RESOLUTION OF THE FINANCIAL TOWN MEETING TO CREATE A CAPITAL RESERVE ACCOUNT

TO BE KNOWN AS THE SIDEWALK DEVELOPMENT IMPROVEMENTS CAPITAL RESERVE ACCOUNT

RESOLVED:  Resolution to create a capital reserve account to be known as the Sidewalk Development Improvements Capital Reserve Account and transfer all unused funds ($41,873.43) from the existing park & trail improvements account pavement management account.

Town Planner Phil Hervey explained that the resolution needed to be amended.  Mr. Hervey explained that the funds will come from the pavement management account and not from the existing park & trail improvements accounts.

Motion passed (voice vote).

Motion by Councilmember Boyajian and seconded by President Carroll to adopt the following resolution:

RESOLUTION OF THE FINANCIAL TOWN MEETING TO CREATE A CAPITAL RESERVE

FOR LAND CONSERVATION AND TO CHANGE THE NAME TO THE CONSERVATION LAND ACQUISITION RESERVE FUND

RESOLVED:  Resolution to create a capital reserve for the Land Conservation and to change the name to Conservation Land Acquisition Reserve Fund.

Michael Tripp, 40 Lamson Road, asked would the land acquisitions solely be at your (Town Council’s) discretion.

Councilmember Steve Boyajian answered that land acquisitions would need a vote at a Financial Town Meeting.

Motion passed (voice vote).

Motion by President Carroll and seconded by Vice President Weymouth to adopt the following resolution:

RESOLUTION OF THE FINANCIAL TOWN MEETING APPROPRIATING $6,000,000

TO FINANCE THE DESIGN, CONSTRUCTION, EQUIPPING, AND IMPROVEMENT OF STREETS AND SIDEWALKS AND THE PECK CENTER, INCLUDING BUT NOT LIMITED TO SAFETY IMPROVEMENTS, THE CENTER FOR ADULT ENRICHMENT AND FACILITIES USED BY THE TAPIN, INC. OUTREACH ORGANIZATION AND FRIENDS OF THE LIBRARY, AND ALL ATTENDANT EXPENSES, INCLUDING BUT NOT LIMITED TO ENGINEERING COSTS AND APPROVING THE FINANCING THEREOF THROUGH THE ISSUANCE OF GENERAL OBLIGATION BONDS

AND/OR NOTES IN AN AMOUNT NOT TO EXCEED $6,000,000

Be it resolved that:

SECTION 1.  The sum of $6,000,000 be appropriated to finance the design, construction, equipping and improvement of streets and sidewalks and the Peck Center, including but not limited to safety improvements, the Center for Adult Enrichment and facilities used by the TAPIN, Inc. outreach organization and Friends of the Library, and all attendant expenses, including but not limited to engineering costs (the "Project") and to raise said appropriation, the Finance Director, pursuant to Section 45-12-2 of the General Laws of Rhode Island with the approval of the Town Council is authorized to issue general obligation bonds therefor in an amount not to exceed $6,000,000, to issue temporary notes in anticipation of the issuance of bonds, and to issue refunding bonds pursuant to Section 45‑12‑5.2 of the General Laws. 

                    SECTION 2.  The manner of sale, amount, denominations, maturities, conversion or registration privileges, interest rates, medium of payment, and other terms, conditions and details of the bonds and notes may be fixed by the officers authorized to sign the bonds and notes.  Notwithstanding any provision of Chapter 45-12 of the General Laws, the Town may enter into financing agreements with the Rhode Island Infrastructure Bank pursuant to Title 46, Chapter 12.2 of the General Laws and, with respect to bonds and notes issued in connection with such financing agreements, if any, the Town may elect to have the provisions of Title 46, Chapter 12.2 of the General Laws apply to the issuance of the bonds and notes issued hereunder.  The bonds and notes shall be signed by the Finance Director and by the President of the Town Council.

                    SECTION 3.  To the extent the bonds and notes are to be issued on a tax-exempt basis, the Finance Director and the President of the Town Council are hereby authorized to take all lawful action necessary or desirable under the Internal Revenue Code of 1986, as amended (the “Code”), to insure that the interest on any bonds and notes will remain exempt from federal income taxation to the extent provided in Section 103 of the Code, and to refrain from taking any action which will cause interest on such bonds and notes to lose the benefit of exclusion from gross income provided by Section 103(a) of the Code.  The Finance Director and the President of the Town Council are further authorized to take all lawful action necessary or desirable to designate the bonds and notes as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code.

