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Cape Elizabeth Town Council Agenda
Monday, May 12, 2014 - 7:00 p.m.
Cape Elizabeth Town Hall
Jessica L. Sullivan, Chairman
Caitlin R. Jordan
Molly MacAuslan
Katherine N. Ray
David S. Sherman, Jr.
Jamie Wagner
James T. Walsh

00:09 Meeting Opening by the Town Council Chairman
00:15 Roll Call by the Town Clerk
00:30 The Pledge of Allegiance to the Flag
00:52 Town Council Reports and Correspondence
 
04:25 Library Building Committee Update – Building Committee Chair Molly MacAuslan will provide a brief update on the project at this point in the agenda and will provide a fuller update at a workshop following the council meeting.  
15:55 Finance Committee Report
18:04 Citizen Opportunity for Discussion of Items Not on the Agenda
Persons wishing to address the Council on an issue or concern local in nature not appearing on the agenda may do so at a regular Town Council meeting before the town manager’s report and/or after the disposition of all items appearing on the agenda. Any person wishing to address the Council shall signify a desire to speak by raising their hand or by approaching the lectern.  When recognized by the chairman, the speaker shall give his or her name and address or name and local affiliation if the local affiliation is pertinent. Comments in each comment period shall be limited to three minutes per person and 15 minutes total; however, the time may be extended by majority vote of councilors present.
18:19 Town Manager’s Monthly Report
26:53        Review of Draft Minutes of Previous Meetings   
Draft Minutes April 14, 2014
Draft Minutes April 16, 2014 
     
28:30  Item # 64     Inn by the Sea Annual Liquor License Approval  
      The Inn by the Sea is requesting approval of their annual liquor licenses and special amusement permit.
25:28 Public Hearing on the Fiscal Year 2015 Budget
30:00 Item # 65         Adoption of Municipal Budget
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby adopt the municipal budget for Fiscal Year 2015 and hereby makes the following gross appropriations for each listed department:
33:18 Item # 66         School Budget Approval
VOTED:  The Town of Cape Elizabeth hereby agrees to accept the following estimated state and federal funds:
Education
State Education Subsidy:                   $2,533,079
Title IA:                                              $40,000
Title IIA:                                             $40,000
Local Entitlement:                              $340,000
Food Service State Subsidy                $80,000
#1        VOTED:  Cost Center Summary.  That the Town of Cape Elizabeth appropriate $10,896,153 for Regular Instruction; $3,036,778 for Special Education; $40,626 for Career and Technical Education; $763,169 for Other Instruction; $2,204,123 for Student and Staff Support; $689,316 for System Administration; $1,138,135 for School Administration; $746,268 for Transportation; $2,557,341 for Facilities Maintenance; $1,168,265 for Debt Service; $0 for All Other Expenditures.
#2        VOTED:  State/Local EPS Funding Allocation.  That the Town of Cape Elizabeth appropriate $16,236,544.67 for the total cost of funding public education from kindergarten to grade 12 as described in the Essential Programs and Services Funding Act and that the Town of Cape Elizabeth raise $13,703,465.25 as the Town’s contribution to the total cost of funding public education from kindergarten to grade 12 as described in the Essential Programs and Services Funding Act in accordance with the Maine Revised Statutes, Title 20-A, section 15688.
Explanation:  The Town’s contribution to the total cost of funding public education from kindergarten to grade 12 as described in the Essential Programs and Services Funding Act is the amount of money determined by state law to be the minimum amount that the Town must raise in order to receive the full amount of state dollars.
#3        VOTED:  Non-State Funded Debt Service.  That the Town of Cape Elizabeth raise and appropriate $1,168,265 for the annual payments on debt service previously approved by the legislative body for non-state-funded school construction projects, or non-state funded portions of school constructionprojects in addition to the funds appropriated as the local share of the Town’s contribution to the total cost of funding public education from kindergarten to grade 12.
