2020.03.04 Finance Committee Agenda Item 1

Town Council Finance Sub-Committee Meeting Minutes

LARGE CONFERENCE ROOM

Falmouth Town Hall

February 26, 2020 – 5:30PM

Members Attendance: Janice De Lima (Finance Committee Chair); Ted Asherman (Town Council); Jay Trickett (Town Council)

Others in Attendance: Amy Kuhn (Council Chair); Caleb Hemphill (Town Council); Hope Cahan (Town Council)

Nathan Poore (Town Manager); Peter McHugh (Finance Director); Susan Gibney (Assistant Finance Director), Amy Lamontagne (Assistant Town Manager), Andi Jackson-Darling (Falmouth Memorial Library Director), Vicki Swerdlow (Falmouth Memorial Library), Catherine Cleale (Falmouth Memorial Library), Steven Knapp (Falmouth Memorial Library).

The meeting was called to order @ 5:40PM

Approval of February 12, 2020 Meeting Minutes.

Councilor Asherman moved to approve the minutes of February 12, 2020, seconded by Councilor Trickett.  The minutes were approved.

Presentation of Library Proposed Budget

Catherine Cleale, Andi Jackson-Darling and Vicki Swerdlow presented the proposed FY2021 Library Budget.

FY2021 will be the first full year of Library operation since FY2018 as the construction project will be complete in the spring of 2020.

Total projected revenue is $780K including a requested Town contribution of $660K or 85%.

The Budget included total expenses of $780K.  Highlights include the following reflecting a return to pre-construction levels: $47.5K for content acquisitions; $24K in technology resulting from needed equipment investments.  Total payroll of $564K including returning to the FY2018 staffing levels and the addition of a Technology Assistant in January 2021.

The group discussed the Town contribution of 85% which is up from 78% in 2018.  It was pointed out that the Library MOU references a funding level of 75%.  Councilors De Lima and Kuhn requested that the Library Board work with the Town Council to come up with a plan to reduce the funding %.

There was a discussion about having an article about the Library included in the next town newsletter and include a per capita comparison of Library costs compared to surrounding municipalities.  

Building Occupancy expenses were discussed by the group and Councilor Trickett asked that the Library Board keep in mind the promise to keep occupancy costs flat with the new building.  The current budget request shows an increase of $15K over the 2018 level.  The Committee asked the Library staff to explore ways to bring that cost down and include that reduction in a revised budget request.

There was a request by the Committee to have budget discussions with the Library earlier in the budget process.  The preliminary Library Budget discussion will be added to the Budget Calendar at the October meeting.

Budget Status Update.

Nathan and Pete presented a budget update to the Group.The Committee requested that the Town make $182K in expense reductions and explore revenue increase of $200K from bag and Mooring fees.

The Town was able to reduce expenditures by $182K through a combination of operating and capital request reductions.  Staff also added the Fire Department expansion costs approved in the last Finance Committee meeting and added the latest Library budget request.

Staff recommended implementing the Mooring fee increases that were presented by Chief Kilbride to the Harbor Committee.  This will produce additional revenue of $49K and will allow the revenues to cover 100% of the operating expenses of the Harbor and provide capital funding annually to go toward the eventual need to replace the pier.

Councilor Asherman requested that staff look into whether raising Mooring fees by Council Order would require an Ordinance change.

The Committee approved moving forward with Chief Kilbride’s fee change recommendation.  

Staff presented Pay-As-You-Throw bag pricing options ranging from paying 100% of trash collection fees to an additional month of expenses.

Bag fees currently cover 7 months of collection costs.

A comparison of Falmouth bag fees to Portland showed that raising fees to cover 100% of collection costs would put Falmouth in-line with Portland.

The Committee approved moving forward with having bag fees cover the entire costs of collection. 

The result of all changes discussed results in a Town mil rate increase of $.46 or 14.7% from $3.15 to $3.61.

Using a very preliminary mil rate projection by the School and the County budget projection, the overall mil rate will be $17.66, a $.79 or 4.7% increase from the FY20 rate of $16.87.

Nathan then presented a 5 year outlook for the Town mil rate identifying known major drivers over the period as requested by the Committee.Major drivers include:

 the County switch from calendar to fiscal year in FY22 (will be $125K per year for 5 years).

The second year of Phase I of Fire/EMS expansion and ramp-up to cover bond costs to renovate Central Station and Station 4 to accommodate the expansion.

Phase II of the Fire/EMS staffing plan in FY25.

The hiring of a Facilities Director in FY25.

Returning Open Space funding to $300K per year in FY23.

The Blackstrap Road rehabilitation project bond issuance in FY24.

There was much discussion of the timing of these items and how best to present them.

The Committee requested that this slide be re-formatted and presented at the next meeting.

Adjourn – Councilor Trickett moved to adjourn the meeting, Councilor De Lima seconded.  The meeting was adjourned at 8:30PM.

Respectfully submitted by Peter McHugh