08/12/2019 BOARD OF SELECTMEN Agenda Packet

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307 2016), and wage increases due to the Massachusetts minimum wage increase. Some of these cost drivers were identified by Standard &Poor in our rating profile, Currently the Town of Mashpee has a AAA rating. In all scenario's the Town would be approaching our debt ceiling which is 5% of the equalized value of the Town. The Town can exceed the debt ceiling for sewer based on Massachusetts General Law Chapter 44 Section 7(l), Debt exclusion, but, would have to be approved by the municipal finance oversight board at the state level. The revenues for the scenarios, mostly,rooms tax, have not come to fruition as of yet. The estimates in the scenarios used are based on many assumptions from a Cape Cod Chamber of Commerace report. If these revenues come to fruition then that will offset some cost to the Mashpee Taxpayers. In the financial teams' opinion a sewe!rinig project of the Town of Mashpee within proposition 2 1/2 would be detrimental to WI the Town and School departments funding in the future years. It is the opinion of the Financial team that if the taxpayers want to create a department and do the construction of a sewer system under the confines of the Town, the project,*would need to be done with multiple'Debt Exclusion votes to exempt the construction costs from Proposition 2 12 and a permanent override for the cost of a department and additional administrative costs. The Financial team I's opinion of the whole project is to have a separate sewer district created or combine this with the water district. A separate district does not affect the Town finances and leaVes, -the sewering of the town outside'of budget discussions completely. They are their own entity with their own bond rating, OPEB, Retirement, and Health insurance. A district would have its' oven tax IA .,rate as well and not be bound by proposition.2 Therefore it is also our oplinilon that it is premature to advocate passage for design and construction -plans in the upcoming May Town meeting until it has been, decided if sewer,is going to be done in house or via district. * 1;�Whether a district or a department is created within the Town it�still does not chant e*th, foot:that sewering the Town of Mas,hpee will be very expensive to the Taxpayers of Mashpee. The financial team feels that it-is our responsibility to inform the public and the selectmen of the financial implic'ations of prior to their decision making. Yours Truly, Dawn Thayer—Finance Director Jason Streebel—Director of Assessing Craig Mayen—Tax Collector/Treasurer 0 Page 2