Members Present: Carol Merrill, Mona McCready, Jennifer Morin, Robin McAfee, Gabby Daneault, Dan Howe, William Barnett, Thomas Gilligan, Larry Anderson, David Eaton, Tom Irzyk and Art Houle

Excused Absent: Robin Pelletier

Unexcused Absent: Brian Duchesne

Others Present: David Jodoin, Fire Chief Everett Chaput, Rob Martin, Police Chief Jim McGonigle, Sean Mulholland, School: Terri Kenny, Betsy Stebbins, Evelyn Guilbeault, Louise L’Heureux, Jeanne LaBelle, Peter Aubrey, Sewer: Jim Rodger, Dana Clement

Jennifer called the meeting to order 6:35 p.m.

David J. explained that from Social Security to FD Retirement all of these amounts are generated by hours worked, overtime, etc. and we have to control over the rates that are established. Tom G. asked why Worker’s Comp went up. David explained that worker’s comp and unemployment are at 5%, we will not have the final concrete numbers until later on in the year or the beginning of January. Tom G. asked if someone was on worker’s comp. David stated no, this is just for the insurance premiums.

Tom G. asked what the increase was for the group insurance and dental insurance lines. Is it the adjusted rates or are people working more hours. David J. stated that it is a little of both, the rates for health insurance went up 17.6%, the dental rates went up 3.6%. There are individuals on the insurance plan this year that were not there last year because of change in spouses insurance, etc. This also takes into consideration the Welfare at half a year, building at half a year. Tom G. asked if these position were not full time, yes, effective July 1.

David J. stated that the Group Insurance line has been dropped to $167,761 because he just found that someone will not be taking the insurance, making the new bottom line $366,647.

Tom G. asked how Henriette’s position has been factored in, have they been included with these rates. David J. stated that he has not done anything, she was on single at 30 hours, and the Town would only cover the single portion. So if some would like a two person or family plan, they would have to pay the difference. Tom G. stated that Henriette is retiring at the end of 2004. David stated that the buffer for that amount would be $5,599.44 and the dental would be the $389.16. David J. stated that Henriette’s current rate is in the Executive Budget already and also in the personnel for Medicare and Social Security. Tom G. asked if they were planning to carry this position through July. David J. stated that the Selectmen have not made a final decision yet. Currently the money is still in the budget, but we will see how things go after the first of the year.

Dan made a motion to accept the Personnel Budget bottom line of $366,647, Larry seconded. The motion passed with one abstaining vote (Tom I.)

Chief Chaput explained that he had asked for two trucks at the beginning, then changed it to one truck, now we are down to no trucks. With the items that budget this year being the $3.2 for the school, $700,000+ for the Police Department and whatever the number is for the Sewer, he was contacted by one of the Selectmen and was asked to rethink the Department’s position regarding the fire truck. He still felt they needed to go for a rescue/pumper at a cost of $400,000, this was presented to the Selectmen at their public hearing at it was defeated 2-1. He still feels that they need a new truck, but understands that if there is too much on the warrant nothing will pass. This does not change the Fire Department’s position on our needs.

Prior to that he had removed three of the original six warrant articles and reduced one of the other ones. We removed the two $1,000 requests and we removed a request for the visual repeater system, although needed, we can live without it for another year. The fire truck was left on and a request for a pick-up truck and we had reduced the original request on the Fire Department Capital Reserve for Safety Equipment from $60,000 to $20,000. $10,000 is to replace the $10,000 we used this year and $10,000 is to replace actual gear. We have two new members of the Department who are awaiting gear and we have had to find the money to get the gear for them and they can’t respond on calls.

Warrant Article #4 is for $20,000 which will replace the $10,000 that was used this year and give us $10,000 to work with and build the account so we have money there so that when we take on new people we can buy gear or if we have a deficiency within gear, it can be replaced.

If you remember when the Fire Department budget was presented, we had removed almost all money from gear in the budget and we stated we would try to use this account.

Warrant Article #3 has been changed. Chief Chaput stated that the existing rescue truck is in horrible condition. We are looking at some $28,500 work of repairs that need to be done. We looked at a Ford Excursion that would be retrofitted to do EMS response. We would then be able to park the existing rescue in the back of the station and only send it out on automobile accidents and building fires. The biggest problem is that all the rescue equipment is on that vehicle. The Excursion will allow us to use the vehicle to do EMS response; we would be outfitting it in the rear with a cabinet type set-up to carry the EMS equipment, backboards, etc. It would be used for EMS responses and to travel guys back and forth to fires and it will be a place to get them out of the weather while at a fire.

