2026 To the best of my knowledge, Mycock or VIF are the only two places that the district has any purchasing of insurance. I still quite have \u2026 Frankly haven’t figured out where what is \u2026 I think this building is separate with Mycock. The street lights are with Mycock. Then I lose it after that.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I apparently VIF wouldn’t insure this building.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It’s all right. That doesn’t mean that \u2026<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Somebody else won’t.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If they’re not going to insure this building then maybe somebody will. They’ll also insure the fire department and it might be cheaper. Because there are bigger bolder companies, if they’re willing to take this risk on, then they sure as doing to take down the fire station for fire coverage [inaudible 01:17:09]. How much would it cost? What’s their loss potential? A fire station going to burn down?<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How do we go about taking \u2026?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I think you take it up with your fellow boards on your review night, it’s two weeks out, right?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You can hash it out amongst yourselves. You’re going to recommend a fire budget. It’s going to be in your book too and this package, to the district at the meeting. If you disagree with them, then they will try to amend your recommendation because you’re going to move the budget. Normally let them move it. If they’re adverse to it, you’re the recommending body. You recommend the budget would be consolidated, if that’s what you want. It shouldn’t be a big deal. Either they’re with it and you do it, or they’re not and you don’t. You move on. It will be that night. You’re not going to do it tonight.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah. Right.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You’re going to give them a conversation further.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That’s what I would do. That’s your insurance. Dilemma is, where do you it ? Who manages it? How does it get shopped? If you all go out together for three pieces and three separate budgets, it just seems a defeating of a consolidation. It would be \u2026 We have VIS insurance for the sickness and accident in West Barnstable. Because it’s voluntary fire insurance and it’s what we are. Accident and sickness is really the reimbursement for their 1-11 [inaudible 01:18:46] because we self-insurance for workers’ comp in Massachusetts, for public safety.<\/p>\n For police and fire we don’t have workers’ comp as a rule. They have an accident and sickness, the district gets some recovery and that comes in as general revenue and miscellaneous revenue when we’re paying somebody who’s out and injured on duty. We have Rogers and Gray for all the other coverage. They’ve bid and they’ve covered the buildings and the vehicles and the umbrella everything else in that line, general liability. That’s not to say that, they would be interested in bidding here.<\/p>\n They wouldn’t use necessary VIS for the building. They would use whatever company they could get the best deal from for all the buildings. You’ve got buildings on all the water properties. You’ve got building out on 28, you got this building you got the two buildings on High Street. There are a lot of physical locations at this point. I’m not even sure you got everything on schedule. I’ve never sat down and ticked and tied all the properties to the insurance schedule to be honest with you.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The consolidating the insurance could we get it all accomplished in time for the district meeting?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Oh yeah. It would be the way the budget gets \u2026 It’s either going to be on \u2026<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Just take the amounts they have \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In their budget and put them all together and this goes down and that one goes up. It’s still a net-net, the same. Then it’s only one place and the district can try to achieve a better performance. It starts with getting quotes and quite honestly if it’s going to be piecemeal then we have to chase our piece. Because we\u2019re not in control \u2026 I\u2019m not even sure the renewal dates are [inaudible 01:20:24]. I think there are some July 1 renewal dates. Because I think we get this hurry, hurry give us a check on July 1. We\u2019ll deal with it after the budget\u2019s set in two weeks. First you\u2019re got to decide how it’s going to \u2026what the approach is going to be.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Let me ask a question on the procedure. Since we\u2019re budgeting the money separately for fire and water for insurance, so we have a total number in the budget. If we don\u2019t make the new estimates, the new consolidations in time for the district meeting \u2026 Can it happen after the district meeting? As long as you have the money is appropriated it can happen anytime?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah. The package can be put together and the bids go out. You just pan form \u2026 it’s like a spider web. You got to make sure you got this piece to this piece to this piece.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If it comes in to equal or less we\u2019re covered for the total insurance?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah. We\u2019ve never had trouble estimating total premiums. It’s not the problem estimating the premiums, I think there\u2019s gains to \u2026 Every year they just call the same guy and he says, \u201cOh, put up 10%.\u201d Nobody says, \u201cGee that\u2019s seems like a lot.\u201d I\u2019d rather give it to the library. I\u2019m not picking I\u2019m just pointing out, that everybody has their favorite things to do. Some people just want to call one phone number and say, \u201cHow much should I put my budget?\u201d If they give you a number that\u2019s large enough, then they can tell you what their premium is after they\u2019ve told you what the budget is. It should be the other way around.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 At the library I did go out to bid the general liability policy. We save $3,000 a year.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cheers. That\u2019s my point. There\u2019s plenty of competitive business out there \u2026<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Absolutely.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 for underwriting insurance. It’s not rocket science.