6/15/1995 BOARD OF SELECTMEN Minutes

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Tobun of i =■l a :%:: • 16 GREAT NECK ROAD NORTH 1 .�........•,„�*' MASHPEE, MA 02649 'ABLE June 15, 1995 Mem of the Board of Selectmen and Finance Committee' FROM: Ro 'tenour,Executive Secretary RE: Capital Improvement t Plan P . I have attached for your review a co of the PY re p ort of the Capital Improvement Committee, along with a copy of the Mashpee Financial Pian Summary � ary and an Analysis of Debt Service Insi - de 2 112 for the ten--year period from FY 1993 through FY 2002.A Capital Improvement Commits g s you know, the Ca P P Committee,In its first year of existence,has done a tremendous Job introducing the notion of capital programming to our co organized all de . P �' g community, and has •g departments in establishing a detailed process for mapping out capital needs six years into the future. As we move f P g P forward into our second year,we have a much better idea of the needs of the Town and must work - • � o k hard at the policy level to determine the appropriate amount of funds which should be used to support capital needs. Our jumping-off point for the capital Ian { . P p planning process used the Financial Plan, which for the first time presented a breakdown of projected . . . P J revenues and expenditures fora five-year period. Thus was a critical piece of data to start the process, and has served as the basis for the formulation of the initial .IanUsingthis P g. s data, the current level of funding for the CIP has been capped at roughly$550,000, with allowanto infl ccs for an annual increase due inflation. Thus represents Just over 210 of our annual budget, and is intended t new ro•ects whether fun g o cover alI J . , funded through a single-year cash appropriation or throw h bonding. Initial ca ital r uests came from d g - P . eq departments substantially in excess of this amount, and while not all projects were of high priority,even the most critical i fit under the � terns do not cap in the later years of the plan. . Rather than simply delaying all projects that P Y ymg p J at do not fit under the cap,we should use our better knowledge of Town needs, along with previous spending F f realistic capital P patterns, to set a more .; . capital number for the Capital Committee to work with as the move forward. In analyzing the potential costs for bond i Y .- P• ed items,for instance, we can start with the analysis of debt service inside 2 112. The attached figures s gur show that as recently as FY 1993 debt ice inside 2 112 was over$700,000. This investment was in addition ' to one-time capital items which were not bonded. This investment has declined rapidly, to the point that 1t will down to zero by fiscal year 2 . This decline represents . ender 2 1 • a major shift in our budget 12 away from capital spending, and a continuation of this trend will threabilityaten eaten our in the future to meet ourowin capital needs. �' g J