12/7/2016 CAPITAL IMPROVEMENT PROGRAM Minutes

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2 Capital Improvement Program Committee Minutes December 7, 2016 Present: Rodney Collins, Andrew Gottlieb,Dawn Thayer, Mike Richardson, Charles Gasior Meeting Called to Order by Chairman Collins at 3:05 p.m. Mashpee Town Hall,Administrative Conference Room APPOINTMENTS & HEARINGS In accordance with the mandates of the Town Charter,the Capital Improvement Program Committee convened for the purposed of reviewing projects proposed for the fiscal year 2018 Capital Improvement Program. In attendance were CIP members; Rodney C. Collins Town Manager, Andrew Gottlieb Selectman representative,Dawn Thayer the Finance Director, Finance Committee member Mike Richardson and Charles Gasior representing the at-large membership. For discussion purposes,the Assistant Town Manager Wayne E. Taylor was also present. At the start of the process,Finance Director Dawn Thayer recommended the CIP commence the approach by utilizing available funding for appropriation from certified free cash. The sum of$1 million to $1.5 million was suggested to begin a foundation budget for the creation of a Capital Expenditure/Revenue Fund for the purpose of financing one-time and less-substantial capital expenditures. Funding for major capital outlays such as the Quashnet School project would require a voter approved debt exclusion to obtain bonding authorization. Rodney C. Collins Town Manager indicated it is important to invest in infrastructure and capital programs instrumental to the needs of the town. To remain steadfast and proactive, it was determined that funding for minor capital projects would be routinely deposited into this type of savings account for the purpose of earmarking and securing revenues for standard capital needs. An ongoing fund as considered would'utilize a percentage of certified free cash available for appropriation. This endeavor would require Town Meeting authorization. Currently, the town is retaining approximately $6 million in certified'free cash. It is estimated that a range of free cash revenue such as 10-15%be transferred to the Capital Expenditure/Revenue Fund on an annual basis. It was recommended the CIP consider additional sources to offset the town's revenue stream such as the Local Option Meals Tax. A foundation such as this would add new monies to the Capital Expenditure/Revenue Fund rather than utilizing funds from free cash which are generally used to support the Town's operating budget,other needs and unforeseen expenditures. With the Local Option Meals Tax, a city or town may impose a local sales tax on the sale of restaurant meals originating in the city or town by a vendor. The tax is charged at the rate of$0.75%of the gross receipts of the vendor from the sales of restaurant meals. It was agreed this directive would be further considered.