Cape budget moves to hearing (Printed April 27, 2007)
By Ward Peck
Editor
Residents of Cape Elizabeth will have an opportunity to speak on the roughly $29 million combined municipal and school budget May 7, when the town council convenes a public hearing at 7:30 in City Hall. The details of what that budget contains, especially on the school side, were unknown as of press time.
The town’s finance committee, made up of the entire seven-member town council, has been reviewing the budget proposals over the past month. The committee met two times to review the $8.5 million municipal budget and two times to review the school board’s $18.9 million school budget.
Earlier in the year, the finance committee set a 2.5 percent spending increase target for the municipal budget, which was based on both the rate of inflation as measured by the Consumer Price Index (CPI) and the state’s “LD 1” formula meant to slow the growth of local property tax. The committee failed to achieve consensus on a similar target for the school budget, although several councilors expressed a commitment to hold the school budget to the same standard.
On Monday night and again on Wednesday, the School board, along with Supt. Alan Hawkins presented to the Finance Committee an $18.9 million budget representing a 3.8 percent or $693,283 increase over the previous year. Such a budget would increase the town property tax rate 32 cents to $16.60 per $1,000 in assessed value
Of the seven councilors at Tuesday’s meeting, six said they would look to cut the school budget further, with the remaining councilor, Sara Lennon, expressing disappointment that the board had already cut the superintendent’s original $19.2 million request.
“I feel embarrassed,” Lennon said. “We approve a new cop cruiser every other year with little decision. I feel we are less stringent on the town.”
The three longest-serving councilors, Anne Swift-Kayatta, Mary Ann Lynch and David Backer, who each pledged several years ago to limit spending to the rate of inflation for three years, reaffirmed that commitment, saying they would not vote for a school budget that increased spending more than 2.5 percent– $237,175 less than the school board-approved budget.
“We are sitting here less than six months out from last November, when we were frightened about TABOR and I have not heard anything about it tonight.” Backer said. “As elected officials we are responsible. We all point our fingers at other people saying, ‘it’s not us.’ It is us.”
Asked how a 2.5 percent-increase budget would be achieved, Hawkins said it would force him to cut staff and programming at one or more schools.
Swift-Kayatta suggested the school board explore financing some of the budgeted projects through borrowing. The school board has already requested a number of items totaling $169,000 be purchased with the proceeds of a bond. Swift-Kayatta mentioned a number of other possible expenses that could qualify as appropriate for bonding, including the replacement of classroom furniture.
On Tuesday, prior to a school board finance committee meeting, Hawkins said the administration had identified a total of $410,000 of items that could be bonded, however that number only included $92,000 in items contained in next year’s school budget. Based upon the Sentry’s calculations, a $91,000 decrease in the budget request would translate to an increase of roughly 3.3 percent.
A number of councilors focused on staffing levels. Several of Backer’s questions to the board suggest he believes cutting the staff may be appropriate. Backer noted that staffing levels increased as enrollment increased in past years but have not shown the same pattern as enrollment has dropped more recently. He noted the school year 2005-2006 enrollment was 91 students higher than what is projected for next school year but the number of teachers is expected to drop by less than the equivalent to a single full-time teacher.
“Over five years, the budget has increased 27 percent...in real dollars [taking inflation into account] an 11 percent increase as enrollment has declined six percent.” Swift-Kayatta said.
Two councilors Jim Rowe and Paul McKenney sought to find a compromise figure somewhere between the 3.8 percent increase requested by the school board and the 2.5 percent increase sought by three councilors. Rowe, who called the school board, “the most fiscally [responsible] school board Cape Elizabeth has had,” reminded those present that he considered the 2.5 percent goal as a target rather than a cap.
“I’m willing to move off 2.5 percent, but not 3.8 percent,” Rowe said. “I’d like to see 3.0 percent.”
McKenney distributed a calculation he prepared that showed allowing the school board to increase the budget 3.52 percent would result in an overall tax rate increase of 2.48 percent, which would keep the tax increase in line with inflation. A 3.52 percent increase would force the school board to decrease its budget by roughly $51,000– which could be accomplished through increasing the bond proposal.
The remaining councilor Cynthia Dill, who represents the town in the legislature did not commit to any figure. Dill said in light of the school district consolidation proposals being debated, which she strongly opposes, it is important that Cape Elizabeth demonstrate fiscal discipline in order to make its case. She also said as a strong supporter of education, she is hesitant to force cuts in the district that could harm the quality of education.
The finance committee decided to hold the vote on the school board’s budget on Wednesday, after the Sentry’s deadline.
On Wednesday the committee was also expected to vote on the less controversial municipal portion of the budget.
Town Manager Michael McGovern presented a municipal budget late last month that conforms to the council direction with a 2.45 or $203,246 increase over the previous budget.
The proposed increase would add eight cents or 2.2 percent to the mill rate for municipal services to $3.67 per $1,000 of assessed value, based upon the town’s current valuation.
According to McGovern, wage and benefit increases for municipal employees account for more than 90 percent of the increase. Other additions include a transfer of $23,000 in improvement projects from the self-supporting Fort Williams capital improvement fund to the general fund-supported Fort Williams maintenance account and an initial $7,000 contribution toward the eventual replacement of the new high school artificial turf field.
McGovern was able to achieve this target by proposing the town borrow roughly $2 million for several projects, including road, traffic and sidewalk improvements, vehicle purchases, improvements associated with the new high school artificial turf field and renovation of the Spurwink Church building.
On Monday night, after hearing from a school board unanimous in it’s opposition to the request, the council signaled it will remove a $150,000 contribution to the purchase and installation of bleachers next to the artificial turf field contained in the bond request.
