The Town Council Finance Committee began reviewing the Town Manager’s proposed Municipal Budget for Fiscal Year 2023 at the first budget workshop on Monday, March 21, 2022.  The total combined municipal and community services budget for FY23 is $18,416,128.  This amount is offset by revenues from all sources in the amount of $11,498,344.  The amount to be collected from property taxes is proposed to be $6,917,784, which is 0.83% more than last year.  As proposed, the budget will provide a net to taxes increase of -0.23%.

Town Manager Matthew Sturgis introduced the budget presentation by crediting the department heads for their significant efforts to, “bring this forward to the town to deliver services that the town needs in a cost effective manner.”  Sturgis highlighted several budget drivers, beginning with a 5% increase in wage increase for all municipal personnel noting that 47% of the municipal budget is personnel. Sturgis explained, “This is an attempt to reconcile the needs of the marketplace with the compensation needs of department employees.  To get good people and keep good people is very competitive now.  Surrounding towns have also proposed similar changes ranging from 4%-6%.  I felt a 5% increase was responsible and meets the needs of the departments as well as offsetting some of the upward pressure on salaries.”  Additionally, 401A retirement contributions have increased by 1%, increasing to an 8% employee match.  As current labor agreements with the Police and Public Works departments approach retirement, both departments appear amenable to the proposed agreement which includes the 5% increase the first year, followed by a 2% increase the two subsequent years of the contract.

Other expenses include capital purchases addressing department needs, as well as infrastructure needs of the community in line with the planned capital improvement plan.  These include the replacement of the Willow Brook Culvert, Kettle Cove drainage improvements, and engineering for major improvements to Shore Road.  Sturgis commended staff for aggressively pursuing funding where possible for each project, “The Willow Brook Culvert was leveraged by grant funding attained by Town Planner Maureen O’Meara to help offset a significant portion of the total expense.”  

Stock expenses include a $198,000 dump and plow truck replacement and the replacement of a large rotary mower used to maintain large green spaces.  The capital plan also includes the replacement of one ambulance / rescue truck at the cost of $300,000.  All these large equipment purchases are anticipated to be acquired by lease purchase financing.  In addition, construction of the Town Center sidewalk segments 7 and 8 are included.  This will continue the providing sidewalks from the Pond Cove shopping center to Fowler Road.  They are funded by a combination PACTS grant funding and revenues generated by the Town Center TIF district.

Offsetting these expenses is the use of the unassigned fund balance in the amount of $1,000,000 to put toward capital improvements and mitigating annual operating expenses. Sturgis explained, “the unassigned fund balance is used to create a stable fund balance, but also to offset the town’s needs.”  Additional funding, in the amount of $200,000 from the infrastructure fund is also being applied to offset capital expenses.

Revenues from other sources have increased and are projected to have a net increase.  As the lack of new motor vehicle inventory is beginning to rebound, “Residents have been buying newer motor vehicles and thus monthly collections have been improving.  The budget projects $2.9 million in excise taxes,” Sturgis said.  Additionally, Revenue Sharing from the state is forecasted to increase from 3.5% to 5% this year.  

Fort Williams Park revenue for pay and display parking is estimated in the amount of $525,000.  This is due in part to a recent increase in parking rates, commercial buses and trolley fees, and increased tourism.  Lastly, Cape Elizabeth Community Services is seeing great growth in programming, with record-high levels of subscriptions following a two-year decline due to the pandemic.

As stated in the budget material, Sturgis assured the council that the municipal budget aims to address and fund efforts to meet the stated goals of the Town Council by:

• Reliable public and emergency services with the purchase of the new  dump / plow truck and ambulance / rescue vehicle.

• Providing public and community services for all ages by funding Community Services and the Thomas Memorial Library.

• Promote spaces and connections for diverse physical activities with active programming with Community Services and infrastructure investments like the new Town Center sidewalks.

• Provides funding for the Town’s communication infrastructure such as CETV, the Town website, and a new subscription service for engaging residents based on their interest areas in Town government.
• The municipal budget leverages both State and Federal funding resources to meet Town needs, with the Town Center sidewalks, Kettle Cove Drainage, Willow Brook Culvert, and other initiatives being recipients.

• Invests in existing staff by funding training and professional development and meeting market pressures on compensation.

The following accounts were reviewed by department heads on Monday:

100, 200, 400, 500, 710. 

The Finance Committee will continue to review FY23 budget accounts: 300, 600-635m 640-670, and Special Funds on Thursday, March 24 at 6:00 p.m.  All budget workshops are live and recorded by CETV.  To livestream the next workshop, click here.  To access videos on demand, please click here.