02/27/2014

Municipal budget proposal for 2014-15 continues commitment to capital stewardship

Town Manager Michael McGovern is proposing a $9.3 million municipal budget for 2014-15, up 2.7 percent over this year's. Combined with a $1.1 million county assessment and nearly $200,000 for the local share of the homestead exemption, the proposed general fund budget for next year comes to $10.6 million, excluding schools and Community Services. This is an increase of 3 percent.

The proposed general fund revenues are $3.3 million, an increase of $138,000 or 4.3 percent.

The Town Council, acting as the finance committee, will review the proposed municipal budget in a series of workshops beginning March 17, 2014. All meetings begin 7 p.m. at Town Hall. [All municipal budget documents

| Budget review schedule]

The proposal would add 4 cents to the property tax rate of $3.54 per $1,000 of assessed valuation for municipal services, an increase of 1 percent. Cape Elizabeth's assessment for county services brings the total tax-rate increase for non-education spending to 5 cents, or 1.3 percent. Overall taxes, including proposed budgets for schools and Community Services, would rise 2.6 percent - from $16.28 to $16.70, under the proposed budgets. [download combined tax-impact summary]

For municipal spending, McGovern's proposal falls within the council's 2014 budgetary goal of keeping any municipal tax-rate increase to less than 2 percent. "I had hoped to be able to provide a budget with no tax increase but late news regarding retirement costs for our legacy plan caused a shift of about $80,000 in our outlook," McGovern said in his budget message. The 1-percent increase is below the rate of inflation, McGovern said, and will allow a budget that identifies needs, and recognizes that increased economic activity may cause more demands on certain services, two other budgetary goals set by the council.

Major impacts

Among increases proposed in the budget is $90,484 for personnel salary increases of 2 percent. An additional $41,743 is budgeted to restore full-time secretarial positions to both the tax office and to the assessing, codes and planning office. "The full-time coverage in assessing, codes and planning is needed to accommodate increased building permit activity and to improve customer service at the counter and on the phone," McGovern said. The restored position in the tax office would allow the town clerk's staff to concentrate on elections, tax liens, marriage licenses and other department duties.

The largest proposed increase however is a $100,000 hike in capital funding, which would raise the town general-fund appropriation for capital projects to $900,000. "Road needs alone exceed that amount each year, and then there are equipment needs, building needs, technology requirements and other infrastructure needs," the budget message says. The town's 10-year capital stewardship plan calls for adding $100,000 to the fund each year to meet the many identified needs that are backlogged.

A $1.28 million list of capital projects is included in the budget message, to be funded with the $900,000 capital appropriation and $379,900 from remaining 2014 balances. Roadway, paving and drainage improvements lead the list at $700,000, followed by vehicle and equipment replacements for public works, police and fire departments. Structural improvements including roof replacement, a card-entry system and entrance upgrades are also proposed for the 113-year-old town hall building.

"The proposed budget seeks to continue to provide quality services to the citizens of Cape Elizabeth," McGovern says in his budget message. "It begins to address some impacts as a result of additional building activity occurring as we lift out of the long recession. It provides compensation and benefits which will enable us to be competitive as recruiting and retaining talented personnel continues to be a priority for us. The budget continues to consider the need for additional investment in our infrastructure with $100,000 more proposed for our capital stewardship plan," he says.

Budget review schedule

The Town Council's finance committee will review the municipal budget in workshop sessions this spring. All begin at 7 p.m. in the William H. Jordan Conference Room at Town Hall [directions]:

Finance Committee Review of Accounts 100, 200, 400, 500, 600-635, 710	Monday, March 17, 2014
Finance Committee Review of Municipal 300 and 640-670 and Special Funds	Wednesday, March 19, 2014
Regular Town Council Meeting Including Opportunity for Budget Public Comments	Monday, April 14, 2014
Finance Committee School Budget Presentation  from School Board 7:00 p.m.	Wednesday, April 16, 2014
Finance Committee Wrap-up	Thursday, April 17, 2014
Regular Town Council Meeting and Budget Public Hearing and Council Vote on Budget	Monday, May 12, 2014