REGULAR SESSION

 

DECEMBER 19, 2022

 

At a REGULAR SESSION of the Town Council of the Town of South Kingstown, County of Washington, in the State of Rhode Island held at the Town Hall, in and for said Town on the 19^th day of December 2022 at 7:00 PM.

 

PRESENT: TOWN COUNCIL

 

            Rory H. McEntee, President

Michael K. Marran, Vice President

Patricia A. Alley

Deborah D. Bergner

            Jessica L. Rose

 

 

1.         A.        PLEDGE OF ALLEGIANCE TO THE FLAG

 

The Pledge of Allegiance to the Flag is given.

 

B.        LAND ACKNOWLEDGEMENT STATEMENT

 

The Land Acknowledgement Statement is read.

 

2.         ROLL CALL

 

Roll Call is taken and all members are present.

 

The following members of the School Committee are present: Paula Whitford, Chairwoman, Michelle Brousseau, Vice Chairwoman, Christie Fish, Kate Macinanti, James Restivo and Carol A. Vetter. Melissa Boyd is absent.

 

Also present: James M. Manni, Town Manager, Brian Silvia, Finance Director, Mark Prince, School Superintendent, and Raquel Pellerin, Chief Financial Officer, School Department.

 

Police Chief Matthew C. Moynihan swears in new Police Officer Andrew Riotte.

 

3.           TOWN COUNCIL AND SCHOOL COMMITTEE JOINT INITIAL BUDGET HEARING

 

Discussion and solicitation of comments from the public relating to the general goals and objectives of the development of the FY 2023-2024 municipal and school budgets.

James M. Manni, Town Manager notes that an overview of the Town budget process will be given at this hearing. Mr. Manni acknowledges the efforts of Brian Silvia, Finance Director and Rose Bouchard, Deputy Finance Director in preparing the Town’s budget. Tonight’s objectives are to review the budget process which is based on a data-driven understanding of the Town’s fiscal condition and translates its needs and priorities into services, and to facilitate a Town Council and School Committee discussion regarding the goals and objectives of the Town. The Town Manager reviews the budget meeting schedule and Charter provisions for submission and consideration of budget petitions.

 

The municipal budget provides a short- and long-term fiscal context to guide the Town’s decision-making, and is a transparent, deliberative process that informs the public. The municipal budget is a plan of operations for all Town activities. The operating budget addresses programs and projects. The Town’s annual operating budget funds school programs and facilities, public safety, debt service, personnel costs, libraries, road, bridges, dams and public buildings, snow plowing, parks and recreation facilities and programs, and senior programs. The operating budget is funded by property tax revenue, fair share development fees, assets held in Capital Reserve Funds, State School Housing Aid, real estate conveyance fees, fund balance, general obligation bonds, future CIP revenue transfers, State, Federal and non-profit grants, and rents, interest income and sale of assets.   

 

The Capital Improvement Program (CIP) is a 6-year plan for funding of Capital Projects. The Capital Budget is the first year of the CIP and allocates funds to the acquisition of Capital Projects. Under State Law RIGL §44-5-2(b) there is a property tax cap that limits municipalities to a 4% annual levy increase. The 4% cap is not a legal limit on Property Tax Transfers made to the School Department. The Town Manager explains the 2 methods for meeting the maintenance of effort requirements under state law for municipalities to provide at least as much support for education as the previous year. The Town can provide level funding, or base their funding on the per pupil cost in the previous year if student enrollment has declined.

 

The RI Economic Outlook reports that unemployment has dropped to 3.4% as of October 2022, compared with October 2021 when the rate was 5.0%. South Kingstown’s Economic Outlook includes an unemployment rate at 2.6% as of October 2022. A full property revaluation was conducted as of December 31, 2021 in accordance with State law. There continues to be a strong real estate market for residential housing. The Town’s three retirement systems are all well funded: as of June 30, 2022 the municipal and certified school employees are at 97.34%, police are at 87.8% and EMS are at 132.8%. Other Post Employment Benefits (OPEB) trust funds are fully funded.

 

Brian Silvia, Finance Director notes that the municipal unassigned fund balance was approximately $15.7 million as of June 30, 2022 and is expected to be $14.4 million by fiscal year end based on the planned use of fund balance in this year’s budget. The Town’s Unassigned Fund Balance is 16.52% of Operating Revenue, slightly less than the amount recommended by the Government Finance Officers Association (GFOA). With a 2.67% decrease in the net levy, the Town is below the 4% State property tax maximum levy. The Finance Director reviews the past 5 year property tax levy for the Town and School, noting an overall 2.01% increase. Mr. Silvia discusses the 5 year comparison of General Fund revenues and the Municipal Expenditure Program, noting the reduction in both School and Town Debt Service costs.    

