01/07/2021 FINANCE COMMITTEE Minutes

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5 Finance Committee Minutes January 7, 2021 Presentation from Town Manager: (continued) Discussion followed with regards to property taxes and the respective increases over the years. With the future impacts of wastewater, the average tax bill may increase substantially. In reviewing the overall Departmental Head submissions it was recommended the budgets be accurately level funded. It appears that many of the budgets have increased by 5% not truly level funded at 0%. With regards to property taxes there is no significant change in the total revenue received. Town Manager Collins indicated the focus on the FY2022 budget is level funded expenses. Salaries and wages cannot be level funded. A true level funded budget cannot be accomplished without significantly reducing or eliminating staff. The Town Manager was asked if it is feasible to reduce the cost of services without reducing staff. It was explained that staff is a nexus to services. The salary and wage expense budget which includes benefits, cost of living adjustments and step increases cannot be reduced substantially unless operations are shut down. Dawn Thayer,the Finance Director clarified some of the expense items and categories of the State Aid assessment with members of the Finance Committee. Revenue not categorized included Cares Act reimbursement monies for COVID-19 relief and Special Revenue Fund transfers such as Street Betterments, Revolving Funds and Ambulance Receipts which are required for appropriation by a vote of Town Meeting. Funds are used to offset direct costs such as debt associated to road improvements, recreational and other activities and certain expense items associated to the Fire Department. Cares Act reimbursement funding is categorized separately from the operating budget of the Town. Funds are deposited into separate accounts and charged directly to the fund. In COVID- 19 relief the Town of Mashpee has been apportioned $1.2 million in funding. To date approximately$900,000 has been expended with an additional $200,000 in open purchase orders committed. The State has extended the time period to expend the reimbursement funds until December 31, 2020. With $100,000 remaining there may be challenges in 2020 and as the Town moves into FY21 with continued pandemic expenses. The State at this time has not offered additional COVID-19 aid to municipalities. The FEMA component of reimbursement for pandemic funding has not been fully determined. FEMA reimbursement funds are specific and would be used to offset public safety expenses related to COVID-19. Costs associated to certain categories such as the Charter School assessment are deducted from the State receipts. This assessment is noted to be escalating considerably, far more than State Aid contributions. With regards to Short Term Rentals, 25% is deposited into the general fund the remainder is earmarked for wastewater initiatives as authorized by a vote of Town Meeting.