There are two breakdowns, one is a V-10 and the other is a 6.0 Diesel. Our recommendation is for the 6.0L Diesel at a purchase price of $34,310. We can either pay the full amount up front or do a lease purchase, which he would recommend, with four annual payments of $9,302.70. He would like to request that the Committee consider the $9,302.70 be put in the Fire Department budget.

Larry asked if they had gotten bids on a Chevrolet or GMC truck. Chief Chaput stated that Ford has the State bids this year and it is the lowest priced vehicle. Tom I. stated that if we go with the lease purchase of $9,302.70 this would be added into the Fire Department budget for the following years. Chief Chaput stated if it is placed in the budget, it is one less warrant article and is then in the budget. Article #3 as written has been removed.

Tom G. stated that the 6.0L Diesel either a purchase price of $34,310 or $9,302.70 in your budget this year and then to be carried out the next three years, so it rounds up to about $37,200. So you would like us to consider either a warrant article for $34,310 or reopen the Fire Department budget and go $9,302.70 for the next four years.

Chief Chaput stated that he is willing to accept whatever option the Committee wants. He realizes this is short notice and in the last two weeks, we have been doing some quick research and trying to get pricing together on this vehicle. The other things we need for this vehicle, lights, cabinets would be money from Capital Reserve that exists for fire apparatus that has $17,000 in it. The rescue equipment would come over from the existing unit.

Tom G. asked if they would put their existing plow on this vehicle, Chief Chaput stated that this vehicle will not have a plow on it, it will only be an EMS vehicle. Tom G. asked if the current truck you use for plowing fails, can you use this new vehicle to do the plowing? Chief Chaput stated that technically you probably could, but we have budgeted no money to retrofit this vehicle with a plow.

Chief Chaput stated that the Town is looking into contracting their plowing for the Town buildings. His only concern when they plow the Fire Department is that they don’t only take two passes and call it good and then finish when the storm is done. It means you come and plow out everything and if you have to come five times a night that the way it is.

Tom G. asked if there was any other services that this vehicle will be able to replace, such as when the guy go around and check the cisterns, can they use this instead of the big truck. Chief Chaput stated that he would not recommend it, looking at the big picture, if he sends the guys out to check the cisterns at 2 p.m. if they have a fire truck and a call comes in that a house is on fire, they can respond right away, but if they go out with the Expedition, they then have to drive back to the fire station get the fire truck and then go back where they were. We can handle any call with a fire truck, but with a rescue they can only handle a limited amount of calls.

The current rescue’s use will be dramatically decreased probably down to 15 to 30 calls a year. The new EMS response vehicle will take the day-to-day bandied calls. This new vehicle will help with the wear and tear down on the trucks.

Tom I. stated that the fleet at the Fire Department just keeps growing. Chief Chaput stated that the fleet has decreased since 1996. The rescue/pumper is a combination vehicle. His intention is continue to buy vehicles that are multi functional vehicles, but unfortunately, it is not an option right now. The rescue is an 18-year-old vehicle and it is in bad shape.

Tom I. stated that he would hate to see the department buy this vehicle then not have room in it for all the equipment it needs to carry. So do we buy another vehicle? Chief Chaput stated his initial intention was the rescue/pumper, this would combine the rescue and Engine 2 into one vehicle. We were going to look later at an EMS response vehicle so we were not sending out a $420,000 vehicle every time somebody breaks a leg. Right now we are putting the cart before the horse. The rescue/pumper was the horse and the EMS response vehicle was the cart.

Jennifer asked if when they get the rescue/pumper everything would then be removed from the old rescue and placed on the rescue/pumper, yes.

Tom G. asked how the Selectmen felt about this. Art stated that they had just gotten the information, we will probably be talking about it on Monday night. Tom G. stated that they should table this recommendation until the Selectmen have a chance to discuss this matter. Tom I. stated that he would like to hear the Selectmen’s view on how they want to add this, either to the budget or what they feel is best.

Chief Chaput stated that they are not thinking about the outright purchase as we were looking at the warrant and make it as small as possible. In hope that the other warrant articles would pass, such as the School, Police Station, etc. The Department is trying to do their part to facilitate that.

Tom G. stated that he would just like to commend the Department for compromising and keeping everybody else that has some serious needs as well. I understand that your need is serious but Tom would like to commend them for doing that and coming forward with a solution that reduces both the impact to the bottom line in terms of warrants and the number of warrants on there.