Explanation: Non-state-funded debt service is the amount of money needed for the annual payments on the Town’s long-term debt for major capital school construction projects that are not approved for state subsidy.  The bonding of this long-term debt was previously approved by the voters or other legislative body.
#4        VOTED:  Additional Local Funds.  That the Town of Cape Elizabeth raise and appropriate $5,362,864.75in additional local funds, which exceeds the State’s Essential Programs and Services funding model by $4,965,094.52 as required to fund the budget recommended by the school board.
The School Board recommends an appropriation which exceeds the State Essential Program and Services model for the following reasons:
The state’s funding model does not support all of the costs for K-12 education.  It includes only those costs considered essential by the state’s Essential Programs and Services (EPS) model.
Explanation:  The additional local funds are those locally raised funds over and above the Town’s local contribution to the total cost of funding public education from kindergarten to grade 12 as described in the Essential Programs and Services Funding Act and local amounts raised for the annual payment on non-state-funded debt service that will help achieve the Town’s budget for educational programs.
#5        VOTED:  Total School Budget Summary.  That the Town of Cape Elizabeth authorize the School Board to expend $23,240,174 for the fiscal year beginning July 1, 2014 and ending June 30, 2015 from the Town’s contributions to the total cost of funding public education from kindergarten to grade 12 as described in the Essential Programs and Services Funding Act, non-state-funded school construction projects, additional local funds for school purposes under the Maine Revised Statutes, Title 20-A, section 15690, unexpended balances, tuition receipts, state subsidy and other receipts for the support of schools.
#6        VOTED:  Special Funds.  That the town of Cape Elizabeth hereby appropriates, in addition to the school budget amounting to $23,240,174, the sum of $1,110,000 said amount being the estimated amount expected to be received as revenues from the school lunch program, Title IA, Title IIA and Local Entitlement Funds.  If the actual revenues shall be less than the appropriated funds, then the appropriation shall be lowered to an equivalent level.
#7        VOTED:  Unanticipated Changes in the State School Subsidy.  That the town of Cape Elizabeth will reduce the additional local appropriation raised pursuant to Maine Revised Statutes, Title 20-A, §15690(3) for public schooling by the amount of any unanticipated state general purpose aid received for the fiscal year beginning July 1, 2014 and ending June 30, 2015.  If the state general purpose aid subsidy is less than the anticipated $2,533,079, the town council agrees to provide the school department protection from any shortfall hereby authorizing the town treasurer to execute a journal entry to provide the net difference of any shortfall to be debited from the unallocated fund balance and to be credited to the school department fund balance.
42:17 Draft of Proposed Procedural Motion
ORDERED, the Cape Elizabeth Town Council votes to consider Item # 67 through 81 en bloc.
43:41 Draft of Proposed Motion Adopting Items 67 through 81 as a group
ORDERED, the Cape Elizabeth Town Council approves Item # 67 -81 as presented.
Item # 67         Approval of Cumberland County Assessment 
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve for inclusion in the Fiscal Year 2015 budget the assessment from Cumberland County for 2014 amounting to $1,108,192.
Item # 68         Approval of Local Homestead Exemption Funds
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve for inclusion in the Fiscal Year 2015 budget the amount of $199,200 for the local share of homestead exemptions.
Item # 69         Approval of Community Services Special Funds Budget
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve for inclusion in the Fiscal Year 2015 General Fund budget the amount of $465,000 for the local taxation share of the Community Services budget and the full Community Services budget in the amount of $1,695,800 in authorized expenditures and estimated revenues of $1,695,800 is hereby approved.  
Item # 70         Property Tax Levy Limit
ORDERED, The Cape Elizabeth Town Council in accordance with Title 30-A MRSA Section 5721-A the Town of Cape Elizabeth hereby increases the property tax levy limit for municipal services to the legally allowed limit of $6,551,082.  The actual property tax levy for municipal purposes is $5,633,863.
