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Home My Public Portal AboutSelect Board Meeting Packet - 02.07.22Pages 2-18 () (Pages 19-168) FISCAL YEAR 2023 BUDGET OVERVIEW Peter Lombardi, Town Administrator Mimi Bernardo, Finance Director Donna Kalinick, Assistant Town Administrator Town of Brewster, Massachusetts February 7, 2022 Agenda •Review of Updated Revenue Assumptions •Summary of Expense Drivers and Major Changes •Presentation of Proposed Budget Initiatives •Summary of Budget Implications 02/07/22 2 FY23 Budget: Revenue Projections •New Growth •$225k based on Assessor’s analysis •State Aid (cherry sheet) •16% increase from FY22 actuals •Consistent with Governor Baker’s proposed budget, including 32% increase in Brewster’s Chapter 70 allocation ($327k) •Local Receipts •7.6% increase from conservative FY22 assumptions •Short-term Rental Revenues •$250k increase to $750k based on FY21 actuals ($1+M) 02/07/22 3 FY23 Budget: Revenue Projections (cont’d) •Ambulance Receipts •$74k decrease to $722k due to one-time reduction in ambulance lease payments; covers ~25% of total Fire Department operating expenses •Water Indirects •$43k increase to $193k to better reflect actual services provided •Golf Indirects •$76k increase to $205k to better reflect actual services provided •New Solar Revenues •$20k to General Fund for Energy Manager •$65k increase to Golf Department •New Marijuana Revenues •$0 (anticipated facility openings by Fall 2022) 02/07/22 4 Noteworthy FY23 Budget Expense Drivers: Forecast to Actual •Cape Cod Tech •Projected 55% assessment increase based on 2.5% operating expense increase and 44% Brewster student enrollment increase •Proposed 35% assessment increase based on .5% net operating expense increase (2% gross expense increase) •Nauset Regional •Projected 2.5% operating increase (plus .5% for potential enrollment increase) •Proposed 6% operating increase (4.1% net assessment increase due to 1.6% reduction in Brewster enrollment) •Brewster Elementary Schools •Projected 3% increase •Proposed 2.5% increase for both Eddy and Stony Brook Schools 02/07/22 5 Noteworthy FY23 Budget Expense Drivers: Forecast to Actual •Health Insurance •Projected 5% overall increase (plus elimination of one-month premium holiday in FY22) •Actual 3% premium increase (no premium holiday) •Pension •Projected 9% increase •Actual 4.2% increase based on experience (18.5% from Brewster Schools & 1.6% from Town) •Transfers Out •Projected $200k increase to Affordable Housing Trust & Capital Stabilization (Short-term rental revenues) •Actual $300k increase, including +$100k for new Brewster Special Education Stabilization Fund 02/07/22 6 Noteworthy FY23 Budget Expense Drivers: Forecast to Actual •Town Personnel •Projected 2.75% COLA, 3% step increases, plus compensation and classification study implementation •Actual 5.8% increase •Town Expenses •Projected 2% increase (not including health insurance & pension) •Actual 2.4% increase (including health insurance & pension but not Sea Camps) •Actual 3.7% increase (all-inclusive) •Total Town Operating Expenses •Actual 3.75% increase (not including Sea Camps) •Actual 4.8% increase (including Sea Camps) 02/07/22 7 Proposed FY23 Budget Initiatives •Select Board FY22-23 Strategic Plan Goal SC-1: Purchase Sea Camps properties for public access and use •Short-term Debt - $50k net due to planned paydown of $400k balance in Spring 2022 ($300k gross) •$6M total cost of Long Pond property •$2M appropriated by Town Meeting in September 2021 ($1.75M from Free Cash & $250k from Water Retained Earnings) •$1.75M pledged by Brewster Conservation Trust •$1.5M pledged by MA Audubon •Additional $100k pledged by Water Commission •$650k balance to be paid by short-term debt over next 2-3 fiscal years 02/07/22 8 Proposed FY23 Budget Initiatives (cont’d) •Select Board FY22-23 Strategic Plan Goal SC-1: Purchase Sea Camps properties for public access and use •Excluded Debt - $1.287M gross •$20M total cost of Long Pond property •Year 1 of 30-year level debt term •Years 2+ payments will be ~$980k •Future payment amounts could be reduced if Town agrees to accept pledges (eg. $1M from MA Audubon) after Comprehensive Planning process is complete 02/07/22 9 Proposed FY23 Budget Initiatives •Select Board FY22-23 Strategic Plan Goal SC-2: Develop short-term property plan for Sea Camps •Sea Camps Property Management - $128k net due to $75k increase in short-term rental revenues ($203k gross) •Property Manager - $100k including salary & health benefits •Insurance - $50k •Utilities - $35k •Maintenance - $15k •Irrigation - $3k •Original $200k Town Meeting appropriation in September 2021 will cover all FY22 operating expenses + FY23 septic costs 