North Kingstown Town Council Budget Work Session – March 16, 2023

This was an all-day work session for the Town Council to review the Town Manager's Preliminary Budget for Fiscal Year 2023/2024. The session included budget presentations from department heads and discussion of key fiscal issues. The public hearing on the budget is scheduled for April 19, 2023, with final adoption planned for April 24.

Discussion Items

Town Manager's Overview & Preliminary Budget

• Town Manager Ralph reported the preliminary budget calls for a 2.2% tax increase, but updated assessment figures suggest it could be reduced to 2.1 or 2.02%.
• The school department initially requested a 3.62% increase ($2,072,341), later revised to 3.93% ($2,252,907). The manager noted that North Kingstown has historically provided annual average increases of 3.1% since 2017, significantly higher than neighboring communities, and that school surpluses are preferable to deficits.
• He highlighted that many requested capital projects were cut, including restoration of Signal Rock and Yorktown Park ($500,000), but noted alternative funding sources may be pursued.

Civic Contributions Policy

• The council discussed the long-standing policy of freezing contributions to community groups. The Town Manager noted that most groups were held at prior-year levels, with one new request (Blue Bus Harbor Lights at $5,000).
• Council members expressed interest in reviewing the policy for FY25, including a more transparent application process and criteria for funding. The manager will present applications to the council by end of summer.

Other Post-Employment Benefits (OPEB)

• Finance Director James explained that OPEB obligations are funded annually; the trust is about 15% funded, down from $32-36 million liability to roughly $20 million. The council requested a comparison with other municipalities.

Enterprise Funds: Sewer & Water

• Sewer: The sewer enterprise fund is facing a deficit over $1 million this year. Because the bond approved by voters prohibits taxpayer funding, user fees or hookup fees may need to increase. The manager noted potential capacity issues at the Quonset treatment plant and a pipeline capacity problem.
• Water: The water department operates as an enterprise fund with an $8 million surplus, $4 million kept for emergencies and $5.5 million in an infrastructure replacement fund. The department secured $6.5 million in grants last year. Councilor Mandel urged more aggressive infrastructure upgrades.

Fire Department Budget

• Chief presented a detailed budget with a $675,000 overtime line (up from $600,000) citing the four-platoon system and long‑term leave. The town’s rescue billing generated between $840,000 and $1.2 million annually; $600,000 goes to the general fund, the remainder funds vehicle replacement. The chief warned of rising apparatus costs (engines from $450k to $760k, rescues from $200k to $380k).
• The need for a third rescue unit was discussed; mutual aid is used almost daily (e.g., nine simultaneous calls on one day). The chief reiterated that engine staffing of two per truck is below NFPA standards but manageable with mutual aid.

Recreation, Parks & Enterprise Funds

• Recreation Director introduced a new fields division and highlighted improvements to ball fields, playgrounds, and signage. The golf course hosted the RI Open and saw 50,000 rounds played. Enterprise funds (golf, Allen Harbor) are self‑supporting.
• Special projects include LED lighting at Ryan and McGinn Parks ($60,700 per year for two years), community center HVAC, and court resurfacing at Wilson and McGinn Parks (about $800,000 from ARPA).

Library

• Director Susan reported a complete interior renovation funded by a $303,625 Champlain Foundation grant and a bequest (no town funds). State aid is increasing 14% due to full funding. The library will migrate to new software and seek further grants.

Key Outcomes

• No formal votes were taken; the session was a workshop for council deliberation.
• The council will review the School Department budget on Monday, March 20 at 6:00 PM.
• The Town Manager will provide a comparison of OPEB liabilities to other municipalities and share a multi‑year debt schedule.
• The council directed the Town Manager to prepare a review of community contributions policy for FY25, including application packets.
• The preliminary budget is expected to be adopted on April 24 after a public hearing on April 19.
• The council expressed support for a public safety complex bond and for continued capital improvements in parks and infrastructure.