HomeMy WebLinkAboutAd Hoc Budget Committee Minutes October 27, 2010_201402060847257533
Town of Nantucket
Ad Hoc Budget Workgroup
Minutes – Ad Hoc Budget Workgroup Meeting, held October 27, 2010
Approved November 23, 2010
A duly noticed meeting of the Ad Hoc Budget Workgroup was held in the conference room
located at #16 Broad Street on Wednesday, October 27, 2010, commencing at 10:00 AM.
Present: Ms. C. Elizabeth Gibson, Mr. Gregg Tivnan, Ms. Patty Roggeveen, Mr. Whitey
Willauer, Mr. Michael Cozort, Ms. Jenny Garneau, Ms. Robin Harvey, Mr. Glenn Field, Mr.
James Kelly, Mr. Matt Mulcahy, and Ms. Irene Larivee
Also present: Mr. John Tiffany, Mr. Rick Atherton, and Mr. Michael Kopko
Call to Order:
Chairman Patty Roggeveen called the meeting to order at 10:05 AM.
Approval of Minutes from 09/08/2010
Mr. Kelly made a motion to approve the minutes as written which was seconded by
Mr. Willauer. All were in favor, the draft minutes were approved.
Update on Tax Rate & Free Cash Certification
Ms. Gibson provided an update on the status of the Tax Rate Certification and Free
Cash. The Tax Rate Certification was approved by the Board of Selectmen; however is
waiting on approval from the Department of Revenue. Free Cash Certification has been
delayed due to preparation of the FY2010 audit.
Continued Review of Fiscal Year 2012 Forecast
Ms. Gibson indicated there have been no significant changes in the FY2012 forecast
since August 2010; however a preliminary update was received last week from the Town’s
Health Insurance Consultant. He indicated there is a high probability the Health Insurance
Minutes – Ad Hoc Budget Committee
October 27, 2010 Page 2 of 3
rates for the Town will remain flat through FY2012. The current FY2012 General Fund
projection includes an assumption of a 6.0% increase in Health Insurance costs. Ms. Larivee
cautioned the group that the potential health insurance reduction to the expense
projections might be offset by the outcome of November 3 State Election Ballot Question #3
that would reduce state sales tax and likely impact the Town’s portion of State Local Aid.
Superintendent Cozort asked if the school could create an awareness campaign on Ballot
Question #3. He expressed concern the taxpayers may not be aware of the potential
implications on the schools. Ms. Roggeveen indicated there is a very fine line if government
is contacting voters about ballot questions. She indicated the Board of Selectmen does not
plan to discuss ballot questions at the upcoming Board meeting.
Mr. Kelly asked the impact on the employee’s portion of health insurance costs if
there were increases. Ms. Gibson responded any rate increases are applied to both the
Town portion and employee portion. Mr. Kelly asked if the employees would receive a rate
decrease because the FY2012 projection would not reflect an increase. Ms. Larivee clarified
the FY2012 Health Insurance increase is a projection of what may occur; not what has
occurred. If Health Insurance costs increase, then the increase is applied to both the
employer and employee.
The topic of discussion transitioned to the Town / School split. Ms. Larivee indicated
the Town / School split highlights the FY2012 projected general funds Article 8 allocation
between the Town and School as of October 10, 2010. Based upon the current forecast, the
Town / School split for FY2012 is projected to be 49.7% for Town Services and 50.3% for
School Services. Superintendent Cozort inquired about the prior year split. Mr. Field
responded it was 56% for Town services and 44% for School services. Ms. Larivee indicated
in prior years, Our Island Home was included in the Town portion of expenses. In FY2012
going forward, Our Island Home expenses are shown in an Enterprise Fund; therefore it is
not shown within the Article 8 Town / School split percentages.
Discussion followed concerning how and why enterprise funds are established.
Superintendent Cozort indicated the cost per pupil in Nantucket is rather high in
comparison to other communities and necessarily so due to the costs associated with
operating in an island community. He informed the group specific services, such as the
Community School, ratchet up the cost per pupil when the services lend themselves to both
citizens and pupils. Ms. Roggeveen indicated the Community School has been reviewed as a
potential Enterprise Fund in the past; however it is currently a revolver. Superintendent
Cozort cautioned the purpose of his inquiry was to obtain a better understanding of
Enterprise Funds, not to necessarily propose the Community School become an Enterprise
Fund.
Mr. Kelly inquired if the Town and School are planning to consolidate similar
services. Ms. Gibson responded preliminary discussions with Superintendent Cozort have
Minutes – Ad Hoc Budget Committee
October 27, 2010 Page 3 of 3
begun; however the consolidation between overlapping Town and School services will
require further review and is not being considered for FY2012.
Ms. Garneau requested Ms. Gibson attend an upcoming School Committee meeting
to present the Town’s strategy for balancing the budget in FY2012. In the past, it was
beneficial to have the information presented in several Town and School forums. Ms.
Roggeveen agreed the information should be shared in multiple avenues as the public gets
a sense that the Town and School are working together. Ms. Gibson proposed presenting
the FY2012 General Fund forecast to the School Committee after November 17, 2010. She
also proposed conducting a few budget question and answer sessions with the public that
would include representatives from Town & School Administration; a few Board of
Selectmen; and School Committee members. The group was in agreement to move forward
with public information sessions. Ms. Garneau also requested that employee forums have
been helpful and well attended in the past.
Review November Activities
Ms. Gibson informed the group on November 3, 2010, the Board of Selectmen will
be receiving an update on Health Insurance and GASB 45 Other Post Employment Benefits.
On November 17, 2010, the updated Fiscal Year 2012 Budget Projection will be presented
to the Board of Selectmen.
Date of Next Meeting & Topics
The date of the next meeting was scheduled for Tuesday, November 23, 2010 at
9:00 AM in the conference room at 16 Broad Street. The tentative topics of discussion
include an update on FY2012 projections and upcoming activities in the month of
December.
Adjournment:
The meeting was adjourned at 10:56 AM.
Prepared by Irene Larivee