Published on January 25, 2021

On Wednesday, January 20, 2021 the Town Council and School Board continued their commitment to open exchange and communication over financial matters.  In the fall of 2018, the two bodies determined that holding occasional shared meetings to discuss finances would improve the yearly budget process and strengthen the intention of a “one town concept.”  In addition, the Town Council and School Board formed a sub-finance committee to meet monthly.  With the municipal's and school department's budget seasons underway, the time was right to hold a combination meeting to review the budgetary process and preview the upcoming budget.

Town Manager Matt Sturgis and Superintendent Donna Wolfrom both commented that the collaborative approach to date has been very successful.  The regular sharing of information has created a crossover which "benefits the community and the taxpayers."  Sturgis added, “it is the town’s shared desire to provide the best quality of services at the most efficient price point.”  Wolfrom noted that the process has been so positive that the School Board is working to create a new policy to memorialize the process.

Heather Altenburg, School Board Chair, spent some time reviewing a state legislative chart which lays out the responsibilities, powers, and duties of both the Town Council and School Board.  As educational best practices evolve, the Department of Education establishes laws that direct public schools on providing improved education.  These federal mandates create legally binding requirements that all public schools must follow.  The increase in mandates since 1900 is reflected in the increased need for staffing and spacing in schools, regardless of enrollment.  Hence, much of a public school’s annual budget encompasses the costs associated with these requirements.

Sturgis reviewed that the Town Charter is “essentially, the constitution of the town” and is used to organize and guide the “municipal corporation.”  The Town Council is responsible for the general oversight of all aspects of the municipal body, including budget approval.  In addition to approving the municipal budget, the Town Council must also approve the School Board’s budget in order for it to go to referendum and receive final approval from the voters.  As a result of the regular communication between the council and board for the past two years, the process of the Town Council approving the School Board budget has gone more smoothly than in previous years.

Currently, the municipal budget development for fiscal year 2022 is underway.  Sturgis said that capital requests from all department heads were due on January 22.  Between then and March 5, when the budget is delivered to the Town Council, Sturgis asks for direction from the council on employee compensation and growth.  Last year, due to the need to shift priorities towards health and safety as a result of the COVID-19 pandemic, some of the slated capital projects had to be delayed.  Sturgis anticipates that some of these items will be included in the upcoming budget.  For example, the installment of LED street lights and the replacement of the Kettle Cove drainage system.  The municipal revaluation which was also delayed, will have to be postponed yet again as the pandemic guidelines do not allow for this process.  Sturgis anticipates that one of the largest ticket items will be the replacement of Fire Engine Number 2.

Following similar timelines, the school budget process is currently underway.  On January 26 the administrators’ “Original Request Budgets” will be presented to the School Board by each department’s director and each school administrator. From that point forward, the School Board will spend the next three months examining and adjusting each line item.  Once the School Board approves the final version of the budget, the School Board’s Finance Committee will present the approved budget to the Town Council for their approval on April 26 and if needed, on April 27.

Looking ahead, Wolfrom informed that many federal grants have been secured to support safety and learning during the pandemic.  A federal grant in the amount of $1,000,000 will be used to improve ventilation in all three school buildings.  Though the intention is to replace two of the three buildings in approximately 5 years, Wolfrom explained that ventilation improvements now are necessary in order to return all students to school. Additional federal funding for improving remote learning via technology has also been attained.  Wolfrom explained that the biggest impact to the budget for fiscal year 2022 will be the decrease in state subsidies as a result of a drop in enrollment due to the COVID-19 virus.  With education being forced to utilize remote learning, all public schools across the state are seeing many parents opting to homeschool children or to send them to private schools, which do not have to adhere to same safety guidelines public schools must.  Wolfrom anticipates that the state will offer some assistance by changing the subsidy formula — normally guided by enrollment — when the subsidy report is released during the week of January 25.

With the School Board’s December 15, 2020 vote to approve the Building Committee’s recommendation [see story] to replace the elementary and middle school buildings, Altenburg explained that the budget will need to include the cost for schematic designs.  As schematic designs generally fall within 20% of the total project cost, the price for these designs will be significant, but necessary in order to acquire details which will guide bond sizing.  Two Requests For Qualifications have been posted in the Portland Press Herald and the Kennebec Journal on January 3 and 10, with a deadline set for January 29 at 10:00 a.m.  Following interviews with applicants, the interview panel will select and hire an architect firm to provide schematic designs.  Business Manager Marcia Weeks said that once the firm has been selected, the Superintendent and School Board can negotiate cost with the architectural firm.  Weeks shared that the Town Finance Director, John Quartararo and the Town Bond Council have confirmed that the cost of the schematic designs can be reimbursed through the future bond providing a specific timeline is followed.

The Town Council and School Board will meet again on Wednesday, February 10 at 7:00 p.m. to review the annual town audit report.