Report of the Board of Selectmen
November Town Meeting
November 15, 2010
Slide 1: Introduction
Thank you Mr. Moderator. Good evening, ladies and gentlemen. As chairman of the Board of Selectmen, it is my honor and pleasure to present to you this report from the Board.
We will review three major topics: Actions the Board has taken since the April town meeting, our budget policy statement and the major courses of action the Board is recommending at this town meeting.
Slide 2: Actions of the Board – Concerns
Just six months ago, there were concerns throughout town about the Board's ability to work together and to get things done. We recognized this, and we addressed it. This is perhaps a simplistic equation, but it highlights the major steps we took.
On the recommendation of then-chair Mary Pat Flynn, the Board, in June, attended a Leadership Conference sponsored by the Massachusetts' Selectmen's Association.
At our annual retreat in July, we put our time and energy into the Leadership and Public Trust section of the five-year strategic plan.
In August, we established the Board's first ever Code of Conduct.
We have actively worked to resolve our differences, and to work together, better. This is not to say that we agree on everything. We discuss and debate issues – sometimes vehemently – but the Board has moved past the strife that marked prior years. We may not always agree – indeed, many of things the Board is supporting at this town meeting were not unanimous decisions – but we now agree to disagree, and to support the decision of the Board, whatever that decision may be.
And for that, I would like to thank the members of the Board for their efforts. It has been a pleasure working with you.
Finally, as you all know, our now-former town manager Robert Whritenour tendered his resignation this past week, and the Board accepted it. We thank Mr. Whritenour for his years of service to our community, and we wish him well in his future endeavors.
As per Section C5-13.B. of the town charter, the Board has confirmed the appointment of Assistant Town Manager Heather Harper as Acting Town Manager, and we thank her for stepping up into this role.
Slide 3: Actions of the Board – Results
The result of these changes has been most visible in the way the Board conducts its business. We no longer meet for the sake of meeting. We devote one meeting per month to a discussion – a workshop – of a major issue. The budget, waste – both solid waste and wastewater – and coastal resources have been addressed thus far. Joint meetings and policy discussions have become regular items on our agendas, and we have even gone so far as to review, update, and – where needed – retire old policies.
In short, we are putting our time and attention on the big picture items, and moving away from the minutia.
Slide 4: §C8-3.C. - FY12 Budget Policy
At one of the recent precinct meetings, a town meeting representative asked, “What's the plan?”
How is the town going to continue to provide services – police and fire, snow plowing and water, inspections and education – in the face of a slow economy, continued cuts in state aid, and rising expenses?
Well, there is no white knight.
We will manage this by addressing the shortfalls, improving the financial stability of the town, and becoming more efficient in the delivery of services.
You'll notice as we go through the next several slides that there are common, overlapping themes in our policy.
Slide 5: FY12 Budget Policy – Shortfalls
The state has reduced Chapter 70 school funding. They've slashed the PILOT payments for the 2400 acres of state-owned land in Falmouth. They've eliminated regional library funding. As you can see from this graph – which shows our state revenues over the past six years – we can't count on the state.
At the local level, receipts of local taxes such as excise taxes have also fallen.
Although Falmouth has not suffered such drastic cuts as some communities in the Commonwealth, these cuts have, nevertheless, created budget shortfalls. The budget policy addresses these shortfalls in three ways:
The first is to limit growth. There is no plan to ask for a Proposition 2 ½ override. In fact, budget growth for Fiscal Year 2012 is limited to 1.5 percent over Fiscal Year 2011. Although it might seem like an increase, 1.5 percent is hardly enough to keep up with our expenses. For example, this year, we must provide $250k to meet the state-mandated contributions to the town's retirement fund, and – if nothing changes - $800k for health insurance premium increases.
The second piece is to begin costing of services. This policy requires program budgeting, which is the first step in that process. Program budgeting looks at the cost of individual programs, providing us with a yardstick by which we can determine if any program is receiving too much, or too little, funding.
Finally, we seek to add additional sources of local revenue. Very simply, the less dependent we are on the whims of the state, the better.
Slide 6: FY12 Budget Policy – Stability
Earlier this year, our outside auditor presented the Board with some rather sobering facts. In 2003, Falmouth had more free cash than 95 percent of the communities in Massachusetts. At the end of Fiscal Year 2010, we had just $32k. At around the same time, one of the major bond rating agencies reduced Falmouth's bond rating. It wasn't much, but it was enough to get our attention.
A strong bond rating and an adequate safety net are not optional. We must maintain our ability to borrow at reasonable rates, and have rainy day funds available for emergencies.
In order to improve Falmouth's fiscal stability, we recommend new local options taxes. However, our policy requires that any new revenues will NOT be immediately factored into the operating budget. A minimum of 25 percent of new revenues shall be allocated each to the Stabilization Fund, and for Capital Expenses.
Slide 7: FY12 Budget Policy – Efficiency
It is not enough to ask for new taxes. We must also develop more efficient ways of doing business, and our policy seeks to improve efficiency in number of ways.
The first is health insurance. There are new, less expensive health insurance plans available to our employees, but these plans must be adopted by the unions. The Board encourages this. These plans would save town employees hundreds of dollars in premiums annually, and give them more control over how they spend their health care dollars. If adopted by every union, the aforementioned $800k increase in premiums would be unnecessary.
As previously noted, this policy requires program budgeting so that we can fully understand the cost of town services. Only when we know the cost can we determine if there is waste, or a cheaper alternative.
Which brings us to the last bullet. The Board is encouraging the ongoing exploration of regionalization, consolidation, outsourcing, and/or privatization of town services. For example, the town and the schools both have human resources, finance, library and janitorial services. Towns such as Plymouth and Barnstable have saved hundreds of thousands of dollars by merging these duplicate departments. Falmouth could too.
Slide 8: Major Courses of Action
Finally, I would like to draw your attention to the warrant.
Each of these articles mentioned is recommended by the Board as part of a larger plan. For example, the affordable housing fund dovetails into the town's housing production plan. It will help facilitate the production of affordable housing so that we may meet the state-mandated 10 percent.
There is direction here.
Slide 9: Report of the Board of Selectmen
Just a few weeks ago, one town meeting representative told me, “I feel like this Board is listening to us.” It was a wonderful compliment.
There is perhaps no better example of this than Articles 25 and 26. In years past, petitioner's articles were the red-headed step child of the warrant. Prior Boards would place them at the end, and recommend only Indefinite Postponement based on an unwritten policy.
This time, the Board specifically placed these articles in the middle, listened carefully to the petitioner's arguments, and made recommendations based on the facts, not unwritten policy.
In summary, we are working together, on major issues, and are listening to you. We hear your concerns, and we are making every effort to address them.
That should give you something to smile about.
Mr. Moderator that concludes my presentation. I would be happy to take questions.
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