2/27/2020 FINANCE COMMITTEE Minutes

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4 Finance Committee Minutes February 27, 2020 APPOINTMENTS & HEARINGS Rodney C. Collins—Review of Town Manager's Recommended FY21 Budget: (continued) There was a question regarding police details and how the revenue is used in relation to the budget. It was noted a special account is set up for police detail. The Town charges an administrative fee and a cost for a cruiser if required. For budgeting purposes,police detail services are reflected as an expense. However, all transactions are basically revenue expense neutral. As to the Veterans budget, the required cost is driven by the number of Veterans residing in the Town of Mashpee. Services provided include; fuel assistance, housing aid and medical prescription assistance, etc. Currently the program is administered by the Department of Veterans Affairs and it is facilitated by a County representative. With an increased Veteran population the Town of Mashpee may be required to staff a Veterans Office in the future. The State reimburses the Town approximately 75% for this expenditure. When asked if the Schools are includes in Retirement Expenses, it was noted the Town absorbs this cost as well as medical expenses associated to the Schools. As noted, by function budgetary costs include education,public works,public safety and general government. For the past two consecutive years the Town has had the ability to adjust the projected 12% budget increase in Medical Insurance to 0%. For budgeting purposes, the 12%projection is a good faith estimate provided by the Cape Cod Municipal Health Group. The consistent 0% increase is due to reasonable rates and the history of the Cape towns' participating in the consortium. To save on the cost of premiums, the Town of Mashpee implements safety procedures and receives credits and rewards for training and policy implementation. With regards to Town Insurance premiums, the Town's policies are audited regularly and deductibles are reviewed accordingly to adjust premiums when required. It was noted the salary/wage line items in the operational budget does not contain benefits. Payroll expenses are separated from their respective department. Employees are entitled to receive benefits until the age of 65 and eligible for the Medicare Plan. A brief discussion followed with regards to Other Post Employment Benefits (OPEB). The Town of Mashpee is contributing $250,000 each year to the Irrevocable Trust Fund to meet its potential post-employment benefits obligation and will continue to do so as long as it is sustainable.