On Monday, March 13, 2023 the Town Council voted to send the Town Manager’s proposed Municipal Budget for Fiscal Year 2024 to the Finance Committee. The Finance Committee, made up of all seven Town Councilors, began reviewing the proposed budget on Monday, March 20.  The meeting covered accounts 100, 200, 400, 500, and 710.  This includes Administration, Assessing, Codes, and Planning, Town Council, Legal and Audit, Elections, Public Information, Boards and Committees, Insurances, Employee Benefits, Debt Service, all Public Safety accounts which include the Police Department, Fire and Rescue, Thomas Memorial Library, Intergovernmental Assessments and Inter fund transfers.

The total combined municipal and community services budget for FY 2024 is $18,465,267.  This is offset by revenues from all sources in the amount of $10,568,140.  The amount to be collected from property taxes is proposed to be $7,897,127, which is 11.12% more than last year.  As originally proposed, the budget showed a net to taxes increase of 7.02%, or $0.30 increase on the Town portion of the tax rate.  However, during the March 20 meeting, Town Manager Matthew Sturgis informed the council that recent refinements have pulled down the net to taxes increase to approximately 6.3%.  The average 5-year increase, which includes FY2024 proposed increase, in the municipal tax rate is 1.78%.  

The bulk of the municipal budget, at 54% is personnel expenses, which tracks consistent from previous years. This includes a 6% average wage increase for all employees due to cost-of-living increases, salary pressures in the employment market, and pressures of inflation and increase in health insurance borne by the employees.  For comparison, approximately 83% of the school department budget is spent on personnel.  

Sturgis highlighted that there are a number of positions that have been added.  “We are looking to expand our communications capacity either via contract or through expanding services with existing staff and we are looking to add an IT Director, which we currently do not have.”  The town use to share an IT Director with the school department, but that position was converted to a technology coordinator for the educational side.  “However, the need did not go away and we found that after a year and half without an IT Director, that both organizations need that service to help with the long-range planning implantation and the administrative side of the IT world,” Sturgis said.

Another addition includes a Project Coordinator / Supervisor for municipal projects.  Currently, the Facilities Director David Bagdasarian provides this service. The plan is to fill this position by expanding the role of the current part-time Assistant Code Enforcement Officer Jake Deslandes to fulltime.  Coordination with the Facilities Department would continue, but the implementation and delegation of those projects begin from this new position.  Sturgis said that Deslandes has an engineering degree and contracting background, and this move is an example of, "How we find efficiencies.”

Coverage of the Fire Department will expand by adding a third position during the day shift.  A part-time position has been added to the Thomas Memorial Library to improve services and support.

Sturgis summarized, “The positions that we are adding in this budget are roughly 4% of the increase (7%).  The needs have been there for a number of years.”  Noting the multiple duties and “multiple hats” staff have had to take on over the years, “After a certain point, there is only so much that we can do and meet needs as the world has evolved."

Sturgis indicated that a proposal from Greater Portland Council of Governments (GPCOG) has been added to the budget since the March 13 meeting.  The proposal is for GPCOG to assist the Energy Committee with the creation of a climate action plan, as stipulated in the Town Council 2023 Goals.  GPCOG, of which Cape Elizabeth is a member, has a whole department that is targeted towards resiliency, climate planning, and sustainability. GPCOG has successfully provided similar assistance to Cumberland, Freeport, and is currently working with Falmouth on their climate action plan.  “Knowing that they have performed well, I reached out to GPCOG to provide us with a proposal. They will work with the Energy Committee from start to finish to develop a local climate action plan,” Sturgis said.  GPCOG also helps identify grants which could be applied for to implement action plans.

Sturgis was careful to point out that although the current budget shows an approximate 6% increase, “I do expect that number to decrease as far as the overall impact to the tax rate, as we get deeper  in to the process and move closer to the final council action on the budget [in May].”

Sturgis also made sure to thank to all the department heads for their work on crafting the budget.  “Pretty much the budget season never really stops; throughout the year you try to find areas that you want to make refinements on when you plan for the next year’s budget or areas that you want to address.  I want to thank them all for the work they did to help me get this document to where we are this evening.”

Sturgis writes in the introduction to the municipal budget for FY 2024, “This year’s budget is focused on providing the best public services to the Town, while also retaining current employees and attracting new employees for vacant or positions anticipated to open.  The budget is also targeted to meet the stated council goals for FY 2024.”

Below are highlighted expense details within the proposed budget, as written in the Town Manager's budget and/or discussed on March 20:

Administration (110) for fulltime payroll is comprised of the salaries of all administration employees, which include the Town Manager, Assistant Town Manager/Town Clerk, Deputy Town Clerk, Finance Director, Municipal Tax Agent, and two Tax Collection Clerks.  A new Technology Administrator, and a half year salary for an assistant Town Clerk for succession planning and phased retirement of current Town Clerk Debra Lane.  Lane has been working for the Town for nearly 38 years.

As originally proposed, this portion of the budget began with a nearly 20% increase.  As of the March 20, Sturgis informed the council that it has now been brought down to 12.95% with approximately $50,000 in savings on technology software (Computer Maintenance 110-2088) and the elimination of 110-2016 Records Preservation in the amount of $20,000.

Currently, $20,500 is earmarked for a General Assistance Contract with Opportunity Alliance to manage the Town’s general assistance program.  This is an increase from the prior year due to increase in contract fees for the service.  There is a possibility that in-house staff will be trained in this service and thereby reduce this contracting fee.

Councilor Penny Jordan said, “We really need to think about communication and get our arms around a lot of things and ensure that we have transparency, consistent communication, interactive meetings and with this, I see that we are finally taking those steps.  We have been managing the town as if we are in the 1980 and we are now in 2023 and I think we have to function like that.”

