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ADMINISTRATIVE BUDGET SESSION

 

MARCH 1, 2017

 

Town Manager's Budget

 

At an ADMINISTRATIVE BUDGET SESSION of the Town Council of the Town of South Kingstown, County of Washington, in the State of Rhode Island, convened at the Town Hall, in and for said Town on the 1^st day of March 2017 at 6:30 PM.

 

PRESENT:    Margaret M. Healy, President

Bryant DaCruz

Liz Gledhill

Joe Viele

 

Also present: Stephen A. Alfred, Town Manager, Patricia Sunderland, Finance Director,   Aimee Reiner, Director of Administrative Services, Chelsea Siefert, Principal Planner, Laurel Clark, Library Director, Jeffrey O’Hara, Building Official, and Colleen Camp, Executive Assistant.

 

The Pledge of Allegiance is given.

 

The Town Manager discusses the budget process and schedule. He presents his proposed FY 2017-2018 Municipal Budget Program Message and the Town Council account through the Town Hall account and the Library Program.   The budget is set up in twenty two-tabs, each is identified so that it will provide easier access for the public and Town Council members to get the necessary information.  The objective is to provide as much budget transparency as possible. 

 

The US Census 2015 American Community Survey showed a growth of 3,079 people in the 60 and above age bracket within South Kingstown over the past fifteen years and a loss of 1,367 in the 14 years and less age bracket.  This change in population will have a profound impact on what the services need and demand will be in the community.  A great deal of the new construction over the past few years has been 55+ housing where an older population moves into those units.  In addition there are a number of empty nesters that are staying within the community that at one time had children in the school system and are now over the age of 59. 

 

The amount of population increase is minimal when you consider the amount of non-institutionalized persons living in the community.  In 1990 there was a population of 5,081 non-institutionalized, in 2000 that population was 4,003 due to the renovation of a dorm at URI.  The number was back to 5,281 in 2015 inclusive of new and renovated dorms on campus.  The population increase from 2000 is about 1,278 people on the University campus because of the new beds.  When you look at the whole community the increase is 2,656 people so almost half of the total increase is related to the University where minimum service levels are going to be required.  The population growth that we were seeing, a 1% growth per year from 1990 to 2000, has substantially ended.   

The FY 2017-2018 budget program is proposed in the amount of $94,535,411, a 2.3% increase or $2,102,988 more than the current year adopted municipal program.  The total municipal program consists of the General Fund, School Fund, Water Fund, Wastewater Fund, Solid Waste Fund, Peace Dale Office Building Fund, Neighborhood Guild Fund, Senior Services Program Fund, Community Recreation Center Fund and the Debt Service Fund.   

 

The total General Fund for FY 2017-2018 is proposed in the amount of $23,681,055, a 2.1% increase or $482,300 more than the current year adopted program.  The major increase is in Public Safety, a 3.6% increase is proposed in the amount of $11,148,726 or $382,558 more than the current year adopted program. 

 

This budget was prepared based upon a 7.3% increase in healthcare costs.  Today notice was received indicating that the increase may go as high as 11%.  If the increase is indeed 11% it will be about $100,000 in additional costs that are not included in this budget at this time.   It is a concern and decisions will have to be made on how we address that.  Of equal concern, this will have the same impact on the School Department.  The School Department budgeted at a 7% rate increase.  Adjustments will be made to this budget up through April when the Town Council adopts its final budget.   

 

The General Fund Revenue Statement for FY 2017-2018 shows a current year tax levy increase of 2%.  The overall budget’s revenue increase is 2.1% due to higher than anticipated state revenues in the current year that we anticipate to continue in FY 2017-2018. 

 

The School Fund tax transfer is $1,027,747 or 2% more than in the current year; the Senior Services Fund tax transfer is $5,093 or 1.2% more; the Community Recreation Center Fund tax transfer is $137,178 more for the first full year; and the Debt Service Fund tax transfer is down $106,357. 