                    SECTION 4.  This resolution shall take effect upon passage.

COA Chair Richard Staples explained the need for the bond.  (Please see the COA message titled Financed Project Budget for further explanation.)

Motion passed (voice vote).

Motion by Vice President Weymouth and seconded by President Carroll to adopt the following resolution:

RESOLUTION OF THE FINANCIAL TOWN MEETING

AUTHORIZING THE ISSUANCE OF EMERGENCY NOTES

TO FUND EMERGENCY APPROPRIATIONS NOT TO EXCEED $5,000,000

Be it resolved that

Section 1.  In the event of an emergency threatening the public safety, health or welfare and requiring the immediate expenditure of money by the Town, the Town Council, on the written recommendation of the Town Manager, by resolution, may appropriate funds in an amount not to exceed $5,000,000 and for purposes in addition to those contained in the operating budget or in the capital budget.  Such a resolution shall include a brief statement of the facts that show the existence of such emergency.

Section 2.  To fund said appropriation, the Finance Director, with the approval of the Town Council, is authorized under Section 45-12-2 of the General Laws Rhode Island to issue emergency notes.

Section 3.  The manner of sale, denominations, maturities, principal amounts, interest rates, and other terms, conditions and details of any emergency notes issued pursuant to this authority may be fixed by proceedings of the Town Council authorizing the issue or by separate resolution of the Town Council or, to the extent provisions for these matters are not so made, they may be fixed by the officers authorized to sign the emergency notes.  The notes shall be signed by the Finance Director and by the President of the Town Council.

Section 4. The Finance Director and the President of the Town Council are hereby authorized to take all lawful action necessary or desirable under the Internal Revenue Code of 1986, as amended (the “Code”), to insure that the interest on the emergency notes will remain exempt from federal income taxation to the extent provided in Section 103 of the Code, and to refrain from taking any action which will cause interest on the emergency notes to lose the benefit of exclusion from gross income provided by Section 103(a) of the Code.  The Treasurer and the President of the Town Council are further authorized to take all lawful action necessary or desirable to designate the emergency notes as “qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code.

Motion passed (voice vote).

Motion by Vice President Weymouth and seconded by President Carroll to adopt the following resolution:

RESOLUTION AUTHORIZING THE ISSUANCE OF TAX ANTICIPATION NOTES

IN AN AMOUNT NOT TO EXCEED $5,000,000

Be it resolved that

Section 1.  Pursuant to Rhode Island General Laws Section 45‑12‑4 and Section 6-5-2 of the Town of Barrington Home Rule Charter the Finance Director and the President of the Town Council acting on behalf of the Town, are authorized to issue and refund, from time to time, not to exceed $5,000,000 interest bearing notes issued in anticipation of the receipt of the proceeds of the annual tax assessed or to be assessed upon the taxable property within the said Town as of December 31, 2016 for the financial year July 1, 2017 to June 30, 2018 for the purpose of providing funds for the payment of the current liabilities and expenses of said Town. 

Section 2.  The manner of sale, amount, denominations, maturities

conversion or registration privileges, dated dates, due dates, interest rates, medium of payment, and other terms, conditions and details of the Notes authorized hereunder may be fixed by proceedings of the Town Council authorizing the issue or by separate resolution of the Town Council or, to the extent provisions for these matters are not so made, they may be fixed by the officers authorized to sign the Notes.

Section 3.  The Director of Finance/Treasurer and the President of the Town Council are authorized to take all actions necessary to comply with federal securities laws including Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) and to execute and deliver if required in connection with the Notes a Continuing Disclosure Agreement or a Material Events Disclosure Agreement in the form as shall be deemed advisable by the Director of Finance and the President of the Town Council in order to comply with the Rule. The Town hereby covenants and agrees that it will comply with and carry out all provisions of any such Continuing Disclosure Agreement or Material Events Disclosure Agreement, as either of them may be amended from time to time.  Notwithstanding any other provision of this Resolution or the Notes, failure of the Town to comply with any such Continuing Disclosure Agreement or Material Events Disclosure Agreement shall not be considered an event of default; however, any noteholder may take such actions as may be necessary and appropriate, including seeking a mandate or specific performance by court order, to cause the Town to comply with its obligations under this Section and under any such agreement.

Motion passed (voice vote).

