1/30/2020 FINANCE COMMITTEE Minutes

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5 Finance Committee Minutes January 30, 2020 Rodney C. Collins Town Manager—FY2021 Budget Discussions: (continued) The Finance Committee agreed to continue discussions on the status of the certified Free Cash flow. Appreciation was given to Town Manager Rodney C. Collins for the FY2021 Budget update. Comparison of Town Finances Year by Year: The Finance Committee continued there review of the comparison of finances year by year. It was noted that it is the Board of Selectmen's policy to carry over 5-10% of the operating budget from Free Cash. With a$62 million dollar budget, the carry over at 5% is approximately $3.1 million. Free Cash consists of any balances from the prior fiscal year, turn-backs, and actual receipts over estimates. In regular process Free Cash approximately $1.5 million is used to offset the operational budget. In accordance with the Selectmen's policy, 15% of certified Free Cash is earmarked to the Capital Stabilization Fund. Monies are used to support the capital improvement program. It was suggested that surplus funds or Free Cash be considered when calculating the tax rate. In reviewing a 16-year comparison of municipal finances property taxes have risen by 2.6% from 2004. Ina 7-year look-back the total assessments increased by 0.1% per year. From FY13- FY20 the increase average was 3.5% which is a key to the success of the Town of Mashpee in its fiscal conservatism. The CEG Assessment in FY2013 was $553,800 and in FY2020 $595,100, a noted decrease of 0.7%. It was agreed the Town of Mashpee is fortunate to have New Seabury and Southport as well as Mashpee Commons. As the Town moves forward,the balance of development is critical. Evolution of Finance Committee Report: Long standing Finance Committee member Chuck Gasior gave an update of the progression of the Annual Report of the Finance CoJmittee. The Report presented to the Mashpee voters is a requirement of the Town Charter adopted in 2004. As the Finance Committee begins its deliberations on the FY2021 budget in preparation for the Report of the Finance Con uittee Mr. Gasior discussed past practices in presenting the analysis to the voters. Although the budget review and preparation of the report is generally conducted in a fast track arrangement, it was agreed that pie charts and graphics should be incorporated into the report. Pictorial examples of the budget and expenditures would simplify the review.