Item # 71       Proposed FY 2014 General Fund Budget Summary Motion 
ORDERED, the Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014, does hereby adopt the General Fund Budget for Fiscal Year 2015 with gross expenditures of $34,240,150, and gross revenues of $6,353,843 and with the amount of $27,886,307 to be raised from taxation, and to fix Thursday, October 2, 2014, and Thursday, April 2, 2015 as the dates upon each of which one-half of such tax is due and payable, with interest to accrue upon taxes due and unpaid after each such date at the rate of seven percent (7.00%) per annum.  In accordance with 36 M.R.S.A. Section 506, the Tax Collector and Town Treasurer are authorized to accept prepayment or decline prepayment of taxes not yet committed or prior to any due date and pay no interest thereon. In accordance with 36 M.R.S.A. Section 506-A, a taxpayer who pays an amount accepted by the tax collector and town treasurer in excess of that finally assessed shall be repaid the amount of overpayment plus interest from the date of overpayment at the minimum annual rate per annum set by the State of Maine.

	FY 2014	FY 2015	$ Change	% Change
	Adopted	Proposed	FY 15  to FY 15	FY 14  to FY 15
EXPENDITURES
TOWN SERVICES	$       9,032,363	$       9,226,784	$         194,421	2.2%
COUNTY ASSESSMENT	$       1,061,728	$       1,108,992	$            47,264	4.5%
SCHOOL DEPARTMENT	$    22,528,078	$    23,240,174	$         712,096	3.2%
COMMUNITY SERVICES	$          447,000	$          465,000	$            18,000	4.0%
Local Homestead Exemption	$          195,242	$          199,200	$              3,958	2.0%
	$    33,264,411	$    34,240,150	$         975,739	2.9%
REVENUE
TOWN SERVICES	$       3,210,264	$       3,348,264	$         138,000	4.3%
SCHOOL DEPARTMENT	$       3,248,194	$       3,005,579	$        (242,615)	-7.5%
TOTAL	$       6,458,458	$       6,353,843	$        (104,615)	-1.6%
NET TO TAXES
TOWN  SERVICES	$       5,822,099	$       5,878,520	$            56,421	1.0%
COUNTY ASSESSMENT	$       1,061,728	$       1,108,992	$            47,264	4.5%
SCHOOL DEPARTMENT	$    19,279,884	$    20,234,595	$         954,711	5.0%
COMMUNITY SERVICES	$          447,000	$          465,000	$            18,000	4.0%
Local Homestead Exemption	$          195,242	$          199,200	$              3,958	2.0%
TOTAL	$    26,805,953	$    27,886,307	$      1,080,354	4.0%
TAX RATES (Rounded to nearest ¢)
TOWN SERVICES	$                 3.54	$                 3.54	$                0.00	0.0%
COUNTY ASSESSMENT	$                 0.65	$                 0.67	$                0.02	2.8%
SCHOOL DEPARTMENT	$              11.70	$              12.19	$                0.49	4.2%
COMMUNITY SERVICES	$                 0.27	$                 0.28	$                0.01	3.7%
SUBTOTAL		$              16.68
Local Homestead Exemption	$                 0.12	$                 0.12	$                     -	0.0%
TOTAL	$              16.28	$              16.80	$                0.52	3.2%
TAX RATE VALUATION BASIS	1,648,500,000	1,660,000,000	$    11,500,000	0.7%

Item# 72         Cape Elizabeth Rescue Fund Budget    
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Cape Elizabeth Rescue Fund Budget for Fiscal Year 2015 with approved expenditures of $274,007 and approved revenues of $270,000
Item# 73        Cape Elizabeth Sewer Fund Budget    
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Cape Elizabeth Sewer Fund Budget for Fiscal Year 2015 with approved expenditures of $1,853,423 and approved revenues of $1,850,300
Item#  74       Cape Elizabeth Spurwink Church Fund Budget    
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Cape Elizabeth Spurwink Church Fund Budget for Fiscal Year 2015 with approved expenditures of $9,209 and approved revenues of $4,700.
