TOWN OF BARRINGTON, RI
COMMITTEE ON APPROPRIATIONS
TUESDAY, JANUARY 24, 2023 AT 7:00 P.M.
BARRINGTON MIDDLE SCHOOL, PRESENTATION ROOM
Meeting Minutes Approved 2.2.28
Present:
Steve Primiano (Chair, COA)
Susannah Holloway (Vice Chair, COA) (Budget Forecast Committee Member)
Bill DeWitt (COA)
Cynthia Rosengard (COA) (Vice Chair, Budget Forecast Committee)
John Stafford (COA)
Phil Hervey (Town Manager) (on Zoom)
Kathy Raposa (Municipal Finance Director)
Carl Kustell (President, Town Council) (Budget Forecast Committee Member)
Rob Humm (Vice President, Town Council)
Kate Berard (Town Council)
Braxton Medlin (Town Council) (Budget Forecast Committee Member)
Doug Fiore (BPS Finance Director)
Patrick Guthlein (Assistant Finance Director)
Patrick McCrann (Chair, School Committee)
TJ Peck (Vice Chair, School Committee) (Budget Forecast Committee Member)
Amanda Basse (School Committee)
Frasier Bell (School Committee)
Megan Douglas (School Committee) (Chair, Budget Forecast Committee)
Meeting Digest
1. The meeting was called to order and quorum confirmed at 7:00pm.
2. Introductions.
3. The Chair made remarks.
4. The minutes from May 11, May 17th, and June 13th meetings were approved.
5. The COA schedule was discussed.
6. The COA meeting format and procedures were discussed.
7. No COA members shared comments/suggestions.
8. No public comment was heard.
9. The Budget Forecast was presented.
10. The meeting was adjourned at 8:23pm.
Detailed Minutes
Mr. Primiano confirmed a quorum and called the meeting to order at 7:00pm and introduced all members of the COA who were present.
No remarks were offered.
(Ms. Holloway was late to the meeting and did not vote)
The minutes of the May 11th meeting were approved (DeWitt, Primiano, and Rosengard in favor; Stafford abstained) after a motion to approve was offered by Dr. Rosengard and seconded by Mr. DeWitt.
The minutes of the May 17th meeting were approved (DeWitt, Primiano, and Rosengard in favor; Stafford abstained) after a motion to approve was offered by Mr. DeWitt and seconded by Dr. Rosengard.
The minutes of the June 13th meeting were approved (DeWitt, Primiano, and Rosengard in favor; Stafford abstained) after a motion to approve was offered by Mr. DeWitt and seconded by Dr. Rosengard.
Mr. Primiano asked those in attendance if they had a chance to review the proposed COA schedule this year. Mr. Primiano wanted to check with the school and municipal administrations that the schedule would allow for us to meet all the legal deadlines. Ms. Raposa affirmed this. All present indicated that they had and were available, though Mr. DeWitt indicated that he would need to miss the February 28th meeting. Mr. Primiano reminded us that the COA typically meets @ 7pm and would be meeting in the Barrington Middle School Presentation Room for all of our meetings.
Mr. Primiano indicated that would be following the format that we have in previous years – reviewing the budgets from school and municipal administrations and ask questions with follow-up meetings. He continued that existing members of the COA had agreed that we would not need a pension meeting this year, though questions regarding the pension can be submitted to Ms. Raposa, who would get them to the State Pension Board.
Mr. Primiano indicated that we would be continuing with our consensus model with a formal vote on the recommended budget at the end of our discussions. He wanted to stress that we be “issue-oriented, collaborative” and that we have a narrow mission to review presented budgets and make a recommendation.
None were offered.
No public comment was heard.
The Budget Forecast Committee meeting was called to order by Dr. Douglas @ 7:27pm
The School Committee meeting was called to order by Mr. McCrann @ 7:28pm
The Town Council meeting was called to order by President Kustell @ 7:28pm
Dr. Douglas thanked everyone for attending the meeting. She reminded us that the reason for involving all decision-makers to hear what is in the presentation and what is potentially coming is so that there is a shared awareness of all the needs of what is happening in town and a basis for moving forward in the same direction.
Dr. Douglas explained that the presentation had been sent out ahead of time so that folks would have a chance to review ahead of time because, although the presentation has a lot of good information in it, the meeting is an opportunity for all decision-makers to share ideas and needs.
The beginning of the presentation includes an explanation for the public to address frequently asked questions that come up annually. Dr. Douglas offered that if questions come up, the Budget Forecast Presentation is a good resource to share with members of the public.
Dr. Douglas highlighted that a consistent proportion of budget for school, municipal (including capital) and school capital and is comparable to most New England towns. Dr. Douglas continued that most of our revenue comes from property taxes, like most towns in Rhode Island.