Warrant Article #4 – To see if the Town will vote to raise and appropriate the sum of Twenty Thousand Dollars ($20,000) to be placed in the Fire Safety Equipment Capital Reserve Fund created in 1999. This article is recommended by the Board of Selectmen.

Tom I. made a motion to accept this warrant article, Dan seconded. The motion passed unanimously.

Warrant Article #2 – To see if the Town will vote to raise and appropriate the sum of One Hundred Twenty Five Thousand Dollars ($125,000) to be added to the Public Safety Facilities Capital Reserve Fund, and to further authorize the transfer of 2003 Fund Balances to this amount. This transfer will have no impact on your tax rate. This article is recommended by the Board of Selectmen.

Chief McGonigle stated that if #2 passes, then the money in that account will be used to reduce the impact on #1. So #1 could be as much a $200,000 less.

Tom I. asked what it meant by transferring of the 2003 Fund Balance to this account. So the current balance if $125,000, yes. So basically, this is authorizing the Selectmen to use this amount for the project, yes.

Art stated that the Fund Balance could run a high as $1 million, but this is not a true figure because a lot of it is in limbo. If someone does not pay their taxes, that is included in that fund balance. We did this with the fire station two years in a row, we did $250,000 and $250,000 and that is what paid for the fire station, so this was a large savings to the taxpayers. Dan stated that they should inform the taxpayers of this because they are still upset about the fire station.

Every year we have been able to reduce the tax rate with funds that have been in the fund balance account.

Tom G. made a motion to accept Warrant Article #2 as written, Larry seconded. The motion passed unanimously.

Warrant Articled #1 – To see if the T own will vote to raise and appropriate the sum of Seven Hundred twenty-five Thousand Dollars ($725,000) for the purchase of property located at 40 Allenstown Road, Tax map 109 Lot 33 currently known as Allenstown Tractor, for use as a new Police Station, and to authorize the issuance of not more than Seven Hundred Twenty-five Thousand Dollars ($725,000) of bonds or notes in accordance with the provisions of the Municipal Finance Act (RSA 33) and to authorize the Allenstown Board of Selectmen to issue and negotiate such bonds or notes and to determine the rate of interest thereon. (3/5 Ballot Vote required) This article is recommended by the Board of Selectmen.

Tom I. asked if they knew what the tax impact would be on this.

Tom G. asked what the proposed bond would be on this article? Art stated that is $125,000 comes from capital reserve, the bond would then be $600,000. There is also a little buffer in there of about 3.5% that will help us for any unforeseen things that may come up.

Lt. Mulholland stated that he had rates for 10, 15 and 20 years. For a 10 year bond, the first year estimated increase would be .34, it then goes down to .32, .31, .30, .29 and .24 is the last year increase.

The 15-year is .27 cents then goes down to .16 for the last year. The 20-year is .24 for the first year and .12 at year 20.

Tom G. asked if they could tell him the total interest payments on each one of three bonds? Lt. Mulholland stated that the total interest on the 10 year loan is $150,000; on 15 year $230,000; and on the 20 year it is $317,000. That is at the present rate and we all know that the Fed’s are going to raise the rates slightly over 2005. We could probably get locked in around the first week of April if everything goes as planned.

Right now the rate is 4.5 for the 10-year loan; 4.75% for the 15 year and 5% for the 20 year. This is based on a principal amount of $600,000. If we were to borrow $725,000 the numbers would be different.

Larry made a motion to accept Article #1, Carol seconded. The motion passed unanimously.

Lt. Mulholland stated that if anyone is interest in going to the new building during normal business hours, he would be willing to walk someone through and talk about what plans they have for the building. Anyone who is interested can call Lt. Mulholland.

Warrant Article #5 – To see if the Town will vote to raise and appropriate the sum of Five Thousand Dollars ($5,000) to be placed in the Police Cruiser Capital Reserve Fund creased in 1990. This article is recommended by the Board of Selectmen.

Tom I. made a motion to accept this article, Dan seconded. The motion passed unanimously.

Warrant Article #6 – To see if the Town will vote to raise and appropriate the sum of Three Thousand Dollars ($3,000) to be placed in the Special Revenue Dare Fund. This article is recommended by the Board of Selectmen.

Tom I. asked why this amount was $3,000 and not $10,000. Jennifer stated that it is less because of trying to get everything to pass. Tom I. stated that this will not even fund the whole project. Chief McGonigle stated that they have historically had a warrant article for $10,000, currently there is $12,900+ in the Dare Capital Reserve Account. To run this program for the whole year is right around $10,000.

