November 28, 2023 Selectboard Special Meeting Minutes

OFFICE OF THE SELECTBOARD

TOWN OF HALIFAX, VERMONT

SPECIAL MEETING MINUTES

November 28, 2023

6:00 PM AT THE HALIFAX TOWN OFFICE

CALL TO ORDER

Pete Silverberg called to order on November 28, 2023 at 6pm. Selectboard members present Tristan Robert, Patrick McAllister, Edee Edwards, Karen Christofferson, and Pete Silverberg. Others present or remote were Stephan Chait, Mike Fournier, Cara Cheyette and Alison Crossley.

NEW BUSINESS

FY2025 Highway Budget Discussion

  • FY2025 means July 1, 2024 – June 30, 2025, for Town Meeting in March 2024
  • Discussion was had about process and outputs from budget meetings:
    • Selectboard and Town Clerk will coordinate to ensure there is one running copy of the town report budget while still draft form.
    • Town Treasurer Budget Report is official document for selectboard meeting budget conversations.
      • Karen’s developed “tool” is still personal tool until selectboard decides to move forward with usage – was not decided upon this mtg.
    • Edee notes objectives for budget is to address equipment needs, wage increases, general inflation, and understanding impact of increased borrowing rates.

Needle Movers (The accounts which make up greater than 5% of the entire budget’s costs from current year’s budget—FY24 versus FY23) were discussed first:

  • 7110 Road Crew Gross Wages
    • FY24 $278,720 is the upcoming wage increase calculated for 52 weeks
    • FY25 $292,656 is 5% increase based on the new wages, 9.4% change from last year budget (which did not include the full year’s wage increase granted)
      • Please note – Selectboard had done due diligence on road crew wages based on neighboring town pay rate on same positions and inflation of the market; the date of the wage increase was delayed to keep within the FY24 budget. This leads to a higher percent change in the FY25 proposed budget than what can be granted to the road crew.
    • 7115 Road Crew Overtime Wages
      • Standard overtime is 220 hours which equals 6.25% of total road crew wages
      • $292,656 x 6.25% (Estimating 220 hours of overtime) = $47,556 proposed budget FY25
    • 7150 Road Crew Comp Time
      • Will be removed from the budget line item since its already included in 7110 Road Crew Gross Wages
  • 7460 Resurfacing – FUND
    • Highway dept. applies for grants annually but usually takes 3-5 years for award, none will be received this budget year, as we got one in FY22.
    • 7460 Resurfacing will be a separately warned as an article for $300,000 based on previous year’s budget number.
    • Discussion on how much paving this would get: less than 1 mile of full reclaim; easily a mile of shim and overlay. Mike’s plan: 4 Days of crack sealing; and shim and overlay from Ellingwood to Moss Hollow Road, if we had $400,000 using remainder in reserve.
    • Action Item: Patty to try and format on town report to show Reserve Funds below the line, possible different color.
    • Action Item: Create a schedule for Reserve Fund expenditures.
  • 7410 Sand
    • Assumed 10% cost increase on last year budget ($116,000) = $127,600
  • 7430 Gravel
    • Currently using about 6,557 yards at $33.50/yard.
    • Proposed FY25 budget: $220,000
  • 7220 Heath Insurance
    • Information not available so no discussion was had.
    • Action Item: Patty to investigate potential premium increases
  • 7680 Repairs & Maintenance
    • Discussion was had about truck repair & maintenance.
    • Currently spent 70K of $105,000 as of date.
    • Proposed FY25 budget: $150,000
  • 7605 Total Equipment Lease
    • 7611 Excavator: Replace could cost $275,000 – $350,000
      • Place holder $45K for excavator in FY25 budget
    • 7612 Grader: Current equipment 10-year loan through CAT (Possible new replacement equipment cost: ~$450,000)
    • 7696 Trucks (Financing)
      • Western Star: 5-year lease, annual payment ~$45,334 (principal) 6.53% interest rate
          • Loan amount $226,670
      • Action Item: Patty to confirm the annual payment with principal and interest amount.
      • New Truck #5 – Have not decided on how to finance truck.
        • Action Item: Add to next selectboard meeting.
    • Action Item: Patty to provide updated lease schedule. FY25 placeholder budget overall: $200,000, will need further discussion

ADJOURNMENT

Tristan Roberts moved to adjourn at 7:57pm. Pete Silverberg seconds. Passed 5-0.

Recording link: https://youtu.be/UtUr4-_fXtg?si=3yIgNs4LVcVyrtfm