11/17/2016 FINANCE COMMITTEE Minutes

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3 Finance Committee Minutes November 17,2016 APPOINTMENTS& HEARINGS Town M a er 5 10 20 Year Projected Budget P esen tion. (continued) Town Manager Rodney C. Collins introduced his Financial Team consisting of Dawn Thayer the Finance Director,Jason Streebel the Director of Assessing and Craig Mayen the Treasurer/Tax Collector. Town Manager Collins commended his Financial Team for their input and assessment. The financial strategies contained in the Long Term Fiscal Analysis for the Town of Mashpee are comprised of nine different scenarios. Scenario I which does not include wastewater/cleanwater is used as the baseline for each analysis. Dawn Thayer Finance Director indicated the Financial Team reviewed the past three year history of revenue appropriations to obtain the base projections for the ten-year forecast. Budget assumptions include both educational and non-educational departments, fixed costs, LUINA(retirement expense)and health insurance. The budget also includes additional monies for the Cape Cod Technical School renovation/construction project and payments for the Quashnet School window and door replacement project. It was explained the revenue analysis calculates what is available for the Town budgets within the budgeted timeframe. This includes State Funds, Chapter 90 funds, Local Aid, reimbursements, Lottery Aid and other aids, etc. It was noted the bond for the high school debt was paid in fiscal year 2017. Therefore,the MSBA reimbursement for this project would not be received in FY18 and reflects a significant budget decrease in revenue assumptions. With regards to non-property tax local revenues,it was noted that Ambulance Receipts directly fund $500,000 to the Fire Department operating budget, and fully fund$600,000 in costs associated to the purchase of the fire pumper truck. Streets contribute approximately$2,600 in betterments to the Town. The Community Preservation Act debt, which derived from the former Land Bank, is subsidized by the CPA. Since the inception of the CPA all land purchases and debt have been fully funded through the CPA tax surcharge. In FY2020,the Town has the ability to opt out of the CPA. Although a community cannot vote out of the CPA until all outstanding debt has been expended,the CPA has enough funding to assume this obligation. Local property tax revenues were reviewed. The yearly budget projection incorporates a 2.5% increase to the base levy. Debt exclusions and the Cape Cod Commission assessment are included in this assumption. Mrs.Thayer indicated the Town is sustaining at least$500,000 each year with new growth. Although it may increase,this figure is slated to decrease in ensuing years.