Tom I. asked if the program would stay intact? Chief McGonigle stated that the program would not be impacted. We will not have much money in the Capital Reserve fund next year, but will bring the appropriate up to $10,000 next year.

We have traditional had three other warrant articles that were not even submitted this year.

Tom I. made a motion to accept article, Dan seconded. The motion passed unanimously.

Warrant Article #7 – To see if the Town will vote to raise and appropriate the sum of Two Thousand Dollars ($2,000) and to further designate the Allenstown Board of Selectmen to act as agents to expend from the Allenstown Meeting House Capital Reserve fund created in 2004. This article is recommended by the Board of Selectmen.

Larry made a motion to accept this article, Gabby seconded. The motion passed unanimously.

Art stated that the Selectmen will present another warrant article to change from Senate Bill 2 back to Town Meeting. Tom G. asked what the advantage of this would be. Art stated that basically he feels that it is a tough ballot when it is 10 pages. Jennifer stated that the community was much more informed about what they were voting on and why and how it affected things.

Tom I. stated that one of the reason for the Senate Bill 2 thing was that people would wait until everyone left and then remotion everything and bring it back up and then cut everything that the majority wanted.

Tom G. asked what changes would be made if Allenstown was no longer a Senate Bill 2 Town. Art stated that we would not have the large ballots, it would only be the people running for office. Warrant Articles would go to Town Meeting. David J. stated that bonds would still be done by ballot. This warrant article would only be for the Town.

Jennifer stated that we were tasked to taking time to go through the budget further and to send Jennifer any questions that the Committee may have to get them to Tom ahead of time so that he would be prepared with answers. Jennifer was not able to get the questions to Tom before tonight’s meeting.

The only question that was raised was a little bit of concern about hiring the new Computer Technician. The question was: Was there any thought put into what it would cost to hire a consultant for this position, then the School would not have to pay benefits.

Tom I. stated that they had not explored that avenue. The thought process was basically just in the amount of computers we have at school now, the servers, the web applications, all the functions and functionality of report cards, etc. It is just getting to be way too much for just one person to take care of with repairs, updating, etc.

Betsy Stebbins stated that it is the day-to-day stuff. Having a consultant would be difficult because it is one computer in this classroom, one in that classroom and the running around that needs to be done. Trying to get it all organized would take months until the consultant came in to correct problems. Which is what is happening now because our Computer Technician is so overworked, the instruments go without being able to be used. Everything is being prioritized and we want to get to the point where we can service them for the kids who use them.

Jennifer stated that they could hire a full time consultant from a company and have them in the building all the time. We have them at Anthem. Betsy Stebbins stated that she could not imagine that it would be cheaper. Tom I. stated that he could not imagine that the cost would be cheaper. Tom G. stated that it would depend on the company. The flip side would be that the School would not have to pay benefits, that person is not necessarily considered staff, there is no contract negations, it is an agreed upon flat rate that you are paying that person.

Tom I. stated that they do that at his company, he is contracted to be at a specific site all year long, 8 hours a day, 5 days a week and we are paid a flat fee for that. If any computer charges what my company charges, it would not be cost effective.

Tom I. stated that some things have changed since the School Board met with the Budget Committee. The Board met last Thursday and we readjusted the budget due to the change that was made at ARD. We were going to departmentalize and break everything into departments, loosing two staff members, and so on and we changed our view on that and went back to keeping the grouping the way it is now, so one position had to be added back in.

The default budget now would be $8,046,779 and our requested budget is $8,176,980 so it is a difference of $130,201. These are the differences in the budget and what the School Board would like the Budget Committee to approve.

Tom G. stated that he would like to know that the actual budget was for last year. Tom I. stated that the 04-05 budget was $7,830,085. So moving forward with what the default was and how everything gets calculated in with salaries, raises, and contractual obligations the budget goes up $346,895. It is a bigger increase this year because we got lower than the default last year. We really had to do a lot of different things and cut back a lot of different avenues, so the increase actually looks larger than what it normally been year to year.

Tom I. stated that they still have not come to an agreement with the non-certified staff at the school, we are still negotiating their contract, so that warrant article is not ready yet. We do have final figures on bonds and what the addition is and what that warrant article will look like.

Tom G. asked what was expended so far on staff. He wanted to know where the School was on last year’s numbers, what is the percent left, percent-anticipated overrun or surplus. Tom I. stated that they did not have those figures. The Board has not looked at it that far yet. Jennifer stated that it depends on the quarterly from the high school also. Tom I. stated that it depends on enrollment, high school tuition, special education, out of district placements, food services, etc. One student can put us in deficit.

