1/26/2016 CAPITAL IMPROVEMENT PROGRAM Minutes

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3 Capital Improvement Program Committee Minutes January 26,2016 Due to scheduling conflicts,the outline of the planned interviews with the key departments was slightly modified. It was agreed the Department Heads should be prepared to attend the meeting fifteen minutes in advance of their scheduled interview. In preparation for the onset of appointments, discussion followed with respect to funding sources earmarked for the capital improvement program. In addition to the use of surplus funding or free cash,identified revenues available for appropriation include funding support from the Ambulance Receipts Account,Mashpee Cable&Advanced Technology Account(MCAT) and through grant initiatives. To assist with the capital planning process and to obtain a general sense of available funding,members of the CIP requested the Town Manager and Finance Director identify a range of available free cash, and balances suitable for funding certain departmental requests through ambulance receipts and MCAT monies. In the CIP process there are obligated funds required for the commitment and continuation of the Police Department Vehicle Lease program and the Department of Public Works vehicle and equipment lease/purchase program. These programs are generally funded by free cash. Other departments such as Recreation have the ability to fund a vehicle lease program through the Recreation Department Revolving Fund. Several years ago,the CIP recommended a$1.5 million capital bond for much needed infrastructure improvements prioritized by the Planning&Construction Committee. This included roof repairs and replacement as well as HVAC improvements. The$1.5 million bond was approved by a vote of Town Meeting under the constraints of inside Proposition 2 1/2, and did not require a debt exclusion. In review of the upcoming capital improvement program, it was agreed an additional bond may be considered for large Planning&Construction projects and wastewater as the current operating budget cannot fully accommodate the CIP requests. This assumption would also include the town's road maintenance program. It was agreed the town can no longer maintain the pay as you go program for capital needs. The town has achieved an AAA rating and would most likely obtain a good interest rate at this time. It was noted the debt from the Mashpce High School project is expected to retire in fiscal year 2018. Retiring debt without raising the tax rate would assist with the Quashnet School window replacement and/or wastewater projects. It was agreed the Finance Director would present the current debt schedule to the CIP for additional review. In addition, it was requested the CIP review the previous analysis of the town's fiscal condition.