11/21/2019 FINANCE COMMITTEE Minutes

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4 Finance Committee Minutes November 21, 2019 Review of Budget Process Trend Analysis, Turn-Backs & Schedule: Review of FY2021 Department Budget Requests: (continued) For informational purposes the Town Manager distributed copies of a memorandum submitted to all departments regarding the FY2021 operating and CIP budget submittals, a copy of the Town Charter, a copy of the Town Employee handbook, the Open Meeting Law guide, and guide to public records. Town Manager Rodney C. Collins indicated the FY2021 budget submittals are preliminary and he looks forward to a comprehensive review with the Finance Committee. The Finance Committee was also in receipt of the FY2021 budget book detailing each department, line item by line item. Department Heads have been requested to submit expenses on zero-based budget planning with decision making consistent with operational demands. Contract negotiations for the year beginning July 1, 2020 with all (9) collective bargaining units are in process. It is hopeful negotiations would be complete and ready for the May 2020 Town Meeting. Regarding trend analysis and turn-backs on average the return is 3-5% of the budget. For the past four years the return has been approximately 2.4%. Department Heads are requesting budgets to ensure the fulfillment of their mission critical needs. A costly line item is personnel. With respect to salaries and wages, it was explained that it is important and in general practice to remain within the median of the 15 Cape towns to remain competitive and to attract and retain competent and qualified individuals. On the matter of wages and operational costs several budget line items are duly anticipated while others may create variables. This would include retiring personnel which create vacancies and at times create delays in the hiring process. With new hires there may be adjustments to the steps. In the schools, benefits are assumed by the Town for new personnel. Insurance, medical and legal expenses follow a similar pattern. This year insurance realized a price variation due to a savings in reward points detected by a staff member. Town Departments are also directed to not fully use unexpended funds at the end of the year if expenses are not essential. Last year, the School Department turn-back percentage was minimal. Added budgetary costs were allocated to the Department of Natural Resources, a new department. Under M.G.L. departments are not allowed to overspend. The only budget permitted to deficit spend is the Snow& Ice Account. Discussion followed with regards to the Town Audit which is funded by the Finance Committee. The audit is completed on a three-year cycle. It was agreed the Finance Committee would obtain a copy of the previous audit and engage in the auditing process.