Meeting Minutes

 

Title:               Budget Committee Meeting

Date:               Wednesday, May 4, 2011

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

Subjects:         5-year Look-ahead, Wright House, Town Meeting Warrants

 

Objective:       Discuss 5-Year Look-Ahead Forecast. Agree on Wright House Sale Warrant, Review warrant articles and schedule for the balance of the fiscal year.

 

 

Agenda:

 

Topic

 

Type

Responsibility

Time

 

Review agenda and time durations and approve any changes.

Discussion

Consensus

All

4 :00

5 Min.

Action Item Review

Discussion

Consensus

All

4 :05

10 min

April Meeting Minutes Review

Discussion

Consensus

All

4 :15

10 min

Compensation Analysis and Recommendations

Discussion

Consensus

Mort

4 :25

10 min

Options to Reduce Costs – Sale of Wright House and Draw from Undesignated Surplus for Catch-up Loan

Discussion

Consensus

Dennis

4 :35

10 min

Discuss 5-Year Look-Ahead Forecast

 

Discussion Consensus

Dennis

4 :45

20 min

Budget Committee Schedule Status Reporting

Discussion

Consensus

All

5 :05

10 min

Other Items (Snow Removal Contract Bid, Storage Vault Cost,  etc)

Discussion

All

5 :15

5 min

Public Comment

Discussion

Public

5 :20

5 min

Wrap up

Discussion

Consensus

Secretary

5 :25

5 min

 

Attendees:       David Blake, Dennis Dunbar, Bill Hopkins, Stan Lane, Mort Mendes, Susan Partelow and Gary Webber           

Facilitator:       Stan Lane

Secretary:        Dennis Dunbar

 

 

 

 


Minutes from the May 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: David Blake, Dennis Dunbar, Bill Hopkins, Mort Mendes, Stan Lane, Gary Webber and Susan Partelow.

A member of the public, Wayne Cooper, also attended (Wayne took our papers to run for a seat on the committee)

 

The following preliminary items were discussed by Dennis:

·        A review of the meeting agenda.

 

The Draft Minutes from April meeting were reviewed and approved.

 

Mort Mendes reported on his analysis of the compensation articles (Group 1).  By reviewing the 2010 MMA Compensation Survey Report, no growth in compensation was noted, on average, for towns similar in size and managed in a similar manner in the 2009-2010 time period.  Most towns held compensation steady, as Westport Island did.  Mort recommended that compensation for the upcoming fiscal year be held steady again for both the Board of Selectmen and for the town office staff.  With signs of inflation in cost of living growing, a cost of living adjustment for next year was discussed.  Dennis moved that a 2.5% increase be given to town office staff with David seconding the motion.  The motion passed with Susan abstaining.

 

As a way to reduce town cost, the possible sale of the Wright house was discussed in conjunction with a draft warrant article that called for funds to create an easement to protect public access, to obtain an appraisal and to authorize the Board of Selectmen to offer the house with easement protected land for sale at an appropriate time if the appraisal exceeds $250K.  Sale of the house would save approximately $20K per year.  A motion was made by Dennis to proceed with the recommendation and the motion was seconded by David. It was agreed (6 in favor) to discuss the recommendation with the first selectman and with the chair of the Wright Committee.

 

Another option was discussed to reduce cost in the coming year.  That option would be to draw from undesignated reserves for partial payment of the “Catch-up” loan.  Funds from the loan that have not been expended total approximately $681K.  Susan indicated, however, that the town was obligated to create a “Depreciation Account” totaling about $715K to comply with accounting standards.  It was agreed to table this item until further review of our obligations.

 

Warrant article group assessments were provided by assigned team members.  Susan reported on Group 4, Outside Services and Contingency Articles first.  She indicated that we would need a new article for web site hosting and our domain name with a cost of $180.  For Article 22, Capital Equipment Purchases, the remaining balance will be carried forward and no new funds required. For Article 23, MMA Membership, the cost is $1,198.  Article 24 was deferred to the next meeting. For Article 25, Legal Expenses, Susan indicated that $7,500 would be carried forward and $2,500 should be raised for a total of $10K.  She also reported that the Transfer Station cost would increase by $800 to $75,020 for the coming year.

