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APPROPRIATION COMMITTEE REPORT TO NOVEMBER 2011 STM Purpose Amount Comments Reserve Fund $350,000 Potential FY12 Snow and Ice spending in excess of current budget Human Services—Expenses $100,000 Veterans' Benefits have increased substantially Human Services—Salary $30,000 State-mandated Veterans' Agent Community Development—Expenses $5,000 Consulting services for Noise Bylaw enforcement Town Clerk—Expenses $20,000 Special Election for Debt Exclusion Community Development—Salaries $1,800 Recording Secretary—Historical Commission Fire Dept. —Expenses $60,000 Emergency repairs to Ladder truck Facilities Dept. —Expenses $36,400 Revise budget for sewer fees;higher price for oil Finance—Expenses $50,000 Legal fees for Assessing Dept.,Appellate Tax Board cases Town Manager—Expenses $20,000 Police Sergeant Assessment Center Department of Public Works $200,000 October 2011 Storm Cleanup TOTAL APPROPRIATIONS $873,200 Health Insurance ($1,250,000) Reduced budget based on lower Health Insurance costs NET BUDGET DECREASE ($376,800) Reserve Fund As snow removal costs have increased, and the Town has experienced chronic deficits in this account that can be financially disruptive, there is a general consensus that it would be prudent to set aside additional funds for this purpose. However, the chaotic history of the Snow and Ice budget establishes the difficulty of forecasting the required amount from year to year. While it is possible to set aside a sizable amount to cover the maximal expense, State law only allows the Town to run a deficit in a fiscal year in which the amount budgeted for snow and ice removal was not decreased from the previous year. The ability to run a deficit is preserved by avoiding a future situation where the snow and ice budget would need to be de- creased. Town staff have therefore recommended appropriating an additional $350,000 to the Reserve Fund in place of augmenting the snow and ice budget as an additional buffer (above and beyond the cus- tomary $300,000 revenue set-aside) to hedge against the risk of a sizeable shortfall in the FY12 Snow and Ice budget. Veteran's Benefits The Town is obligated by law to provide Veterans' Assistance on request and receives a 75% reimburse- ment from the State for any financial assistance it renders. The budget for Veterans' Assistance in FY12 was $100,186, which includes the costs of assistance payments and the necessary staff administration. As we noted in our previous report, the demand for Veterans' Assistance has been accelerating and the Town is already spending slightly ahead of the projected rate. This request would increase the budget for Veter- ans' Assistance sufficient to cover the needs for the rest of FY12. Veteran's Agent The State recently mandated that all municipalities with over 12,000 residents must hire a full-time Veter- ans' Agent. The Town currently uses part-time staffing to administer Veterans' Assistance and the level of demand in Lexington does not necessitate a full-time position. The Town has appealed to the Attorney General for an exemption to this requirement, nevertheless this position will be included in the current budget pending a decision regarding the exemption. Page 11