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REGULAR SESSION
DECEMBER 20, 2023
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 20th day of December 2023 at 7:02 PM.
PRESENT: TOWN COUNCIL
Rory H. McEntee, President
Michael K. Marran, Vice President
Patricia A. Alley
Deborah D. Bergner
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 four members are present. Councilwoman Rose is absent
The following members of the School Committee are present: Paula Whitford, Chairwoman, Melissa Boyd, Kate Macinanti, James Restivo, Bradley Shear, and Carol A. Vetter. Michelle Brousseau, Vice Chairwoman is absent.
Also present: James M. Manni, Town Manager, Brian Silvia, Finance Director, Robert Littlefield, Interim School Superintendent, Ryan Kilpatrick, Chief Financial Officer, School Department, and Alexis Meyer, Interim Assistant School Superintendent.
3. TOWN COUNCIL AND SCHOOL COMMITTEE JOINT INITIAL BUDGET HEARING
James Manni, Town Manager introduces Robert Littlefield, Interim School Superintendent and Ryan Kilpatrick, Chief Financial Officer, School Department and reviews the Town’s budget objectives, schedule of meetings, and the budget process.
School Committee Member Shear arrives at 7:08 PM.
The Town Manager further reviews the annual operating budget on what is funded and how it is funded, the Capital Improvement Program (CIP), and the property tax maximum levy. It is noted that there is a 4% tax levy cap per state law, but it is not the goal for the Town to levy at the cap. The tax levy cap applies to the tax levy, not the individual property taxes or tax rates, and is not a legal limit on property tax transfer made to the School Department. Mr. Manni presents an example of what the 4% tax levy would look like for taxpayers. The Net Assessed Value amount of $6,918,393,561 in FY 2024-25 is based on a projected increase of 2.7% over FY 2023-24.
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 2.7% as of October 2023 compared with October 2022 when the rate was 3.4%. As of October 2023 the number of unemployed RI residents classified as available for and actively seeking employment was 15,600, 3,600 less than last year. Rhode Island ranks 12th in the country in debt service, pension and Other Post Employment Benefits (OPEB) relative to Own Source Revenues. This illustrates the State’s total liability burden relative to the other 50 states, overall the 50 State median is 5.7% and Rhode Island is 10.8%. It is noted that Rhode Island spends more to fund pension and OPEB liabilities. South Kingstown’s Economic Outlook includes an unemployment rate of 2.1% as of October 2023. The Town’s total direct debt service, as a percentage of total assessed value is 0.3%. The Town is one of five RI communities to maintain a general obligation bond rating from Moody’s of Aa1. The Town’s three retirement systems are all well funded: as of June 30, 2023 the municipal and certified school employees are at 88.5%, police are at 81.77%, and EMS are at 121.09%. Other Post Employment Benefits (OPEB) trust funds are fully funded.
Brian Silvia, Director of Finance reviews that the Town has a debt limit of $206,992,926 and has debt against the limit in the amount of $1,769,176. It is recommended by the Government Finance Officer Association (GFOA) that municipalities maintain an unassigned fund balance of 16.70%. As of June 30, 2023 the Town reflects an unassigned fund balance of $15,734,180 and it is noted that the unassigned fund balance has increased by approximately $95,000 from last year. The adjusted total fund balance is $14,690,572, the total general fund revenue for FY 2023-2024 is $89,044,625, and the unassigned fund balance as a percentage of operating revenues is at 16.5%. Mr. Silvia provides a five-year history of the property tax levy and references the increase in the net assessed value in FY 2022-2023 due to the property revaluation. The next property revaluation will be in 2026.
The Finance Director reviews the FY 2024-2025 revenue projections based on a maximum 4% tax levy, the 5-year comparison of General Fund revenues and the Municipal Expenditure Program, noting the motor vehicle phase out by the State and reduction in the Town’s Debt Service.
The potential future bond project for School building improvements is reviewed. To build a new High School would cost approximately $150,000,000 with State pay-go funding in the amount of $8,320,000. The goal would be to fund the project against the Town’s Debt Service. The Finance Director reviews the projected Debt Service schedule including proposed future debt, the total property tax needed to cover debt service over the next seven year period, and the general obligation debt amortization schedule.
A summary of the six-year Capital Program for the General Fund is reviewed. Total Pay Go expenses for FY 2024-2025 are $2,043,935. The six-year total program through FY 2029-2030 is $16,036,667.
The FY 2024-2025 budget drivers include maintaining the existing level of service that residents have become accustomed to, capital needs of the Town which proposes increased Pay-As-You-Go funding, employee benefits costs which saw an approximate 9% increase in FY 2023-2024, planning for future debt obligations of the Town, and funding contributions to Human Service Agencies and Outside Agencies which were funded in the prior fiscal year via American Rescue Plan Act funds (ARPA). Additional budget drivers are increasing staffing levels of Emergency Medical Services (EMS) personnel, potential new positions in various Departments, contractual obligations, implementation of a Contingency Account for the Town for unforeseen and unbudgeted expenses, and legal expenses associated with pending litigation and labor related matters.
