10/4/2016 BOARD OF SELECTMEN Minutes

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Board of Selectmen Minutes October 4, 2016 Presentation and discussion of lona term fiscal analysis/plan for the Town: (continued) When asked of the tax rate, Mr. Streebel Director of Assessing indicated the tax rate is dependent upon the real estate market. Although the market tends to flow in a ten-year cycle, Mr. Streebel projects real estate to peak in 2018 and valley in 2022 at the time the Town would expect to have an override. Anticipated new growth includes the cottages neighborhood project in New Seabury, the Mashpee Commons expansion project, and several new subdivisions including a new development in Southport. With regards to Community Preservation Act funding Mr. Streebel indicated if the Town voted to opt out of the program, the Town would save on the tax rate. The CPA tax assessed on real estate is 3%. Under the Act, a Town may choose to vote out of the program in 2020 although municipalities cannot fully opt out of the CPA until all debt obligations have been met. The debt would be required to be reserved in the CPC Fund balance. In fiscal year 2027, the CPA debt would be fully compensated. It was agreed this matter would be reviewed with the Community Preservation Committee at their next meeting. Rodney C. Collins Town Manager indicated the strategy planned for this informational session will allow time for the Board of Selectmen to further review and understand the financial forecast. It was recommended the Board provide guidance to the Town Manager and prioritize funding. Scenario 1 is status quo and a good base to build upon to maintain the level of current operations realizing there are challenges to recognize in fiscal year 2022. Mr. Collins indicated this process is a responsible and conservative budgeting plan for the next ten years. It was noted the Finance Director would be updating the financial document on a yearly basis with actual revenue amounts. Craig Mayen Treasurer/Tax Collector indicated this type of financial awareness will positively affect the Town's AAA rating with Standard and Poor's. It was recommended the Board adopt this plan as a guideline. Formalizing policies such as this including investment policies, free cash policies and stabilization policies should be in place before the Town would go out to bond. It was agreed the Board would further review the formation of policies as recommended in the new few weeks. The Board of Selectmen, Town Manager and Assistant Town Manager expressed appreciation to the Financial Team for their assessment. The Board of Selectmen will continue discussions regarding the analysis of costs relative to wastewater/clean water initiatives. This includes different scenarios regarding financing, implementation and initiatives, interest rates, loan forgiveness rates, zero interest loans, and adaptive management approaches, etc.