Tom G. asked about enrollment numbers. It looks like you are anticipating four less students and are showing the classroom staff count as bigger, but is this revised because you put a teacher back in? Tom I. stated that this is the teacher back in place, Betsy Stebbins stated that it is 16 staff members at AES and 13 at ARD.

Terri Kenny stated that they had eight more kids in the last few weeks, and two more today. The numbers go up and down all the time. Tom G. asked how many kids have we lost in the past two weeks. Betsy Stebbins stated that one student had been placed out by Child and Family Services. Tom G. then asked how many students have left over the year. Betsy Stebbins stated that last year we averaged about 256 students, right now we are averaging about 250. It could change anywhere between now and the end of the year.

Tom I. stated that at their meetings, the Principal’s report will show in one month, adding four at AES, subtracting two at ARD. Every month there is always adding and subtracting students. Tom G. asked if they had done any trending of these numbers. Terri Kenny stated that in the past you were looking at a rate of about 20% to 23% of the kids who are moving targets. We did this review to look at NEAP scores and to see who we were testing at different grade levels.

Tom I. stated that where you can track the kids that have started in kindergarten and gone all the way through 8^th grade, you can then track the score.

Tom G. asked if they had student figures for 2003-2004. Terri Kenny stated that enrollment for that year was not off much over this year. Tom G. asked if they do an end of the year report where you calculate how many kids you had as full-time students? Terri Kenny stated that the very last week this calculation is done on the computer. The secretaries at both schools fill out a State Enrollment Form and they do all kinds of things to look at population, decreases and increases, free and reduced lunch, absentees, tardies, etc. The State requires this information from each school district.

Carol stated that this new budget will raise the tax rate $1.55? Is there anyway that you can cut back at all? You are going to want the school, and if they look at this, ¾ of our tax bill is school. Tom G. asked if this was lower than it has been in the last seven years? Tom I. stated that yes, it is.

Carol stated that they also want an addition. Betsy Stebbins stated that they only have control of about $150,000 of the budget, the rest is required. Tom I. stated that historically the increase has been between $1 and $1.50.

Carol stated that with this, if the school passes, then more will be added on. Carol stated that $2,000 for the school and she does not have kids in the school.

Tom I. stated that he can understand Carol’s concerns, the tax rate is an important aspect of my life also.

Tom G. stated that the last time they had the School Board with them, they focused on three areas, the Computers, the Computer Technician and then on whether or not the person who was retiring was going to help the budget at all. Are there any other line items that have been significantly reduced since the last time we talked? Tom I. stated no.

Dave asked what would happen if they end up with the default budget, are you going to take out the computers, or the technician? Tom I. stated that the initiative stuff we will do without in a default budget.

Tom G. asked if they had the initiatives spelled out. Jennifer stated that they are Defibrillator at ARD - $3,079; 8^th Grade laptops - $33,886; New Computers – AES - $10,465; Computer Technician – Salary plus benefits - $48,272 for a total of $95,702.

Tom I. stated that the defibrillator purchase at ARD is going along with our insurance carriers recommendations. There is one at AES currently. This is something that we wanted last year that we did not get due to the default budget. The new computers at AES – right now we don’t have enough computers for the littler kids that are learning and this is to add new computers to the classrooms, each class has one now. Tom G. asked how many computers they are planning to buy? Tom I. stated that it is six and a laptop. Tom G. asked if they were going to bid this out publicly. Tom I. stated that the 8^th grade laptops will complete the Apple laptop program and will complete the program for grade 7 and 8.

Jennifer asked what the track record from year, was there any damage to the laptops that were brought home? Betsy Stebbins that the parents cover the insurance costs. Betsy Stebbins stated that the whole theory is that if you have your own computer there is so much more that you can do, and that is proving to be very true. And that is why we want to move the 8^th grade to this and we are 2/3^rd of the way there.

Betsy Stebbins stated that they have not had any problems with the laptops. They are very responsible with the laptops. Dan asked if they are allowed to take them home. Betsy Stebbins stated that they can choose to bring them home, but they have to pay for the insurance, once it leaves school property it is covered. The insurance is $35 a year, with a $100 deductible, which the parents are responsible for.

Tom G. asked are the laptops completely the property of the school department? Betsy Stebbins stated that they are the district’s property. Tom G. asked why the school district can’t move the laptops with the seventh grade to the 8^th graders, at least this year, at least to model how this effects this group of students. Betsy Stebbins stated that this is the way the grant as written. We have to follow the grant. Betsy Stebbins stated that she asked Governor Benson that exact question, and he did not know the answer.

