Meeting Minutes

Title: Budget Committee Meeting

Date: Tuesday, December 07, 2010

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

Subjects: Budget Committee Tasks

Objective: Discuss 5-Year Look-Ahead Forecast Update, discuss Education cost history and projection and discuss potential needs of VFD for new fire truck. Review and plan a schedule for the balance of the fiscal year.

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 10 min
November Meeting Minutes Review	Discussion Consensus	All	4 :15 10 min
Discuss 5-Year Look-Ahead Forecast	Discussion Consensus	All	4 :25 10 min
Review Education Account History and Forecast	Discussion Consensus	All	4 :35 10 min
Discuss VFD Possible Needs for a New Fire Truck	Discussion Consensus	All	4 :45 10 Min
Budget Committee Schedule Status Reporting	Discussion Consensus	All	4 :55 10 min
Other Items (Education Cost, Salt Shed ROI, Storage Vault Cost, Town Landing etc)	Discussion	All	5 :05 5 min
Public Comment	Discussion	Public	5 :10 5 min
Wrap up	Discussion Consensus	Secretary	5 :15 5 min

Attendees: David Blake, Richard DeVries, Dennis Dunbar, Bill Hopkins, Mort Mendes, and Gary Webber

Absent: Susan Partelow

Facilitator: David Blake

Secretary: Dennis Dunbar

Budget Committee Minutes Minutes

December 7, 2010

The meeting was called to order by Chairman Dennis Dunbar at 4:05 pm. In attendance were David Blake, Richard DeVries, Dennis Dunbar, Bill Hopkins, Mort Mendes, and Gary Webber. Susan Partelow was unable to attend as she was attending to Town Office duties.

The agenda was approved with the deletion of the Fiscal Year Billing Catch-up payment item deleted since it is already approved and in effect. In its place, a discussion of the Town Landing operations costs was added.

The November meeting minutes were discussed and approved as written. It was noted that the October minutes were not yet formally approved. It was agreed that they should be discussed at the February meeting. Members were asked to review them again for any changes.

The “5-Year Look Ahead” projections were discussed and the template reviewed. It was agreed that a first estimate of FY 12-FY 15 would be presented at the February meeting. Assignments were as follows: General Government – Dunbar, County Tax- Partelow, Catch-up Loan – Partelow/Dunbar, Education-DeVries, Overlay – Partelow, Total Assessment - Hopkins.

The Education account history and forecast was discussed as well as the statute process for consideration of withdrawal. It was agreed that no action on withdrawal planning was warranted at this time, but would be reviewed again after the FY-12 education budget is set. Towns must be members of the RSU for the first three years prior to petitioning the DOE to initiate withdrawal planning. Richard DeVries indicated that his rough estimate for education cost in FY-12 was approximately $1,135,000. However, State support levels are expected to decline further which may increase costs.

The Volunteer Fire Department has indicated a need to consider replacing Engine-2 due to its age, inability to obtain spare parts or repairs, and operational considerations. Bob Mooney was invited to attend and present the background and requirements. (Bob arrived just after the meeting adjourned)

Information was provided to Budget Committee members after the meeting and the topic will be reviewed again at the February meeting. It was agreed that the added fire truck cost with the expected increase in the mill rate due to education and the catch-up loan was inopportune timing.

Under “Other Items” the salt shed was briefly discussed and deferred to a future meeting. It was agreed that it was unlikely to be brought to Town Meeting this year. Work has been done, however, on a storage vault by the committee working that issue. It was agreed that their report should be reviewed by the Budget Committee. The Town Landing was also discussed and it was agreed that estimates would be needed for the reoccurring costs for that facility (ramp and float maintenance, grounds maintenance, rest room maintenance etc)

Richard DeVries announced that he was tendering his resignation from the committee to devote more time to School Board duties. His resignation was accepted with regret.

There was discussion of making the 4:00 pm meeting time standard. That will be further discussed at the February meeting (Note: Susan Partelow cannot attend if the meeting is held at 4:00 pm)

The next meeting date was established as February 8^th. The meeting was adjourned by 5:15 pm.

Respectfully submitted by Dennis Dunbar, Secretary

Action Item Response

Review Requirements for Withdrawal from RSU-12

Based on Recent Legislation

1. Petition. The residents of a municipality that has been a member of a regional school unit for at least 3 years may petition to withdraw from the regional school unit in accordance with this subsection.  A petition must be signed by 10% of the voters at the last gubernatorial election, then a hearing is held, followed by a secret ballot vote at least 10 days after the hearing. There must be a majority voting in favor to proceed.

2. Agreement for withdrawal. The commissioner will then direct the municipal officers to select a "withdrawal committee" to develop an agreement for withdrawal with the RSU.

(1) The agreement must contain provisions to provide educational services for all students of the petitioning municipality within the regional school unit. The agreement must provide that during the first year following the withdrawal students may attend the school they would have attended if the petitioning municipality had not withdrawn. The allowable tuition rate for students sent from one municipality to another in the former regional school unit must be determined under section 5805, subsection 1, except that it is not subject to the state per pupil average limitation in section 5805, subsection 2.

(2) The agreement must establish that the withdrawal takes effect at the end of the regional school unit's fiscal year.

(3) The agreement must establish that the withdrawal will not cause a need within 5 years from the effective date of withdrawal for school construction projects that would be eligible for state funds. This limitation does not apply when a need for school construction existed prior to the effective date of the withdrawal or when a need for school construction would have arisen even if the municipality had not withdrawn.

