2013-01-17-AC-min - Laserfiche WebLink

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January 17, 2013 installation of solar panels on other buildings and perhaps also on the ground at Hartwell Avenue. The latter is particularly complex. This will be a two year process. If the Town pursues this, it will be necessary to hire a management company that builds, installs, and operates the equipment, partially because of the complexities and partially because an outside company is eligible for tax incentives. Other communities have successfully installed solar panels, but there is little incentive for towns to join forces. The increase in the School Department budget is driven by increased enrollment; approximately twelve new teachers are needed. The new positions and the associated benefits are included in the School Superintendent's budget, which can be found in the "white book ". The School Department is holding a public hearing on its proposed FY2014 budget on January 30, 2013. The municipal budget is increasing 1.9% and the school budget is increasing 6.9 %. The Committee discussed why the split in the Town budget for the municipal side (22 %) and schools (78 %) remains stable although the school budget has been increasing more rapidly than the municipal side. Mr. Addelson explained that the total revenue is estimated and then amounts are subtracted (current year school budget, current year municipal budget, set aside for potential Marrett Road purchase and maintenance, shared expenses, facilities, debt service, the AC reserve, pension, cash capital and OPEB) before the percentage split is applied to the residual. If there is an unallocated component, the Town decides how this is used. Mr. Parker volunteered to attend future meetings of the Ad hoc Town -wide Facilities Master Planning Committee (AhTFMPC). 3. Capital Projects: The Committee discussed the potential funding of Cary Memorial Building renovations and the purchase of a portion of 33 Marrett Rd. using CPA funds. Not all of the purchase of 33 Marrett Road will be CPA - eligible, but minimally at least some portion meets the open space criteria. The Town has approximately $4.0 million available annually for CPA proj ects. In response to questions about why other capital projects, such as the police and fire stations and the schools, aren't being addressed at this time, Mr. Addelson reported that they aren't ready as definitive proposals. He also noted that this year's $2.4 million in unallocated revenue wouldn't be enough to fund most of those big- ticket projects, but it would be a candidate for funding of a $3.0 million high school project that may be brought to a fall special town meeting. The Committee discussed tax levy supported debt service. Mr. Addelson explained that the average term for the town's bonds is eight years, and recent interest rates have been favorable. He added that Carl Valente, Town Manager, recommends a growth in debt service equivalent to growth in revenue (5 %). Currently, the Town's debt service growth is not as high as the Town's increase in revenue, and there will be a drop in debt service in 2015 — 2016 of approximately $900,000. This may provide opportunity to fund additional projects. In response to a question, Mr. Addelson said that the idea of a building depreciation fund is worth discussing, but it raises intergenerational equity issues; should people today be paying for building expenses from which they will not benefit? 2