February 3, 2025 Selectboard Special Meeting Minutes

OFFICE OF THE SELECTBOARD

TOWN OF HALIFAX, VERMONT

SPECIAL MEETING MINUTES

February 3, 2025

6:00 PM AT THE HALIFAX TOWN OFFICE

 

CALL TO ORDER

Edee Edwards called the meeting to order at 6:00pm. Other Selectboard members present were Karen Christofferson and Rhonda Ashcraft with Emily Dow as the Secretary Assistant. Members of the public present were Stephanie Pike who attended remotely. 

CHANGES AND ADDITIONS TO THE AGENDA

Christofferson requested a deferral on reviewing the December 9, 2025 Minutes for approval until there is a quorum as she was not in attendance for that meeting.

 OLD BUSINESS

Loader Payment Cost Review 

Christofferson referenced the information she shared with the Selectboard prior to the meeting. Christofferson explained that the motion passed in a previous meeting to accept the financing package for the John Deere Loader with an annual cost of $30,106.15 plus warranty cost did not match the financing agreement which specified an annual payment of $40,686.00. 

Christofferson updated everyone on her conversation with the dealer and the leasing company.  All key variables in the transaction matched the financing paperwork except for the annual payment.  She learned that the reason for the difference is that we had accepted payment in arrears versus payment upon delivery. First payment one year in arrears would be $40,686.00 with first payment upfront of $38,296.00 with warranty included.

  • Highway Department is expecting delivery for the John Deere Loader on Wednesday, February 5, 2025. 
  • Update on Financing Terms for the John Deere 544 G-Tier Loader:
    • January 29, 2025 Selectboard approved a financing plan based on multiple interactions that Christofferson and Dow had with the sales rep from United Construction and Forestry as well as the Dealer Financing Company..
    • Upon review of the paperwork, Christofferson noticed an increase in the annual cost for the Financing Cost to $40,686.00
    • Reissue of lease agreement was requested with the financing terms previously agreed: Difference showed a difference of nearly $3k  annually which adds up to nearly  a $17k increase over the course of the financing term.

During the conversations with the dealer Christofferson learned that municipalities typically accept the payment upon delivery terms because it is cheaper in the long run and they had not seen the system do this when payment in arrears was requested. Halifax elected to begin payment a year In Arrears however; it is cheaper to pay the first payment up front. A change to the financing previously approved  requires a vote from the Selectboard.  Christofferson reviewed the information shared with the Selectboard prior to the meeting:

Option A: Original approval with the first date as January 28, 2026 and the last date January 28, 2031 and annual cost of $30,106.15 with assumed payment in arrears. (Excluding warranty cost)

Option B: Payment In Arrears with the first date as January 28, 2026 and the last date January 28, 2031 for a total of $33,055.49 annual cost including Warranty.

Option C: Payment on February 3, 2025. Upfront payment will be Fiscal 25 rather than current Fiscal 26. The difference in cost is roughly the same amount as the warranty cost. The cost would be $30,949.87 with warranty cost included

The two options to be considered include: First Option B:. $33k annually for $198k or Second Option C: $30,950 annually for $185K saving roughly $12,600 overall.

Christofferson also reported that the Treasurer had noted cash availability from the GMP reimbursement of roughly $182k that may be considered to cover the cost..It was also noted that the Town received an overpayment reimbursement from the Education Department for $26,455.

A discussion ensued with the conclusion that Option B, though more expensivein the long run, but gives more flexibility to get through the rest of the fiscal year with the first payment on January 28, 2026.  The Selectboard recognized that the financing for the Excavator is still to be approved and believed it to be preferable to use additional cash availability to fund that purchase which is expected to have a greater impact on long term costs than the Loader.

Edwards made a motion to accept Option B and revise the approved lease payment for the John Deere 544 G-Tier Loader to accept payment terms  of annually in arrears $33,055.49 through the 6 year term for Option B.  

Christofferson seconded the motion.

Motion carried 3-0

Christofferson said she would send the decision results to the Dealer and to the Treasurer.

APPROVAL OF PREVIOUS MEETING MINUTES 

Defer December 9, 2024 to the next meeting due to quorum requirements.

December 12, 2024 Selectboard Special Meeting Minutes

Christofferson made a motion to accept December 12, 2024 minutes with 2 corrections.

Ashcraft seconded the motion.

Motion carries 3-0

HEARING OF VISITORS 

No visitors wished to speak.

OTHER BUSINESS

As Finalizing the budget: Truck Financing & Interest on the Budget Spreadsheet

Christofferson shared her screen to advise the Selectboard that upon further review while working on the Town Meeting book, she found that because the initial amounts entered in the Budget Spreadsheet for the new 6500 Truck financing and interest were calculated early in the process. The Selectboard used numbers generated for Fiscal 2025 as a placeholder. Since then, the Town purchased the Loader and now has actual amounts for FY26.  We cannot adjust the budget until Town Meeting and we will need to provide an update at the Town Informational meeting and Town meeting as follows

  • FY25 Financing and Interest Total was $168,915.71.
  • Current FY26 Financing and Interest Total is $125,968.28
  • Over Budgeted amount: $42,947.43. This will reduce the amount appropriated by taxes portion.
  • The Budget was showing an increase of 6.6% as compared to FY25 and Christofferson noted that after the change to reflect the correct annual payment,; the revised budget increase would be under 5% at  4.4%.

Town Meeting Day Preparation

Edwards spoke to Paul Blais about the Informational Meeting which will need to be videorecorded according to law. The Town Meeting the year prior had some difficulties with the hybrid meeting with timing and advertising issues. The OWL will be used in conjunction with the Mixer device. The Mixer allows for audio and video and should prevent feedback which will help people attending remotely. The cost of the Mixer device is $230. More of this topic will be mentioned during the February 4, 2025 Regular Meeting.

ADJOURNMENT

Rhonda made a motion to adjourn the meeting at 6:55pm

Karen seconded the motion

Motion carries 3-0. 

 

Respectfully submitted, 

Emily Dow

Halifax Administrative Assistant 

Recording Link: https://youtu.be/hWUEVtfpMyQ