(4) The agreement must establish how transportation services will be provided.

(5) The agreement must provide for administration of the new administrative unit, which should not include the creation of new supervisory units if at all possible.

(6) The agreement must make provision for the distribution of financial commitments arising from outstanding bonds, notes and any other contractual obligations that extend beyond the proposed date of withdrawal.

(7) The agreement must provide appropriately for the distribution of any outstanding financial commitments to the superintendent of the regional school unit.

(8) The agreement must provide for the continuation and assignment of collective bargaining agreements as they apply to the new or reorganized regional school unit for the duration of those agreements and must provide for the continuation of representational rights.

(9) The agreement must provide for the continuation of continuing contract rights under section 13201.

(10) The agreement must provide for the disposition of all real and personal property and other monetary assets.

(11) The agreement must provide for the transition of administration and governance of the schools to properly elected governing bodies of the newly created administrative unit and must provide that the governing body may not be elected simultaneously with the vote on the article to withdraw unless the commissioner finds there are extenuating circumstances that necessitate simultaneous elections. 

3. Commissioner Review.  Within 60 days the commissioner will issue a conditional approval or ask for changes from the Withdrawal Committee.

4. RSU Review. The RSU Board will then review it and hold a hearing with other member towns, then report back to the commissioner. The commissioner may ask for further changes from the Withdrawal Committee.  When all issues with the commissioner are resolved, the commissioner will set a required date for the petitioning municipality to hold a vote.

5. Municipal Vote of Approval.  The town will hold a final public hearing at least 10 days before the vote, and then vote for withdrawal.  In order for withdrawal to pass, 2/3 of the voters must approve the article.

6. Penalty Provisions.  A Municipality that withdraws from a regional school unit is not subject to penalties applicable to a nonconforming school administrative unit for 2 years after withdrawing.

Schedule Estimate (all dates approximate):

1. Petition – Start no earlier than 1 July, 2012 based on 3-year membership requirement

Hearing – 20 July 2012

Vote – 30 July 2012

2. Agreement for Withdrawal – Simple document in our case, estimate 60 days to prepare

Form Committee – 5 August 2012

Prepare Agreement – 20 September 2012

Submit to Commissioner – 30 September 2012

3. Commissioner Review – Requires 60 days

Complete Review – 30 November 2012

Update as Required – 30 December

4. RSU-12 Review

Board Review – 30 January 2013

Establish Budget Plan – 20 February 2013

Public RSU Hearing – 30 February 2013

Update as Directed by Commissioner – 30 March

5. Municipal Vote of Approval

Finalize Plan for Withdrawal, Budget and Implementation Strategy – 30 April 2013

Final Public Hearing – 10 June 2013

Vote – 20 June 2013 (at annual town meeting)

6. Begin (or restart) Westport Island School District – 1 July 2013

Westport Island Education Cost Summary and Projection

December 7, 2010 Update

Revenue and Expense Elements ($)	Independent; pay based on tuition Westport Island School District		Member of RSU-12; pay based on fixed share Sheepscot Valley Regional School Unit			Notes:
	Town Approved Plan FY 08-09	Actual Year End Outcome FY 08-09	RSU Budget Request FY 09-10 (3)	RSU Budget Request FY 10-11	RSU Budget Forecast FY 11-12
Revenue
Appropriation-new	854,834	854,834	1,025,279	979,773	1,200,000	Approx $220K inc. expected
Transfer from Surplus	229,748	229,748	-0-	-0-	-0-	Surplus Depleted
Carry Forward	-0-	111,636	199,437	175,808	-0-	Under-run held by town
State Subsidy	94,446	169,820	-0-	-0-	-0-	As Tuition Town Only
DHS Medicare	-0-	10,304	-0-	-0-	-0-	As Tuition Town Only
Federal Stimulus	-0-	10,084	-0-	-0-	-0-	As Tuition Town Only
Misc. Income	-0-	6,383	-0-	-0-	-0-	As Tuition Town Only
Total Revenue	1,179,028	1,392,810	1,224,716	1,155,581	1,200,000
Expenses
Total Expenses	1,179,028	1,033,467	1,224,716	1,155,581	1,200,000	FY 11-12 Rough Estimate
Balance	-0-	375,245(2)	175,808	-0-	-0-	Carry Forward to Next Yr.
Total Local Contribution (TLC)
Total Expenses	1,179,028	1,033,467	1,224,716	1,155,581	1,200,000
Less Gov’t Income	94,446	196,591	-0-	-0-	-0-
TLC Totals	1,084,582	836,876	1,224,716	1,155,581	1,200,000	Funded thru Property Tax
Share Basis (4)	8.63%	6.79%	8.48%	8.48%	8.48%

Notes:

1. Forecast for FY 11-12 Based on rough estimate from D. Dunbar, assumes continued reductions in administration and teaching staff offset by lower state EPS support and phase out of stimulus funding and teacher salary increases from union negotiations.

2. FY 08-09 update based on auditor analysis. Revenue and expenses need to be adjusted accordingly.

3. FY 09-10 is funded by loan to reconcile fiscal year with tax year.

4. Share intended to reflect true cost percentage of each town “Total Additional Cost” (cost borne by property tax commitment). The agreement was to codify the status quo so no town would see a shift in burden. However, share actually based on inflated estimate for Westport. Reduction is state EPS support, in addition to overstated share, resulted in an overall cost increase for Westport Island of over 45% compared to pre-RSU independent tuition cost basis.