2/8/2018 FINANCE COMMITTEE Minutes

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5 Finance Committee Minutes February 8, 2018 Town Manager-—FYI 9 Budget Review: (continued) The long term financial plan of the Town was revisited. In the ten-year forecast nine funding scenarios are presented from 2018 through 2027. The scenarios begin with no wastewater assumptions and continue with wastewater assumptions at different interest rates and phases. The financial comparison was obtained with the use of averages and figures from the prior three years. In the regular budget process, revenue available for appropriation (formerly free cash, an estimated $7.8 million) is used to offset the budget. Last year, $1 million was used to supplement the FY18 budget. In FYI 9,the sum of$1,550,000 is assigned to the operating budget. Additional revenue available for appropriation/free cash; $1.1 million in FYI will also be earmarked to the Capital Stabilization Account, Free cash will also be added to the capital program in ensuing years. The Capital Improvement Program (CIP) budget recommendation is $1,423,700. This include obligated lease/purchase agreements with the Police and Fire Departments, the replacement of various equipment to the DPW, a boat for the Harbormaster, and Planning & Construction improvements which includes flooring replacement at the schools and a DPW storage garage with related parking improvements. The Fire Engine/Tanker and purchase of an ambulance, and an ADA compliant van is included in this budget assumption. The CIP Public Hearing, a joint meeting with the Board of Selectmen will be held on February 26, 2018. To avoid spikes in the budget, it was recommended the School Department incorporate their projects in the Capital Improvement Program plan. Ina cooperative effort, $2,583,526.32 was received in FYI Department Turn-backs. This figure also includes principal and interest payments in addition to county retirement and insurance overages. All turn-backs revert to revenue available for appropriation/free cash. Highlights of the budget include the addition of the Local Meals tax adding $350,000 to the Local Estimated Receipts budget projection. The Quashnet School Window/Door/Roof project and Cape Cod Technical High School construction project are considered as debt exclusions. All debt obligations relative to the CPC (formerly Land Bank) will expire in 2027. With regards to the potential for unsustainability due to salary escalations, county-wide regionalization was considered. It was noted the majority of fiscal increases result in payroll obligations which are driven by collective bargaining agreements, and expenditures such as county retirement cannot be controlled. To remain competitive and to retain quality personnel, the Town has preference to continue its practice to derive within the median level in terms of rates and benefits. To maintain a competitive balance,the Town reviews its personnel structure on a ten-year basis.