2015-01-29-AC-min - Laserfiche WebLink

Browse Search

01/29/15 AC Minutes If the Town were to receive MSBA approvalfor Hastings,it is anticipated that the State would provideapproximately 32%, or approximately $19million, for what is now estimated to be a $59million project. The financing model prepared by Mr. Addelson and Carl Valente, Town Manager, and discussed at the recent Budget Summit contemplated an appropriation at the 2016 ATM for Hastings design fundsand atthe 2017 ATM for Hastings construction funds. There are some School Committee members and others who would prefer to start this process at a spring 2015 Special Town Meeting. Mr. Levine discussed his handout and questionsabout thedata included in the financing model. He noted that the model contemplates particularly dramatic property taxincreasesin 2019, 2020 and 2021. Hesuggested consideration ofsteps to offset these increases, such as: Aceiling on the percentage of exempt tax revenue in the total budget; A ceiling on the annual tax rate increase;and/or Increases in annualappropriations into the CapitalProjectsStabilization Fund(Capitalization Fund). Mr. Levine also suggested that consideration may need to be given to reducingin magnitude and/or stretching out the sequencingof some of the projects. Mr. Bartenstein commented that, prior to the establishment of the Capitalization Fund,the Town relied mainly onexcluded debt to fund major projects; the Capitalization Fund is a vehicle for using tax levyrevenue for major projects.Mr. Addelsonnoted that, in recent years, taxpayers have benefitted from new growth, reduced health care costs, and low inflation rates, all of which have helped control annualincreases in tax rates. There was discussion about the work done bythe Ad hoc School Master Planning Committee (AhSMPC) and its consultant; conceptual ideas for addressing the space needs in the schools based on projectedenrollmentwere identified. The next step isto develop schematicdesigns to understand whichprojects are the most realistic.Debt exclusion referendums will be needed to fund the school expansion programs as they are now identified. It isn’t clearwhether it is preferable to have one large referendumor several small ones. In response to theidea of waiting to see whether the enrollment projections are realistic, it was noted that there are immediate space needs withoutthe projectedadditional students. The middle schools already need additional space, and the projected increases at that level havenarrow error bands. Ms. Garberg noted that, given the total size of the requests,it is going to be important to determine how to present themto the community. She stated that phasing the requests might be a more pragmatic approach. She also suggested that a more robust discussion about setting ceilings be had at the next full committee meeting. Mr. Addelson noted that his current financial modelincludesa new fire station and $10.0 million for aLexington High School heating system upgrade. He expects the commercial and residential relationship for tax purposes to remain stable. He noted that the model is just a template, so can be used fora variety of scenarios. He also stressed that the project costsused in the model are not design-based; they are soft numbers. 2