In discussing the Harbormaster’s operating budget of $285,000 for FY23, the February 16 meeting of the Marion Finance Committee made sure the public understands how the department generates the revenue to absorb that budget figure and associated indirect costs for liability, fuel, Town Hall maintenance, shared employees, etc.
“Long story short, the revenue we generate at the harbor goes directly back into the harbor so there is no taxpayer funds that are expended in any project that we do,” said Marion Harbormaster Isaac Perry. “That’s kind of the elephant in the room here. I think that’s what most people don’t realize.”
Finance Committee member Bill Marvel prompted Perry to address that matter for the record.
“I think that’s important, and especially when you’re talking about this new project as well, to keep reiterating that point,” said Marvel, who also represents the Finance Committee to the Capital Improvements Planning Committee.
Perry’s budget presentation was part of a February 16 public meeting that also saw the Recreation Department and Elizabeth Taber Library make their FY23 budget presentations.
The committee is amidst a very busy season, having heard from Police and Fire departments on February 9 and still looking ahead to the Old Rochester Regional School District presentation on March 2 and finally the Department of Public Works on March 9.
Perry outlined five increases for the Finance Committee’s consumption: salary bumps for three full-time employees; overtime for one employee reclassified from exempt to non-exempt status; boat maintenance, which since the sale of the Atlantis Drive property is farmed out to contractors and Licenses and Dues.
The Licenses and Dues budget line covers Marion’s online database. The annual subscription fee the past few years has been $6,000. That number goes up to $7,200 for FY23, according to Perry, who said Marion’s annual cost is less than half what some of the other commercially available online databases cost.
“We’re happy with our system; we spent a lot of time creating it. I just want to be able to continue to utilize that,” said Perry.
Meantime, the Management and Development line has been on a “seesaw,” according to Perry, who points to the Police Reform Act of 2020 as a game changer. The act requires Marion’s three full-time Harbormaster Department employees to return to the police academy for additional training. Perry said two of the employees will need to complete training in the bridge academy by the end of FY23 and the third in FY24.
Committee members asked Perry to summarize how the Harbormaster Department realizes revenue and fills out the budget. In FY21 through moorings, boats, licenses and fees generated roughly $478,000, $317,000 of which is dedicated to the Waterways Fund and the remainder ($160,000) to the General Fund.
New headquarters is the major project for the harbormaster, and the feasibility study has been completed for the new Maritime Center at Island Wharf. The town has been awarded $303,000 for the construction documents by the state’s Seaport Economic Council.
“We’re looking to go back to them in May, again in November, with two separate, $1,000,000 applications so all in,” said Perry, who said the town’s 20 percent matching requirement of the total project will be put before voters at Spring Town Meeting on May 9. “We only want to go to Town Meeting one more time to get these funds set aside. We’re looking for $700,000 (in Spring Town Meeting;);that will count towards our match for the remainder of this project.”
While explaining that the $700,000 will be bonded out and taken on as debt to the town’s Waterways Account, Perry cautioned the members that with an impending change at the statehouse there is no guarantee that the funds will be available. Town Administrator Jay McGrail pointed out that the Seaport Economic Council was created by the Baker administration. “Whether it continues is anybody’s guess,” said McGrail.
Marvel clarified that principal and interest would be covered by the Harbormaster Department’s collection of fees and other regular revenue. McGrail said that Perry will be able to fund the debt and still save money for the future boat replacement.
While $700,000 is greater than 20 percent of the grant, McGrail said paying the minimum would require a third grant application. “We’d rather wrap this up next year with the state, and also I think we have a better chance of getting the $2,000,000 (in grant funding) if we’re a little heavy on our end.”
The next grant application is due May 1 and will be awarded in August, and the next scheduled round is November 1 with a February-March 2024 schedule. Should the SEC not come through, the town has reached out to Coastal Zone Management, and there are other grant programs.
Because both the Maritime Center and the proposed Department of Public Works headquarters at Benson Brook will take on debt, both will require a two-thirds majority vote at Town Meeting.
Marion’s pump-out boat still needs a new motor, and Perry told the committee he has $16,000 set aside from the last Town Meeting. In addition, Marine Fisheries has awarded Marion a Clean Vessel grant for $15,000. Most of the cost for the motor will be funded through the Clean Vessel grant.
Perry clarified that the current motor is still working but that pump-out service to the outer harbors would be canceled should the motor expire. The outboard motor needed last year was covered mostly through capital funding and also through line items. Availability, he said, has been the big issue with replacing motors.
McGrail told the committee that thanks to work with Finance Director Judy Mooney, Marion has drawn closer to a balanced FY23 budget thanks to three factors.
Upper Cape Tech indicated a greater-than-anticipated Chapter 70 funding, allowing Marion to save $20,000 on its annual assessment.
McGrail also said that the town’s property and liability insurance carrier will increase its annual cost by 3 percent instead of 5 percent as previously believed.
After meeting earlier on February 16 with the Assessors, McGrail said the new growth estimate for FY23 is increasing from $50,000 to $100,000.
“Our thoughts were that rather than share another preliminary number with you now and have them change when ORR gives us their final official number, we’ll just wait ’til we get what they’re going to bring to the public hearing – ORR – include that and then send you guys a final balanced budget and that will be the numbers we use moving forward,” said McGrail.
The Finance Committee members found that suitable.
When Jody Dickerson was transferred into the DPW as Highway manager and Old Rochester Regional teacher Scott Tavares was brought on in as a part-time recreation director, McGrail said the maneuver saved the town 30 percent of the Recreation Department budget.
Given that drastic decrease, Tavares’ FY23 initiatives appear as an increase but leave the department well below its former budget line.
Tavares is seeking an increase in the administrative assistant’s weekly hours from 11 per week to 19. The pay scale will not change. He has also requested a Step 1 pay rate for part-time help to $14.25. Lifeguards are in demand, and Marion’s rate of $14 per hour cannot compete so Tavares requested an increase to $15.71.
Marion sets out to employ up to 10 lifeguards in season. McGrail suggested adding to the custodial staff for the summer months.
Internet problems cut the meeting short.
The next scheduled meeting of the Marion Finance Committee is to be held on Wednesday, March 2, at 7:00pm.
Marion Finance Committee
By Mick Colageo