ADMINISTRATIVE BUDGET SESSION

 

MARCH 7, 2022

 

 

Town Manager's Proposed Budget

 

Town Manager's Presentation

 

At an ADMINISTRATIVE BUDGET 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 7^th day of March 2022 at 6:30 PM.

 

PRESENT:     Town Council

Rory H. McEntee, President

Abel G. Collins, Vice President

Deborah D. Bergner

Deborah J. Kelso

Jessica L. Rose

 

 

Also present: Theresa L. Murphy, Interim Town Manager; Zachary Saul, Finance Director; Luke Murray, Director of Administrative Services; Jamie Rabbitt, Director of Planning; James Gorman, Building Official; Jon Schock, Director of Public Services; Lori Ann Fox, Director of IT; Mark Russo, Facilities Superintendent; Joel Ewing-Chow, Police Chief; Craig Stanley; Director of EMS; Lance Whaley, Communications Superintendent; Rex Eberly, Interim Director of Leisure Services; Laurel Clark, Director of Library Services; and Sue DiMasi, Senior Services Director.

 

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

 

Theresa L. Murphy, Interim Town Manager gives a presentation of the municipal budget program and upcoming budget meetings, in accordance with Section 4220 of the Town Charter. A summary of the proposed changes in the FY 2022-2023 budget includes a 2.26% increase in the tax levy from the current fiscal year. The tax rate will decrease from $14.45 to $11.02 per thousand of assessed value, or -23.74% due to the recently completed full property revaluation. The budget proposes an expansion of Emergency Medical Services to include staffing for a third paramedic unit. There is a 2.5% increase in personnel costs, and a 4% estimated increase in the cost of health care benefits. Facilities personnel costs will be reallocated. The addition of two community resource officers in the Police Department will be supported for the first two years by American Rescue Plan Act funding.

 

Mrs. Murphy reviews the summary of FY 2022-2023 expenditures totaling $102,546,998. The property tax distribution shows the School Fund at nearly 73% of the budget, and the General Fund at 24%. The property tax levy rate allocation history between the Town and School for the past 10 years is reviewed. The FY 2022-2023 property tax roll is projected at $6,873,751,897 or 25.43% more than the current year.

 

Mrs. Murphy reviews the property revaluation and the property tax rate. The average assessed value of a single family residence increased 36.67%. Based on the new levy this amounts to a tax increase of $245 or 4.23%. Some property value increases are less than 31% and owners may not see any increase in their tax bill.

 

Discussion ensues relative to the process by which Vision Appraisal is handling questions and appeals from taxpayers.

 

A review of the General Fund expenditure detail indicates that the bulk of the funds are related to salaries and benefits. The budget presents a breakdown of the General Fund by function. Special Revenue Funds are outside funds such as the Peace Dale Office Building Fund, Senior Services Fund, Neighborhood Guild Fund and Community Recreation Center Fund. Enterprise Funds include the Water, Wastewater and Solid Waste Funds. Other Fund Transfers include those to the School Department, Senior Services, Community Recreation Center, Debt Service Fund and Wastewater Fund.

 

A review of the General Fund revenue sources shows that general property taxes account for 67.12% of the total, and State Aid accounts for 12.44%.

 

Proposed funding for the Town Council and Boards and Commissions Program shows an increase in the cost of stipends for the Planning Board, but an overall decrease of -2.23% from the current year. Legal Services will increase by 1.96%. The budget for the Town Manager’s Office is proposed to increase by $9,714 over the current year appropriation. This office provides for general administrative management, policy direction and oversight of municipal operations.

 

Luke Murray, Director of Administrative Services presents the Personnel budget. This office has handled a number of employee retirements and personnel changes, reflecting a nationwide trend. The budget reflects an increase of a part-time staffer position being reinstated at .6 FTE. Funding is proposed to certify the Personnel Administrator, and there is an increase in the health and wellness budget. The goal is to help fill leadership role vacancies and retain personnel.

 

The Town Clerk’s Office budget is presented. This office has six major divisions, consisting of Town Council Records, Land Evidence Registry, Board of Canvassers, Registry of Vital Statistics, Probate Court and Business Licenses. Most expenses are level funded except for contractual increases. The Canvassing Authority budget request is increased from the current year due to two upcoming elections, a Primary in September and the General Election in November 2022. The state-wide redistricting of the Congressional, Senate and Representative Districts has increased the number of local voting districts from 10 to 11, adding an additional polling place. Emergency in-person voting prior to each election has also created a new expense due to the necessity of hiring poll workers for that 20-day period.

 

Zachary Saul, Finance Director reviews the Finance Department budget for FY2022-2023. This department provides Financial Management Administration, Accounting and Cash Management, Procurement and Risk Management, and Tax and Utility Collection. The budget request increases are mainly on the benefit side due to changes in staff’s health care plan choices.  

