08/12/2019 BOARD OF SELECTMEN Agenda Packet

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Afthi FAt: MO N Rodney c allins Town Manager Dawn Thayer Finance Director,Jason Straabel Director of Assessing! Craig Mayen -Tax Collector/Treasurer X Date: 0513/2019 Sewer projects We have included the financial scenarios that we were dir6ctad to complete if the project is kepi in- house with the Town of lashpea. We were asked about the financial effects an the Town of Mashpee if the Town residents decide to vote yes to undertaking a Sear project for the Town of Maahpee., The Town operates under proposition 2 Y2 by state law. Proposition 2 1/2 dictates-that the tax levy cannot exceed 2112-%from year to year without passage of an override at Town meeting and the ballot bo:. The Town's tax rate can also not exceed $25 per 1000 for items within the levy and not exempt from proposition 2 1/.. Betterments would not change the amounts needed to be paid by the Town, it would change the funding source, (Betterment appropriation vs tax rate vs rates&charges) w t"the request of Selectmen Gottlieb &Selectman cotton, as a result of the April 5 mooting to clarify our memo,we have eliminated from our analysis,scenario 3,which included betterments. gjustg t The scenarios luted eve the figures urea fur the construction of �ewer�n w the Town of Mashpee. There isalso the additional cost of adding a department to the Town and other personnel Mires that Would be needed for administrative functions of billing, collection, payment of bills and technical experts for a new sewer department vithin the Town. The most recent example, of a department that was added. to the Town, Department of Natural Resources has a budget of $750,000 a year, of which approximately $200,000 was previously included in the police department.. This does not include benefits that are paid by the Town. A gown department is a recurring expense every year and should be ad on of the construction cost estimates for the amount for the Town to raise. At some point the Sewer fee revenue will offset s.ome of the operational coats but not at the initial onset of the project. Per discussion with the water district it will take some time for revenues to offset with expenses.. There are other future financial items to conaider.that are unmown at this time. OPEB funding dour OPEB liability is 62 million as of June 30, 2017), Health Insurance costs on average continue to rise, unfunded liabilities of the Barnstable county pension system, Mashpee's,share 34 million, as of June