Item# 75        Cape Elizabeth Riverside Cemetery Fund Budget    
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Cape Elizabeth Riverside Cemetery Fund Budget for Fiscal Year 2015 with approved expenditures of $54,520 and approved revenues of $44,500.
Item# 76        Portland Head Light Fund Budget    
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Portland Head Light Fund Budget for Fiscal Year 2015 with approved expenditures of $541,506 and approved revenues of $547,200.
Item# 77        Fort Williams Park Fund     
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Fort Williams Park Special Fund Budget for Fiscal Year 2015 with approved expenditures of $96,305 and approved revenues of $161,400.
Item# 78        Cape Elizabeth Infrastructure Improvement Fund Budget    
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Infrastructure Improvement Fund Budget for Fiscal Year 2015 with approved expenditures of $0 and approved revenues of $30,000.
Item# 79        Thomas Jordan Fund Budget    
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Thomas Jordan Fund Budget for Fiscal Year 2015 with approved expenditures of $35,535 and approved revenues of $40,000.
Item# 80        Land Acquisition Fund Budget    
ORDERED, The Cape Elizabeth Town Council, having held a public hearing on Monday, May 12, 2014 does hereby approve the Thomas Jordan Fund Budget for Fiscal Year 2015 with approved expenditures of $0 and approved revenues of $32,014.
Item # 81         Carry Forward Balances
ORDERED, The Cape Elizabeth Town Council hereby approves the immediate allocation of $329,900 from the unassigned fund balance to fund roadway and drainage improvements and authorizes this balance to be carried forward into FY 2015
44:10 Item # 82         Utility Pole Location Application
Central Maine Power Company is requesting approval of a utility pole location on Mitchell Road at the intersection of Stonegate Road and Meadowview Lane.

46:16 Item # 83         Appointments Committee Recommendation- Firing Range Committee
The appointments committee has made the following recommendations for town council review at the May 12 meeting.
Firing Range Committee-
Cathy Kline, 66 Cross Hill Road
Firing Range Committee (certified firearms instructor)
Benjamin Macisso, 17 Brentwood Road
Please note Mr. Macisso's appointment is contingent upon being certified as a firearms instructor by the end of June 2014.
48:00 Item # 84         Resolution to Authorize Refinancing/Refunding of School Related Debt
The town manager and superintendent of schools have worked with the town’s bond financial advisor Joe Cuetara to plan a refinancing of bonds issued in 2004 which were callable in April 2014 and bonds which are callable in April 2015.  The 2015 bonds can be advanced refunded in the same package.  The total estimated net savings to the school budget will be about $450,000 spread fairly evenly (about $45,000 per year) between FY 2015 and FY 2025.  Bond Counsel Bruce Coggeshall has prepared the following draft resolution for your consideration.  The charter provides that the refinancing of debt is not subject to a citizen approval referendum.
 
TOWN OF cape elizabeth
town council vote AUTHORIZING REFUNDING BONDS
IN AN AMOUNT NOT TO EXCEED $4,375,000
WHEREAS, the Town has previously issued its $3,725,000 2004 General Obligation Bonds dated August 1, 2004 (the “2004 Bonds”) and its $4,725,000 2005 General Obligation Bonds dated August 1, 2005 (the “2005 Bonds” and together with the 2004 Bonds, the “Prior Bonds”); and
WHEREAS, the Town desires to refinance, through a current refunding, an amount of up to $1,790,000 of its 2004 Bonds and to refinance, through an advance refunding, an amount of up to $2,585,000 of its 2005 Bonds;
NOW, THEREFORE, it is:
VOTED:          That there be and hereby is authorized, pursuant to the provisions of 30-A M.R.S. §5772, the issue and sale of the Town’s general obligation bonds in the principal amount not to exceed $1,790,000 to refinance the 2004 Bonds in a current refunding and in the principal amount not to exceed $2,585,000 to refinance the 2005 Bonds in an advance refunding.