 

On other items, Susan reported that Assessing Support hourly rate for our Certified Maine Assessor would increase from $50/hour to $55/hour.  For the coming year’s Assessing Support account, $10K would be carried forward and $5K is proposed to be raised.  She also reported that maintenance of the TRIO software would cost $4,510.

 

Bill Hopkins reported on inputs received for Committee Expenses (Group 2).  A copy is attached to these minutes.  More inputs will be provided as they are received.  For Group 3, Facilities and Equipment Articles, Bill indicated that he will report on them at the next meeting.

 

Groups 5, 6 and 7 will be reported on in the next meeting.

 

No other business was brought before the Committee.

 

No public comments were made.  The Chair thanked Wayne Cooper for attending.

 

The next meeting date was set for Thursday, 19 May at 4:00 pm at the Town Office.

 

The meeting was adjourned at 5:30 pm.

 

 

 

Respectfully Submitted

 

Dennis Dunbar

Recording Secretary

 

 

 

 

 

 


 

 

 

 

Warrant Article on Wright House Sale

 

 

Article X – To see if the town will authorize $1500 for the Board of Selectmen to 1.) Establish an easement, in accordance with requirements of the LMF grant Project Agreement for the Wright Landing, to permanently protect public access to the municipal boat launch and parking area, 2.) To obtain an independent professional appraisal of the easement encumbered land and house site, and 3.) To authorize the Board of Selectmen to put the house and easement protected land on the market, at the appropriate time, should the appraisal exceeds $250,000?

 

Note: The sale of the easement encumbered property is allowed under the Project Agreement (PA) with Land for Maine’s Future (LMF).  However, an easement needs to be created and held in the name of the Town, giving the Town rights, in perpetuity, to access, maintain and manage the municipal boat launch and parking area for the public.  The outline of the easement is defined in the PA.  The balance of the current loan on the property is estimated to be approximately $250,000 by this Fall, which is the earliest time the property could be ready to put on the market.  Prior to putting the property on the market, however, an independent professional appraisal should be obtained to confirm the value of the property.  Should the value exceed the loan balance, this article would authorize the Select Board to list the property.  Should the property sell for the threshold value, the benefit to taxpayers would be approximately $20,000 per year. (the loan payment, minus the rental income, plus the tax revenue when returned to the tax rolls.)

 

 

Warrant Article on Draw from Undesignated Reserves for Partial Payment of the “Catch-up” Loan

 

Article Y – To see what sum the Town will authorize for the payments due on the loan for operating budgets approved in the 2010 Town Meeting (Article 6) to be taken from the undesignated fund balance?

 

The Budget Committee Recommends $150,000.

 

Note: The rate of expenditure of the $1.35M loan proceeds has been less than expected in FY 10-11.  The undesignated balance of the funds available for FY 11-12 are _________.  By paying a portion of the loan amount from the undesignated balance, there will be a 0.47 mill reduction in the growth in the mill rate for FY 11-12. (Cuts expected 20% growth in the mill rate to 10%)

 

 

 

 

 


 

 

 

 Review of Town Boards &Committee Budget Requests

 

 

 

                                                  Amounts Raised                           Request

Committee                2007-08    2008-09     2009-10     2010-11      2011-12

Budget Comm.

 

  300.

         0.

        0.

 

Planning Board

  319.66

      0.

    466.62

    340.

 

Board of Appeals

 

  100.

       88.

    450

 

Conservation Comm:

 

 

 

 

 

     Conservation

 962.52

  1080.

   800.

    679.

 900(?)

     Open Space

 

 

    

    600

      0.

     Grant Match

   6525.

  4250.

    750..

   5000.

  2500.

