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Finance committee backs big supplemental funding and transfers for Lovers Lane rebuild; airport to use retained earnings for projects
Summary
Committee discussed a multi-million-dollar supplemental appropriation for Lovers Lane reconstruction, transferred balances from earlier capital articles to prioritize the road project, and approved multiple airport transfers and rescissions that shift construction funding from borrowing authorizations to retained earnings.
The Nantucket County Finance Committee voted unanimously March 10 to recommend a package of prior-year transfers and supplemental funding that reprioritizes capital dollars, including additional funding requests tied to the reconstruction of Lovers Lane and related roads.
Brian Turbot, finance director, told the committee that engineering scope changes and rising construction prices have driven a substantial supplemental request for the Lovers Lane reconstruction program. “As you can see, there's quite a substantial amount. It's about 5 point a little over $5,000,000 here,” Turbot said, noting the supplemental would be coordinated with the capital program committee for review before final warrant placement.
Turbot said the finance staff will ask the committee to consider an additional borrowing authorization of roughly $1.2 million to cover the remainder of the supplemental request. He also described a process to meet with the capital program committee and to obtain bids in approximately 45 days so that the town will have price information before town meeting. The committee agreed to reconvene March 20 to finalize technical language intended to avoid last-minute amendments on the town-meeting floor.
The package includes many transfers from existing capital accounts into the Lovers Lane project while leaving residual balances in the source articles so those projects can continue at reduced funding levels, Turbot said. “The amount we're transferring still leaves money in those articles to continue to do some work in those articles, but also for the need of being able to complete this really important project of the reconstruction of Lovers Lane,” he told the committee.
Related to airport capital funding, Turbot outlined requests to move previously authorized borrowing into actual funding sourced from airport retained earnings. That includes a transfer of approximately $3,885,000 from retained earnings to fund construction of airport employee housing (the dormitory) and a matching rescission of a $3,885,000 borrowing authorization that would remove duplicated borrowing authority. “They're rescinding the $3,885,000 for the construction of the dormitory because they transferred 3,885,000 in retained earnings to fund that,” Turbot said.
Committee members asked how construction cost increases were affecting other projects. Turbot acknowledged both scope changes and increased construction costs. “We are expecting that there will be price increases, I think, partially with this project,” he said, citing recent administrative actions as one factor.
The committee made a unanimous recommendation to place the transfers and rescissions on the annual town meeting warrant; several articles that implement the transfers were voted forward on a roll-call basis.
The finance director said the town will seek capital program committee review of the supplemental Lovers Lane request before finalizing motions at a subsequent meeting.