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 How do we \u2026 What leverage do we have over the commissioners in the water and \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I don\u2019t think you have to worry in terms of leverage. Most people are good and common sense will prevail. Either you take a chance and put it all in one place and try to do a good job. If it fails then migrate back to the old model. I don\u2019t think it has to be a big deal, it’s just food for thought. It’s something that\u2019s it starts in this process, if you\u2019re going to do anything to change it. You can’t change once you\u2019ve recommended the piecemeal approach again. You\u2019re right you can go out and did it. The next year you can back and say, \u201cWe beat it all out and we paid it from all these lines. Now we just want to put it right here.\u201d I\u2019m good if you\u2019re all set.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay, thank you.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I think you\u2019ve got enough. You can look at your papers for a while and figure out what you like and don\u2019t like. If you have questions you can email them to me. I think we\u2019re in pretty good shape. We know where the highlights and lowlights are. It will be important for the two commissions to come in and finalize those two big ticket budgets. Everything else within your domain seems to be in pretty good shape. That\u2019s about it. I have this new timeline graph. I didn\u2019t give you much data on it, but I\u2019ll issue another one the next time we get together for the backing. Nothing\u2019s changed. I\u2019m not sure what day Charles is going to post his warrant. It will be sometime after your meeting. I think everything else is pretty much the same. Civic association 21 April \u2026 We\u2019re not going to have much more than what we\u2019ve discussed here.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes. If they do a .<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We can talk in general. Water will be \u2026<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u2026 water and fire go and represent their own, right?<\/p>\n Male:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes, right.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 They can talk in general about what they \u2026 Because water hasn\u2019t given you even salaries yet and fire has some \u2026<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The contracting out there.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes. I haven\u2019t put that date down. Do you want me to do that meeting, the 21? Or are you going just to cover it?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I think usually we just cover it.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Okay. They\u2019ve always had me come.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 They\u2019ve had you come?<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 By all means.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I prefer not to, to be honest with you, because it’s like I can’t answer your questions. Because there is no \u2026 I would think that they would do candidates first and budget in May when everything\u2019s set to go, when we can have a realistic discussion. Remember lady last year was screaming like, \u201cHey \u201d We\u2019re only half way through our own deliberations. We don\u2019t even have final budgets yet. What are we supposed to tell them?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That\u2019s right. Boy scouts are here tonight.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 They\u2019re downstairs.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I\u2019ll drop that date on my book. We can tentatively be there. If you want me there, don\u2019t want me there; just let me know. I can take it. I\u2019m not asking for the assignment. I prefer not, because quite honestly we just don\u2019t have much more than what we have here. We will after your 27th<\/sup> meeting. That May meeting would be before and it would be a robust one with all the recommendations. It would make sense that that would be the night that they do it.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We should make that recommendation to the civic association? When we meet that day, reverse those two?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 You\u2019re not doing that this year?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Because they\u2019ve already said two days and published their \u2026 This is what we tried to tell them last year as well. Schedule is in good shape. The \u2026<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can we move on to the potholes?<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Did you want to decide this tonight? You\u2019re going to do this after your next meeting?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We\u2019ll do that. As long as it’s all right that we wait for that.<\/p>\n Mike:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah, they\u2019re fine. They don\u2019t care.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Of course they\u2019d like the answer sooner.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yeah. I contacted four paving contractors. Two didn\u2019t respond, Northern Paving \u2026 actually three didn\u2019t respond. Northern Paving, Arcade Paving, and Info Paving Cape. I got two responses. One was from Clover Paving [inaudible 01:26:30]. Their cost just to the of the parking lot was $2,800. I also got bid form RJ Nardone who are in Dennis. They would do $1,000 to repair the entrance. They would bring it in 14 feet, so that it’s all connected.<\/p>\n He also suggested there are two other problems. In the middle of the parking lot there is another pothole if you haven\u2019t noticed it. The drain that\u2019s over here outside of this door doesn\u2019t drain. Because the level of the parking lot is lower than the drain. He suggested we might want to adjust the drain cover as needed. We set it and paved around that, so that would be an extra $800, for a total of $1,800.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 He\u2019s doing all that for $1,000 less than the other guy.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 He\u2019s doing more for $1,000 yes.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I’ve heard of Nardone.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What’s your recommendation?<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 My recommendation is to go with Mr. Nardone.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I make a motion that we accept the estimate for Mr. Nardone.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I second it.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All in favor.<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Aye.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 So moved, thank you. We don\u2019t need to address the remote meeting policy. That\u2019s not going to be a concern any longer. I will entertain a motion to adjourn.<\/p>\n Laurie:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I move to adjourn so that I can get home to my husband<\/p>\n Stan:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I will second it.<\/p>\n Fran:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 All in favor. Unanimous<\/p>\n