 

The Washington County Financial Data indicates that South Kingstown’s tax levy shows a low increase from FY2021 at 0.27%, the Town’s bond rating of Aa1 is the highest among the area communities, and South Kingstown’s debt per capita is low compared to the other towns.

 

The potential future bond project for School building improvements is reviewed. To build a new High School would require $125 million in new debt, or to renovate the High School would be $65 million in new debt. Debt service as a percentage of operating revenues is presented for both project options. The future debt service cost schedule for each High School building improvements option is reviewed, with principal and interest payments starting in FY2025-2026.

 

The property tax roll history shows how the town-wide property revaluations have reflected increased valuations. The COVID-19 pandemic contributed to property value increases.    

 

Budget development considerations include maintaining existing service levels, fulfilling contractual compensation obligations, capital needs of the Town, employee benefits, planning for future debt obligations, and potential new positions in various departments. The maximum potential revenue increase available through the tax levy (4% cap) is $2,997,388. The FY2023-2024 revenues are projected using a 2% base increase and reducing the use of unassigned fund balance.

 

A summary of the six-year Capital Program for the General Fund is reviewed. Total Pay Go expenses for FY2022-2023 are $1,806,500. The six-year total program through FY2028-2029 is

$14,338,086.

 

Council Vice President Marran inquires about the debt service as a percentage of operating revenues. Mr. Marran comments that debt inclusive of a new High School project seems to be decreasing over time, but that doesn’t seem to be the case with respect to the debt service that includes a High School renovation project.   

 

The Finance Director responds that the Town’s debt service obligations will be offset by funds held in a debt service reserve that will be used to soften the curve in the next few years. The debt service costs inclusive of a High School renovation project are reduced because it would be a much smaller bond issuance.

 

Mark Prince, School Superintendent indicates that the School presentation will provide a very early look at what the budget process will be, a very early look at what conceptual framework will be  used to structure the budget, and share some historical perspective and current information for context. The School District budget is about more than dollars and cents, it is a value statement, about what you support, what direction you are heading, the mechanisms that you will put in place to support learning. The conceptual framework that is used to frame the scope of the value statement and the budget are about priorities, goals and outcomes. The School Department has an obligation and responsibilities to taxpayers, students and parents. Groups have different perspectives. Mr. Prince notes there was an uncomfortable conversation with the Town Council at their last meeting, and apologizes for his part in that discussion.

 

Raquel Pellerin, CFO, School Department discusses the pre-budget consultation responsibility of the School Committee to submit to the Town Council a statement for the next fiscal year of anticipated total expenditures, projected enrollments, and staff and facility requirements. Ms. Pellerin notes that it is very early in the process.

 

Mr. Prince notes the budget provides a conceptual framework for their value statement. One of the key drivers is restructuring. Wakefield Elementary School was closed this year, and closing is planned for Curtis Corner Middle School (CCMS). The School Department must align resources, including people, time and money. Budget goals and outcomes include MTSS continuum, closing unfinished learning gaps, and supporting teacher and student mental health. They must continue to address social/emotional learning from the students’ side, while acknowledging the pandemic’s impacts on teachers. Assessments drive improvement and provide an opportunity for growth.

 

Ms. Pellerin reviews the shift to site-based management and budgeting required by the RI Education Accountability Act of 2019. The Principal and School Improvement Teams assist in the preparation of the annual school budget, the Superintendent refines the school budget for consideration by the School Committee, and the School Committee reviews and adopts a school budget.

 

Ms. Pellerin reviews school historical data reporting the enrollment census as of October 1^st. There were 2,488 South Kingstown students in district, with an additional 21 enrolled in outplaced, alternate learning, and transition programs for a total enrollment of 2,509. Enrollment in Career/Tech, State and Charter schools requires towns to pay tuition based on the rates set by the RI Department of Education (RIDE). Staffing levels and positions are continuously re-evaluated. The school budget is based on preliminary revenue data, no additional information will be provided to districts until the Governor’s budget is released in January with the State Aid to Education Funding Formula recommendations. The new state laws require RIDE to recommend a new calculation for student success factor. It is unknown whether the State will continue the “hold harmless” on enrollment that has been in place since FY 2020-2021. With regard to actual and budgeted total revenue, the areas of concern are the level of State Aid, end of federal ESSER funds and level funding in the Town’s appropriation for education. The actual and budgeted total expenditures are affected by contracts and contractual services. Areas of concern also include increased transportation costs, out of district transportation, mandated facility maintenance requirements, and mandated special education maintenance of effort requirements.     

