10/12/2023 FINANCE COMMITTEE Minutes

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4 Mashpee Finance Committee-Select Board Minutes October 12, 2023 NEW BUSINESS Discussion_and Possible Alaroval_of Funding�ltions for Article l of the October 16 2023 Annual Town Meeting Warrant:, (continued) Dawn Thayer,Finance Director indicated in the past the Capital Improvement Program was severely underfunded. The use of the Capital Stabilization Fund has been very successful. It is also sound financial planning to be better prepared for future capital needs. The Town also has a Wastewater Stabilization Fund with an estimated$3,000,000 balance as well as the WIIF Fund having an approximate balance of$710,000,to be used for the sole purpose of wastewater funding initiatives. On June 30, 2024 the year-end balance of Free Cash should be at minimum $3,750,000 to be made available for use in the FY25 fiscal year. As this matter was discussed the Town Manager conveyed that it is important the two boards remain consistent in their recommendation recognizing Article#1 as high priority and a critical vote for the Mashpee community. Craig Mayem,the Treasurer/Tax Collector indicated the triple bond rating allows the Town to borrow at a lower rate. It was suggested that a lesser contribution from Free Cash be considered to maintain a favorable bond rating while avoiding a potential breach in Town policies. Mr. Mayem reviewed the rationale associated to borrowing which would be similar to the Bond Anticipation Notes associated to Phase I of the Wastewater Plan. Correspondence was received from the Cape Cod Commission dated October 12, 2023 regarding the final commitments for subsidies from the Cape Cod and Islands Water Protection Fund (CIWPF)to fund Mashpee's Qualified Projects listed on the 2021 and 2023 Clean Water State Revolving Fund Intended Use Plans. The commitments represent a 25% subsidy for each project. Different scenario options for funding the Phase II Wastewater project were outlined. This includes the appropriation of$7,500,000, $4,000,000 and$3,000,000 from Free Cash. As noted, the $88 million Phase II project encompasses Option#9 as well as a portion of Phase I as agreed upon. The $7,500,000 article is associated to the planning and design of wastewater collection,treatment and effluent recharge initiatives. It was recommendation the two bodies bring forth a unanimous vote as with the previous vote in support of Phase I to show confidence in the endorsement of this project. It was noted that several members of the Finance Committee voted to take no recommendation/no position Article#1. The Chair and the Vice-Chair were absent. Although the issue was deemed critical and required a vote there was a lack of full understanding regarding the intent of the proposal which prompted the vote of no recommendation.