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2014-03-19 Minutes Mr. Parker willincorporate this position inhis write-uponArticle 15,Appropriate to Post Employment Insurance Liability Fund, for this Committee’s report to the Annual Town Meeting. Mr. Parker reported that Article 8(a),Appropriatethe FY2015 Community Preservation Committee Operating Budget and CPA Projects: 39 Marrett Road –Community Center Sidewalk Construction,will likely be indefinitely postponed because of some safety concerns associated with the design that have been identified by the Scottish Rite staff. A new design will result in new pricing. Article 8 will be taken up on April 7 (“a time certain”), and it is unlikely that a new design will be ready at that time. Article Positions for Special and Annual Town Meetings: 4.Mr. Parker asked the Committee to revisit two articles to be addressed atthe March 24, 2014 Special Town Meeting (STM)and Annual Town Meeting (ATM): STM Article 2,Cary Memorial Building Upgrades: Mr. Parker reported that the Community Preservation Committee (CPC) voted 9-0last night to maintain itssupport of STM Article 2; neither theBoard of Selectmen (BoS) Monday evening discussion of the project,norits split (3-2) vote to support it,changedthe position of anyone on the CPC. It was noted that Selectman Chair DebMauger and SelectmanPato had voted againstthis article because of concern that a 10-year CPAdebtfor the Cary Buildingmay constrain the Town’s ability to respond to future needs. They are particularly concerned about recent school enrollment projections that indicate the Town may need a new elementary school in about five years. Mr. Pato added that he believes Lexington taxpayers are currently resistant to further tax increases. The Cary Building project will add $1.0 million in debt annually for ten years;another school will add $2.5 to $3.0 million annually for perhaps 20 years. Mr. Addelson suggested that the Town needs to consider the taxpayers willingness to considerfurther tax increasesas well as ways theTown can mitigate the increases. He plans to reevaluate his financial modelling scenarios, and will look at the following: The current level of excluded debt service and the subsequent retirement of debt service, which will increase capacity. Balances in the CPA Fund that might be used to mitigate the debt service. The possibility of reducing the CPA surcharge, which would allowfewer projects to goforwardon the basis of CPA support. Mr. Addelson explained that a bondanticipation note (BAN) will be used for the initial funding of the projectif the funding is approved at the STM, and some of the BAN can be paid off before issuing a bond if other funding sources becomeavailable. He added that the Town can change the Cary Building funding sourcesvoted at the March 24, 2014 STMat a fall special town meeting. There was discussion about the modeling of the CPA funds, and it was noted that about 3/5ths of CPA income has already been allocated for pre-approved projects. 2