HomeMy WebLinkAboutAd Hoc Budget Committee Minutes November 18, 2008_201402060848050661
Town of Nantucket
Ad Hoc Budget Committee Meeting
Minutes – Ad Hoc Budget Committee Meeting November 18th, 2008
Approved January 27, 2009
Present: Ms. Jenny Garneau, Ms. Susan Genthner, Ms. C. Elizabeth Gibson, Ms. Irene
Larivee, Mr. Matthew Mulcahy, Dr. Robert Pellicone, and Ms. Patricia Roggeveen.
Absent: Mr. Jim Kelly and Mr. Michael Kopko.
Also present: Mr. Rick Atherton, Mr. Brian Chadwick, Ms. Robin Harvey, Ms. Jane Miller,
Mr. Malachy Rice, Mr. Whiting Willauer, and Mr. Craig Abernathy
Call to Order:
Ms. Roggeveen called the meeting to order at 9:12 AM.
Status of FY 2010 Budget Projections:
Ms. Larivee highlighted a large decline in local revenues for FY 2009 that will also
continue into FY 2010. She said that she will not be putting any figures into the forecast
for FY 2010 until she looks at local revenue as of November 30th, 2008. Dr. Pellicone
asked Ms. Larivee to elaborate on the $2.2 million deficit projected for FY 2010. Ms.
Larivee explained that the deficit was a combination of a decline in building permits as
well as new growth. She noted that as revenues continue to decline expenses are
increasing at a rate of five percent in salaries and two percent in operating expenses.
Dr. Pellicone asked if a lower salary increase could be projected, to which Ms. Larivee
responded that the five percent projection is based upon reality. She elaborated stating
that it is necessary to use current figures when making projections, and highlighted the
fact that current collective bargaining agreements were coming in at five to six percent.
Dr. Pellicone stated that in order to tackle the $2.2 million dollar deficit he would need
to cut salaries by ten percent. Ms. Larivee responded that in her review with Glenn
Field, Nantucket Public Schools Assistant to the Superintendent for Business, salaries
were not problematic but there would be a challenge in reducing operating costs. She
added that both the School and the Town would have to make reductions in order to
achieve a balanced budget.
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November 18th, 2008 Page 2 of 4
On the topic of reducing expenses, Ms. Genthner explained that the School
Committee has instructed each department to submit budgets with a ten percent
reduction. Ms. Genthner characterized the biggest challenge of FY 2010 as meeting
financial goals without cutting staff. Dr. Pellicone said that after reviewing all other
options he saw no other alternative than cutting staff. Robin Harvey suggested that the
School explore fundraising options in order to offset costs. Ms. Roggeveen commented
that the fundraising world was also experiencing the effects of the declining economy.
In regard to budget cuts of ten percent for FY 2010, Dr. Pellicone asked if these
cuts involved any reduction in staff. Ms. Larivee answered that the ten percent cut
relates to operating expenses and not personnel costs. Ms. Gibson added that her
office is taking a careful look at reductions in staff. Ms. Larivee stated that some
discussions have centered on the option of unpaid furloughs. Ms. Garneau asked if
these cost saving measures would require union negotiations, to which Ms. Gibson
stated that it would be necessary to negotiate agreements with all of the unions in
order to implement these types of changes for FY 2010. Discussion of teacher furloughs
ensued, and it was pointed out that teachers are required by law to work 186 days each
year.
Ideas for Public Engagement in the FY 2010 Budget Process:
Sparse attendance had been the norm for public budget information meetings,
but Ms. Gibson noted the previous night’s meeting with the School Council was much
more successful. Ms. Genthner urged Ms. Gibson to repeat the process with other
School Groups. Ms. Garneau agreed, highlighting the need to make further
presentations before budgets are due. She also suggested developing mailings and
posting budget information on the Town’s website as methods of disseminating
information about FY 2010 budget projections.
The topic of discussion shifted to rumors of people leaving the Island. Ms.
Roggeveen asked if the School has seen a decrease in enrollment. Ms. Garneau
answered that the latest enrollment numbers showed no such decrease. Mr. Atherton
offered the theory that kids are coming back into the public school system from private
schools which is offsetting the decline in enrollment due to people leaving the Island.
