3/1/2018 FINANCE COMMITTEE Minutes

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7 Finance Committee Minutes March 1, 2018 Article 42: To fund the annual Operating Budget; $57,029,039—HELD (continued) The Town is fully aware of this concern, and has been fiscally conservative during a time of constraints and budget challenges. A majority of Town Departments at the Mashpee Town Hall are operating at the same level of staffing, other departments are operating with less staffing. With the construction of the Fire Substation, additional staffing has been secured. However, at this time the Police and Fire Departments are now operating at reduced staffing levels. Recently, the Department of Public Works has added one new staff member. Vacancies are evaluated to determine if functions are necessary on a full and/or part time level. Privatization is also considered when it represents a cost savings. The increase in the budget is reflective of negotiations during the collective bargaining process which designates payroll expenses in addition to merit steps and cost of living adjustments. The general practice of the Town is to maintain employees at the median level to remain competitive and to retain quality personnel. Presently, the Town's budget, wages and benefits are within the median level. Reasonable wages and benefits tend to avoid a substantial tura-over in personnel. The long-term financial forecast of the Town is an estimation utilized as a projection to review the revenue stream. With actual figures, adjustments are made accordingly and to ensure that mission critical services will not be affected, It was noted the average household income in the Town of Mashpee is sub $50,000. Therefore, 80% of lower income households contribute to the appropriation of taxes, It is assumed the average income of Town employees may be above $50,000. With a continued trend of increasing the budget by 2-3%, critical drivers that can be controlled should be further evaluated. Increased technology advancements were considered to reduce cost assumptions. Regionalization is an option being used by the Town. One example is group insurance. As a participating member of the Municipal Health Group savings have been realized. The 12-15% increase projected in FYI has been reduced by almost half to 6-8% with increased employee contributions, co-pays, and group plan changes. Several main offices in Town Hall have been operating with the same level of staffing for the past twenty years. The Town has also improved efficiencies by using sophisticated software and new processes not utilized in the past. In considering public safety, there is a compelling need for the human element in response and safety. It was agreed that planning today for the future and seeking methods to improve upon economic development to increase the revenue stream are extremely desirable. The Town is reviewing alternative methods to increase revenues. One avenue under consideration is the discontinuation of the CPC in 2020 and utilizing the 3% that has been earmarked in CPA funding to ease financial constraints within the operational portion of the budget without adding to the taxpayer burden.