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Annual Report
<br />Town Manager
<br />Personnel FY13 FY14
<br />FullTime .. ............................... 8 ...... ............................... 8
<br />PartTime ................................ 1....... ..............................1
<br />ROLE: As the Chief Executive Officer of the Town, es-
<br />tablished in the Selectmen -Town Manager Act, the Town
<br />Manager administers the policies and procedures of the
<br />Board of Selectmen, enforces bylaws and actions passed by
<br />Town Meeting, proposes the operating and capital budgets
<br />and manages the daily operation of all Town departments.
<br />The Town Manager's Office also includes the Human Re-
<br />sources Office.
<br />APPOINTED: by the Board of Selectmen: Carl Valente has
<br />served as Town Manager since July 2005.
<br />Form of Government
<br />The current Town Manager /Selectmen /Town Meeting
<br />form of government dates back to a 1969 Act of the State
<br />legislature based on a plan developed by the Town Struc-
<br />ture of Government Committee. Lexington had previous-
<br />ly operated under a Selectmen /Executive Secretary plan.
<br />Three hundred years ago, shortly after incorporating as a
<br />township in March of 1713, the first Town Meeting (com-
<br />prised of adult male property owners) "selected" three men
<br />to conduct the business of the Town between Town Meet-
<br />ings. The Selectmen /Town Manager Act brought major re-
<br />alignment of responsibilities including changes in methods
<br />of appointment, closer supervision of administrative func-
<br />tions, and centralized control of purchasing.
<br />Budget
<br />The FY2015 budget process continued the collaborative
<br />effort among the Board of Selectmen, School Committee,
<br />Appropriation and Capital Expenditures Committees, and
<br />the staff. Five budget summit sessions resulted in consen-
<br />sus on a balanced budget for Town Meeting consideration
<br />that addressed many pressing needs and did not require
<br />a Proposition 2 -1/2 override (the last Operating Budget
<br />Override was approved for FY2008).
<br />Major budget issues include building the Town's reserve
<br />funds in anticipation of future capital projects. The Town
<br />is planning for a number of significant capital projects over
<br />the next three to five years potentially including a new fire
<br />station, police station, Center Streetscape improvements,
<br />Hartwell Avenue infrastructure improvements, expanded
<br />Visitor's Center, Hastings School renovation and Com-
<br />munity Center expansion. In anticipation of these poten-
<br />tial projects, the 2014 Annual Town Meeting appropriated
<br />$5,910,726 to the Capital Projects /Debt Service Reserve/
<br />Building Renewal Stabilization Fund. This reserve fund
<br />now has a balance of approximately $8,100,000. Town
<br />Meeting also appropriated $1,119,000 to the other post -
<br />employment benefits (OPEB) trust fund to help fund the
<br />liability for retiree health care costs. The current balance in
<br />the OPEB trust fund is approximately $5,600,000.
<br />A Special Town Meeting on November 4, 2013 authorized
<br />$7,700,000 in debt for the purchase and installation of
<br />modular buildings at Lexington High School to accommo-
<br />date the growing student population. It also appropriated
<br />$3,169,000 for the design, engineering, remodeling and re-
<br />construction of the new Community Center at 39 Marrett
<br />Road. This appropriation was amended at the March 2014
<br />Special Town Meeting and again at the June 2014 Special
<br />Town Meeting to $6,720,000 to more accurately account
<br />for funding required to accomplish community objectives.
<br />The FY15 budget also provided a total of $1,869,000 in prop-
<br />erty tax relief to offset debt service costs related to the Bridge,
<br />Bowman, and Estabrook School projects and the installation
<br />of the modular buildings at Lexington High School.
<br />Free Cash for FY13 was certified at approximately $10.3
<br />million, which was appropriated to support the FY15 capi-
<br />tal and operating budgets and to finance a portion of the
<br />contribution to the Capital Projects /Debt Service Reserve/
<br />Building Renewal Stabilization Fund.
<br />Finance
<br />The Town has begun negotiating collective bargaining
<br />contracts on a staggered schedule, so that they expire in
<br />different years. This will provide more certainty in budget-
<br />ing for future personnel costs, as some bargaining units are
<br />likely to have settled contracts at any given time.
<br />In February 2014, Moody's Investment Service reaffirmed
<br />Lexington's Aaa bond rating, citing the Towns wealthy
<br />tax base with continuing economic development activi-
<br />ties, healthy reserves and a track record of voter support for
<br />Proposition 2 -1/2 operating overrides and debt exclusions.
<br />Lexington is one of approximately 27 Aaa communities in
<br />Massachusetts. In 2014, the Town issued $22.8 million in
<br />general obligation bonds for capital financing. The bonds
<br />were sold at a true interest cost (TIC) of 1.67 %. In June,
<br />$5.98 million of bond anticipation notes were issued for
<br />capital financing and sold at a net interest rate of .01 %.
<br />On March 24, 2014, a Special Town Meeting voted to ap-
<br />propriate $8,677,400 for the remodeling and reconstruct-
<br />ing of Cary Memorial Building. This project began in sum-
<br />mer 2014 and is expected to continue for 15 months. This
<br />project will lead to significant improvements to the Cary
<br />Memorial Building, including the upgrade of aging me-
<br />chanical systems, life safety improvements and increased
<br />accessibility. As noted above, the March and June 2014
<br />
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