WORK SESSION

 

JANUARY 6, 2022

 

At a JOINT WORK SESSION of the Town Council and School Committee 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 6^th day of January 2022 at 6:30 PM.

 

PRESENT:    Town Council

Abel G. Collins, President

Rory H. McEntee, Vice President

Deborah D. Bergner

Deborah J. Kelso

 

School Committee

Michelle Brousseau, Vice Chairwoman

Melissa Boyd

Christie Fish

Kate M. Macinanti

Michael K. Marran

 

 

Councilwoman Jessica Rose, School Committee Chair Paula Whitford, and School Committee member Carol Vetter are absent.

 

Also present: Theresa L. Murphy, Interim Town Manager; Zachary Saul, Finance Director; Gina Marie Masiello, Assistant School Superintendent; and Raquel Pellerin, Chief Financial Officer, School Department.

 

The Pledge of Allegiance is given. The Land Acknowledgement Statement is read.

 

Theresa L. Murphy, Interim Town Manager gives an overview of the six-year Capital Improvement Program (CIP). The School Committee will consider project ranking criteria and funding sources. The first year is considered the Capital Budget, the annual funding element or Pay As You Go. A summary of changes in the six-year plan will be presented.

 

Gina Marie Masiello, Assistant Superintendent and Raquel Pellerin, School Department Chief Financial Officer present the School’s proposed Capital Budget adopted by the School Committee. 

 

The Rhode Island Department of Education (RIDE) defines a Capital Improvement Plan as a long-range plan, typically 5-6 years, which identifies capital needs in a district and provides a funding schedule and timeline for implementation.  The capital improvement plan allows for systematic evaluation of all projects at one time so that a district can anticipate future needs.  It does not include routine maintenance but should include required upkeep of the facilities, including but not limited to roof repairs, heating, ventilation systems, and window and door replacement.

 

The proposed Capital Improvement Program Summary for the School Department is presented. It is noted that beginning in FY 2021-2022 capital projects and purchases approved by the School Committee and Town Council are accounted for within a separate Capital Improvement Fund. This improves transparency within the School Department budget, and aligns with other districts reporting of per pupil expenditures in both the operating and capital budget. The School Department will continue to review all proposed capital improvement projects, including defining what is an operating or capital expenditure, researching sources of revenue to fund capital projects or purchases, and assessing School facilities and development of a master plan.

 

The request for CIP funding for technology is proposed for FY 2022-2023 in the amount of $441,363. The total six-year proposed budget request for technology is $2,458,913.

 

The Pay As You Go portion of the Facilities and Maintenance budget is proposed at $180,223. Brian Mahoney, newly appointed School Department Director of Facilities reviews the funding requested for projects including $45,000 for the fire alarm at Matunuck Elementary School, $55,000 for the HVAC unit at the High School cafeteria, and $80,223 for the Broad Rock Middle School PA system. The School department is currently in the process of assessing all building needs.

 

Ms. Pellerin notes that those expenditures are subject to change. Potential funding sources include Pay As You Go revenue from state, federal and local grants; use of fund balance that is available to support one-time expenditures; and State Aid and local appropriations for education.

 

Discussion ensues regarding the long-term Capital Improvement Program, including a placeholder for a FY 2022-2023 Educational Planner and a placeholder for Stage I and Stage II submission to the RI Department of Education. Major projects include a facility assessment and capital master plan. Studio JAED is conducting an assessment of School facilities, and an assessment update will be provided at the January 11^th School Committee meeting. The total six-year proposed budget request for facilities is $8,836,322.

 

Discussion ensues relative to the School sub-committee updates. Discussion and possible action on a restructuring or redistricting plan is anticipated to occur at the January 18^th School Committee meeting.

 

Council Vice President McEntee asks Ms. Pellerin to explain the potential use of fund balance for one-time expenditures in the capital budget.