 

Seventy percent of the funds supporting the General Fund for FY 2017-2018 are coming from current year taxes, another 4% from prior year, and 1% from payments in lieu of taxes.  From a tax perspective for FY 2017-2018, seventy-five cents of every dollar that we are going to spend of the $23.6 million will come from tax related sources and 8.3% will be coming from state aid. 

 

If the FY 2017-2018 proposed budget were adopted by the Town Council without any revisions the tax rate would increase by $0.20 from $15.09 to $15.29 per thousand of assessed value, or an increase of 1.33% on the rate and 1.89% on the property tax levy   A $0.01 increase is worth $44,417.  The latest roll values are within a half cent of what the budget proposes.  One of the reasons we are out the half cent is due to a $22,000 increase in the Veterans’ Exemption which is a Town Council policy.  Anything we exempt in terms of taxes increases what the tax burden is.  It is anticipated to take five years to increase the exemption to where the state average is. 

 

Council President Healy asks a question in regard to the Motor Vehicles Tax Levy: the numbers are in the negative, is that because the State has indicated they may be eliminating that tax. 

 

The Town Manager indicates that there are not going to be any changes in FY 2017-2018.  The Governor’s budget proposes an elimination of 30% of the tax in FY 2018-2019.  The Speaker is proposing a plan that would eliminate the tax in its entirety over a five-year period.  If they bring it in this year they have indicated it would be dollars for dollars reimbursement.  The current Motor Vehicle Tax Rate is $18.71 per thousand of assessed value.      

 

The Town Manager discusses Property Tax Levy Adjustments, Prior Year Tax and Interest Penalty Collection, and Payment in Lieu of Tax (PILOT) Income.

 

The School Fund Transfers in the amount of $148,098 are for things we do in the General Fund on the School Department’s behalf. 

 

The State Revenue Program includes State Pilot Program, Library Aid, Public Services Corporation Tax, Motor Vehicle Excise Tax Phase Out, Meal Tax and Hotel Tax.  The total General Fund State Aid for FY 2017-2108 is anticipated at $1,965,792.

 

The Local Program Generated Revenues include: rental of town property, investment income, Town Clerk revenues, Zoning and Building Inspection Revenues, Police Revenues, Emergency Medical Services Revenues, and Recreation Department Revenues.  The Recreation Department Revenues is forecasting a $92,439 reduction in FY 2017-2018 due to the number of athletic programs being transferred to the new Community Recreation Center Fund.  Proposed Recreation Department expenses will also be reduced by $81,609 thereby limiting increased property tax support for the General Fund Recreation Program to $8,787. 

 

It is proposed to use $550,000 from the General Fund’s Unassigned Fund Balance to support the FY 2017-2018 budget, a $50,000 reduction compared with the current fiscal year.  The projected balance of the Unassigned Fund Balance for FY 2017-2018 is $10,621,662 or 13.44% of the FY 2017-2018 proposed Municipal Program.   

 

Discussion ensues relative to the FY 2017-2018 General Fund Expenditure Statement in the amount of $23,681,055, an increase of $482,300 or 2.1% more than the current year appropriation. 

 

Of the $23,681,055 General Fund Expenditures, $17,355,645 is attributed to personnel and employment benefits and represents an increase of $403,630 more than the current year fund requirements.  We are in the third year of 2 of 3 contracts in place each with a 2.25% increase and we are in the 2^nd year of a three year contract with the IBPO with a 2.4 % increase. 

 

For the FY 2017-2018 revisions to the personnel program are being proposed.  The Finance Director and Public Services Director are receiving increases of $8,788 and $7,866 respectively as adjustments to the Grade 18 pay level.  The Information Systems Administrator is being reclassified to an Information Systems Manager going from Grade 13 to Grade 15, a $5,894 increase.  The Assistant Building Inspector is being reclassified to a Building Inspector, a $4,454 increase.  The Account Clerk I positions in the Tax Assessor’s office are being reclassified to Assessment/Data Collection Clerk, an increase of $2,822.  The Real Estate Appraiser position in the Tax Assessor’s office is being eliminated.  An Equipment Operator 1 position is being added in the Public Works Department beginning January 1, 2018, a $30,124 increase and a Police Sergeant is being added in Public Safety beginning in January 1, 2018, a $52,289 increase.    