 

Mr. Prince discusses unfunded mandated changes in school programs or operations that total $5.7 million. The cost of the McKinney Vento Act (homeless act) is $63,000; Personal Literacy, Math and Behavior Plans are $240,000; Professional Development is $59,000; Transportation is $5 million; Curriculum is $106,000; The Right to Read Act during school time requires substitute teachers in the amount of $167,000; the Basic Education Program is $94,000; and the Assessment System is $24,000. Changes in school operations facilities include the closure of CCMS in June, relocating 5^th grades to the elementary schools, implementing new curriculum, social studies standards, and students need 2 years of World Language. It is noted that content must be structured across classrooms. The statewide 2022 ELA (English Language Arts) and Math RICAS and South Kingstown standings are reviewed.

 

Ms. Pellerin reviews the budget calendar, noting that the School Committee will adopt its budget and submit it to the Town in February.

 

School Committee member Brousseau comments on the new social studies standards and RIDE’s new High School graduation requirements for World Language which have no accommodations for students with disabilities.

 

School Committee member Fish comments on the educational gaps, noting the average students missed 6 months and the students with individual education programs (IEP) were even further impacted.

 

The meeting is opened to public comments.

 

Jim O’Neill is present and comments on student enrollment, State Aid to Education, ARPA funding and transportation costs.

 

Keith Vorhaben and Bridget Gilchrist are present and request Town funding for the Wakefield Concert Band, and describe their activities and membership.

 

Discussion ensues regarding submittal of applications for Town funding by outside agencies as part of the budget process.

 

Dorald Beasley is present and comments on the number of unfilled school positions, teacher salary rates, maintenance of effort (MOE) funding based on enrollment, and the cost of school facilities projects.

 

Discussion ensues relative to the process by which municipalities would have to apply to RIDE for approval of MOE funding based on enrollment. Discussion ensues relative to mandates that must be met. It is noted that applications for MOE based on enrollment have not been successful because the amount of revenue would not meet the requirements of the Basic Education Program.

 

Discussion ensues relative to tax rates, upcoming bonds costs, and the economy.

 

School Committee member Macinanti asks if the per pupil cost for students attending out of district schools count toward a budget request to RIDE for MOE based on enrollment.

 

Ms. Pellerin responds that the calculation from the revenue side is only one part, a budget would have to be developed based on expenditures and presented to RIDE. It is also noted that the state funding formula does not account for transportation costs. A budget scenario would have to be developed and submitted to RIDE to get answers to some of these questions regarding MOE.  

 

Ms. Macinanti notes that South Kingstown is responsible for 2,731 students including those not in our school buildings.

 

The Town Manager reports that the School Building Committee (SBC) has met 13 times since August. The group needs to pick a location and narrow their focus. They are making good progress. The current options being considered are to build a new high school at a cost of $125 million, renovate at a cost of $65 million, or address deferred maintenance at a cost of $50 million.

 

Discussion ensues regarding the timeline for the SBC to present its recommendations to the Town Council.

 

The Town Manager notes that Town Council approval will be required for submission of the next Stage II application to RIDE.     

 

Council President McEntee reviews the Town Council’s approval role in this process.

 

Lucas Murray, Director of Administrative Services and Chairman of the SBC reviews the approval process, and notes that the SBC is looking for direction from the School Committee and the Town Council.

 

Further discussion ensues relative to the SBC’s process of reviewing the school facilities options and making recommendations to the School Committee and Town Council. Mr. Murray notes that the deadline for submission of the Stage II application to RIDE is June 1^st.

 

School Committee Chairwoman Whitford comments that the SBC and the School Committee need to take the necessary time to discuss the options and make a decision.

 

Mr. Murray notes that the SBC’s next meeting will be after the School Committee’s January 10^th meeting, so they could plan to present to the Town Council near the end of January.

 

UNANIMOUSLY VOTED: to adjourn at 9:00 PM.

 

ADJOURNED,

Susan M. Flynn, CMC

Town Clerk