 

Lori Fox, IT Director reviews the Information Technology program. This three person department maintains computer hardware and software, internet and phone services, provides staff technical assistance and training, and project management. Increases are primarily in contractual services, hardware, software, financial services maintenance agreements, and redundant internet providers. Discussion ensues relative to the Town’s mobile app. The expense is spread among various Town departments. Its usefulness should be evaluated.

 

The Interim Town Manager presents the Town Assessor’s Office budget request. The decrease is due to the retirement of a long-time employee. This department assesses real estate, automobiles and tangibles, administers the Town-wide Revaluation Program, tax exemptions, maintains property ownership records, processes surveys and subdivisions, and prepares for Assessment Board of Review hearings.   

 

Discussion ensues relative to the Elderly Tax Exemption Program and the senior volunteer law.

 

James Rabbitt, Director of Planning reviews the Planning Department budget request. Increases are mainly related to salaries and benefits, Clerkbase services, and a request for consultant services for the Route 1 Stewardship Plan Development Committee.

 

James Gorman, Building Official reviews the budget request for the Building and Zoning Department. This office provides interpretation and enforcement of the Zoning Ordinance and building codes, and performs inspections. Mr. Gorman notes that the office is fully staffed now. Minor increases in their budget request is due to salary and benefits. The newly-filled position is estimated at full benefits. The Finance Director notes that the cost of services for FY 2022-2023 is less than the current year due to that building inspector position having being outsourced to a contractor.  

 

Discussion ensues relative to the number of applications received for accessory dwelling permits.

 

Mark Russo, Facilities Superintendent presents the Facilities Division budget request. This division provides maintenance, safety code compliance and works on capital projects. The main driver of the budgetary increase is due to salaries being transferred to this account. There are no actual increases in personnel. The Finance Director notes that on the revenue side we will see interfund transfers that offset expenditures. The Interim Town Manager explains that the change allows the reallocation of staff to other buildings as needed.

 

Joel Ewing-Chow, Chief of Police presents the Police Department budget. The bulk of this department’s budget is related to personnel expenses. There is an increase from two new officers to be funded under the American Rescue Plan Act for a community resource unit. Increases are due to salaries and benefits, services and commodities. Capital outlay is down, the purchase of one vehicle is being deferred.

 

The Police Chief reviews the Animal Welfare Division. Salaries are lower due to a retirement.

 

Lance Whaley, Communications Superintendent presents the Fire Alarm and Communications Department budget. The division consists of 2.45 FTEs who manage radio communication, phone lines, burglar and fire alarm systems, maintain all cables, and the public safety radio network.

 

Craig Stanley, Director of Emergency Medical Services reviews the EMS Division budget request. An increase of 8 staff members is proposed. New staff are proposed to start in January. Call volume had decreased in 2020 due to the pandemic, but they have seen an increased call volume last year. The call volume is projected at 4,100 in 2022. They are going out to bid for a third ambulance but have a spare vehicle to use in the meantime.  

 

Jon Schock, Director of Public Services reviews the budget for the Public Services Engineering Division. This division funds the Tree Warden, Town Engineer, and street lighting program. The street lighting budget is decreasing due to the LED conversion project which is almost complete. All converted street lights on state roads will be conveyed to the RI Department of Transportation for ownership and maintenance, and the Town should see significant savings.

 

Mr. Schock reviews the budget for the Public Services Highway Division. It is noted that Scott Brown is the new Highway Superintendent.  This division provides a variety of services including pavement and roadway management, winter storm response, and stormwater management. Increases are related to personnel costs. There are concerns with utility and fuel cost increases. It is noted that road salt prices increased this year.

 

Mr. Schock presents the Water Enterprise Fund. A rate increase is proposed due to a Suez Water rate increase. The minimum is proposed to increase from $48 to $55 per quarter, the excess charge 1^st step per 100 cubic feet from $3.25 to $3.50, and the excess charge 2^nd step will increase from $3.75 to $4.00. Discussion ensues relative to the allowance and standard charge.

 

Mr. Schock presents the Wastewater Enterprise Fund. A rate increase is proposed due to a significant increase in depreciation, and Synagro disposal fees are increasing. Some savings are anticipated as a result of new equipment being installed.

 

Mr. Schock presents the Solid Waste Enterprise Fund. Bag tag fees for residential trash are proposed to increase from $2.10 to $2.25 each due to RI Resource Recovery Corporation tipping fee increase in FY 2022-2023 from $46 per ton to $54 per ton. This is the first increase since FY 2017-2018.