 

Discussion ensues relative to laptops, computer, and printers being taken out of the Capital Budget.  All pieces of equipment in each department have been identified and the replacement costs calculated and a contribution toward the replacement has been budgeted for each department.  In General Fund for FY 2017-2018 $80,800 has been incorporated into the operating budgets for a contribution to the Non-Major Technology Transfers Fund.

 

Discussion ensues relative to future year planning considerations.  The first one is adaptation to natural hazards and climate change.   Today we are at the same place as we were five years ago when we were first looking at the seawall project in Matunuck.  In the future, we will need to continue the sheetpile wall to the west.  If the relic wall is put in we may be able to buy five or ten years depending on the types of storms that we encounter.  There will be additional problems throughout the community that will be related to natural hazards and climate change.  It is not just the oceanfront property.  It is the riverfront properties as well.  The Council needs to be in a position where it can make reasonable decisions in advance of an adverse condition.  What are the policies that the town is going to want to look at and what is the impact of lost properties.  There are maps that are being developed today that show what impacts storm surge and sea level rise will have. 

 

There will be a component within the Comprehensive Community Plan that looks at natural hazards and that is a basic element of the Comprehensive Plan.  It will be completed within the next year.  Upon its completion, the town will need to look at a much more global study that incorporates all of the information that CRMC and RIEMA are compiling to determine the potential impacts on the infrastructure within the community.  A needs and cost analysis should be conducted in the next three to five years so decisions can be made before the fact.     

 

Discussion ensues relative to the Radio Alarm Box System.  The businesses need to buy into this program and we can’t get the businesses to buy in until we define the system that we are going to put in and define what the costs will be to the 240 businesses that would be using the system. 

 

Discussion ensues relative to the Street Light Acquisition program.  The plan is to develop a Request for Proposal with the Town of Narragansett to find out what the best deal is. 

 

Discussion ensues relative to the School Department Facilities, Staffing and Efficiency Study.  The School Department has developed a Scope of Service and is soliciting bids.

 

Discussion ensues relative to General Fund Revenues for FY 2017-2018.  There is a slight increase in anticipated revenues associated with State Aid, License/Fees and Investment Income and an anticipated decrease in revenue associated with the Recreation Department.  A 2% increase in the tax transfer to the School Department is proposed for FY 2017-2018.  Tax support in the amount of $308,911, an increase of $137,178 is proposed for FY 2017-2018 for the Community Recreation Center.  It is proposed to use $50,000 less from the Unassigned Fund Balance to support the municipal program for FY 2017-2018.  The FY 2017-2018 combined revenues for all budgeted funds are $94,706,063, an increase of $1,874,329 or 2.02%.

 

The following operating accounts are reviewed:

 

Town Council (11011)

Budget Referendum (11003)

Probate Court (11007)

Assessment Board of Review (15003)

Planning Board (16003)

Conservation Commission (16009)

Zoning Board of Review (17003)

Legal Services (11005)

Town Manager (12001)

Personnel Administration (12003)

Town Clerk (13001)

Town Public Information (13003)

Canvassing Authority (13005)

Finance Department (14001)

Post Year Audit (14005)

Information Technology (14003)

Town Assessor (15001)

Planning Department (16001)

Geographic Information System (16005)

Zoning/Building Inspection (17001)

Town Hall Operation (18001)

 

Laurel Clark, Library Director is present and discussion ensues relative to the South Kingstown Public Libraries.

 

Adjourn at 8:26 PM.

 

 

ADJOURNED,

 

Dale S. Holberton, CMC

Town Clerk