Tom I. stated that it is the same as with the grant for the kindergarten addition. This is the way it is, so when the addition goes through, we have to reconstruct it the same way.

Betsy Stebbins stated that she would like to see the program go from 6^th, 7^th and 8^th with a buying program. Kids come out of 8^th grade and own the laptops, we buy the new one with the fund we raise and continue the cycle, so eventually, it pays for itself.

Tom I. stated that the school warrant article will read as follows:

To raise and appropriate the an operating budget, now including appropriations by special warrant articles and other appropriations voted separately the amount set forth in the budget posted with the warrant or as amended by vote of the first session, for the purpose set forth therein totaling $8,176,880. Should the article be defeated the operating budget shall be $8,046,779, etc.

Tom G. asked what was going to be added to this warrant article? Tom I. stated that the only other thing that will fall into that is the non-certified contract. Tom I. stated that if we don’t reach an agreement, then those monies are in the budget to carry it forward for another year. What they have now will stay and everything is in there for another year. Tom G. stated there would be no impact if no agreement is reached, correct.

Larry asked if we have to wait for that figure? Tom I. stated that it will be a separate warrant article on the collectively bargaining agreement for the years 05-06, 06-07, 07-08. If the warrant article if voted on and passed, then it is incorporated in the budget for next year. The increases are part of the default budget.

Tom G. asked if they had any anticipated impact either in percent or rough dollar figures. Tom I. stated that he could not even give percentage figures because he would be in breach of negotiations. Tom G. asked when the last time this happened. Tom I. stated that it was three years ago. Tom I. stated that they forgave raises in their last contract and were added to the health insurance.

Larry asked Betsy Stebbins to explain the statement about 6^th graders getting laptops and paying for itself? She explained that the 6^th grade student will be given a laptop with the opportunity to purchase it with payments made over time. So you would pay for it and after 8^th grade take it with you. Then that money would be used to purchase new computers that would be updated.

Jennifer stated that they will wait for the final sheet with the budget and the warrant articles that hopefully will be completed for the collective bargaining agreement they the Committee will then vote on the matter.

Tom G. asked if they could speak on the building expansion, his vote on the bottom line is going to be dependent upon the impact of the bond and what type of bond, etc. He proposed that they table the vote on the School budget to table the vote until they hear about impact from the Building Expansion.

Tom I. stated that the School Board vote to go with a 10-year bond. The total bond estimate right now is $3,483,730. The base estimate was $3,260,000; this has been increased in a couple of different areas. Looking at the parking and congestion in front of AES, bringing more staff back to AES, we felt there was not enough parking spaces. We were going to add 20 spaces behind the school, but now we will add an additional 22 spaces where the old basketball court is. All staff and employee will park out back so the only thing up front will be people dropping off kids and school buses.

So we are removing all the front parking and the parking on the side of the building as well. So this will only be for foot traffic going in and out. Tom G. asked how they would get to the old basketball court? Tom I. stated that right where the gym is there is a road that goes down on the side of the building that will be the entrance to the parking lot. Tom G. asked if there was another means of egress, has this been cleared with the Fire Department? Tom I. stated that they have looked into that, have had the discussions and this is a fire road on the side, so it cannot be blocked.

Tom G. stated that if there was an emergency evacuation at the school, there may be added expenses to develop an evacuation plan. Tom I. stated that if the school had to be evacuated, the cars would not be left. The evacuation plan for the school now is that they go to the ARD. Tom G. stated that cars don’t get left if fire engines need to get in back there. Tom I. stated that there still will be a fire lane all around the building, so the cars will not block fire access to the building.

Tom I. stated that they built in a price escalation contingency of $130,000, so by the time the bond gets passed and everything goes through, the construction manager feels that this is an adequate price escalation contingency. Security upgrades to both AES and ARD, we spoke of that at our last meeting, we have put in money to upgrade the security.

The total bond of $3,483,730 covers the base estimates, the additional 22 parking spaces, the price contingency, the security at AES and the kitchen upgrades at AES. The interest estimate of $52,255 will be raised off of interest of the bond will pay for the upgrade to the ARD security system and the kitchen upgrade at ARD.

The bond will basically read to raise and appropriate the sum for the addition to Allenstown Elementary School and renovations to Armand R. Dupont School. Then we will be able to work at both schools.

The 10 year bond rate of 4.498% has a first year tax rate impact of .34, the second year, which is the highest payment of the bond, because of interest and the first principal payment, jumps to $1.11, then it goes down thereafter, $1.04, .98 cents the year after, to .92 to .86 to .80 to .74 to .68 to .62 to .56. This money we will have to raise but 60% of it is paid back to us from the State Building Grant. Peter Aubrey stated that the tax impact is based on the current assessed value.