 

Rex Eberly, Interim Director of Leisure Services presents the Parks and Recreation General Fund Budget for six divisions. Salaries and benefits show a slight increase. There has been a huge increase in park usage. The Athletics and Aquatics Programs have had to increase staff pay. Leisure Services oversees community events and activities. Also included in this department is the Creative Activities/Stepping Stone Preschool Program. 

 

Discussion ensues regarding the Stepping Stone pre-school program. Mrs. Murphy advises that this program is licensed by the State Department for Children, Youth and Families (DCYF) and can’t be merged with the school department.

 

Mrs. Murphy notes that the new Harbor Patrol / Natural Resource Officer is funded with Police Department and ARPA funds. The position includes environmental monitoring, public access and recreation programming, harbor patrol responsibilities and boat safety checks, and management of boat moorings. Mooring revenues contribute to this budget.

 

Mr. Eberly reviews the Neighborhood Guild Fund. This program is basically self-funded by the Neighborhood Guild Trust Fund and program revenues. The Neighborhood Guild houses aspects of the Parks and Recreation Department including Administration and Maintenance, the front desk, youth programs, music programs, adult leisure programs, and an arts program. It is noted that Senior Program bus trips have not been funded since COVID. Staff are allocated based on programs. A salary decrease is due to facilities being shifted to services expenses.

 

Mr. Eberly reviews the Community Recreation Center Fund. An increase in funding is being requested for security cameras and the basketball program. The budget is mostly level funded. A General Fund transfer of $379,235 is requested by FY 2022-2023. It is noted that revenues are increasing.

 

Mrs. Murphy explains the Neighborhood Guild Fund surplus.

 

Laurel Clark, Director of Library Services reviews the Public Libraries Program. A modest increase is requested for salaries and benefits, which comprise 80% of the total budget.

 

Zachary Saul, Finance Director reviews Insurances and Claims. The Town is a member of the RI Interlocal Risk Management Trust, through which we obtain municipal insurance. Premiums are based on claims history. This account also provides funding for Unemployment Insurance, Workers Compensation Insurance, Other Post Employment Benefits (OPEB) Health Care, and Fund Contingency. OPEB is now fully funded.

 

 

Mrs. Murphy reviews the budget request for Human Services and Outside Agencies. It is noted that those groups will present their requests to the Council at a Work Session on March 9, 2022. The request for FY 2022-2023 represents level funding with the current year, plus funding of $20,000 that the Town Council approved for the Town’s 300^th Anniversary celebration events.

 

Mr. Saul presents the Capital Outlay budget, which reflects the Pay As You Go portion of the Capital Improvement Program.

 

Mrs. Murphy reviews the Peace Dale Office Building Fund. This budget is self-supporting from rents and programs and is overseen by the Parks and Recreation Division.  A decrease in services is due to the facilities reallocation. Revenues for FY2022-2023 include two new leases.

 

Sue Dimasi, Senior Services Director reviews the Senior Services Program. The budget request for this program includes changes to personnel and services due to the reallocation of facilities staff costs. This program includes the Nutrition Program, Transportation Program, Senior Center and Adult Day Services. The Town of Narragansett contributes a cost share for the nutrition program. The Senior Center Activities Program is requesting a cost share contribution from Narragansett. The Town continues to cover building expenses at the Adult Day Care Facility, but there is no Adult Day Care revenue. The proposed transfer from the General Fund is $526,964, an increase of $46,959 over the current year appropriation.

 

Discussion ensues regarding St. Elizabeth’s operation of an adult day care program at the Town’s facility.

 

The Finance Director reviews the Debt Service Fund, noting the Town had budgeted for higher school fund debt service. There is a small savings on the Town side due to bonds not sold this year. Last week the Town sold $6.5 million in bonds for municipal projects that were approved by the voters in November 2021 Costs for that debt service are included in this budget request for FY 2022-2023.

 

Council President McEntee asks where we could look to lower spending.

 

The Finance Director replies that we could lower OPEB spending and capital contributions, but would have to look at departments based on the direction of the Town Council.

 

Discussion ensues relative to the use of Undesignated Fund Balance.

 

Council Vice President Collins discusses the average tax for homeowners, noting that the proposed 2.26% increase in the tax levy would equal about $250 per household.

 

The Finance Director notes that the value of the Town’s 9,200 residential units has increased $2 billion. We may see savings in health care costs that have not yet been finalized by the Trust.

 

Council President McEntee invites resident to come forward with comments.

 

Greg Sweet is present and asks how much cash the Town typically has on hand.

 

The Finance Director responds that there are hundreds of thousands of dollars in checking and savings account, and with investments total about $20 million.

 

Dorald Beasley is present and comments on property revaluations and tax increases, the school costs per pupil have increased 35%, the transfer to the school fund has risen 15%, and student scores.

 

Adjourn at 8:55 PM.

 

Susan M. Flynn, CMC

Town Clerk