Dr. Douglas explained that the Budget Forecast assumes that we do not do anything new and what the anticipated increases over the next four years would look like with no new initiatives. Mr. Primiano asked about contracts and when they expire. Dr. Douglas indicated that two out of three contracts on the school side were just negotiated and will be good for three years. She also verified that most of the municipal contracts had recently been negotiated as well. Mr. Primiano said that it is only in the “out years” of the forecast that there are more unknowns about labor costs. Mr. Stafford asked what inflation rate was assumed for the forecast. Ms. Raposa indicated that they use 3% on utilities and that they use the pension estimates from the state. Mr. Fiore offered that they use something higher for health insurance costs, which tend to be higher than inflation.
Dr. Douglas indicated that, for the most part, our pensions are well-funded, that we are well-rated due to our well-managed finances – that we avoid bonds and deficit spending. She commented on the challenges and threats that we’ve included in the budget forecast for a long time. President Kustell indicated that they have made an investment in cyber security to address that challenge. Dr. Douglas continued to highlight Barrington’s strengths – beautiful area, strong volunteer work force and limitations on available space and number of businesses.
Dr. Douglas focused on state revenue and how it is now kind of a game at this point to see how that plays out in the upcoming season. She indicated that the RIDE 101 workshop that she and the other members of the School Committee attended over the weekend, the RIDE representative indicated what figures they would be putting out and it looks like they are putting more money into the funding formula. She talked about labor costs and the difficulties with hiring and keeping employees. Dr. Douglas spoke about a bill that is proposing the ability to give town employees property tax relief (including teachers who have worked in town for 10 years). She indicated that she has feelings about this bill and hopes that folks understand that, though this comes from a positive place, someone will have to pay those taxes. President Kustell indicated that, should the legislation go through it would be a town-level choice and not foisted on us. Dr. Douglas opined that if the legislation is out there that the town can do this and then they choose not to do it, it is a hard political position to be put in. Mr. Stafford indicated that this is done for volunteer fire fighters in Bristol, but that it is different when they are employees of the town. Dr. Douglas offered that there is a senior property tax relief which costs $1.5M and that veterans also get a tax break, but that it is not very much. She concluded that this legislation is not very straightforward.
Dr. Douglas indicated that the school will be developing a three-year strategic plan and that enrollment is expected to continue to increase across Pre-K to 12th grade. She also referenced unfunded mandates. Mr. Fiore offered that curriculum changes are very expensive and that there are currently two major changes being required by RIDE.
Dr. Douglas described the figure of our debt schedule with its rainbow colors – highlighting the “big bar” that represents the Middle School bond and suggesting that if there is another big project, there would be another big bar added to this figure. She continued to reference recreation facility upgrades that are being discussed on the municipal side and she isn’t sure where that will fit within the forecast. She informed us that Barrington Public Schools is resubmitting a Stage I application to RIDE for new school construction with a Stage II submission planned for September and getting shovels in the ground by the end of December 2023. She then asked Mr. Fiore when the bond would need to be approved. Mr. Fiore indicated that it would need to happen between September and December.
Dr. Douglas encouraged those of us around the tables to be in touch with our legislators, indicating that giving them a big picture of what is needed here in town might result in better, more focused legislation. She also indicated that having larger conversations about what is happening with Watson Avenue and discussions regarding recreational facilities, including a possible field house, will all have impacts across Barrington. She also referenced Zion as a possible place to increase the tax base which might offset some of the other liabilities that are on the horizon.
Dr. Douglas then asked for questions and concerns. Mr. DeWitt asked about the town and schools’ appetite for joint purchasing, collaboration on services. Mr. Fiore offered that most purchases of Barrington Public Schools are part of purchasing collaboratives (he referenced that there is a quirky law that requires them to get permission from the Attorney General). Ms. Raposa said that the same is true on the municipal side. President Kustell said that there is universal support in the concept. Mr. Fiore offered that with Barrington Middle School, it became a lot easier to work with regional collaborative - New England purchasing collaborative.
President Kustell encouraged other council members to provide feedback and questions. He indicated that the legislative breakfast coming up where there will be open conversation with legislators. He indicated that all legislators are interested in how Barrington can strengthen its fiscal health. He encouraged everyone to think about ways of doing this and offering them to our legislators. Mr. Peck indicated that Reps. Boylan and Knight had put forth the language to push out the deadline for the RIDE building incentives for Barrington. He continued that it does not have it be exclusive to Barrington and that we could add other municipalities that might be in the same boat as we are. Dr. Douglas offered that we need to be careful and strategic in what we are asking for at the state level – referencing the challenges that we encountered when we asked to be made whole after the funding formula fiasco after our budget had been voted on. She continued that we need to be prepared for a change in the school funding formula.