 

Ms. Pellerin notes that in the report from the year ended June 30, 2021, the balance in the operating fund was about $3.4 million. Within the current capital budget in this current fiscal year it’s about $537,000 of use of fund balance, as well as we have about $400,000 in our current operating fund for one-time expenditures within that fund. So if you’re backing that out you’re looking at about $2.4 million. The policy that we have, that we will be discussing at the January 11^th meeting really looks at assigning a percentage of the budget, anywhere from 1 to 2 percent of the operational budget for unexpected emergencies. They will be looking at setting aside close to $500,000 for Medicaid reimbursement. They are hoping to assign that to any tuitions that may be coming into the district, unanticipated and unbudgeted, so it wouldn’t affect the rest of the budget.  Backing that out, and this policy hasn’t been adopted so this is a rough estimate, we’d be looking an available amount of money to apply to capital of about $700,000.

 

Council Vice President McEntee notes the recent introduction of legislation that would effectively put a $300 million bond referendum on the November 2022 ballot that would keep the State reimbursements going for school facilities. At what date would construction have to begin to max out the reimbursements for the local towns? Ms. Pellerin does not have that information. Mr. McEntee asks when construction would have to begin under the current program?

 

School Committee member Marran responds that without the legislation they would have to have an application in to RIDE by February and shovels in the ground by December 2022.

 

Councilwoman Bergner asks to further review the School’s undesignated fund balance.

 

Ms. Pellerin reviews that the balance in the operational fund as of June 30, 2021 is $3.4 million. The School Committee has voted to assign fund balance to their general fund for one-time expenditures of about $400,000, and our newly adopted capital fund, which we’re solely using for Pay Go, is roughly $500,000. So with the use of about $1 million we’re at the $2.4 million. Of that amount, about 2% or $1.2 million would be kept for emergencies, and $500,000 for unanticipated special education costs leaving about $700,000 for one-time capital projects.

 

Discussion ensues relative to the Studio JAED assessment of school buildings. Mr. Mahoney reports that the consultants has checked all buildings except the Hazard building with engineering and mechanical staff. They are conducting a thorough walk through and documenting everything.

 

Ms. Pellerin notes that a report will be presented to the School Committee at their January 11^th meeting.

 

Discussion ensues relative to the 15% added bonus reimbursement from RIDE for school facilities and a one year extension of the program being proposed. Ms. Pellerin advises that we have an active approved Stage II application for $7 million that is still eligible for the bonus reimbursement, it must be used within 5 years, and there is a one-time option to amend the plan.

 

Councilwoman Bergner asks if the Curtis Corner Middle School is closed would the money proposed for parking lot repairs be reallocated in the Pay Go plan?

 

Ms. Pellerin notes that the funding is not set, they can amend as they go along. If a school building closes then the project won’t exist. Mr. Mahoney notes that some small projects have been pushed back to later years in the CIP plan.

Councilwoman Kelso notes that the first year plan will be in the budget, the next years out are for planning, are changeable, and a framework for what may happen.

 

Council President Collins comments that the first year funding is low to leave room for future decisions.

 

The Finance Director notes that some projects are changeable but some are defined projects with planned funding for expenditures needed. Mr. Saul discusses how credit rating agencies are looking at the Town’s commitment to long term planning. Schools are included in the town’s overall CIP funding plan.

 

Council President Collins and Councilwoman Kelso discuss the school facilities bond funding that the Town Council had set at $85 million based on the Town’s ability to support that amount.

 

School Committee member Macinanti notes that Studio JAED has been asked to look at the school facility needs with fresh eyes to see what we need, not what we can afford.

 

Discussion ensues relative to the school debt service falling under the Town. Councilwoman Kelso notes that Fair Share Development Fees could be a revenue source for school bond debt. Councilwoman Bergner asks if school surplus funds could be used to pay school debt service. Ms. Pellerin reviews surplus funds, noting that by law they cannot run a deficit.

 

Council President Collins notes that the current year School CIP request is about $180,000 with more projects coming in future years.

 

Discussion ensues regarding upcoming community forums on the executive search for a new Town Manager, and a Town Council work session on proposed amendments to the animal control ordinance.

 

School Committee Vice Chair Brousseau notes that information from Studio JAED will be provided at the School Committee’s meeting on January 11^th, with additional information on January 18^th.

 

The Interim Town Manager advises that the Town Council will hold a Public Hearing on adoption of the Capital Improvement Program on January 24^th.

 

Adjourn at 7:36 PM

 

ADJOURNED,

 

Susan M. Flynn, CMC

Town Clerk