Meeting Minutes

 

Title:               Budget Committee Meeting

Date:               Wednesday, January 04, 2012

Location:        Westport Island Town Office Conference Room, 4:00 pm

Subjects:         Review Education Budget Forecast, Discuss Beaver Cost Mitigation Options,

                        Focus Area Status Reports for Summer Break Period.

 

Objective:       Improve Budget Committee Processes and Initiate Planning for Fiscal 2012-13

 

 

Proposed Agenda:

 

Topic

 

Type

Responsibility

Time

 

Review agenda and time durations and approve any changes.

Discussion

Consensus

All

4 :00

5 Min.

Discuss Status of Education Cost Sharing Formula Update, Westport Effect and Prospects for Approval

Discussion

Consensus

Richard DeVries

4 :05

25 min

Discuss Beaver Impact on Town Budget and Cost Effectiveness of Mitigation Options

Discussion

George Richardson

4 :30

10 min

Election of Officers for Fiscal Year

Discussion and Decision

All

4 :40

10 Min.

Action Item Review

Discussion

Consensus

All

4 :50

5 min

December 7th Meeting Minutes Review

Discussion

Consensus

All

4 :45

5 min

Discuss Workshop with School Board Reps and Board of Selectmen on Education Cost Issue

Discussion

Consensus

All

4 :50

20 min

Review 5-Year Look Ahead and Potential New Town Costs

Discussion

Consensus

Dunbar

5 :10

5 min

Public Comment

Discussion

Public

5 :15

5 min

Wrap up

Discussion

Consensus

Secretary

5 :20

5 min

 

Attendees:       Curt Downer, Dennis Dunbar, Stan Lane, Mort Mendes, Susan Partelow

Absent:            Wayne Cooper, Bill Hopkins

Facilitator:       None Assigned

Secretary:        Dennis Dunbar

 

 

 


 

Minutes from the January 4th, 2011

Meeting of the Budget Committee

 

The meeting was called to order by Chairman, Dennis Dunbar at 4:05 PM.  The following members/alternates were present: Curt Downer, Dennis Dunbar, Stan Lane and Susan Partelow. Absent were Wayne Cooper and Bill Hopkins.

 

We briefly reviewed proposed agenda and approved the minutes from our December 7th meeting.

 

The agenda was reviewed and agreed to by the committee.  The first agenda item discussed was the status of the RSU-12 cost sharing formula update.  Richard DeVries, School Board member from Westport and member of the Board’s Finance Committee reviewed the status and schedule for evaluating a new formula under development by the Finance Committee.  Richard presented a summary of 2010-2011 and 2011-2012 comparisons of costs incurred by the RSU for Westport students.  Of particular note are the costs for Special Education.  For 2011-2012, those costs, including high cost out of district placements, are projected to be $222,506.  Richard pointed out that those costs would be borne by Westport if we were an AOS or independent district. State reimbursement for “minimum receiver towns” is 30-35% (depending on low income students) of the EPS values for special education students.  The cost of special education is a “wild card” to be considered carefully in any withdrawal study since the RSU currently cover the cost, ensuring Westport from large cost swings.

 

 

The agenda item on Beaver Impact was deferred at the request of Selectmen George Richardson.  He is awaiting additional data from Augusta on options.

 

 

Chairman Dunbar was elected to serve as committee chair for the balance of this fiscal year, ending June 30th.  The vote was unanimous.  The committee discussed the need to consider new members for the next fiscal year with expected openings on the horizon.

 

Action Items form the last meeting were discussed.  Curt Downer is continuing to develop a draft of a policy to cover bidding and procurement for the town.  A second draft will be presented at the February meeting.

 

The Committee discussed the education cost issue and reviewed a draft presentation package for a possible Education Cost Workshop with the Board of Selectmen and the Westport School Board members.  Comments were provided on the draft which will be incorporated for review at the February meeting.  It was agreed that a workshop would be a good way to complete the Budget Committee efforts on the education cost issue and to hand off actions to a citizens committee to further develop options for consideration by the voters.  Mort agreed to talk to Edgecomb Selectmen Sarmanian on his views of the AOS structure and the costs they are incurring in Edgecomb as members of AOS 98.

 

No discussion was conducted on the five year look-ahead projections at this meeting.

 

No members of the public attend so there was no public comments.