Voted:          That in order to effect the borrowing heretofore authorized, the Treasurer be and hereby is authorized to prepare, issue and sell bonds of the Town in the aggregate principal amount not to exceed $4,375,000 as one or more separate bond issues, such Bonds to be signed by the Treasurer, countersigned by the Chairman of the Town Council and attested by the Town Clerk.
VOTED:          That the form, maturity, interest rates and other details of said Bonds shall be as determined by the Treasurer and the Chairman of the Town Council by their execution thereof, but shall have their respective final maturity not later than the respective final maturities for the Prior Bonds and shall not be inconsistent with the provisions hereof.  Such bonds may be issued as callable bonds, at the discretion of the Treasurer and Chairman of the Town Council.
VOTED:          That the Treasurer is authorized to negotiate, execute, and deliver, in the name of and on behalf of the Town such contracts, agreements, and other documents, including refunding escrow agreements, verification reports, Bond Purchase Agreements, instruments and certificates as may be necessary or appropriate as determined and approved by the Treasurer in connection with the refinancing of the Prior Bonds, which documents shall be in such form and contain such terms and conditions, not inconsistent herewith, as may be approved by the Treasurer such approval to be conclusively evidenced by his execution thereof.
VOTED:          That the Treasurer be and hereby is authorized to engage Moors & Cabot, Inc. as financial advisor to the Town in connection with the issuance and sale of the Bonds.
VOTED:          That the Treasurer be and hereby is authorized to select the underwriter for the Bonds heretofore authorized and the Treasurer be and hereby is authorized and empowered to execute and deliver such contracts or agreements as may be necessary or appropriate in connection therewith.
VOTED:          That the Treasurer be and hereby is authorized to prepare, or cause to be prepared, a Preliminary Official Statement and an Official Statement for use in the offering and sale of the Bonds heretofore authorized, such Preliminary Official Statement and Official Statement to be in such form and contain such information as may be approved by the Treasurer, with the advice of the bond counsel for the Town, and that the use and distribution of the Preliminary Official Statement and the Official Statement in the name of and on behalf of the Town in connection with offering the Bonds for sale be and hereby is approved.
VOTED:          That the Treasurer be and hereby is authorized to select the registrar, paying agent and transfer agent (the “Transfer Agent”) for the Bonds heretofore authorized and an escrow agent for the Prior Bonds and to execute and deliver such contracts and agreements as may be necessary or appropriate to secure their services.
VOTED:          That the Bonds heretofore authorized shall be transferable only on the registration books of the Town kept by the Transfer Agent, and said Bonds of one maturity may be exchanged for an equal aggregate principal amount of the bonds of the same maturity (but not of other maturity) in minimum denominations of $5,000 and any integral multiple in excess thereof (or such other minimum denomination as the Treasurer shall approve) upon surrender thereof at the principal office of the transfer agent, with a written instrument of transfer satisfactory to the Transfer Agent duly executed by the registered owner or his attorney duly authorized in writing.  Upon each exchange or transfer of a bond the Town and the Transfer Agent shall make a charge sufficient to cover any tax, fee or any other governmental charge required to be payable with respect to such exchange or transfer, and with respect to such exchange or transfer, and subsequent to the first exchange or transfer, the cost of preparing new bonds upon exchanges or transfer thereof to be paid by the person requesting the same.
VOTED:          That the Treasurer be and hereby is authorized to undertake all acts necessary to provide for the issuance and transfer of such Bonds heretofore authorized in book-entry form pursuant to the Depository Trust Company Book-Entry Only System, as an alternative to the provisions of the foregoing paragraph above regarding physical transfer of Bonds, and the Treasurer be and hereby is authorized and empowered to enter into a Letter of Representation or any other contract, agreement or understanding necessary or, in his opinion, appropriate in order to qualify the Bonds for and participate in the Depository Trust Company Book-Entry Only System.
VOTED           That the Treasurer and Chairman of the Town Council from time to time shall execute such Bonds as may be required to provide for exchanges or transfers of Bonds as heretofore authorized, all such Bonds to bear the original signature of the Treasurer and Chairman of the Town Council.
