Meeting Minutes

 

Title:               Budget Committee Meeting

Date:               Wednesday, July 06, 2011

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

Subjects:         New Member Welcome, Lessons Learned from Completed Fiscal Year, Focus Areas

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.

Action Item Review

Discussion

Consensus

All

4 :05

5 min

8 June Meeting Minutes Review

Discussion

Consensus

All

4 :10

5 min

Review Budget Committee Ordinance and Deliverables List

Discussion

Consensus

All

4 :15

10 min

Review Town Meeting Decision Financial Results

Discussion

Partelow

4 :25

10 min

Lessons Learned from Completed Fiscal Year

Discussion

Consensus

Dunbar

4 :35

10 min

Review Five Year Cost History and Mill Rate Impacts and Establish Summer Project Focus Areas

Discussion

All

4 :45

15 min

Public Comment

Discussion

Public

5 :00

5 min

Wrap up

Discussion

Consensus

Secretary

5 :05

5 min

 

Attendees:       Wayne Cooper, Curt Downer, Dennis Dunbar, Bill Hopkins, Susan Partelow

Absent:            Stan Lane, Mort Mendes                  

Facilitator:       Susan Partelow

Secretary:        Dennis Dunbar

 

 

 

November 1, 2011
                                                Minutes from the July 06th, 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: Wayne Cooper, Curt Downer, Dennis Dunbar, Bill Hopkins, Susan Partelow.  Absent were: Stan Lane and Mort Mendes.

 

We briefly reviewed proposed agenda and approved the minutes from our June 8th meeting.

 

Since this was the first Budget Committee meeting for new members Wayne Cooper and Curt Downer, a detailed review was done of the Budget Committee Ordinance, which was handed out at the meeting, and of the list of Deliverables.  Chairman Dunbar reported that the ordinance, drafted shortly after the voter approval of the warrant creating the Budget Committee, was modeled closely on a model developed my Maine Municipal Association (MMA) and made available to towns thru the MMA web site.  The list of deliverables was developed by the first Budget Committee and updated on 09-08-10 to reflect plans by that committee in conformance with the ordinance.  It was agreed that the list of deliverables should be reviewed by the current committee to determine if changes were in order.

 

Susan and Dennis reviewed the proposed appropriations for FYE 0/30/12 prepared by Susan after Town Meeting.  The appropriations consist of $922,722 for municipal appropriations, $1,172,367 for education (paid to RSU-12) and $250,388 for county services (Paid to Lincoln County). At the time of this Budget Committee meeting, tax commitment had not occurred and there was no firm information on the planned “Overlay” or on revenue expectations. 

 

A worksheet for a 5-year look ahead was presented by Chairman Dunbar which assumed typical Overlay values and typical deductions for revenue.  Based on that assessment, a mill rate of 7.81 was projected as a conservative projection.  Susan indicated that there were some opportunities for booking revenue yet to be established.

 

Dunbar then provided a comparison between fiscal years 2009 (1 July 2008-30 June 2009) illustrating the areas of largest growth.  The #1 driver was education where the appropriation went from $854,834 to $1,172,367 for an increase of 37%.  The #2 driver was the catch-up loan to correct our fiscal year to tax year mismatch.  The cost for that loan is $267,997.  The #3 driver was the general government municipal appropriation (what we vote on at Town Meeting).  Municipal appropriations have grown by $71,984, or 23% roads and bridges costs and the establishment of a reassessment reserve account this year.

 

It was agreed to form three Summer Study Teams to review opportunities to reduce costs in each of these three areas as follows:

 

            1. Form Independent Citizens Group to Review Options for Education- Lead Dunbar

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

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

 

It was proposed that the next meeting of the Budget Committee be scheduled for Wednesday, November 2nd at 4:00 pm.

 

Respectfully Submitted:

Dennis Dunbar, Recording Secretary


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

$267,997

 

 

 

 

 

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

$30,000 (est)

 

 

 

 

 

Deductions

(rev share etc)

 

 

 

 

_-27,967

-27,967 (est)

 

 

 

 

 

Total Assessment

$ 1,407,296

$1,335,753

$1,462,061

$1,335,727

$1,679,578

$2,076,512

 

 

 

 

 

 

Assessed Valuation

$271,747,912

$261,662,579

$262,258,474

$264,500,462

$264,500,462

$266,000,000

(est)

$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%)

7.81 (+23%)

 

 

 

 

 

 

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.

 

 

 

6 July,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

Spending Increase

Notes on Spending Growth

General Government

$311,743

$383,727

$71,984 (+23%)

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

County Tax

 

$232,125

$250,388

$18,263 (+8%)

 

Catch-up Loan

-

$267,997

$267,997

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

Education

 

$854,834

$1,172,367

$317,533

(+37%)

#1 Driver (Cost Sharing Formula with RSU 12)

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

Overlay

 

$63,359

$30,000 (est)

-$33,359

 

Deductions

(rev share etc)

-$31,390

-$27,967 (est)

-$3,423

 

Total Assessment

$1,430,67 1

$2,076,512

 

$645,841

 

Assessed Valuation

$262,258,474

$266,000,000

 

 

Mill Rate

 

5.42

7.81

+44%

 

 

Proposed Focus Areas for Summer Study:

 

          1. Form Independent Citizens Group to Review Options for Education

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

          3. Evaluate Need for a Town Bidding and Contracting Policy