1/19/2017 FINANCE COMMITTEE Minutes

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3 Finance Committee Minutes January 19, 2017 NEW BUSINESS FY 18 Budget review in PLeParation for Mgy 2017 Town lleetin : (continued) Rodney C. Collins, Town Manager indicated the F '1 8 budget preparation.is on schedule. On February 1,2017,the Town Manager's recon nended budget will be reviewed with all Department Tads. On.February 13,2017,the budget Will be presented to the Board of Selectmen at their regular meeting and on February 16,2017 the Town Manager will review his recommended budget with the Finance Committee. For review was a projected fiscal year 2018 analysis of available finds. Based on a three-year revenue assessment prepared by the Financial Team, a potential shortfall is realized. The use of free cash would be utilized to offset the budget discrepancy. Town Manager Rodney C. Collins stated that although the budget has not been fully finalized he is targeting a-2%reduction within the municipal budget. The-2.1%budget reduction mounts to $56,035J32. At this time,the estimate does not include the capital budget recommendation and the cost projection is not reflective of any collective bargaining negotiations currently under deliberation. It was noted that all collective bargaining unit contracts are due to expire on June 30, 2017. With regards to the FY 18 school.budget, Rodney C. Collins indicated he anticipates recommending an overall increase of 1%. In considering a o million dollar school budget, a I%increase is approximately$200,000. Currently,the School Department is recommending an increase of 2.18%or$454,000 in fiscal year 2018. School Conunittee Chairman Myers indicated the School Department is collaborating with the Town Manager on negotiation strategies as the School Department is currently in contract negotiations with their largest unit. The School budget is not yet finalized and does not reflect contract negotiations. In looking towards the future, it was agreed that overall,the Town.of Mashpee is in sound financial shape. It is the Town Manager's recommendation to be prudent at this time to better prepare financially for the future. The Financial Team was credited for their long term financial analysis and plan. used on the estimates, it is essential the town maintain fiscal responsibility now and within the collective bargaining process while being reasonably competitive with other Cape totes. In the 1 0-year financial forecast,the town could potentially be seeking to obtain voter authorization for an override in fiscal year 2021 if`the town does not attempt to make budge adjustments at this time. It was determined that it is extremely important to work together to avoid the financial forecast that is impending in the future.