HomeMy WebLinkAboutAd Hoc Budget Committee Minutes September 8, 2010_201402060847259408
Town of Nantucket
Ad Hoc Budget Workgroup
Minutes – Ad Hoc Budget Workgroup Meeting, held September 8, 2010
Approved October 27, 2010
A duly noticed meeting of the Ad Hoc Budget Workgroup was held in the conference
room located at #16 Broad Street on Wednesday, September 8, 2010, commencing at
9:00 AM.
Present: Ms. C. Elizabeth Gibson, 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 9:00 AM.
Review of Fiscal Year 2012 Projections & Assumptions
Ms. Gibson provided an update on the Board of Selectmen Goals for 2010‐2011.
One of the budgetary goals is to work on a strategic process for the development of the
budget. A key change to achieve this goal is to develop the expense assumptions based
upon projected revenue as opposed to existing commitments. Once the revenue is
projected, the expense assumptions are adjusted to live within the revenue forecast.
Ms. Larivee reviewed three documents; the Preliminary Planning Projection for
Fiscal Year 2012‐2015 Planning Assumptions; the Five Year Revenue Forecast; and the
Five Year Expenditure Forecast. Ms. Larivee explained the various categories within the
operating expense. For Town and School salaries, traditionally the assumptions were
based upon existing contracts; now they are adjusted to what the town can afford to
spend. Expense categories that are projected to increase are Medical Insurance, General
Insurance, and Barnstable County Retirement. Ms. Larivee noted that the Town year
Minutes – Ad Hoc Budget Committee
September 8, 2010 Page 2 of 3
over year comparison from FY2010 / FY2011 is skewed as Our Island Home became an
Enterprise Fund for FY2011 but was a general fund department in FY2010. An important
note was made that the areas that are traditionally cut at the beginning of the budget
development process are not included in the planning assumptions (ex. Capital
Improvements budgeted from revenue, Stabilization Fund contribution, etc.)
Switching to the revenue assumptions, Ms. Larivee explained the reduction in
the construction and building trades are significantly impacting revenue from new
growth. New growth declined from $1.2 million in FY2008 to an estimated $250,000 for
FY2012. Other areas of local revenue are also directly impacted by the downturn
including Building permits, inspection fees, Conservation Commission fees, Historic
District Commission fees, Planning Board fees, and Solid Waste Enterprise Fund
Construction and Demolition revenues.
Mr. Kelly asked if the Health Insurance projection was revised to only include
existing employees. Ms. Larivee explained that the initial forecast is at the top level and
the detailed review by employee is conducted in October, but the projected FY2012
budget will be for existing employees and will not cover vacant positions.
Ms. Roggeveen indicated the strategic report card is a bit bleak. It will be helpful
for the Town and School to work on a strategy together and begin discussions sooner
than later. From the Board of Selectmen perspective, cost containment measures are
currently being taken for legal services and the Solid Waste Enterprise Fund review will
begin soon.
Ms. Garneau agreed to begin discussions on the strategy at an earlier date. She
also provided the School Committee perspective that it will be another difficult budget
cycle. The Teachers contract expires in June of 2011.
Mr. Field asked if we were preparing a town /school split document. Ms. Larivee
responded yes; this request will be worked on collaboratively between the Finance
Department and School Business Office.
Mr. Willauer asked if the Madaket or school wind turbine projects are included
in the forecast. Ms. Larivee said no, because those projects are not even started yet; or,
in the case of the Madaket project, approved. Some discussion followed about the wind
projects.
Review FY2012 Budget Timeline
Ms. Gibson detailed the milestones of the FY2012 Budget Timeline document
Review September Activities
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September 8, 2010 Page 3 of 3
Specific activities in the current month include a presentation to the Board of
Selectmen from the Assessor Debbie Dilworth; a review of new Financial Policies, User
Fees, and Debt Service, Ms. Gibson explained. She also pointed out that work group
members should review the Ad Hoc Fiscal Committee report as we go through the
budget process.
Mr. Willauer asked if the Ad Hoc Fiscal Committee would be reconvened for the
2012 budget. Ms. Gibson responded the recommendations provided by the Ad Hoc
Fiscal Committee reports are both short term and long term therefore there isn’t a need
to reconvene the Ad Hoc Fiscal Committee at this time. Ms. Harvey asked if there has
been any consideration to the Ad Hoc Fiscal Committee suggestion to consolidate
services between the town and school. Ms. Gibson replied that it hasn’t been
considered at this time; however it is an option that we should explore the feasibility of
together and that it remains on the “radar”.
Date of Next Meeting:
The date of the next meeting was scheduled for October 27, 2010 at 10:00 AM in
the conference room at 16 Broad Street. The tentative topics of discussion include an
update on the FY2012 projections; an update on Free Cash and Tax Rate certification;
and an estimate on the Town / School General Fund split.
Adjournment:
The meeting was adjourned at 10:00 AM.
Prepared by Irene Larivee