Committee on Appropriations 2018 Financial Town Meeting Message

Your Committee on Appropriations welcomes you to the 2018 Town of Barrington Financial Town Meeting. We have been working diligently on your behalf this past year to receive and review the Municipal and Schools budgets you will be voting on tonight. Unlike many Rhode Island communities, Barrington’s Town Charter offers you the opportunity and responsibility to speak and then vote on how your town allocates and spends its revenue from property taxes and other sources each fiscal year.

THE CHARTER

By Charter, the Committee on Appropriations (the “Committee”) - five members elected at each Financial Town Meeting on staggered two-year terms - is charged with holding “a public meeting on the Wednesday two weeks prior to the Annual Financial Town Meeting at 7:00 p.m. for the purpose of hearing all registered voters of the Town interested in preparing a budget to be presented to the Annual Financial Town Meeting…” That public meeting, referred to as the Budget Hearing, was held on May 9.

For this fiscal year, the Committee made several significant changes in approach to its charge under the Town Charter. To encourage greater public participation and provide a more accountable process, we expanded our meeting schedule to include the first half of the year and met in four different community settings in addition to our “home base location” at the Middle School Library. Our weekly budget review meetings that began in February were scheduled and publicized in advance with information about which budget was to be the agenda focus. Detailed minutes were taken and made publicly available, and some meetings were also audiotaped.

BUDGET FORECASTING COMMITTEE

The Committee also took a leading role in revitalizing the Budget Forecasting Committee in the first half of the fiscal year. The Forecasting Committee is comprised of two members each from the Committee on Appropriations, Town Council, and School Committee, supported by Municipal and Schools administrators. The Forecasting Committee met monthly between June and January and produced the Town’s first Budget Forecasting Report since 2012, as required by Rhode Island law. The primary goals of the 31-page report were to encourage improved planning, collaboration, and goal-setting by the participating bodies, and the community-at-large, using known information, hypotheses and assumptions. It was presented to full memberships of the three elected bodies on January 30 and has been an important resource for the Committee on Appropriations throughout our budget review process since then.

GUIDING PRINCIPLES & FINDINGS

In our first few meetings, the Committee discussed and agreed to adopt Guiding Principles to help us balance the best interests of Town, Schools and taxpayers throughout the budget review process. We also agreed to conduct our business on a consensus model and to thoroughly review and revisit areas of concern within the budgets up to and including our April 11 meeting when we voted on the budgets so the Town could submit our recommendations to the state for review, approval and advertising prior to the Budget Hearing, as required by law.

Between February and April, the Committee conducted a thorough review of four draft budgets: (1) Municipal Operating Budget, (2) Schools Operating Budget, (3) Capital Improvement Program Budget and, (4) Financed Projects Budget. Municipal and Schools administrators were present at every meeting and involved throughout the process, answering our many questions and explaining their methods of setting budget needs and priorities with the community and taxpayers in mind. Significant Committee findings included: (1) labor costs (contracts, parity and benefits) are a major factor in cost increases within the two operating budgets; (2) non-operating expenses (debt service, capital expenses) can put upward pressure on costs beyond the operating budgets (as we saw with last year’s middle school bond); (3) while not fully funded, Town and Schools pensions benefit from responsible stewardship under state oversight and are in compliance with all required contributions; (4) maintaining excellent bond agency ratings require balanced budgets and robust reserves; and (5) awards of grant dollars and thousands of volunteer hours help mitigate costs and enhance quality of life for Barrington residents.

THE BUDGETS

TOTAL TOWN BUDGET

The Fiscal Year 2018-19 Town of Barrington budgets, as recommended by the Committee on Appropriations and published in the Barrington Times on May 2, total $74,253,931, a $2,372,488 (3.30%) increase over Fiscal Year 2017-18. This total is distributed across the four major budget categories referenced in the above table. The first two categories - Municipal Operating and Schools Operating - represent 90.34% of the total budget and have recommended increases of 1.49% and 2.97%, compared with five-year averages for these two budgets of 2.17% and 2.21%. The combined increase of both operating budgets is 2.60%, accounting for 71.71% of the total dollar increase. The last two categories - Municipal Capital and Payments on Debt (financed projects) - represent the remaining 9.66% of the total budget and have a combined increase of 10.32%, accounting for 28.29% of the total dollar increase.

