Budgets, Bargaining Agreements and a New Building on the Table

When Merrimack residents step behind the red, white and blue striped curtains of the town's voting booths on Tuesday, there will be two ballots to consider, one for the town and one for the school.

Faced with significant increases to health care and retirement costs, town and school officials worked throughout their budget seasons to keep budgets in line with what voters agreed to in 2012.

Each ballot contains fewer than 10 questions and each is asking residents to vote elect leaders and decide on budgets and bargaining agreements. The school ballot is also asking voters to consider a new building to replace a  couple of dysfunctional spaces that house the superintendent's office and special services staffs.

Before you cast your ballot, here's a final look at what is being asked of residents.

Town Ballot

THE BUDGET

While the town turned out the a $28.7 million budget that carries a $5.25 projected tax rate – the same as what was approved by voters in 2012, the tax rate is an 11-cent increase over what was actually paid of the 2012  rate. The 11 cent per thousand dollar bonus to tax payers came from a parcel of land purchased by PSNH and from the Merrimack Premium Outlets appraisal, as the project was farther along than anticipated when the tax rate was set. If the budget fails, the town will move forward with a default budget of $27.9 million, which would increase the tax rate 20 cent to $5.45. A full explanation of the breakdown of the budget and default budget is available in the town's voter's guide.

COLLECTIVE BARGAINING AGREEMENTS

Five of the town's six unions will have collective bargaining agreements on the ballot as well. The agreements represent the next three years and include significant health care concessions that will save the town a considerable amount in health care costs, according to Town Manager Eileen Cabanel.

Cabanel told the Town Council in February that the insurance the town has carried included prescription programs that allowed employees to purchase three months worth of brand name prescriptions for a $1 and had a doctor's visit co-pay of $5, which often meant employees would go to the doctor more often than most and prescriptions were frequently purchased as name brand.

Cabanel said the new plan, which all five unions agreed to, carries a $20 co-pay and a $10/$20/$45 prescription plan, a significant out-of-pocket increase to employees. Due to the increased insurance plans employees in each union will earn a one-time $1,500 increase in their wages in 2013. The health insurance increases will not kick in, however, until the third year of the contract.

The union representing the Department of Public Works is the only one that will not be on the ballot, as it is at an impasse in negotiations with the town. A mediator will be brought in after town meeting to attempt to hammer out an agreement.

Below is a look at the breakdown of the five contract agreements.

Union

Contract Cost Year 1

Contract Cost Year 2

Contract Cost Year 3

Total contract cost

NEPBA Local 112 (Police dispatchers, office staff)

$27,661

$9,829

($13,559)

$23,934

Teamsters, Local 633 (Public Works supervisory and clerical staff)

$19,860

$0

($18,221)

$1,639

NEPBA, Local 12 (Police patrol, detectives and sergeants)

$73,394

$29,811

($28,833)

$74,372

AFSCME 93, Local 3657 (Fire supervisory employees)

$33,665

$0

($27,839)

$5,826

IAFF, Local 2904 (Firefighters and paramedics)

$127,069

$22,058

($56,529)

$92,598

THE CEMETERY ARTICLE

Article 8 on the warrant is a housekeeping article that would amend the town charter to allow the town manager to perform the duties and responsibilities generally maintained by a cemetery trustee. The town voted several decades ago to dissolve the cemetery trustees, however, an inquiry late last year into a potential burial plot in an older cemetery in town revealed a flaw in that dissolution and the Town Council learned Merrimack is required by law to have at least one person acting as cemetery trustee. This amendment would make up for that board.

The School Ballot

THE BUDGET

Article 8 is the school district's $66.3 million operating budget , which represents  a 1.28 percent increase over the 2012-2013 operating budget, which boils down to an extra 29-cents per thousand of valuation or $58 more on the tax bill of a $200,000 home as compared to 2013-14. The budget includes $385,000 the school board removed initially to repair the roof at Merrimack High School, in an effort to reduce the impact of the proposed Central Office construction. The $385,000 was added back in by the budget committee and approved by voters at the annual deliberative session. If defeated, the default budget of $66.7 million will be enacted. The default budget is about $450,000 more than the proposed operating budget.

THE CENTRAL OFFICE BUILDING

Article 2 asks voters to approve $1.5 million for a new central office building to house the superintendent and special services offices and replace the ranch homes adjacent to the high school where the staffs are currently located. The houses, acquired by the school district in the '70s are not handicap accessible, and lack space, privacy and functionality for the district's needs. Both houses need a significant amount of repair and maintenance work that members of the school board, budget committee and planning and building committee think would be an inefficient use of taxpayer dollars. While the repairs would take care of some of the structural issues, they would not address the need for more space or the privacy and accessibility issues.

The proposal to build a new building comes after a lengthy look in to other options, including leasing existing space in town, buying existing space, using portable buildings, which were ruled out as inadvisable early on, as well as new construction, renovating space at James Mastricola Upper Elementary School and a combination of both. The most economic option came as the new construction. The committee examined renovating space in James Mastricola Upper Elementary School, but the cost to renovate the space would be scarcely less than building new and would only address the needs of the special services building. The tax impact would be less than a penny this year and at it's most expensive year, in the 10 year bond payoff, next year, would be 7 cents per $1,000 of property valuation. Read more on the building project here.

This article needs a 3/5 majority vote to pass.

COLLECTIVE BARGAINING AGREEMENT

Article 6 asks voters to approve a collective bargaining agreement reached between the Merrimack School Board and the Merrimack Teachers Association (and raise the money in the first year's agreement) that would, as written, increase teacher salaries and benefits $$633,753 in 2013-14, $556,937 in 2014-15 and $460,288 in 2015-16. This contract like the town contracts, include significant increases to the teacher's health care contributions and is designed to keep teachers competitive with nearby school districts.

THE CANDIDATES

The only contest on town and school ballot is on the school board. Three candidates are running for two seats. Incumbents Shannon Barnes and Chris Ortega are challenged by budget committee member Gary Krupp. Click on each of their names to read their candidate bios which include their positions on the Merrimack Teacher Association contract and the proposed central office building.

THE REST

Article 3: Accepting Gifts on Behalf of the School District. This article would allow the Merrimack School Board to accept gifts of personal or real

property during the year such as land.

Article 4: Discontinuance of Capital Reserve Funds. This article would close outstanding balances in three Capital Reserve Accounts totaling $67,477 and return that money to the general fund.

Article 5: Increasing the Balance of the School District Repair Capital Reserve Fund. This article seeks to raise $67,477 and deposit it in the previously established School District Repair Capital Reserve Fund. This fund is used to cover unanticipated repairs to district buildings and has been used twice already this year when the roof blew of the Special Services office during Hurricane Sandy and when the phone system at the High School unexpectedly failed. It will likely be tapped into again after a pipe burst in the Superintendent's Office last week, flooding the basement while no one was at the office Thursday into Friday.

Article 7: Special Meeting Request This article authorizes the School Board to hold one special meeting to discuss cost items only if the teacher contract fails.

Get a full breakdown of the warrant including tax impacts and notes from school leaders in the 2013-14 voter guide.

All residents are asked to vote on Tuesday, April 9, at James Mastricola Upper Elementary School between 7 a.m. And 7 p.m.