Tom G. asked how the assessed value has an impact? Peter Aubrey stated that they give you an estimated tax rate based on the latest assessed value to the Town. Tom I. state that each year it changes, it will go down or up according to what your assessed value is.

The warrant article will read, to raise and appropriate the sum of $3,535,985 for construction, equipping and renovations to Allenstown Elementary School; renovations to the Armand R. Dupont School and to authorize the issuance of not more than $3,483,730 of bonds or notes in accordance with the provisions of the Municipal Finance Act and a remaining $52,255 offset by anticipated interest derived from the temporary investment of the bond proceeds and to authorize the School Board to negotiate such bonds or notes to determine the rate of the interest thereon, therefore raising an additional sum of $88,835 for the first bond payment and to authorize the School Board to take any other action necessary to carry out this vote. The total will be $3,624,048.

Jennifer stated that they have really kept the Committee informed throughout the process. Tom I. stated that they have added some things in as they have gone forward, and we have taken a very strong look at how we have gone forward with the building addition project that will allow us to take advantage of the 60% from the State.

Tom G. asked if we were OK legally with the other upgrades to get reimbursed the 60% based on how this is worded. Peter Aubrey stated that by putting this all in one warrant, you are allowing yourself to do renovations at ARD at the same time the building at AES.

Tom I. stated that if the project comes in under budget, then the extra money will allow us to make additional renovations at ARD.

Jennifer asked how people felt. Dave stated that he wanted to see a written warrant article before he votes. Jennifer stated she agreed.

Tom G. stated that he agreed that they should wait until they have the warrants in writing, but he does not want to have Tom or have the School Board come back multiple more times. We should be cognizant of the fact that we have the Collective Bargaining Agreement, which is outstanding, we have the total impact of the warrant article for the proposed addition, which we all heard, and now we at least have the budget with the bottom line that he read off of the handout that was given tonight. He suggested that we get a straw poll from the board that there are not any more questions.

Jennifer stated that she has asked many times tonight if they have any more questions, if there were more questions, they would have been asked. Tom I. stated that he does not want to have happen what happened the last time, which is come back and all of a sudden someone will make a motion to cut $200,000 from the bottom line.

Jennifer stated that if someone wants to make that motion, they will make it anyway. A straw poll will not tell us anything. Tom G. stated that he felt that they had addressed the concerns that were brought up before. We also did not have the final numbers until tonight. This is the first time we have heard the total impact minus the CBA.

Tom I. stated that he did not think that the original sheet changed that much from the one that was presented tonight. The original proposal showed a tax increase of $1.33 it is now $1.55.

Carol stated that she feels that the Board should cut something, it will hurt with the addition. Tom I. stated that with what they had to go through this year with the budget and how it took place, we are that much further behind. We spent nights going through the budget, and he was not happy with it at first, we changed a lot of things and reduced a lot of things.

Tom G. asked what his understanding was of the Town’s feeling on this issue. You are talking about a $1.55 tax impact not including the bond. Do you think both will pass, only one will pass? Tom I. stated that the people he has spoken with have showed a lot of support for the addition project. A lot of people know that it is at a point beyond necessity of what we will have to get. Plus the 60% coming from the State before the new governor changes the state aid.

Tom I. stated that he felt that they could have won if they had it on the warrant article last year, but we could have won. Tom G. stated that they did not force the issue last year and this year you have stepped back and actually worked with the Town building committee and assessed the overall need and all of the options, which should lend more support.

Tom I. stated that if the issue worked out with the Town, and it was a better issue, we would have foregone it for another two year to make the best investment for the Town and our tax dollars at work.

Tom G. asked if this is approved at Town meeting, how soon will students be able to go into the new addition? Tom I. stated that it probably would not happen until mid year. Terri Kenny stated that they start the renovations in the summer, but the actual building construction will not start until September or October.

Tom G. asked what the plans were for the modular classroom? Tom I. stated that the building is here until the addition is done and we move the kids out of it. It will be here through 2006 and if the addition goes in and the students are all moved into the other building and it is completed, then the following year the building will come out.

Jeanne LaBelle stated that she knows how important it is to keep the tax rate down, also, she has taught in Allenstown, and has spent over $1,000 for her classroom because of the necessities we could not get. She knows it is a lot, and she does not want her tax rate going up either, but she was fortunate that she could spend $1,000 on her classroom, a lot of teachers can’t.

