Meeting Minutes

 

Title:               Budget Committee Meeting

Date:               Wednesday, December 07, 2011

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.

Action Item Review

Discussion

Consensus

All

4 :05

5 min

01 November Meeting Minutes Review

Discussion

Consensus

All

4 :10

5 min

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

Discussion

Consensus

Richard DeVries

4 :15

15 min

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

Discussion

George Richardson

4 :30

10 min

Review 5-Year Look Ahead and Potential New Town Costs

Discussion

Consensus

Dunbar

4 :40

5 min

Review Summer Study Project Status Reports

  • Education Spending and Options
  • Depreciation Account Allocation & Options
  • Town Bidding and Contracting Policy Options

Discussion

 

Dunbar

Hopkins

Downer

4 :45

15 min

Public Comment

Discussion

Public

5 :00

5 min

Wrap up

Discussion

Consensus

Secretary

5 :05

5 min

 

Attendees:       Curt Downer, Dennis Dunbar, Bill Hopkins, Stan Lane, Susan Partelow    

Absent:            Wayne Cooper, Mort Mendes

Facilitator:       None

Secretary:        Dennis Dunbar

 

 


Minutes from the December 7th, 2011

Meeting of the Budget Committee

 

The meeting was called to order by Chairman, Dennis Dunbar at 4:07 PM.  The following members/alternates were present: Curt Downer, Dennis Dunbar, Bill Hopkins, Stan Lane and Susan Partelow. Absent were Wayne Cooper and Mort Mendes.

 

We briefly reviewed proposed agenda and approved the minutes from our November 1st meeting.

 

Due to travel difficulties, Richard DeVries was unable to attend the meeting.  It was agreed that he should be invited to attend the next meeting to brief the Committee on the status of new cost sharing plans at RSU-12 and the plan for gaining member town approval.  Further, George Richardson was not able to attend since he was out of town.  Treasurer Partelow indicated that the intent of the study will be to address the increased cost of culvert cleaning and inspections for two culverts off Post Office Road, a culvert on Doggart Road, one on the Main Road near Oak Run Road, one on East Shore Road and one on Fowles Point Road.  More details will be provided by Selectman Richardson, along with a specific statement of the task to be undertaken by the Committee.  It was suggested that a local resident, Paul Nergaard, has expertise on beaver mitigation measures and should be consulted as appropriate on this study project.

 

Chairman Dunbar briefly reviewed the updated 5-year Look Ahead template and the summary of the high growth area since the 2008-2009 fiscal year. The highest growth area was education, which increased in appropriated cost by $317,553 due to the current cost sharing formula in RSU-12. The second highest cost growth was the addition of a “Catch-up Loan” to correct the misalignment of the town’s tax year with it’s fiscal year.  That cost will occur only thru the first half of Fiscal Year 2015-16 whereupon the loan will be paid off.  Treasurer Susan Partelow explained the drawdown taken this year of the loan balance to reduce the commitment and mill rate increase.  Any further drawdown will be evaluated in June of next year (2012).

 

A discussion on the role of the Budget Committee in serving the community on the issue of the education cost issue was spirited.  Chairman Dunbar used a draft document titled “What Role Should the Budget Committee Plan on Education Costs for Westport?”.  No consensus was reached on the document, but a consensus was reached that the Budget Committee should serve as an impartial evaluator of the cost situation and should respond to any requests of data made by the Board of Selectmen in accordance with our Ordinance.  As an elected body, the Committee is should ensure that voters and town officials have the needed information for informed judgments.  It was agreed that the School Board representatives should be leading participants in discussions of town options.

 

Curt Downer presented an outline of his work to date on the task to consider a town bidding and contracting policy.  Bill Hopkins provided input for Curt’s consideration.  More on this study will be reported in a subsequent meeting of the Committee.

 

No members of the public were in attendance at this meeting, hence no public comment was recorded.

 

The next meeting of the Budget Committee was scheduled for January 4th at 4:00 pm at the Town Office.

 

There being no further business for the committee, the meeting was adjourned at 5:15 pm.

 

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