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Report of the Finance Committee To the Honorable Board of Selectmen and the Citizens of the Town of Mashpee: The Finance Committee is a 7 member volunteer board appointed by the Town Moderator. Its function is to become familiar with the workings of the Mashpee governmental operations, provide independent input to the Selectmen and Town Manager, but primarily to act in an advisory capacity to the voters on financial and non -financial articles, which will come before them for their vote at Town Meeting. Those registered voters who attend Town Meeting are, in essence, performing the function of the Legislative branch of our municipal government. The Charter of the Town of Mashpee, adopted in 2004, specifically mandates that the Finance Committee annually perform three specific functions: • Provide the voters with a "concise and readable financial report" describing the revenues and consolidated expenses as part of the annual Town operating budget. • Calculate a projected municipal tax rate resulting from the adoption of the Town budget. • Make recommendations to the voters on each Warrant Article presented at both the May and October Town Meetings, even if the Article has no financial impact. Finance Committee members fully participated in the budget preparation process leading to the final FY 2017 budget, presented by the Town Manager to the residents of Mashpee at the May 2016 Annual Town Meeting. It should be noted that FY 2017 tax rate breakdown: Average Single family Home = $485,960 • General Government: $1.47 $ 714.36 • Education: $4.81 $ 2,337.47 • Police and Fire: $2.06 $ 1,001.08 • DPW: $ .74 $ 359.61 TOTAL $9.08 $ 4,412.52 Effective, January 2014 to date, the bond rating for Mashpee is at the highest possible level, "AAA" by Standard & Poor's, which, as stated in their report, was due to high -end new growth, strong fiscal management and healthy reserves. The Finance Committee requested from the Town Manager a 5- and 10-year financial outlook. Its assumptions were based on a 2.5% increase year -over - year which was a 5-year trend. The report revealed that the Town will be faced with a potential 2.5% override to finance the 2021 budget if our trend remains. In 1982, Proposition 2.5% went into effect, which effectively limited towns from levying property owners more than 2.5% of property taxes in order to fund a balanced budget. Towns can ask to raise the limit (override) above 2.5% with a vote from its taxpayers. In the past two decades, the Town of Mashpee has not had to levy its property owners to the limit to finance a balanced budget. The Finance Committee will be utilizing this study to scrutinize spending over the next five years to avert a 2.5% override and effectively change the year -over -year trend. Any resident of Mashpee who has questions for the Finance Committee, please email the Finance Committee at fincom@mashpeema. og_v or through the Town website: www.mashpeema.gov. You may also write to us at: Mashpee Finance Committee, 16 Great Neck Road North, Mashpee, MA 02649. Finance Committee meetings are posted in Town Hall and on the Town's Website. Most meetings occur on Thursday evenings and are televised on the local community station — Channel 18, and are recorded on the Town's website. Respectfully submitted, Christopher Avis, Chairman David J. DelPonte, Vice -Chairman Michael Richardson Jeffrey Pettengill Oskar H. Klenert Sylvester Ryan Tom Murphy (resigned) Theresa Cook (resigned) 105