 

Respectfully Submitted,

 

Dennis Dunbar


 

Westport Island Appropriations 5-Year Look Ahead

 For Property Tax Commitment

 

Commitment

 Items \ Fiscal Year

FY-2007

7/1/06-6/30/07

FY-2008

7/1/07-6/30/08

FY-2009

7/1/08-

6/30/09

FY-2010

7/01/09-

6/30/10

FY-2011

7/01/10-

6/30/11

FY-2012

7/01/11-

6/30/12

FY-2013

7/01/12-

6/30/13

FY-2014

7/01/13-

6/30/14

FY-2015

7/01/14-

6/30/15

FY-2016

7/01/15-

6/30/16

Notes on Forecast

Methodology and Assumptions

General Government

$246,748

 $291,997

$311,743

$304,749

$300,314

$383,727

 

 

 

 

 

County Tax

 

$184,855

$213,634

$232,125

None-Catch-up Year

$245,874

$250,388

 

 

 

 

 

Catch-up Loan (2)

-

-

-

-

$154,598

$264,997

$264,997

$264,997

$264,997

$110,415

 

Education

 

$940,694 (1)

$768,728 (1)

$854,834 (1)

$1,035,664 (1)

$979,773 (1)

$1,172,367

 

 

 

 

 

Overlay

 

$35,000

$61,394

$63,359

$15,727

$26,986

$1,650.76

 

 

 

 

 

Deductions

(rev share etc)

 

 

 

 

_-27,967

-$29,639 &

-$194,750

 

 

 

 

 

Total Assessment

$ 1,407,296

$1,335,753

$1,462,061

$1,335,727

$1,679,578

$1,851,696

 

 

 

 

 

Assessed Valuation

$271,747,912

$261,662,579

$262,258,474

$264,500,462

$264,500,462

$264,527,996

$267,500,000

 

$269,000,000

$271,000,000

$273,000,000

Increase $1.5M in FY12-14 then $2M

Mill Rate

 

5.30

4.94

5.42

5.05

6.35 (+26%)

7.00 (+10%)

 

 

 

 

 

 

Notes:

 

(1) Actual spending for education was higher in each of these years because part of our cost was transferred from “Education Reserves”.  In FY-07, $40,000 was paid from reserves and in FY-08, $404,664 was drawn down and in FY-09, $228,784 was drawn down.  For FY-10, Total Local Contribution was $1,224,716 and FY-11 is $1,155,581 with $364,860 carry forward from actual tuition costs from FY-09 (as tuition town) covering the difference.

 

(2) Loan amount is $1,335,000 with a monthly payment of $22,083.08.  First payment was planned for June, 2010.  Unexpended fund balance will be invested in an interest bearing account.

 

(3) Other revenue of $194,750 was not expected in July estimate.  Sources of this revenue outlined by Treasurer.

 

 

 

October 2 ,2011

 

December 01, 2011

 

 

Comparison of FY-2009 with FY-2012 Showing Spending Growth Areas

 

 

Commitment

 Items \ Fiscal Year

FY-2009

7/1/08-

6/30/09

FY-2012

7/01/11-

6/30/12 

(July Est.)

FY-2012

7/01/11-6/30/12 (Commit.)

Spending Increase

 

(Commit.)

Notes on Spending Growth

General Government

$311,743

$383,727

$383,727

$71,984

#3 Driver  (Roads and Bridges Loss of Competition & Reassessment Reserve)

County Tax

 

$232,125

$250,388

$250,388

$18,263

 

Catch-up Loan

-

$267,997

$267,997

$267,997

#2 Driver (Corrected Fiscal Year – Excess Funds?)

Education

 

$854,834

$1,172,367

$1,172,367

$317,553

#1 Driver (Cost Sharing Formula with RSU 12)

Note: Actual Cost for FY 08-09 was $820,973

Overlay

 

$63,359

$30,000 (est)

$1,650.76

-$61,708

 

Deductions

(rev share etc)

-$31,390

-$27,967 (est)

-$29,639 &

-$194,750

-$192,299

Other Revenue: Drawdown of Surplus ($140K) plus interest income may be non-recurring

Total Assessment

$1,430,67 1

$2,076,512

 

$1,851,696

 

 

Assessed Valuation

$262,258,474

$266,000,000

$264,527,996

 

 

Mill Rate

 

5.42

7.81

7.00

+29%

July Est of 44% excluded new revenue source

 

Proposed Focus Areas for Summer Study:

 

          1. Form Independent Citizens Group to Review Options for Education – D. Dunbar

          2. Review GATSB 34 and Determine Need for Depreciation Account Amount and if Excess Funds Can be Drawn From –         B.  Hopkins

          3. Evaluate Need for a Town Bidding and Contracting Policy – C. Downer