Town Council Budget Work Session - March 11, 2024

The North Kingstown Town Council convened a budget work session on March 11, 2024, at 6:00 PM in the Municipal Offices Court/Meeting Room. The meeting focused on reviewing the Town Manager's Preliminary Budget for Fiscal Year 2024/2025, with presentations from municipal department heads including Town Manager, Legal, Civic Contributions, Quonset Development Corporation (QDC), School Department, Fire/Communications, Town Clerk, Board of Canvassers, and Municipal Court. The overarching goal was to maintain current tax rates while preserving service levels. The public hearing for the municipal budget is scheduled for April 3, 2024.

Discussion Items

• Town Manager's Overview & Town Council/Legal/Civic Contributions/QDC: Town Manager Ralph presented a budget that he described as maintaining or increasing services without a tax increase. He highlighted that North Kingstown has been among the most generous municipalities in school appropriations over the past three years (3.36% average increase), not including debt service. He recommended against the school department's separate capital appropriation request of $1.2 million, arguing it would require a 1.5% tax increase and act as a "band-aid" before a planned November bond referendum. The town's fund balance and investment earnings were discussed as sufficient to handle emergencies until a bond passes. Civic contributions were level-funded for most organizations, with the addition of $30,000 for the 350th anniversary committee. The council discussed reviewing the civic contributions policy and tax exemptions for future budgets.
• School Department Budget: Superintendent Dr. Duva and School Committee members presented a proposed budget of $79,838,000 (a 4.58% increase), which had received unanimous support from the School Committee. The presentation covered student projections, staffing (365.35 FTE teachers, 85.5 teacher assistants), and the impact of expiring ESSER funds (federal pandemic relief). The district proposed retaining 4.5 of 6.5 ESSER-funded FTE positions through the general budget, with reductions in two other positions. Key increases in the school budget included substitutes ($495,384 increase), transportation ($323,978), health insurance ($1.081 million), and legal services ($145,000). Council members expressed concerns about rising per-pupil costs amid declining enrollment, surplus fund usage, and the need for efficiency, particularly regarding middle school capacity (Wickford Middle School at 77%, Davisville Middle School at 65%). The council also questioned the district's legal fees, overtime for substitutes, and the sustainability of fund balance reserves.
• Fire Department & Dispatch Budget: Fire Chief presented a budget with increases driven by collective bargaining agreements, fuel, vehicle maintenance, and overtime. Overtime costs were a major focus: the budgeted overtime is $789,400, but actual spending has been higher due to culture shifts, family medical leave, and increased vacation/sick time usage. The chief provided comparative data showing North Kingstown's overtime per firefighter ($11,600 actual) is lower than many peer communities. The chief also warned of future staffing needs (approximately 40 additional personnel over 10-20 years) driven by growth at Quonset and industrial park hazards. The council discussed strategies to reduce overtime and the need for predictable expense streams in future collective bargaining. The police/fire station proposed bond was mentioned, with a presentation expected on March 25.
• Town Clerk, Board of Canvassers, and Municipal Court: Brief presentations showed modest increases in the town clerk budget, a 30% increase for the board of canvassers (election year), and a self-funding municipal court enterprise fund with revenues exceeding expenses due to police truck enforcement.

Key Outcomes

• No tax increase for FY2025: The town manager's recommended budget maintains current tax rates, with adjustments made to department requests to achieve this.
• School capital appropriation not funded: The council did not approve the $1.2 million separate capital request for schools, agreeing with the manager that a November bond referendum would be a more appropriate solution.
• Civic contributions level-funded: The council supported a level funding approach for civic contributions, with a plan to develop formal criteria for future allocations.
• Tax exemptions review deferred: Discussion on adjusting tax exemptions (e.g., residency requirement from 15 years to 5) will be added to future agendas, with enabling legislation likely for FY2026.
• Fire department overtime recognized as ongoing challenge: The council acknowledged the complex drivers of overtime and directed the manager and chief to explore collective bargaining strategies to reduce variances.
• Police/fire station bond proposal moving forward: The chief indicated a revised, more economical proposal will be presented on March 25, with enabling legislation to be sought for a November ballot question.
• Next work session scheduled: The meeting will resume on March 12, 2024, at 9:15 AM to review additional department budgets.