Town Council Minutes 5/4/2004

MINUTES
                      CUMBERLAND TOWN COUNCIL
                                  SPECIAL MEETING

                     Town Council Chambers - 290 Tuttle Road
                                  Tuesday, May 4, 2004


7:00 p.m.  Call to Order

Present:  Chairman Porter, Councilors Storey, Kuntz, Savasuk, Moriarty, and Stiles.
Excused:  Councilor Damon (arrived at 7:45 p.m.)

I.      APPROVAL OF MINUTES:

II.     MANAGER'S REPORT:

III.    PUBLIC DISCUSSION:

                  
IV.     LEGISLATION AND POLICY:

04  051.       To hold a public hearing to consider and act on the FY 2004/05
               Municipal Budget.

        Finance Chairman Stiles described the budget process as a collaborative process between the council and manager, stating this meeting represents our eleventh public session on the budget and thanked all those whove participated to date as well as those in attendance this evening. This year we went line by line meeting with department heads and the Town Manager.  We did not lump things together; we had a detailed list.  Several regionalization efforts have been initiated this year, including Assessing and Rescue efforts.  Expenditures have increased by $962,715 and revenues by $710,763.  The net difference is an impact of 30 cents on the tax rate or 1.65% on the mil rate.

        Finance Chairman Stiles elaborated this budget reflects the true costs of all operations by eliminating the in-and-out accounts to better track expenses and revenues. Expenditure increases due to the change in accounting are seen in debt service, benefits and insurance, capital improvements, solid waste, rescue department, town building maintenance, Twin Brook, and Planning Department budgets.  Revenue increases are seen in Rescue, Recreation, mooring/tie-Up fees, regional Assessing and an increase in the percentage paid by No. Yarmouth.  
  
        The municipal portion represents 21%, the County 4% and the School 75% of the overall budget.  Were dealing with essentially 25% of the budget on the municipal side, explained Chairman Stiles.  State revenue sharing represents 3% of our revenues, with excise taxes at 15% and property taxes making up the major portion; at 82%.  

        New positions within this budget are two full-time paramedics to support our regional program - offset by regional billings; an Assistant Recreation Director to begin April 1^st - also offset by increased program revenues; an increase from part- to full-time for the fire department secretary position, and the creation of a job-share secretarial position in the Town Managers office.   

        In summation, this budget represents an overall increase of $251,951. Included in this increase are two major items $144,000 for the first payment on the acquisition of the Rines Property and $114,000 because of the looming increase to RWS.  If we remove those two items&our actual budget is $6,049 less than last years explained Finance Chairman Stiles.    

        During public participation Mr. Bob Vail, 177 Main Street, questioned the increase to the benefits and insurance line.  Finance Chairman Stiles explained the insurance costs were previously spread throughout the town department budgets but are now combined into one line item.  Manager Shane shared the town has saved over $100,000 in health benefits costs on the municipal side.  Quite honestly it was hard to get your arms around it when it was spread throughout the budget.  The 15% increase in operating expenses is not really an increase.  It is due to the elimination of the in and out accounts.  It now better ascertains true expenses.  We feel we have a very tight budget that is very defensible.   Mr. Vail also questioned whether the council has plans to discuss the affect on our community as a result of the Palesky tax cap referendum.  Manager Shane responded the best case scenario is a loss of approximately $4 million in revenues; with a 50/50 split with the school.  It would be a change in the way we function as a town.  The services we provide today would not be here tomorrow.  Worst case scenario is closer to $7 million.  Were going to start preparing what that looks like.  Chairman Porter stated at the worst case scenario town government as we know it is essentially gone.   

        Mr. Stretch Madore, 40 Schooner Ridge Road, requested clarification regarding revenues and offsets and congratulated the council for coming in at that kind of a number.

        Finance Chairman Stiles thanked the council, manager and department heads for their help in the budget process.  Chairman Porter acknowledged Manager Shane for his tireless efforts and expressed thanks to Finance Director Melody Main as well. Chairman Porter also extended his congratulations to Finance Chairman Stiles for his excellent leadership.

        Motion by Councilor Stiles to allocate 7,328,241 for FY 2005;
        Seconded by Councilor Moriarty.
        Vote:         UNANIMOUS 6-0


V.      NEW BUSINESS:

Councilor Savasuk  none
Councilor Storey  none
Councilor Kuntz - none
Chairman Porter  asked about removal of the street lights in front of town hall.  Manger Shane expects they will be removed shortly; hopefully within this month. The lights will go into storage for later use.  Chairman Porter thanked Bill Shane and Adam Ogden for getting on top of the railroad crossing concerns.  He noted the council agenda now identifies the town councilors email addresses and phone numbers.  
Councilor Stiles  Regionalization consultant RCC will meet with the area Police Chiefs this Wednesday to prepare a final report to the Regionalization Committee this month.  He requested an update on Val Halla and Manager Shane replied we are in much better shape than we were a year ago.   A new Golf Pro has been hired and we have seen a rise in membership over last year.  Nearly 50 junior golfers have joined our junior program.

 VI.    EXECUTIVE SESSION:

Manager Shane noted the regular meeting will reconvene after the Executive Session at which time the remainder of the meeting will be televised.

At this time Chairman Porter introduced by reading Item 04-052 as follows:

ORDERED, the Cumberland Town Council hereby authorizes an advisory referendum be held on June 8, 2004 in order to coincide with the State Primary Election.  Said advisory referendum will be held to determine whether the voters of the Town of Cumberland favor the Cumberland Town Council negotiating a Contract Zone Agreement with TransCanada Pipelines Limited regarding siting a liquid natural gas facility on Hope Island.  The Town Council has taken no position on this project.

        Councilor Savasuk stressed the town council has taken no position on any LNG project and any advisory referendum is just that; strictly advisory.  He anticipates informational hearings on this because of the various issues.  
        
        Councilor Moriarty remarked at this point I fully support the concept of an advisory non-binding referendum on pursuing negotiations with TransCanada.  He explained he would vote against the motion not because I oppose a non-binding referendum, but because I think it ought to be on our agenda for action Monday night instead.  

        Councilor Damon indicated her intent to oppose the motion because I am concerned about the impact that such a non-binding impact could have in the community.  

        Seconded by Councilor Stiles.
        VOTE:         UNANIMOUS 7-0

Respectfully submitted,


Nadeen Daniels, CMC
Town Clerk