Ms. Roggeveen noted that she has heard numerous reports of people being without
work, and stated that she expects to see changes in the Island’s demographics this
winter.
Discussion followed regarding the timing of the next budget presentation. Dr.
Pellicone stated his belief that it would be best to resolve issues with the FY 2009
budget prior to focusing on the FY 2010 budget. He also expressed concern that making
another presentation prior to the Special Town Meeting (STM) would encourage the
public to try to address the School’s budget issues at STM. Ms. Garneau asserted her
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November 18th, 2008 Page 3 of 4
opinion that the FY 2009 budget issues would have to be addressed before STM, making
discussion of the FY 2010 budget possible before the meeting.
One of the options discussed to close the school’s FY09 budgetary gap was
closing some buildings, Ms. Roggeveen asked if efforts have been taken to map student
use of facilities. Ms. Genthner replied that there have been preliminary discussions of
closing the School early for a portion of the week and possibly shifting activities to other
venues. Ms. Garneau stated that there are athletic activities constantly taking place
during the week, with some activities finishing after 8:00 PM.
Mr. Mulcahy proposed that a budget forum be held at STM. Discussion followed
regarding the timing of a forum at STM, and it was agreed that perhaps the timing and
mixing of issues would make such a forum difficult. Ms. Garneau proposed conducting
outreach and sending budget flyers prior to STM and then conducting the forum
afterward. Ms. Roggeveen noted that people will be asked to make sacrifices, and that
the voters chose not to support additional spending following Annual Town Meeting.
Ms. Gibson proposed that a joint budget forum be held on December 11th, from
5:30 to 7:30 PM. After discussion of notifications and the sharing of information, Ms.
Garneau stated that a moderator would help to ensure the meeting went well. Ms.
Genthner stated that it would be useful to remind everyone that the forum is an
opportunity for community dialog, and noted that choosing a moderator from the
community would help to reinforce that message.
New Business
Citing his belief that the Town should be “leading by anticipating,” Mr. Atherton
stated that no one is talking about making significant reductions in expenses. He added
that for the voters to understand the situation the Town’s finances are in and support a
possible override, it will be necessary for them to see real action on the part of the
Town. Mr. Chadwick stated his belief that voters would not be inclined to support an
override. Ms. Harvey asserted her belief that the Town and School must take ownership
of the challenge facing finances an endeavor to build trust with the community.
Recalling past successes in addressing budget issues, Ms. Genthner cited a
popular belief that the money would be found to cover any shortfalls. Mr. Atherton
agreed, noting that this is a hard myth to dispel in light of recent efforts to use the
Health Insurance Trust to offset budget shortfalls.
In regard to override options, Mr. Atherton advised that he has yet to hear any
member of the board say that an override is the best choice. Ms. Roggeveen added that
she feels the Town and School must look a ways to increase efficiency and implement
new strategies, including fees. Ms. Gibson explained that the State asks that all sources
of other revenue be exhausted prior to the implementation of new fees. Ms.
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November 18th, 2008 Page 4 of 4
Roggeveen noted that it might simply be necessary to cut services due to the mandate
handed down by voters the previous June.
In light of the health insurance drawdown, Ms. Genthner noted that $1 million
would be used to offset a loss in revenue, and asked if the Town is considering any
service or staff changes. Mr. Atherton complimented Ms. Genthner on her question,
commenting that revenue affects everyone equally. He explained that had a substitute
for the lost revenue not been found it would have been necessary to make reductions
across the board. Ms. Larivee added that as money from the general fund is shared
between the Town and the School, and that the impact of reductions would affect both
parties. She stated that the proposed solution of using the Health Insurance Trust
eliminated the need of making adjustments to the budget. Ms. Genthner highlighted
the fact that if the Town were not able to offset the loss in revenue, the School would
be responsible for covering a percentage of the decline in revenue.
Old Business:
None.
Date of Next Meeting:
The date of the next meeting was set for December 3rd, 2008, at 11:45 AM.
Adjournment:
Ms. Roggeveen asked for a motion to adjourn that was “so moved” by Mr.
Mulcahy. The meeting was adjourned at 10:10 AM.
Prepared by Craig Abernathy