5/18/2020 BOARD OF SELECTMEN Minutes

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9 Board of Selectmen Minutes May 18, 2020 Financial Update and Review: Town Manager Rodney Collins and the Finance Team: The Town Manager's Financial Team consisting of Dawn Thayer,the Finance Director, Craig Mayen, Treasurer/Tax Collector and Jason Streebel, Director of Assessing were in attendance via virtual remote to give a financial update to the Board of Selectmen. David Delvecchio, the Information Technology Director was also present for discussion purposes. As noted the Town of Mashpee has received $1,250,000 in stimulus funds from the Cares Act. The State of Massachusetts has been phenomenal in assisting the Town to navigate through the complicated process. Funds received through the Cares Act will be helpful to the Town during the current fiscal year and in fiscal year 2021. The Cares Act will also cover additional expenses related to COVID including the 25%portion of FEMA eligible expenses. Town employees have been instructed to track all COVID related expenditures for proper reporting. It was noted that FEMA has strict rules on eligible reimbursement expenses. The Financial Team has conducted a very thorough and detailed analysis of the financial conditions of the Town of Mashpee. For comparison purposes information from the FY2008 financial crisis through 2011, the start of recovery was reviewed by the team in detail to review mitigation measures during the financial hardship. The review also focused on FY2020 and what is projected to follow in 2021 and 2022. Mrs. Thayer indicated that collections remain strong. The FY2021 real estate values are based on calendar year 2019 sales as of January 1, 2020 and should stay strong until at least 2021 as the impact of COVID-19 on the real estate market has not yet been determined. The loss of the taxpayer income may result in financial hardships, and options to lessen the tax burden are being considered. Conservative budgeting gives the Town more flexibility when determining revenue estimates. There is concern the reduction in State Aid will reduce revenue estimates currently anticipated to fund the FY21 budget. It was disclosed that 83% of revenues derive from property taxes with 6% from State Aid, 4% from Free Cash, and Local Revenue contributing 6%. Most of the vulnerabilities in FY2008 were attributed to the loss of State Aid. The meals tax estimated at $400,000 is strong and holding steady. It is expected the Town will face significant challenges in the future. Due to the fiscally conservative budgeting approach the Town uses it is hopeful through collaborative efforts, the Town will remain steadfast. Since the Town will not fully realize the effect of COVID-19 until next year, it was recommended that data continue to be compiled, and stimulus monies be monitored to compensate for expenses currently being covered by the operating budget. It was agreed the Town would take action to maintain fiscal responsibility and tighten expenditures.