Municipal Operating Budget

The Municipal Operating Budget was presented to the Committee on March 27 and discussed at four additional meetings. The original budget request was $16,623,690, a 2.55% increase, with notable department budget increases for Board of Canvassers ($15,125) due to election year expenses, and Police Department ($107,786) to fund a full-time School Resource Officer and third detective position. There were other significant variances within the budget, but these represented inter-departmental transfers of expenses, with offsets, undertaken by the Town Manager as he continues to realign town departments. The budget was favorably impacted, late in the process, by a significant decrease in health insurance expenses (-$168,000, in addition to an earlier $90,000 estimated reduction). The result of all adjustments was an increase in the budget total of $241,976, to $16,452,690, a 1.49% increase.

Schools Operating Budget

The Schools Operating Budget was presented to the Committee on March 20 and discussed at five additional meetings. The original budget request was $50,839,201, a 3.34% increase, with notable department budget increases in Contractual Increases ($734,461) due to labor contract costs, Personnel Benefits ($565,941) due to increased health insurance premiums and pension contributions, and Professional Services ($325,327) due to increased Student Services, Contract Bus Monitors, and Legal Services. Like the Municipal Operating Budget, most other significant variances represented inter-departmental transfers, and this budget, too, was favorably impacted by a decrease in health insurance expenses (-$207,987). The result of all adjustments was an increase in the budget total of $1,459,368, to $50,628,214, a 2.97% increase.

Town Capital Budget

The Town Capital Budget was presented to the Committee on February 6 and discussed at three additional meetings. The original budget request, submitted by a Planning Board Committee, was $1,123,500, a 2.14% increase. Four budget modification requests were reviewed and accepted by the Committee on Appropriations. The Town Manager requested increases of $5,000 (Fire Department) for furnishings and $75,000 (Public Works) for repairs to town-owned portions of the Mathewson Road seawall; the Town Council requested an increase of $10,000 (Conservation Land Acquisition) to fund future open space land purchases; and the School Department requested an increase of $85,000 (Technology) to restore funding to Fiscal Year 2017-18 levels needed to continue student technology device purchases. These four adjustments resulted in an increase in the budget total of $198,500, to $1,298,500, an 18.05% increase.

Financed Projects Budget

The Financed Projects Budget was presented to the Committee on February 27 and discussed at two additional meetings. In addition, three members of the Committee participated in a Peck Center project tour and overview on April 9. $2,500,000 of the proposed $6,000,000 financing obligation will be for critical repairs and upgrades at the Peck Center, including roof replacement and fire, safety and accessibility improvements, and the remaining $3,500,000 will continue roadway, drainage and sidewalk repairs and resurfacing projects. Estimated annual principal and interest payments on this new financing is estimated to be $472,644, resulting in an increase in the budget total to $5,874,527, an 8.75% increase, as shown in the “Payments on Debt” line in the table above.

ANTICIPATED IMPACT ON TAX LEVY

The recommended Total Town Budget voted on by the Committee on Appropriations on April 11, and the subsequent Town of Barrington Notice of Proposed Property Tax Rate Change that was approved by the state and published on May 2, is estimated to result in a proposed Fiscal Year 2018-19 tax levy increase of 2.95%, exclusive of motor vehicle excise tax collections, as required by state law. However, the adjusted increase would be 2.28% when budgeted revenues from motor vehicle tax collections are included.

The final tax levy and related property tax rate for Fiscal Year 2018-19 will be calculated and announced by the Town Finance Director and Tax Assessor as a result of business conducted and votes taken at tonight’s Financial Town Meeting. Furthermore, each individual property owner’s actual property tax increase or decrease may be impacted by changes in assessed value of the owner’s property resulting from the town-wide revaluation completed earlier this year.

Sincerely,

TOWN OF BARRINGTON COMMITTEE ON APPROPRIATIONS

Richard Staples (Chair)

Joshua Berlinsky (Vice Chair)

Dr. Frank “Scott” Douglas

Tricia Marlar

Dr. Cynthia Rosengard

Mr. Klepper asked Peter Clifford to come forward.  Peter Clifford, 6 Starwood Drive, made the motion below that was submitted to the Town Clerk on April 19, 2018. 

RESOLUTION

ADOPTING THE REPORT

OF THE COMMITTEE-ON-APPROPRIATIONS

RESOLVED:  that the report of the Committee-on-Appropriations, appointed to prepare a budget, be adopted and in accordance therewith, the sum of $ 74,253,931               be and the same hereby is appropriated to be expended during the fiscal year ending June 30, 2019, and the Town Treasurer is hereby authorized and directed to pay out of the several appropriations mentioned, said sums within the amounts appropriated, as may be required upon receipt by her of proper vouchers approved by the Town Manager, or otherwise as provided by law.