Editor
Residents of Cape Elizabeth will have an opportunity to speak on the roughly $29 million combined municipal and school budget May 7, when the town council convenes a public hearing at 7:30 in City Hall. The details of what that budget contains, especially on the school side, were unknown as of press time.
The town’s finance committee, made up of the entire seven-member town council, has been reviewing the budget proposals over the past month. The committee met two times to review the $8.5 million municipal budget and two times to review the school board’s $18.9 million school budget.
Earlier in the year, the finance committee set a 2.5 percent spending increase target for the municipal budget, which was based on both the rate of inflation as measured by the Consumer Price Index (CPI) and the state’s “LD 1” formula meant to slow the growth of local property tax. The committee failed to achieve consensus on a similar target for the school budget, although several councilors expressed a commitment to hold the school budget to the same standard.
On Monday night and again on Wednesday, the School board, along with Supt. Alan Hawkins presented to the Finance Committee an $18.9 million budget representing a 3.8 percent or $693,283 increase over the previous year. Such a budget would increase the town property tax rate 32 cents to $16.60 per $1,000 in assessed value
Of the seven councilors at Tuesday’s meeting, six said they would look to cut the school budget further, with the remaining councilor, Sara Lennon, expressing disappointment that the board had already cut the superintendent’s original $19.2 million request.
“I feel embarrassed,” Lennon said. “We approve a new cop cruiser every other year with little decision. I feel we are less stringent on the town.”
The three longest-serving councilors, Anne Swift-Kayatta, Mary Ann Lynch and David Backer, who each pledged several years ago to limit spending to the rate of inflation for three years, reaffirmed that commitment, saying they would not vote for a school budget that increased spending more than 2.5 percent– $237,175 less than the school board-approved budget.
“We are sitting here less than six months out from last November, when we were frightened about TABOR and I have not heard anything about it tonight.” Backer said. “As elected officials we are responsible. We all point our fingers at other people saying, ‘it’s not us.’ It is us.”
Asked how a 2.5 percent-increase budget would be achieved, Hawkins said it would force him to cut staff and programming at one or more schools.
Swift-Kayatta suggested the school board explore financing some of the budgeted projects through borrowing. The school board has already requested a number of items totaling $169,000 be purchased with the proceeds of a bond. Swift-Kayatta mentioned a number of other possible expenses that could qualify as appropriate for bonding, including the replacement of classroom furniture.
On Tuesday, prior to a school board finance committee meeting, Hawkins said the administration had identified a total of $410,000 of items that could be bonded, however that number only included $92,000 in items contained in next year’s school budget. Based upon the Sentry’s calculations, a $91,000 decrease in the budget request would translate to an increase of roughly 3.3 percent.
A number of councilors focused on staffing levels. Several of Backer’s questions to the board suggest he believes cutting the staff may be appropriate. Backer noted that staffing levels increased as enrollment increased in past years but have not shown the same pattern as enrollment has dropped more recently. He noted the school year 2005-2006 enrollment was 91 students higher than what is projected for next school year but the number of teachers is expected to drop by less than the equivalent to a single full-time teacher.
“Over five years, the budget has increased 27 percent...in real dollars [taking inflation into account] an 11 percent increase as enrollment has declined six percent.” Swift-Kayatta said.
Two councilors Jim Rowe and Paul McKenney sought to find a compromise figure somewhere between the 3.8 percent increase requested by the school board and the 2.5 percent increase sought by three councilors. Rowe, who called the school board, “the most fiscally [responsible] school board Cape Elizabeth has had,” reminded those present that he considered the 2.5 percent goal as a target rather than a cap.
“I’m willing to move off 2.5 percent, but not 3.8 percent,” Rowe said. “I’d like to see 3.0 percent.”
McKenney distributed a calculation he prepared that showed allowing the school board to increase the budget 3.52 percent would result in an overall tax rate increase of 2.48 percent, which would keep the tax increase in line with inflation. A 3.52 percent increase would force the school board to decrease its budget by roughly $51,000– which could be accomplished through increasing the bond proposal.
The remaining councilor Cynthia Dill, who represents the town in the legislature did not commit to any figure. Dill said in light of the school district consolidation proposals being debated, which she strongly opposes, it is important that Cape Elizabeth demonstrate fiscal discipline in order to make its case. She also said as a strong supporter of education, she is hesitant to force cuts in the district that could harm the quality of education.
The finance committee decided to hold the vote on the school board’s budget on Wednesday, after the Sentry’s deadline.
On Wednesday the committee was also expected to vote on the less controversial municipal portion of the budget.
Town Manager Michael McGovern presented a municipal budget late last month that conforms to the council direction with a 2.45 or $203,246 increase over the previous budget.
The proposed increase would add eight cents or 2.2 percent to the mill rate for municipal services to $3.67 per $1,000 of assessed value, based upon the town’s current valuation.
According to McGovern, wage and benefit increases for municipal employees account for more than 90 percent of the increase. Other additions include a transfer of $23,000 in improvement projects from the self-supporting Fort Williams capital improvement fund to the general fund-supported Fort Williams maintenance account and an initial $7,000 contribution toward the eventual replacement of the new high school artificial turf field.
McGovern was able to achieve this target by proposing the town borrow roughly $2 million for several projects, including road, traffic and sidewalk improvements, vehicle purchases, improvements associated with the new high school artificial turf field and renovation of the Spurwink Church building.
On Monday night, after hearing from a school board unanimous in it’s opposition to the request, the council signaled it will remove a $150,000 contribution to the purchase and installation of bleachers next to the artificial turf field contained in the bond request.
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