Dana Clement stated that last week they were asked to explain why we were raising more revenue that what we had originally intended. Jennifer stated that it was because they had gone to averaging out to $23.68 amount.

Dana stated that people thought that it was more revenue, but we were probably saying the same thing. We were actually increasing our expenses by $8,700 and the way that we come up with that was with the proposed settlement with Holiday Acres, paying them back the two quarters that we had billed since they notified us of their complaint and moving forward from that point, since we had already sent out the first billing of 2004, we had to make up that difference in the last three quarters.

Dan stated that they were balancing things out. Dana stated yes, because the expenses went up $8,736. When they wanted to propose the settlement, they also wanted to change it to one uniform rate, which ended up being $23.68 for each unit whether it is commercial or residential.

Carol asked if the rate would go down after. Jim stated no, the bottom line is that we have to meet our budget so we continued the $23.68. You either have to raise the sewer user fee or keep the basic unit charge.

Bill asked once they pay Holiday Acres off, are you going to change the proposed rate? No, because the 2005 budget is based on the same rates. Tom G. stated that people need to keep in mind that the reason they are not dropping the rate is because they have, in the budget, dropped the rates for the commercial light industrial users, which Holiday Acres is. So in effect, they have lowered the rate for the commercial users, raised the rate for the residential, pretty much flat lining the budget, but in effect, high taxing the residential user.

Jim stated that in 2004 they did raise an extra $8,736 which we could have sent a check to every user for $6.36 or we could put that $8,736 in surplus for a worthwhile cause. Tom G. asked what the worthwhile cause is, Dana stated that it is the expansion.

Jennifer asked if they would have money going into surplus every year from this additional money, yes.

Art stated that they would want to set the rate a little higher than normal, because you should end up each year putting money into surplus. When it comes to the expansion that is needed today, we should be sitting there with $1 million to $1.5 million in capital reserve. So if you have this money in capital reserve, when you need to expand, the money is there to use.

Jennifer stated that the Town’s warrant articles are written that if any money from surplus will be put into plant expansion capital reserve fund. This will not be written this way, there will be $11,000 and it is going to be in surplus. She would feel better if it was earmarked for capital reserve. Dan stated that until we know what will happen with Holiday Acres, it would be hard to do.

Carol asked if they could just ask for permission to take the money out? Tom I. stated that they could just ask to expend the money. Carol stated that she would like to know what it is going into. Jennifer stated that she would like to see it earmarked.

Jim stated that they have two different surplus accounts for Allenstown. Robin asked what the balance of the accounts were. Jim stated that as of November 30 they are $34,276 in the Reconstruction and Equipment fund and $12,310 in the Construction and Improvement.

Jim stated that the SWTF Construction and Improvement fund has $90,398 in it so we are short, we need more money in that account to pay for the design cost. We have to show $250,000 in the budget, but Pembroke will pay for its share of the $250,000. The surplus would probably be put into this account.

Carol asked if they already had this amount in the budget? Jim stated yes, we put it in the budget but we don’t have the money yet. We foresaw that Allenstown will have to spend $125,000 for the design, but we don’t have the money yet, we are hoping that we will be successful in raising it with our formula in sewer rates and the basic unit charge.

Jennifer stated that it will always will be extra every year. The Committee’s recommendation to the Sewer Commissioners is, could you have it earmarked for plant expansion. Jim stated that he did not see that benefiting at all, because they will need extra money for the project.

Larry made a motion to accept the Sewer Department bottom line of $1,151,491.37, Tom I. seconded. The motion passed with 6 yes votes, 3 no votes and 3 abstaining votes.

Jennifer stated that it would be good to state that the surplus will go into a specific account. Tom I. stated that if he earmarks his surplus for plant expansion, that the only thing he can use it for. So if any unexpected problems come up, there is money to help pay for it. Jim stated that it does give them leeway. In a way it is doing what you would like it to do.

Jennifer stated that for next year, they want to be show the Committee any revenues from the septage project and what the surplus is based on the new unit fees.

Tom I. made a motion to accept the Town bottom line of $3,653,611, Larry seconded. The motion passed with one no vote.

The public meetings will be as follows:

Town – January 15, 2005 at 10 a.m.

Deliberative – February 5, 2005 at 10 a.m.

School – January 10, 2005

Deliberative – February 10, 2005.

The next meeting will be Wednesday, December 29, 2004 at 7 p.m. to cover the school warrants, fire warrants and any other warrants that need to be addressed.

Tom G. made a motion to recess, Dan seconded.