02/07/22 10 Proposed FY23 Budget Initiatives •Select Board FY22-23 Strategic Plan Goal G-7: Examine need to increase organizational capacity in certain key areas to meet expanding service and project demands •Proposed Strategic Staffing Enhancements (6) - $52k net impact on FY23 General Fund budget (including benefits) •Public Health Nurse - $0k net due to proportional reduction in VNA expense ($15k gross) •New 8 hour/week position •50% paid by ARPA ($7.5k) •Seasonal Natural Resources Department Staffing - $5k net ($10k gross) •Two new 27.5 hour/week positions (10 weeks/year) •50% paid by ARPA ($5k) 02/07/22 11 Proposed FY23 Budget Initiatives (cont’d) •Select Board FY22-23 Strategic Plan Goal G-7: Examine need to increase organizational capacity in certain key areas to meet expanding service and project demands •Shared Town Hall Administrative Assistant - $25k •New 19 hour/week position to provide rotating coverage for Town Hall Departments with limited staff •Will also provide administrative support to Facilities, including Sea Camps, and IT Departments (current Department Head responsibility) •Planning Office Administrative Assistant - $8k •Increase hours from 19 to 25 hours for FY23 •Total budget impact of $19k including health insurance •Assistant Town Accountant - -$3k net ($4k gross) •Increase hours from 35 to 37.5 for new hire 02/07/22 12 Proposed FY23 Budget Initiatives (cont’d) •Select Board FY22-23 Strategic Plan Goal G-7: Examine need to increase organizational capacity in certain key areas to meet expanding service and project demands •Teen/Young Adult Librarian - $6k net ($12k gross) •Increase hours from 27 to 35 (full-time) •50% paid by Library state aid •Year 2 of 3-year plan to transition all benefit-eligible library positions to full-time status 02/07/22 13 Proposed FY23 Budget Initiatives (cont’d) •Creation of new Brewster Schools Special Education Stabilization Fund •Reserve fund for unanticipated special education and out of district tuition/transportation expenses •Created by Section 24 of Chapter 218 of the Acts of 2016 •May require Special Act (Town Meeting + state legislature) to meet Brewster’s needs since Nauset is a hybrid regional district (local elementary schools) •Appropriation would require majority approval of both Brewster School Committee & Select Board •Need to understand current interest of Nauset Administration & Brewster School Committee 02/07/22 14 Proposed FY23 Budget Initiatives •Creation of new Brewster Schools Special Education Stabilization Fund •Chapter 70 state aid annual increases: •3% average ($30k) •Projected 8.8% increase ($90k) for FY23 based on Governor Baker’s proposed budget •32% actual increase in FY23 ($327k) •Unexpected additional levy capacity ($237k) covers $133k increase in FY23 Nauset Regional Assessment (difference between 3% projected and 4.1% actual) •Proposed $100k appropriation to new fund – could proportionately increase if Nauset Regional Assessment were to be reduced •Unexpended year-end Brewster Elementary School funds could be appropriated to new fund by Town Meeting in future fiscal years 02/07/22 15 Other Ongoing Budget Initiatives •Continuing to invest new short-term rental revenues in housing and long-term tax relief, as follows: •$375k to Brewster Affordable Housing Trust (+$125k from FY22) •$300k to Capital Stabilization Fund to help mitigate tax impact of future major Town capital projects (+$75k from FY22) •Continuing commitment to address Town’s unfunded Other Post-Employment Benefit (OPEB) liability - $300k total FY23 appropriation to Trust Fund (same as FY22) •Continuing to increase investments in technology (e-permitting, cloud-based platforms, new website, remote meetings, payroll, etc) and infrastructure/cybersecurity - $76k gross ($54k net after increase in Golf/Water indirects) •Don’t anticipate any significant expense increases in future years 02/07/22 16 FY23 Budget Summary •Estimated FY23 General Fund revenue totals: $49,619,054 •Projected FY23 General Fund operating appropriations: $49,591,078 •Estimated available FY23 levy capacity: $28k 02/07/22 17 Brewster Finance Committee Budget for 2022-2023 Budget Questions for Nauset Regional & Brewster School Committee, Superintendent and Nauset Regional Finance Director Purpose: Enhance school budget information and clarity by working diligently with the Nauset Regional School Committee, new Nauset Regional School Administration, Brewster School Committee, and Brewster Finance Committee 1.Could we please have a detailed reconciliation of the Reserve for Negotiations line items for NRHS, NRMS, Regional, and both Brewster Elementary Schools and Regional Office for the FY2022 budget. This report should demonstrate how the monies were allocated and spent specifically for the amounts utilized for the related negotiations at each school. In the FY22 budget, $229,234 was budgeted for Brewster’s Eddy School, $230,293 for Brewster’s Stony Brook School, $487,405 was budgeted for the Nauset Middle School and $864,809 was budgeted for the Nauset High School. In the 2022-2023 budgets the above referenced numbers are not included in the Budget 2021-2022 columns. Have these been placed in their respective line items, and if this is the case please provide a report that details which line item they are in that balances to the reserve numbers. 