HomeMy WebLinkAboutAd Hoc Budget Committee Minutes February 10, 2009_201402060847438159
Town of Nantucket
Ad Hoc Budget Committee Meeting
Minutes – Ad Hoc Budget Committee Meeting February 10th, 2009
Approved March 23, 2009
Present: Ms. Jenny Garneau, Ms. Susan Genthner, Ms. C. Elizabeth Gibson, Mr. James
Kelly, Mr. Michael Kopko, Mr. Matthew Mulcahy, Ms. Irene Larivee, Dr. Robert
Pellicone, and Ms. Patricia Roggeveen.
Absent: None.
Also present: Mr. Rick Atherton, Mr. Malachy Rice, Mr. Glenn Field, Mr. Whiting
Willauer, and Mr. Craig Abernathy
Call to Order:
Ms. Roggeveen called the meeting to order at 8:30 AM.
Approval of Minutes of 27 January 2009:
Mr. Mulcahy recused himself from considering approval of the minutes of
January 27th, 2008, due to absence. Mr. Kelly moved to approve the minutes of 27
January, 2009; seconded by Ms. Roggeveen. So voted unanimously.
Review of FY 2010 Outstanding Budget Items:
Referencing recent proposed reductions in funding at the State level, Ms. Gibson
explained that the current amount of reduction in funding for Nantucket is still
unknown, but noted that a worse case scenario would result in a reduction of $95,000 in
Local Aid. Mr. Kelly asked if this amount has been removed from the budget, and Ms.
Larivee answered that in the past amounts are kept in the budget projection until
notification of a reduction is received. Mr. Kelly stated that he believes that budget
assumptions should be based upon current information, and that there is a point where
certain assumptions must be accepted for the sake of planning. Ms. Gibson stated that
she understands Mr. Kelly’s position and that she expects to make all assumptions final
within the next two weeks.
Minutes – Ad Hoc Budget Committee
February 10th, 2009 Page 2 of 4
Acknowledging the difficulties in developing contingencies for the State’s
budgeting process, Ms. Larivee noted that the Finance Director strives to implement a
conservative budget in order to avoid the negative consequences of fluctuations in the
State’s final budget. Mr. Kelly asked if Federal Aid is included in budgeted amounts to
which Ms. Gibson responded in the negative.
Citing additional budget items that cannot yet be finalized, Ms. Gibson stated
that Motor Vehicle Excise Tax and Medicare Part D amounts will require more time and
attention prior to being budgeted. Ms. Gibson explained that the Department of Motor
Vehicles cannot find data on hundreds of thousands of cars, making it impossible to
assess taxes on these vehicles at this time. She added that the amount budgeted for
Medicare Part D revenue may need to be increased by $100,000.
Ms. Gibson then pointed out four remaining items that may affect budgeted
revenue amounts:
• Indirect Costs
• Free Cash
• Septic System Revolving Fund
• FY 2009 Revenue (actual to budgeted amount)
Shifting to the other side of the projection, Ms. Gibson spoke about expense
items that may have been forecast in excess of actual or revised requirements. Among
these items were:
• Unemployment Expense
• Other Post Employment Benefits
• Unpaid Bills
• Overlay and Offsets
Mr. Kelly asked if it would be possible to budget zero dollars for Snow and Ice
Removal. Ms. Gibson stated that the Department of Revenue (DOR) would not accept a
budget that did not include some amount for an area that incurs expenses.
Ms. Gibson concluded by stating that Town Administration is exploring the
option of using the Stabilization Fund for a capital item in FY 2010, but added that this
has not yet been decided. She noted that this and other options will be affected by the
amount of Free Cash certified by DOR. Ms. Garneau asked if it will be possible to adjust
current budget projections for the School based upon the revenue and expense
information discussed in the meeting. After some discussion regarding the certainty of
these projections, Mr. Rice stated that the School could be comfortable adding a
“ballpark” figure of $125,000 to its overall budget number.
Minutes – Ad Hoc Budget Committee
February 10th, 2009 Page 3 of 4
Discussion of the Budget Schedule
Ms. Gibson said that she presented the final Town budget to the Board of
Selectmen at their meeting on January 25th, 2009. Mr. Kelly asked if the Board will
discuss options to address a shortfall within the Solid Waste Enterprise Fund (SWEF)
within this meeting. Mr. Kopko answered, stating that the Board will make a decision in
regard to this issue prior to or on the day the Town’s budget is considered. Ms. Gibson
added that a worst case scenario would have the SWEF deficit included in the General
Fund. She noted that it is the position of Town Administration that a deficit in the SWEF
should be taken care of within the SWEF. Mr. Kopko asked if there are other options
available to address this deficit. Ms. Gibson answered that the deficit could be taken
care of with either an override or through fee increases. Discussion ensued regarding
the best strategy for confronting the deficit within the SWEF.
Public Education on the Overall Budget
In an effort to increase public awareness of the budget process, Ms. Gibson
stated that her office has been considering several options, including weekly e‐mails.
Ms. Garneau requested that any such communications include School Administration.
Mr. Kelly asserted that he believes the conditions and concerns affecting the FY
2010 budget have been effectively communicated.
Ms. Gibson proposed a televised forum to discuss budget issues. Ms. Garneau
supported the proposal, but asked that the forum take place at such a time when many
of the outstanding matters have been finalized.
Mr. Kopko voiced his hope that the Board of Selectmen will closely study issues
affecting the SWEF in the coming weeks. Ms. Roggeveen noted that if new fees are to
be implemented, a public hearing will be required. Mr. Kopko agreed, but added that
there must be an opportunity for the public to exercise choice.
New Business:
None.
Old Business:
Ms. Genthner stated that the School is still working on refining its budget. She
cited items that continue to impact the budget, including potential retirements. Mr.
Kopko asked to know more about a Finance Committee communication to the School.
Mr. Kelly stated that the Finance Committee sent a communication stating that they feel
the School is well funded and provided a list of items the School could consider for the
sake of cutting costs. Dr. Pellicone commented that the School will consider the options
Minutes – Ad Hoc Budget Committee
February 10th, 2009 Page 4 of 4
put forward by the Finance Committee at its meeting on February 17th, 2009. Mr. Kopko
then asked if the Finance Committee will be providing a similar communication to the
Town. Mr. Kelly answered that a similar communication can be provided, and added his
belief that a fresh look at budget challenges with an outside perspective is often helpful.
Date of Next Meeting:
The date of the next meeting is to be determined.
Adjournment:
Ms. Roggeveen asked for a motion to adjourn that was “so moved” by Mr. Kelly.
The meeting was adjourned at 9:55 AM.
Prepared by Craig Abernathy