The Assessing, Codes, and Planning Office (120) comprises of three departments that share two full-time support staff.  Fulltime personnel include the Town Planner, Code Enforcement Officer, Town Assessor, ACP Office Manager, and the ACP secretary.  All positions are budgeted with a 3.0% increase.  The part-time Assistant Code Enforcement Officer began work the end of November 2022, and the proposed budget includes an additional 52 weeks in FY2024 with a 3.0% increase.

Town Assessor Clinton Swett explained that one of the larger line items for his office includes GIS Improvements in the amount of $22,400 (up from $13,455).  Swett explained that the town will need to transition from ESRI ArcGis software to ESRI ArcGISPro this year, as the former will no longer support the current program.  ArcGISPro will require software upgrades, purchase of additional licenses, and training.   Swett anticipates that once the conversion is done, the cost will not be as high in the following year.  Sturgis added that the system is moving from a local hard drive to cloud-bases storage that can be shared with other departments and the public.  

Code Enforcement Officer Ben McDougal confirmed that Assistant CEO Deslandes’ move to fulltime is the primary increase for his department.  Also, indicating that there are fewer building permit fees.  “I do think it would be reasonable to increase building-permit fees by 20%; that would keep us on par with surrounding communities and be the first increase in approximately 14 years,” McDougal said.  

Town Council (130), Legal and Audit (135), and Elections (140) includes an increase to the legal services account due to new legal representation for the Town.  The new amount is based on a fixed fee basis and is considered sufficient to address land-use related issues related to zoning, paper streets, and other unforeseen issues.  This marks a change from billable hours in the past using various firms to a fixed contracted amount with Bernstein Shur, for a full universe of services.  

The majority of the part-time payroll budget is the Election Central Staff hired approximately 30 days prior to an election to assist with absentee balloting, voter registration, and processing of absentee ballots.  The recommendation is to increase the Warden’s hourly rate from $18.00 to $18.50 per hour and combine the Deputy Warden/Ballot Clerks/Deputy Registrar from $17.00/$16.00 to $17.50.  This year the budget accounts for three elections as it is anticipated that the political parties will ask for a presidential primary in March of 2024.

Public Information (145) includes funds for cable television, the Town website, public hearing notices, and miscellaneous advertising. Cameras in the council chambers will be replaced and are the last step in upgrading the audio and visual components. There is an increase of $21,000 in part-time payroll for supplemental communications staffing either via contract or training of current employees.  This is another budgetary item drawn from the Town Council goals.  Furthermore, Sturgis indicated that “Meeting Owls” will be purchased to provide greater video documentation of committees.

Boards and Commissions (150) Funding for initiatives of boards and commissions is proposed for flat funding.  Funding for special committees will have $10,000 carried forward from FY 2023 to FY2024 and available for climate action steps and/or any other unexpected committee studies.  As well, funding for staffing for boards, committees, minutes secretaries and related social security.

Insurance (160) covers general liability coverage, public officials’ liability coverage, police liability coverage, ambulance professionals liability, buildings and property, and coverage of our rolling stock.  The increase is due to claims, increased value of assets, and general fee increase.

Employee Benefits (170) includes the Town’s contributions into MePERS for retirement.  The increase here is due in part to changes in the plan with recent collective bargaining agreements and the addition of two new hires at the Cape Elizabeth Police Department.   The anticipated range given for health insurance was 4% - 10%, but came in at 7%. The Town is individually rated, which explains why rates fluctuates from year to year.

Thomas Memorial Library (500s) shows the main increase in additional staffing for an 18-hour assistant position.  This position would complete the organizational chart established in 2020 and provide needed support for the Community Engagement Manager. Currently, the manager plans, publicizes, and hosts more than 300 adult programs per year.

Public Safety 200-250 includes the Police Department, Animal Control, Dispatch, miscellaneous public protection, Wet Team, Fire Department, Rescue, and Emergency Preparedness. 

In Chief Paul Fenton’s narrative for FY 2024, the area of greatest increase and concern is the contracted dispatching services, “The communications center is at a critical staffing shortage that has greatly impacted services and wages. We have collaborated with Portland Police Department for several years to provide us with dispatching services.  The contract with the City of Portland will typically increase by 3% a year, as per the contract.  This past year however, the dispatch center has experienced critical staffing shortages.  The center is typically staffed by 37 dispatchers and they are now down to 21.  This has created a dramatic increase in overtime and other associated costs.”

Additional increases include two new police cruisers, staffing – which includes two new police officers, and fire/EMS staffing to meet community needs and a reduction in volunteer forces.  With the new hires, the department is finally at full staffing for the first time in three years.

For the Fire and Rescue Department, the majority of the budget increase comes from staffing within the part-time payroll. Chief Peter Gleeson explained that when he first started with the department, there were roughly 40 call-company members; today there are 12 and of those, six are per diem.  Adding one day-time position will bring staffing to six, 24-hours a day; this is the minimum safety level for a fire department. “With four, we can staff two ambulances if we need to,” Gleeson added.  In addition, the department looks to add two more bedrooms at the station to accommodate the increase in staffing.

Full time pay covers the salary of the chief and the department’s full time administrative assistant.  The increase reflects the payout for the chief’s approaching retirement.

The Finance Committee will hold the second of two scheduled meetings on Thursday, March 23 at 6:00 p.m. in the Council Chambers to review Accounts: 300, 600-635, 640-670, and Special Funds.  This includes Community Services, Fort Williams Park, and Public Works.

The meeting will be streamed on CETV LIVE and offer hybrid remote participation. Information for participating remotely is found on the agenda.

To follow along with the budget process and updates, please visit the Fiscal Year 2023-2024 Budget page.