Discussion ensues relative to the recommended reserve for contingencies and warranted examples of contingency expenses compared to expenses using undesignated fund balance.
The Finance Director explains that the undesignated fund balance can be used to designate funds when adopting the budget and cannot be used once the budget is adopted.
Further discussion ensues relative to the 4% tax levy cap projections, declining enrollment, and the process for implementing the School budget on a per pupil cost basis.
The Interim School Superintendent notes that a drop in enrollment does not mean there would be savings. If students go to a school outside of their District, that is at the cost of the School Department.
The Town Manager reviews State law governing maintenance of effort and research conducted showing one municipality attempted to pursue maintenance of effort on a per pupil basis and failed.
The Finance Director clarifies the role of the RI Department of Education (RIDE) if pursuing the process to fund on a per pupil basis.
Discussion ensues relative to projected debt service, declining student population, maintenance of effort statute, and out of district enrollment.
School Committeewoman Boyd asks if the property tax levy includes the three vacant school properties that are being returned to the Town.
The Finance Director notes the preliminary nature of the numbers and that the properties have not been included yet.
School Committeewoman Vetter comments on the property tax levy rate allocation and the School’s percentage increase.
The Finance Director explains that the numbers were skewed due to the motor vehicle phase out by the State.
School Committeeman Shear asks the calculation rate used to estimate the debt service for the school bond.
The Finance Director responds that the rate used for the debt service calculation was 4%.
Robert Littlefield, Interim School Superintendent introduces Alexis Meyer, Interim Assistant School Superintendent and Ryan Kilpatrick, Chief Financial Officer (CFO), School Department. Mr. Littlefield reviews school enrollment, and the proposed school bond.
Mr. Kilpatrick presents the responsibilities of the School Committee, enrollment data as of October 2023, enrollment after the closure of two schools, and the data for out of district enrollment, noting that projected FY 2024 local share cost totals $4.9 million. Mr. Kilpatrick further reviews the budget impacts of declining enrollment, staffing history and reduction in personnel, staffing vacancies, history of the district State Aid revenue, revenue and budget expenditure history, and the impacts of school closures. The FY 2025 budget drivers include ESSER III funds expire September 30, 2024, contractual increases of salaries/benefits, 4% contractual increase for transportation, tuition, maintenance of effort – level funding, and uncertainty of State Aid.
The Interim School Superintendent reviews the increased percentages of students meeting/exceeding expectations shown by RICAS test scores and student achievements.
Discussion ensues relative to unspent grant funds and inaccurately assessed expenditures found after Mr. Littlefield was brought on, addressing student absenteeism, the increase in costs for out of district students, losing money from RIDE and having to pay for students to go to an out of district school, declining student enrollment, addressing teacher absenteeism, and the decrease in 37 School Department positions, noting that approximately 10 remaining positions are fully funded through ESSER monies.
Further discussion ensues relative to the status of the State’s hold harmless policy regarding State Aid, school closure impacts, increase in other costs offsetting savings from school closures, and School Committee budget amendments.
The meeting is opened to public comments.
Jim O’Neill is present and comments on the school budget to represent the average family, the need to focus on declining enrollment at the High School, other School Department budgets, and the need for appraisals on vacant schools.
The Town Manager notes a contract was awarded at the December 11th Town Council meeting for a limited hazardous building materials investigation and associated mitigation and demolition estimates for South Road School.
Dorald Beasley is present and comments on the decrease in State Aid, teacher absenteeism, and projected salaries for School Department employees.
Brett Harrington is present and requests further explanation of revenue and expenditure totals compared to other School Departments and the costs per student.
Jim O’Neill comments on the Town’s undesignated fund balance and how it can be used, and the $3.4 million surplus reported by the School Department.
Dorald Beasley comments on the School Department budget, compares South Kingstown School District’s revenue and expenditures to other School Districts, and the costs of public schools to the taxpayers.
The Town Manager reviews the Town’s efforts to be frugal and fiscally responsible.
The Interim Superintendent notes the School Department’s efforts to reduce their workforce leaving only essential staff members.
Discussion ensues relative to the School Committee’s $350,000 allocation to fund Phase One services of the RIDE Stage II application for both an architect and an owners project manager (OPM), and the amended contract proposal by LeftField, OPM to amend their total man hours through May due to the postponement of the School Bond Referendum.
School Committeewoman Macinanti suggests inviting LeftField to the January 3rd Joint Town Council/School Committee CIP Work Session to further discuss and clarify.
UNANIMOUSLY VOTED: to adjourn at 9:22 PM.
ADJOURNED,
Nichole C. Romane
Deputy Town Clerk