Cumberland County finance committee reviews transitional six-month budget and FY24 manager's proposal
September 22, 2022 | Cumberland County, Maine
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County Manager Jim Gailey and finance staff told the Cumberland County Finance Committee on Sept. 21 that the county is shifting its general fund from a Jan.-Dec. calendar year to a July-June fiscal year and has proposed an interim six-month "2023.5" budget followed by a full FY2023-24 manager's budget.
The six-month plan (Jan.-June 2023) includes a proposed 2.5% cost-of-living adjustment (COLA) for nonunion employees effective in January, an estimated 8% rise in health-insurance costs and a $41,000 tax anticipation note for administrative fees. Finance staff described the six-month expenditures at just under $23.7 million across county, jail and arena funds.
Why it matters: the timing change is intended to align the general fund with other county budgets already on a July-June cycle, simplify annual budgeting and reduce future tax-anticipation borrowing. Staff said the transition will produce short-run distortions — the six-month budget is not directly comparable with a full year — but will simplify accounting and cash flow over a five-year horizon.
Key elements of the FY2023-24 manager's proposal include a proposed 5% nonunion COLA (effective July 1), health-insurance costs estimated at 5% for FY24 (with the six-month budget using a carry-number of 8% until final rates are known), $200,000 drawn from the tax stabilization reserve, and a proposed capital bond of about $3.8 million to cover multiple facilities projects. Gailey said: "we are switching from a calendar year general fund budget to a fiscal year...we go from a January, December budget to a July to June." He added that the shift should make annual comparisons easier going forward.
The capital bond would fund several large projects, including an estimated $1.7 million to replace the jail roof, roughly $1.2 million to replace the jail's aging lock system so a planned medical wing can operate on a single integrated control board, $275,000 for exterior repointing at the jail, and approximately $490,000 in early parking-garage repairs. Facilities staff said the lock replacement was not fully covered in earlier project budgets and must be done to avoid running two incompatible systems.
Staff also highlighted recurring non-debt capital and maintenance items such as elevator replacement planning (an elevator costs roughly $500,000), technology upgrades and equipment for patrol and CID units. On equipment and staffing, Gailey noted one new foyer-clerk position in the sheriff's office to manage body- and dash-camera footage requests; federal funds obtained through Sen. Collins' office are expected to cover the first one to two years of implementation costs.
On revenues, staff said the Cross Insurance Arena is projected to run a larger deficit in the coming year than last year but is hoping for a strong February-May events season to close the gap. Jim Gailey said the arena's deficit estimate of $580,000 had recently been trimmed to about $440,000 with early seasonal receipts. Finance staff cautioned that arena projections depend heavily on event bookings and post-pandemic attendance patterns.
The committee asked detailed questions about health-insurance assumptions. One member asked, "Why is the health insurance up 8%?" Gailey and Alex Kimball (deputy manager of finance and administration) explained that pandemic-era claim patterns and catch-up care have pushed rates higher and that the presented percentages are estimates to be refined once health trust rates are finalized in October or November.
Process and next steps: the finance committee will review departmental budgets in October (in-person meetings were scheduled for Oct. 12 to hear the sheriff's office, the Cross Insurance Arena and dispatch/CCRC), and expects to return in November to finalize recommendations to the county commissioners. Gailey emphasized statutory deadlines tied to the warrant and tax schedule as constraints on the timeline.
Ending: the committee accepted the presentation, asked clarifying questions on several line items and scheduled follow-ups; a motion to adjourn was moved and seconded and passed unanimously at the meeting's close.
The six-month plan (Jan.-June 2023) includes a proposed 2.5% cost-of-living adjustment (COLA) for nonunion employees effective in January, an estimated 8% rise in health-insurance costs and a $41,000 tax anticipation note for administrative fees. Finance staff described the six-month expenditures at just under $23.7 million across county, jail and arena funds.
Why it matters: the timing change is intended to align the general fund with other county budgets already on a July-June cycle, simplify annual budgeting and reduce future tax-anticipation borrowing. Staff said the transition will produce short-run distortions — the six-month budget is not directly comparable with a full year — but will simplify accounting and cash flow over a five-year horizon.
Key elements of the FY2023-24 manager's proposal include a proposed 5% nonunion COLA (effective July 1), health-insurance costs estimated at 5% for FY24 (with the six-month budget using a carry-number of 8% until final rates are known), $200,000 drawn from the tax stabilization reserve, and a proposed capital bond of about $3.8 million to cover multiple facilities projects. Gailey said: "we are switching from a calendar year general fund budget to a fiscal year...we go from a January, December budget to a July to June." He added that the shift should make annual comparisons easier going forward.
The capital bond would fund several large projects, including an estimated $1.7 million to replace the jail roof, roughly $1.2 million to replace the jail's aging lock system so a planned medical wing can operate on a single integrated control board, $275,000 for exterior repointing at the jail, and approximately $490,000 in early parking-garage repairs. Facilities staff said the lock replacement was not fully covered in earlier project budgets and must be done to avoid running two incompatible systems.
Staff also highlighted recurring non-debt capital and maintenance items such as elevator replacement planning (an elevator costs roughly $500,000), technology upgrades and equipment for patrol and CID units. On equipment and staffing, Gailey noted one new foyer-clerk position in the sheriff's office to manage body- and dash-camera footage requests; federal funds obtained through Sen. Collins' office are expected to cover the first one to two years of implementation costs.
On revenues, staff said the Cross Insurance Arena is projected to run a larger deficit in the coming year than last year but is hoping for a strong February-May events season to close the gap. Jim Gailey said the arena's deficit estimate of $580,000 had recently been trimmed to about $440,000 with early seasonal receipts. Finance staff cautioned that arena projections depend heavily on event bookings and post-pandemic attendance patterns.
The committee asked detailed questions about health-insurance assumptions. One member asked, "Why is the health insurance up 8%?" Gailey and Alex Kimball (deputy manager of finance and administration) explained that pandemic-era claim patterns and catch-up care have pushed rates higher and that the presented percentages are estimates to be refined once health trust rates are finalized in October or November.
Process and next steps: the finance committee will review departmental budgets in October (in-person meetings were scheduled for Oct. 12 to hear the sheriff's office, the Cross Insurance Arena and dispatch/CCRC), and expects to return in November to finalize recommendations to the county commissioners. Gailey emphasized statutory deadlines tied to the warrant and tax schedule as constraints on the timeline.
Ending: the committee accepted the presentation, asked clarifying questions on several line items and scheduled follow-ups; a motion to adjourn was moved and seconded and passed unanimously at the meeting's close.
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