2.There has been a presumption of a 2.5% increase in NRSD Budgets. Will that increase be in this year’s budget? How is current inflation considered in this year’s budget? 3.Given the trends in declining enrollment, what is the strategy to match the expense budget to the enrollment trend? 4.Is the decline in Choice enrollment in the 2021-2022 school year intentional or is it driven by a decline in student applications? 5.Please address strategy with respect to retaining Students leaving for Charter Schools vs bringing in School Choice students. 6.We would like the Superintendent to address Nauset Per Pupil spending vs other districts. 7.What is the budgeting strategy for Health insurance in the FY2023 Budget? We note that the last two years’ budgets have benefited from unusual circumstances keeping the rise in these expenses very low. 8.How much COVID or other short-term supplemental funding been provided by local, state and federal governments and agencies that are included in prior, current, and next year’s budgets? We understand that additional state funds were provided after budgets were approved last year. Do you foresee any issues with future years’ budgeting given the allocation of these funds will not recur? 9.We understand that Chapter 70 state aid is projected to increase by 8.8% in FY23. How will this significant increase in state funding impact your projected revenue sources for next FY? 10.What is your strategy for full borrowing for the new high school? What is the current rate on the BANS and when will full borrowing take place? Brewster Only 11.Please provide a summary of proposed versus actual staffing at Brewster elementary schools for FY22. What new staffing changes are proposed for FY23? Nauset Believes Every Child Matters To Our Nauset Family: The Nauset Public Schools Superintendent Search Committee is very pleased to announce the selection of Brooke Clenchy as Nauset’s next permanent Superintendent. Ms. Clenchy, who has been serving as Nauset’s Interim Superintendent since July 1, 2021, was approved unanimously by the Nauset Joint School Committee at its January 28th meeting. Superintendent Clenchy is an experienced school administrator, having served as superintendent of the Winchendon, Ashland, and Nashoba school districts. She also served as Senior Associate Commissioner at the Massachusetts Department of Elementary and Secondary Education. During her seven months at Nauset, Ms. Clenchy has worked diligently with her staff to strengthen the policies, procedures, and systems that form the foundation and the framework of district operations and allow our schools to run more efficiently and effectively. She has strengthened the human resources function, broadened and deepened both internal and external communications, and championed the implementation of Nauset’s five-year Strategic Plan. And she has done all this while steering Nauset through another COVID year, addressing the increased social and emotional needs of our students and their families as well as our staff. Upon being notified of her selection, Superintendent Clenchy thanked the committee and said, “I really believe I am the right person in the right place at the right time. I see so much goodness and good work. We have the right team.” The Joint School Committee agrees. In selecting Ms. Clenchy, committee members repeatedly pointed to her experience and knowledge, her collaborative and inclusive style, and her ability to build high-performing teams. We are confident that under Superintendent Clenchy’s leadership Nauset Public Schools will continue to be guided by its core values and will build on its strong foundations to provide all of our students with the education that will allow them to grow and thrive in today’s world. Gail Briere, Orleans Elementary School Committee/Search Committee Chair Ann Crozier, Eastham Elementary School Committee Martha Gordon, Wellfleet Elementary School Committee Judi Lech, Brewster Elementary School Committee Judith Schumacher, Nauset Regional School Committee Richard Stewart, Nauset Regional School Committee