5/27/2020 FINANCE COMMITTEE Minutes

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3 Finance Committee Minutes May 27, 2020 Financial Update and Review: Town Manager Rodney C. Collins: (continued) Update, Discussion relative to COVID-19: Departments will be encouraged to provide turn-backs. Any budget reductions shall be strategically accomplished with the assistance of Department Heads. All new positions are fully vetted for essential functions and operating efficiencies. In collaboration with the Board of Selectmen and Finance Committee with input from the School Superintendent proposed budget recommendations for capital improvement needs will be adjusted on Town Meeting floor if deemed necessary. At this time, and as a direct result of the planning of the Finance Team, there is no indication that drastic actions would be required. Dawn Thayer, Finance Director indicated her team reviewed the financial impacts of the 2008 crisis in comparison to the current COVID-19 pandemic to review mitigation measures used to recover from the financial hardship. In the 2008 crisis financial difficulties occurred in 2009. This included State Aid reductions. The Town of Mashpee tightened their belt and was able to cover the $400,000 shortfall with other forms of revenue. After offsetting the State reduction, excess revenues were deposited into Free Cash. Recovery began in 2012. Reserves were increased and the Town built upon its Free Cash reserve. In FYI 0,the former Town Manager instructed Department Heads to submit a level service budget and a 2% reduction budget. In this budget year there were reductions overall, but no staffing changes, no layoffs and no terminations. Employees had agreed to a 0% increase, and there were budget turn-backs. To date, estimated revenues are on target. Although State Aid is not fully known, there are federal monies available to recoup from the current COVID-19 pandemic. Cares Act reimbursement funding is projected in the amount of$t,250,000 specific to COVID-19 related expenditures. Grant monies will provide funding to cover March 1, 2020 through June 30, 2020, and would be carried over to FY2021. The Cares Act funding will also cover additional expenses related to COVID-19 including the 25% portion of FEMA eligible expenses. Monies will support expenses such as overtime costs for first responders, on call staffing for disaster, and personal equipment utilized. The Finance Team will continue to monitor expenses maintaining a continued conservative practice. The State of Emergency has been declared through December 2020.