BE IT FURTHER RESOLVED:  that the report of the Committee-on-Appropriations with regard to the Sewer Enterprise Fund be adopted and in accordance therewith the sum of                      $  4,057,554         be and the same hereby is appropriated to be expended during the fiscal year ending June 30, 2019, and the Town Treasurer is hereby authorized and directed to pay out of the Sewer Enterprise Fund said sums within the amount appropriated as may be required upon receipt by her of proper vouchers approved by the Town Manager or otherwise as provided by law.  The expenditure shall be supported by revenue generated by said fund.

Motion passed (voice vote).

Motion by Richard Staples and seconded by Cynthia Rosengard to adopt the following resolution:

RESOLUTION

ORDERING THE LEVY AND COLLECTION OF A TAX AND DEALING

WITH KINDRED MATTERS

RESOLVED:  that the electors of the Town of Barrington, qualified to vote on any proposition to impose a tax, in Town Meeting assembled, on this 23rd day of May, a.d. 2018, hereby order the levy and collection of a tax on the ratable real estate, the ratable tangible personal property, ratable tangible personal property of manufacturer's machinery and equipment (the rate of said ratable tangible personal property of manufacturer's consisting of manufacturer's machinery and equipment to be in accordance with limitations and provisions of statutory law of the State of Rhode Island) and motor vehicle excise tax in the sum not less than $  64,470,948                   nor more than $  65,109,793     , said tax to be for ordinary expenses and charges, for the payment of interest and indebtedness in full or in part of said Town and for other purposes authorized by law.

The Tax Assessor shall apportion said tax on the inhabitants and taxable property of said Town according to law, and shall, upon completion of said resulting tax roll, date, certify and sign the same and deliver to and deposit the same in the Office of the Town Clerk.  The Town Clerk, upon receipt of said assessments, shall forthwith make a copy of same and deliver it to the Finance Director with a warrant under her hand directed to the Collector of Taxes of said Town commanding him to proceed to collect said tax on the person and estates liable therefor.  Said tax shall be due and payable on the 1^st day of September, a.d. 2018, and all taxes remaining unpaid after September 28, 2018, shall carry until collected, a penalty at the rate of 18 per cent per annum from the due date of any quarterly installment, PROVIDED, HOWEVER, that the persons assessed to pay their taxes shall have an option to pay the same in equal quarterly installments; the first installment of twenty-five per centum on or before the 28^th day of September 2018, and the remaining installments as follows:  twenty-five per centum on or before the 28^th day of December 2018, twenty-five per centum on or before the 29^th day of March 2019, and twenty-five per centum on or before the 28^th day of June 2019.

If the first installment or any succeeding installments of taxes is not paid by the last date of the respective installment period or periods as they occur then the whole tax or remaining unpaid balance of the tax as the case may be shall immediately become due and payable and shall carry until collected a penalty at the rate of 18 per cent per annum.

As of the 31^st day of December 2018, at twelve o'clock midnight, the Assessor of Taxes shall determine the assessed valuation of ratable property in the Town for tax purposes and against such assessed valuations so determined shall apportion the tax levy to be made by the electors in Financial Town Meeting on May 22, 2019 on the inhabitants of the Town and ratable property therein to meet appropriations.

RESOLVED:  that the Finance Director is hereby authorized to hire such sum or sums of money as may be necessary for the operation of the Town Government, and

RESOLVED:  that the Finance Director and Collector of Taxes and such other Town Officers as the Town Council may designate shall secure their bonds from some good surety company and the Town assume the expenses.  

Motion passed (voice vote).

Motion by Richard Staples and seconded by Scott Douglas to adopt the following resolution:

RESOLUTION

TO ESTABLISH TAX RATES

RESOLVED: that the real estate and personal property tax rate be set at not greater than

$19.50 per $1,000 valuation and the motor vehicle tax rate be set at $42.00 per

$1,000 valuation.

Motion passed (voice vote).

Michael Carroll nominated Richard Staples and Tricia Marlar to the Committee on Appropriations to serve for 2 years until May 2020.  Chad Mollica nominated Lisa Daft and Ann Strong to the Committee on Appropriations to serve for 2 years until May 2020.  Each candidate spoke as to why they would be a good member for the Committee on Appropriations.

RESOLUTION

ELECTING A COMMITTEE

TO PREPARE A BUDGET AND SUBMIT A REPORT