02/07/2019 FINANCE COMMITTEE Minutes

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6 Finance Committee Minutes February 7, 2019 APPOINTMENTS & HEARINGS Town Manager—FY2020 Omnibus Budget Review/Capital Improvement Program: (continued) Advancing revenue streams were considered. This includes pending retail marijuana sales, the short-term rental tax,the Mashpee Commons expansion project and other sources. The 3% CPC surcharge will also be considered as a revenue stream in 2020. The Town of Sandwich is planning to reduce their CPC and use 2% of the surcharge to offset wastewater costs. In considering the importance of growth and revenue, it was disclosed the Town Manager's Financial Team is in the process of updating the five-year revenue projection. The analysis will be presented to the Board of Selectmen at their March meeting. Members of the Finance Committee requested to attend the overview session with the Board of Selectmen. Currently the Town is reviewing the retail marijuana applications. Various regulatory departments are assigned to review the proposals within the purview of their expertise to raise any red flags of concern. It was requested the information in the original FY20 budget be updated with the revised information and submitted to the Finance Committee. The Finance Committee in normal budget process will make recommendations on each departmental line item. The Finance Committee Public Hearing on the proposed budget is March 21, 2019. The deadline for Finance Committee recommendations to be included in the Town Meeting warrant is March 29, 2019. The Town Manager was requested to provide information regarding the average turnover rate, and the amount of revenue proposed to derive from the short-term rental tax. It was noted the Board of Selectmen intends to place an article on the May warrant to authorize the imposition of the short-term tax at a rate of 4% or 6%. The rate imposed can be anything equal to or less than 6%. For effectiveness, it was suggested that enforcement be provided from additional staff members or by contracted services for monitoring purposes. It was also requested that information regarding full-time equivalents (FTE's)be forwarded to the Finance Committee to review salary ratios.