Mr. Peck indicated that it is important for the School Committee and School Administration to know about the potential for new school students that might come with future construction plans at the town level. He mentioned that knowing something by mid-summer will be important to architectural consultants. He stressed the importance of all parties being on the same page and having “more than usual” coordination between School Committee and Town Council. President Kustell said that he does not want to influence the Planning Board, which has separate legal authority, who will review Shine Harmony proposal that will ultimately come before the Town Council. He indicated that he did not want to put themselves in the position of prejudicing themselves one way or the other. Mr. Hervey indicated that they needed to have more refined projections for potential numbers of students – continuing that an apartment is not like a three or four bedroom single-family detached house. He said, at this time, they only have broad assumptions, which are harder with multi-family, townhomes…etc. He acknowledged that you want to get the investments in the schools correct and not over build or under build. He did say that it is important to consider accurate projections of what potential developments will present in terms of student numbers. Dr. Douglas asked about the anticipated time. Mr. Hervey indicated that it is uncertain. Councilor Berard indicated it is hard to say, given the six-month extension that the owners of the property are in. After that period, they would need to start a new process, which will entail a new timeline. She said that an estimate of maximum number of school students per acre might be all that can be estimated at this time. She continued that cohesive conversations between Town Council and School Committee are critical, given the overlap between the budgets and priorities of the town and the schools. She concluded that she would like to see more interplay between governing bodies, emphasizing that buildings are supposed to last 75+ years and need to consider the effects of climate change. She indicated that the Zion property is privately owned and it will take a lot of time before clear figures are known. Mr. Peck thanked Councilor Berard, and agreed that it is too early, but continued that a suburban community like Barrington that has a property that is currently under senior housing but looking at the potential for an amendment to multi-family housing, he is requesting that when Town Council knows feasible figures for enrollment and how tax situation and operating costs for additional enrollment. He acknowledged that apartments are not homes, but a in a two-bedroom apartment in Barrington, single parents might have 2 – 3 kids. He continued that Barrington might want an independent consultant who can advise on optimal numbers of kids and long-term planning. He offered that an additional 600 school children is a 20% increase in the town’s enrollment and he doesn’t want to design a facilities plan that is obsolete on day one. Councilor Berard offered a counter-comment that given the size of the land that school buildings are built on, we are limited by space, offering that elementary schools are one-story. Several folks in the room indicated that elementary schools can be multiple levels. Mr. Peck indicated that you can always go up and that the parcels have space for expansion and that we are focused on design with flexibility. He continued that under law, we are required to provide a seat for every student so that is what we would have to do. He indicated that more enrollment = more operating costs and the need for more space. Councilor Berard wondered about expansion of buildings and the high school and potentially the middle school if there was increased enrollment and to have a sense of capacity, which could factor into the building plans that will come before the Town Council. Mr. McCrann indicated that they will invite Town Council to come to meeting with RIDE representatives and acknowledged that the Town Planner has been coming to BSBC meetings. He continued that Barrington High School is in a flood plain and will need to conform to new construction that respects climate expectations. President Kustell indicated that Town Council can try to meet your timelines but acknowledged that Shine Harmony is not on any government timeline. He cautioned the danger in speculating about numbers at this point (we might have general ranges, but we are not able to home in on what the figures are). Mr. McCrann reaffirmed the importance of the School Committee and Town Council working together on this process and indicated that work on the Stage II submission would begin in late February. Mr. DeWitt asked Mr. Hervey what is left in terms of big parcels in town and continued that looking toward any additional development might have an impact on the schools. Mr. Hervey said that those two sites are most of the future development (85%). Dr. Douglas offered that it would be beneficial to err on the higher side because RIDE is so restrictive on how we estimate the need for building size. She continued that even though we anticipated that there would be enrollment increases with new Middle School, RIDE would not reimburse for projected enrollment.