VOTED:          That the Treasurer be and hereby is authorized and directed to covenant and certify on behalf of the Town that no part of the proceeds of the issue and sale of the Bonds authorized to be issued hereunder shall be used directly or indirectly to acquire any securities or obligations, the acquisition of which would cause such Bonds to be “arbitrage bonds” or “private activity bonds” within the meaning of Sections 148 and 141 of the Internal Revenue Code of 1986, as amended.
VOTED:          That if the Bonds or any part of them, are issued on a tax-exempt basis, the officers executing the Bonds be and hereby are individually authorized to covenant and agree, on behalf of the Town, for the benefit of the holders of such Bonds, that the Town will file any required reports and take any other action that may be necessary to insure that interest on the notes will remain exempt from federal income taxation, and that the Town will refrain from any action that would cause interest on the Bonds to be subject to federal income taxation.
VOTED:          That the officers executing the Bonds be and hereby are individually authorized to covenant, certify and agree, on behalf of the Town, for the benefit of the holders of such Bonds, that the Town will file any required reports, make any annual financial or material event disclosure, and take any other action that may be necessary to insure that the disclosure requirements imposed by Rule 15c2-12 of the Securities and Exchange Commission, if applicable, are met.
VOTED:          That any or all of the Bonds issued hereunder may be consolidated with and become a part of any other issue of or general obligation bonds authorized to be issued by any previous or subsequent order of the Town Council.
VOTED:          That the Treasurer, Chairman of the Town Council and Clerk and other proper officials of the Town be, and hereby are authorized and empowered in its name and on its behalf to do or cause to be done all such acts and things, not inconsistent herewith, as may be necessary or desirable in order to effect the issuance, sale and delivery of the Bonds hereinabove authorized.
VOTED:          That if any of the officers of the Town who have signed or sealed the Bonds shall cease to be such officers before the Bonds so signed and sealed shall have been actually authenticated or delivered by the Town, such Bonds nevertheless may be authenticated, issued, and delivered with the same force and effect as though the person or persons who signed or sealed such Bonds had not ceased to be such officer; and also any such bonds or notes may be signed and sealed on behalf of the Town by those persons who, at the actual date of the execution of such Bonds, shall be the proper officers of the Town, although at the nominal date of such Bonds any such person shall not have been such officer.
VOTED:          That if the Treasurer, Chairman of the Town Council or Clerk are for any reason unavailable to approve and execute the Bonds or any other documents necessary or convenient to the issuance, execution and delivery of the Bonds, the person or persons then acting in any such capacity, whether as an assistant, a deputy, or otherwise, is authorized to act for such official with the same force and effect as if such official had performed such act.
VOTED:          That the investment earnings on the proceeds of the Bonds, if any, and the excess proceeds of the Bonds (including premium), if any, be and hereby are authorized to be used to fund the refunding escrow for the Prior Bonds, to pay redemption premium on the Prior Bonds, if any, to pay interest on the Prior Bonds or the Bonds and to pay issuance costs for the Bonds.
VOTED:          The Bonds herein authorized shall be either sold at public sale upon sealed bid, or by negotiated sale in such manner as the Treasurer deems appropriate and in the best interest of the Town, and the Treasurer be and hereby is authorized to provide that any of the Bonds herein authorized be made callable, with or without premium, prior to their maturity.
VOTED:          The Bonds are hereby designated “qualified tax-exempt obligations” under Section 265(b)(3) of the Code.
55:00 Item # 85         Cumberland Farms Agency Liquor Store Location Transfer  
Cumberland Farms is requesting municipal approval to transfer their permit for an agency liquor store from their former location to their new location at 298 Ocean House Road
56:17 Citizens Discussion of Items Not on the Agenda
Link to Monthly Financial Information 
56:31 Adjournment 
The Town Council will hold a brief workshop after the meeting to receive a fuller update on the plans to be submitted to the Planning Board for the library project.