L. C. Consortium

 

 

 

 

 

Broadband

 

 

 

 

 

Human Resources

 

 

 

 

 

Cemetery

 

 

    200.

 

 

Wright House

 

  100.

 

 

 2000.

Harbor

 

 

 

 

 

Town Owned property fund

 

 2500.

 

 

 

Shellfish

 

 

 

 

 

Town Hall:

 

 

 

 

 

    Operations

  3700.

 4800.

  3500.

  3500.

 3500.

    Reserve Acct.

 

 2500.

 

  2500.

 2500.

    Improvements

  9100.

 

 

 

 5900.

Groundwater

 

 1400.

   489.

        0.

 

History

 

       0.

   100..

   393.

 

Records & Vault

 

 

 

 

 

Mapping

   500.

  1080.

   650.             

    125.

 1005(?)

 

 

 

 

 

 

 


 

5-Year Look Ahead for Municipal Appropriations

General Government Worksheet

                                                      

FY 10-11

FY 11-12

FY  12-13

FY 13-14

FY 14-15

FY 15-16

Comments

Current Base

$300,314

$307,822

$315,517

$323,405

$331,490

$339,777

Inflation of 2.5% (Moodys)

Potential Additions

 

 

 

 

 

 

 

     Fire Truck

-

$8,000

$8,000

$8,000

$8,000

$34,500

See Engine-2 financing

     Westport Is. Coastal Init.

-

-

$6,704

$6,546

$6,424

$6,298

See Maine Bond Bank Est.

     Increase in Snow Cont.

-

$10,000

$10,000

$10,000

$10,000

$10,000

Assume10% Increase

     Town Landing Maint.

-

$3,000

$3,000

$3,000

$3,000

$3,000

Float & ramp maint.

     Reassessment Reserve

-

$5,000

$5,000

$10,000

$10,000

$30,000

$60K per George/Eugene

     Storage Vault/Offsite

-

TBD

 

 

 

 

No proposal provided

     Sand and Salt Facility

-

 

TBD

 

 

 

No proposal provided

    Transfer Rt. 144 to town

-

-

-

TBD

TBD

TBD

Pending DOT direction

Total Additions

-

$26,000

$32,704

$37,546

$37,424

$83,798

 

Potential Deletions

 

 

 

 

 

 

 

     Sale of Wright House (1)

-

-

-$18,850

-$18,850

-$18,850

-$18,850

Excludes new tax receipts

Apply “catch-up” loan                               funds to loan payments

-

TBD

TBD

TBD

TBD

TBD

Determine by month end may upon review of actuals

Lower Bound Estimate

 

 

 

 

 

 

 

Excluding Sale of House

$300,314

$307,822

$315,517

$323,405

$331,490

$339,777

Inflation of 2.5%

Including Sale of House

$300,314

$307,822

$296,667

$304,555

$312,640

$320,927

Savings of $18,550

Upper Bound Estimate

$300,314

$333,822

$348,221

$360,951

$368,914

$423,575

Excluding TBD items

   

 Notes: 1. Savings include elimination of loan principal and interest of $27,612 less rent received of $730/mo.  In addition, the property will generate property tax revenue if returned to the tax rolls of approximately $1,600 annually.                

 

4 May, 2011


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

$307,822

$333,822

$315,517

$348,221

$323,405

$360,951

$331,490

$368,914

$339,777

$423,575

Lower Bound      DD

Upper Bound

County Tax

 

$184,855

$213,634

$232,125

None-Catch-up Year

$245,874

$250,000

$255,000

$260,000

$265,000

$270,000

Assume $5K per year growth rate            SP

Catch-up Loan (2)

-

-

-

-

$154,598

$264,997

$264,997

$264,997

$264,997

$110,415

SP/DD

Education

 

$940,694 (1)

$768,728 (1)

$854,834 (1)

$1,035,664 (1)

$979,773 (1)

$1,155,000

$1,091,250

$1,183,875

$1,027,500

$1,213,472

$963,750

$1,243,809

$900,000 (3)