Mr. Stafford steered the conversation toward how will bond affect the upcoming budget, indicating that it will be well after the Financial Town Meeting and will exceed the levy increase cap. He continued that we’d have an approved budget, then we’d do the bond and wondered how this works. Mr. Peck indicated that we need to understand what we can do and that it would be helpful to know what is realistic, debt-service-wise as well as community appetite. He indicated that $80M is repairing with nothing new. Mr. Stafford asked if we bond the total amount and expect to get reimbursed. He said that a town in Massachusetts had this happen – if we bond and cannot get reimbursed…we would be breaking state law. Dr. Douglas offered that the bond cannot be sought until we have approval from RIDE and a vote from Barrington taxpayers that the 4% tax cap can be broken. Mr. Primiano said that there are two issues – how do we budget for that and dealing with the 4% cap with the state and with the taxpayers. Dr. Douglas indicated that the state must understand that municipalities are going to need to break the 4% cap when they are offering massive bonds for school construction. Ms. Raposa indicated that the Middle School Bond is not included in the 3% debt limit for the town. Dr. Douglas and Ms. Raposa spoke about how a potential new school construction bond would affect the debt limit. Mr. Peck said, “The big question is: can we do this?” Mr. Fiore offered that there might be short-term financing and plan for subsequent years. Mr. Peck asked about the bond term, Mr. Fiore indicated 25 years. Dr. Douglas said that the BMS Bond will retire in 2042 and after that, provided we don’t take any additional bonds out, we would have no debt. Mr. Fiore continued that the bond could go out for 30 years because any buildings that would be built would be expected to last longer than that, so that offers flexibility. Dr. Douglas returned to Mr. Fiore’s comment about short-term funding…Mr. Fiore indicated that you would still need voter approval, even for the short-term financing, in anticipation of longer-term rates. Mr. Primiano clarified that the bond referendum has to be a real election and not a special financial town meeting, concluding that this is a tight schedule with a lot of unknowns. Mr. Peck offered that there is a potential for the deadline for RIDE incentives to be extended, but that until that happens, we have to assume that we need to stick with the current timeline and then he repeated the question “Can we do it?” Dr. Douglas asked if he is referring to “with 55% reimbursement” and whether we can or whether people will want to? Mr. Peck said that there is a path to accomplish this and asked Mr. Fiore about municipal rates these days. Mr. Fiore indicated that the rates are probably double what they were when the Middle School bond was being discussed/voted on. President Kustell offered that this is a political decision that is voted on. Dr. Douglas offered that this is how we want to invest when we have this opportunity. Mr. Primiano indicated that it is a fleeting opportunity (referring to the extra 20% RIDE reimbursement).
Mr. Stafford stated that it is not a matter of if, but a matter of when, continuing that Barrington is not getting out of the school business. Councilor Medlin expressed concern that folks at the table are wondering “what if” and encouraged that we should actively be planning for this, and we ought to be capitalizing on this opportunity. Dr. Douglas indicated that this is the first time she’s heard hesitancy and had assumed that we are moving forward, and that the town is assuming we are moving forward. Mr. Stafford offered that the Stage II application was voted down in the past few weeks. Council Medlin indicated that he is hearing ambivalence and Dr. Douglas said, “it would be a stupid thing to walk away from.” Councilor Medlin indicated that the perception in town is different from what those around the table know. Mr. DeWitt said that he doesn’t believe the Middle School project is the last of its kind and encouraged that we must start getting people’s attention. Dr. Douglas indicated that many districts across Rhode Island are doing this and will be breaking the bond limit again and again. She indicated that if every municipality is carrying multiple bonds, then you can’t do anything else. Mr. Peck clarified that if there was any wishy-washiness, it would have been nice to have done some of these things in the past fifteen years, but speaking for the Barrington School Building Committee, he said that they are focused on moving forward. He offered that he is asking the question among these people – could we do it? (and he assumes the answer is yes) And what does it look like it to do it? Councilor Medlin reflected that he didn’t see anyone as wishy-washy, but that it wasn’t clear that something is moving forward. Dr. Douglas indicated that we couldn’t do anything earlier because there had been a state moratorium on school building for a time and that could happen again. She indicated that it would be beneficial if all school districts were saving for upgrades and buildings and that it would be great if the legislators put together laws requiring rational financial management. She continued that this is the beginning of a conversation that will continue to happen and to use this as that opportunity. She said that Zion might add kids as well as add tax base. She encouraged all of us to advertise this Budget Forecast Report can help get people engaged earlier. Mr. Primiano indicated that he is excited that we have these conversations and get everyone on the same page, and he can’t wait to see how we put together a budget. President Kustell asked how long the school building moratorium was. Dr. Douglas indicated that it was 10 to 12 years. She said that Barrington was first in line when the moratorium ended because we had our ducks in a row. Mr. DeWitt offered that shutdowns don’t help.
The Budget Forecast was adjourned @ 8:23pm.
The Town Council adjourned @ 8:23pm.
The School Committee adjourned @ 8:24pm.
No public comment was heard.
The meeting was adjourned @ 8:23pm by unanimous vote after being moved by Dr. Rosengard and seconded by Mr. DeWitt.
Note-Taker: Cynthia Rosengard, Ph.D., MPH