Warrant Committee presses town staff on budget details: wages, grants, cruise revenue and staffing

The Warrant Committee spent the bulk of its Feb. 2 session reviewing budget details with Town Manager James Smith, Finance Director Sarah Gilbert and Town Clerk Liz Graves, pressing for clarity on fees, wages, grant-funded projects and how one-time money would be used to cushion property taxes.

Finance Director Sarah Gilbert told the committee that planning and code fees are set based on administrative cost and that revenue projections remain conservative because historical data are limited after recent fee schedule changes. On wages, Gilbert said the average planned increase is approximately 3 percent, with variations for merit, longevity steps, education stipends and licensure incentives.

On a newly titled Sustainable Economic Development Coordinator position, Town Manager James Smith said the role "will be needed regardless of the outcome of the task force work." He said the position is a reclassification of an existing vacant post with a new job description and that it is funded within the current budget, not a brand-new headcount.

The committee also asked about the federal Safe Streets for All grant. Gilbert said the original grant funded the planning phase; additional appropriations in the budget support further analysis and preparation. Manager Smith said the study is nearing completion and that $27,000 is budgeted in FY2027 for instrumentation, but he noted that federal implementation funding might replace that local line.

On grants and fund balance, staff pointed the committee to budget book references and the FY2024 audit schedules showing grants in special revenue funds. Manager Smith and Planning Director Gagnon described reports and studies (including sustainable tourism work) as aligning with town council goals and explained that many studies are being budgeted incrementally across multiple years.

The committee questioned how investment income is treated; Gilbert said operating account interest and bond-related earnings are captured as investment income and that bond interest in the proposal is slated for property tax relief rather than new spending. She said unassigned fund balance results when revenues exceed budgets or expenditures come in under estimates and that the town reuses that balance to help offset future property taxes while maintaining reserves.

On cruise-related receipts, Gilbert identified the American Cruise Lines payment as contractual revenue (line item 4703) and Manager Smith said the private contract provides flexibility to allocate those funds for tax relief rather than treating them as restricted cruise fees. He added the labeling of that revenue may be revised for clarity in future budgets.

The committee also asked about staffing: Gilbert noted a proposed purchasing agent in finance and technology budget increases to support meeting recording and expanded IT needs. On benefits, Gilbert explained the MPERS reference reflects public safety personnel changing retirement plan tiers to the state-defined option commonly used for police and dispatch.

Town Clerk Liz Graves confirmed ballot tabulators are leased through state and direct arrangements depending on the election scale, and Gilbert said there are no remaining restrictions on using the Parking Fund for property tax relief. On community partners, Manager Smith said the town is developing memoranda of understanding for service partners such as Jesup, the YMCA and Island Explorer; he explained that Island Explorer funding now combines amounts that had previously come from the Cruise Ship Fund and Collaborating Agencies.

Gilbert said the difference between town and school appropriation increases largely reflects school carryover funds and tuition revenue, and that school figures may be updated.

The session ended with Chair Smith thanking staff and asking committee members to collect feedback about the budget process for a formal set of recommendations in the Warrant Committee’s year-end report.