$1,274,904 (4)

Lower Bound      RD

Upper Bound      DD

Overlay

 

$35,000

$61,394

$63,359

$15,727

$26,986

$30,000

$30,000

$30,000

$30,000

$30,000

SP

Total Assessment

$ 1,407,296

$1,335,753

$1,462,061

$1,335,727

$1,679,578

$2,007,819

$2,033,819

$1,956,764

$2,082,093

 

$1,905,902

$2,129,420

$1,855,237

$2,172,720

$1,650,192

$2,108,984

 

Assessed Valuation

$271,747,912

$261,662,579

$262,258,474

$264,500,462

$264,500,462

$266,000,000

$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

7.55 (+19%)

7.65

7.32

7.78

7.08

7.92

6.85

8.02

 

6.04

7.72

 

 

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) Education cost reduction based on an assumed new cost sharing agreement that transitions to a formula that includes cost per pupil in the “80/20” weighing. Estimate is provided by Richard DeVries from the School Board Finance Committee.

 

(4) Education cost is assumed, in this case, to increase at a 2.5% inflation factor.

 

(5) If Wright house sale in included, mill rate drops by 0.07 mills.

 

(6) If $150,000 drawn from Undesignated Fund Balance, mill rate drops by 0.47 mills.

 

Budget Committee Schedule

 

 

 

 

 

 

Group

 

Assignment

Assigned to

1

Compensation Articles

(4-9)

Mort

2

Committee Expenses

(10 – 13)

Bill

3

Facilities and Equipment Articles

(14 - 21)

Bill

4

Outside Services and Contingency Articles

(22 - 25)

Susan

5

Highways, Bridges and Snow Removal Articles

(26 - 29)

David/Bill

6

Protection Articles

(30 - 34)

Stan

7

General Assistance & Service Organizations Articles

(35 & 36)

Gary

8

Misc. Items & LD-1 Cap

(37 – 39)

Dennis

 


4 May, 2011

Roads and Bridges Accounts Forecast for FY 2010-11

 

FY 10-11

Auth.

(1 Jul

- 30 Jun)

FY 10-11

Actuals

(1 Jul

-31 March)

FY 10-11 Forecast

(1 April

-30 Jun)

FY 10-11

Total

(1 Jul

-30 Jun)

FY 11-12

Budget

(1 Jul

-30 Jun)

Forecast Assumptions

Costs

 

 

 

 

 

 

   Road Maintenance

65,000

76,072

13,700?

89,572

 

   Spring Grading

-

0

0

0

 

 

   Paving

25,000

25,450

0

25,450

 

   Street Lights & Signs

-

345

155

500

 

 

   Other

-

0

0

0

 

 

   Snow Removal Contract

73,400

58,720

14,680

73,400

 

   Salt

1,700

1,668

32

1,700

 

   Sand

16,800

18,396

0

18,396

 

Total Costs

181,900

180,601

28,567

209,168

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

   Raised by Warrant Article

10,000

10,000

0

10,000

 

 

   Excise Tax Receipts

106,900

92,637

30,878

123,515

 

   State Support (URIP) Transfer

45,000

20,295

6,765+ 17,940

45,000

 

   Reserve Account Transfer

10,000

10,000

0

10,000

 

 

   FEMA Grants

TBD

19,608

0

19,608

 

Total Revenue

171,900

152,540

55,583

208,123

 

 

 

 

 

 

 

 

 

Over (-)/Under (+) Spent

-10,000

 

 

-1045

 

 

Balance Forward from Prior Year

12,953

 

 

2953

1,908

 

Balance Forward to Next Year

2,953

 

 

1,908

 

 

 

Notes:  1. URIP State Highway Account, as of mid February 2009, had $56,896 and should receive another $15,020 by the end of the prior fiscal year.  That is in addition to the $27,468 in the Ferry/Parsons Road Project Account.  (Needs update from Susan)