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HomeMy Public PortalAboutRev Committee 2016-08-22 ORLEANS TOWN CLERK '16 SEP 2 10:36A'' Town. of Orleans Tel (508) 240- MassgGHSe 3700 e. Revenue Committee Minutes Ix (508) 240- Lt 4 3388 19 School Road Orleans cp °IPAT @DG ' Revenue Committee Minutes The August 22nd meeting of the Revenue Committee was called to order at 3:30 PM by the Chair, John Laurino. Present and constituting a quorum were members: Mr. Paul Kelleher, Mr. John Laurino, Mr. Frank Lucibella, Mr. Kenneth Rowell, and Mr. Robert Renn. Selectman Alan McClennen was also present. The Committee discussed new revenue opportunities at length with Selectman McClennen. At the outset, Mr. McClennen suggested that many people have a "significant misunderstanding" about seeking grants for municipalities. He warned against constantly chasing grant opportunities, instead suggesting that town officials need to understand the portfolio of available outside grants with the highest probability of a successful application. He then addressed the list of existing and future revenue sources that are outlined in our committee charge: 1. Areas of grant funding In reviewing existing grants and grant applications, Mr. McClennen named several: 1. Waterfront Development: DPW head, Tom Daley, has written a $1 million grant application for Rock Harbor improvement project; 2. Open Space: In partnership with the Conservation Trust, the town has previously received $2.5 million in grants from the state. In the past, the state set preserving open space on the Cape as a priority. Under Deval Patrick's administration, the priority shifted to urban areas; 3. Partnership with Cape Cod Compact: Mark Robinson, Executive Director of the Compact is a key person in for grant writing for federal funds passed through the state to preserve land; 4. Coastal Resiliency Fund: is providing $27 thousand for a study of how to preserve Nauset Beach as the coastline continues to retreat; 5. State Department of Transportation Grants (2): These grants totaling $2.5 million will fund improvements to two intersections — Rte. 6A and Main Street, and Rte. 28 and Main. The Town has appropriated an additional $460 thousand to guarantee that the improvements "look like Orleans;" John Laurino asked about grant accountability. Mr. McClennen said that typically a project completion report is required. Mr. Renn suggested that the Capital Plan should be a starting point for grant possibilities. In response, Mr. McClennen pointed out problems in the capital planning process. He suggested that ongoing discussion and revaluation of capital project should occur, especially when projects are added to the Plan, not only when projects come up for funding. He mentioned that schools were not originally in the Plan and the Police Station and DPW facility went in and out of the plan over the years. One consequence is that both projects now will cost considerably more than if they had been funded earlier. The Board of Selectmen have now set up at Capital Planning Committee. Mr. McClennen pointed out that Orleans is among the lowest in the state in its capital debt and in its tax rate. He also confirmed that there is "no fat' in our municipal budget. Mr. McClennen commented on our Capital Plan Asset Management, pointing to the water department as a "gem." We need the same asset management strategy for whole town. He discussed the lack of coordination between departments that sometimes occurs, citing the three different Beach Road projects, including replacing a water main, that need better coordination. 2 In response to a question about how to improve grant funding, Mr. McClennen commented that the Department Heads do not miss grant opportunities. They normally learn about them through their professional associations and typically write the grant applications themselves. Ken Rowell asked about the value of a centralized town grant writer. Mr. McClennen thought that this position would be cost prohibitive. It would not pay back enough to justify the investment. John Laurino commented that perhaps the contingency fund within the Finance Committee's budget could be utilized by Town departments to hire grant writers if the need arose. Frank Lucibella asked whether all grants are project-specific, and Mr. McClennen said yes. In response to a question from Mr. Renn about wastewater grants, Mr. McClennen explained that no federal or state funds have been available over the past 20 years. However, eight years ago, the state legislature approved a revolving loan fund for wastewater projects on Cape Cod. Under that programs, towns would receive 0% loans on sewer installation. On a $35 million sewer project, a town could save $21 million in interest costs. Orleans meets all five criteria established for the 0% loan program. Under the legislation, a town may also apply for a 25 percent waiver against the principal cost. Mr. Laurino asked whether Orleans is handicapped in seeking grants by Orleans's perceived wealth. Mr. McClennen responded that we are seen as innovators by the state, and that reputation works in our favor. 2. Private/public partnerships Mr. McClennen commented that the town continues to explore these possibilities. One issue is how costs might be shared. The town does not spend a lot of time pursuing 501 (c) 3 sources because the payback is too far out. 3 3. Town Assets The Board of Selectmen work to identify and deal with surplus assets. The old fire station is one example. There are not a lot of others that could be sold or leased. 4. Opportunities to "lease/subscribe rather than "buy and internalize" specific town activities Mr. McClennen sees the possible advantages and commented that these opportunities need to be explored. 5. Increasing the meals tax and applying a hotel tax on commercial and private short term rentals We are not at the max in terms of the meals tax rate. Total revenue grows annually because more meals are sold. In terms of a private short-term rentals tax, Mr. McClennen commented that we are "missing the boat" here on an opportunity, but that enabling legislation would be required to allow us to pursue. Mr. Renn asked if revenue from increases in meals and hotel taxes could be directed to wastewater management rather than simply accruing to the general fund. Mr. McClennen thought it could be set up to go into the Stabilization Fund. 6. User Fees Mr. Laurino commented here that any user fees established for town services should be based not on comparisons with other towns but on our own costs. He also asked whether an Enterprise Fund could be established for the beaches. Mr. McClennen commented that costs were not yet clear but that we should have more complete and accurate cost figures for the beaches after this summer's experience. After the discussion with Mr. McClennen, the Committee went on with other business: 4 Minutes of the August 22 meeting were approved — motion by Mr. Rowell, seconded by Mr. Renn, approved unanimously; With minor modifications, the revised charge, timetable, data gathering activities and deliverables were approved by consensus. A copy of the revised charge is attached; In discussion, revisions were made to the draft job description for the Committee's support consultant. Most notably, the title of the position was changed to "Research Analyst" and the duties and responsibilities were altered to reflect this change. A copy of the revised job description is attached. Mr. Laurino and Mr. Renn are going to meet with John Kelly to discuss how to expedite filling the position. The next meeting of the Committee will be on September 1 at 1 PM. On a motion by Mr. Lucibella, seconded by Mr. Rowell, the committee voted unanimously to adjourn the meeting at 5:27 PM. Respectfully submitted, Paul Kelleher 5