03/21/2019 FINANCE COMMITTEE Minutes

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"Preserving public trust,providing professional services" ronr Rodney C. Collins ` Office of the Town Manager Town Manager Mashpee Town Hall 508-539-1401 16 Great Neck Road North rccollins@mashpeema.gov Mashpee,MA 02649 STATEMENT To: Mashpee Finance Committee From: Town Manager Rodney C.Collins Re: Working Group"Potential OpportunhV" Date: March 21,2019 ---------------------------------------------------------------- -------- ---------------------------------------------------------------- On Tuesday,March 191h,I received an e-mail relative to the 2020 Budget from the Finance Working Group that was entitled "budget opportunities." I believe "budget imagination" would have been a more appropriate heading. I would like to review and comment on the so-called "budget opportunities." I thought the "Working Group" of the Finance Committee was going to sit down with me for an open and frank discussion, So I must have misunderstood your intent and therefore respond to the e-mail that I received on March 19, 2019.These specific comments are in direct response to the items listed in the cited e-mail. The recommended reduction of Town Insurance by $125,000 does not factor in MITA Reward Credits which is driven by staff initiatives pertaining to training documentation, safety measures and implementation of policies consistent with MITA recommendations.Through the hard work of staff and various department heads, we have been able to save the Town thousands of dollars through "best practices" and taking advantage of opportunities to reduce premiums. However, if the programs didn't exist or we had exhausted all options to receive Reward credits,our premiums are not going to necessarily spiral down. However, I would further point out that the Town has been able to reduce costs through proper management of claims in order to reduce liability and limit exposure.We don't merely file claims. We investigate them and take pro-active steps to prevent them. The recommended reduction of Medical Insurance by$200,000 to $400,000 is driven by actuals rather than obligations that must be fulfilled by collective bargaining agreements. The Town does not control enrollments such as when an employee's status changes from single to family. In 2018,the Town received 12 new and unanticipated enrollments from the School and if it was not adequately budgeted,what would the Town do? The recommended reduction of Library funding by$40,000 reduces positions filled and places certification at risk.The$4 million state grant received to build our library was contingent upon the Town maintaining certification.Would we lose$4 million to save$40,000?