2011-03-CEC-ATM-rpt - Laserfiche WebLink

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CAPITAL EXPENDITURES COMMITTEE REPORT TO 2011 ATM State funding; accordingly, debt-exclusion overrides could not be scheduled. At the 2008 Annual Town Meeting, the Woburn Street reconstruction ($1.4 million, including $700,000 of the State's Chapter 90 funding) was funded without a debt-exclusion, largely because it would be too much to ask voters to approve debt-exclusions in consecutive years. The authorization at the 2009 May Special Town Meeting to purchase the Busa property (total cost $4.197 million) did not require a debt-exclusion vote as it uses CPA funds. Similarly, at the 2010 Annual Town Meeting, the Town Office Building Renovation estimated at about $1.8 million, of which $1.5 million was funded under the CPA was funded without a debt-exclusion vote. It is important to bear these cases in mind in thinking about major capital investments. Thus, not every big-ticket project, or element of an existing project, is subjected to a debt- exclusion vote. When they are not with the exception of those using CPA funds the costs are absorbed within the operating budget,which has significant implications for the financing of other Town needs. Further, the existence of the Community Preservation Fund (CPF) in Lexington has also resulted in serious debate as to whether, and if so, when CPA-funded Big-Ticket items should be funded with debt. At the 2009 Annual Town Meeting, you approved the purchase of the Busa property using debt. Subsequently, the CPC, Board of Selectmen, CEC, Appropriation Committee, and Town staff held discussions regarding CPF reserve and debt-versus-cash financing policies and concluded that reserves of $2 million in the CPF are appropriate. Further discussions recommended short-term bonding for the Busa property, consistent with those policies. This Committee endorsed the policies and the specific bonding for the Busa property. At the 2010 Annual Town Meeting, you approved the purchase of the Cotton Farm property once again with short-term financing. We expect to be parties to comparable discussions as other Big Ticket items are proposed for funding by the CPF. The Projects Agenda Among the big-ticket items Lexington is currently undertaking or may undertake in the future, we note and provide an update here on these from our last-year's report: • Renovation or reconstruction of the "White House" (the old School Administration Building at 1557 Massachusetts Avenue). Its future use is uncertain, but given its current state of deterioration, under normal circumstances it will need considerable attention in the near future. (For the time being,we are presuming that a total demolition would not be allowed by the Town's Historic District Commission and that sale or lease of the property to a commercial entity is not planned.) The property is under control of the Board of Selectmen and, as of this report, it has not designated any use for the site. This year Citizen's Article 15 requests funds (an, at-present, unknown amount from unknown sources) for building a community center on this site. • Renovation or replacement of three elementary schools and renovation at the high school. See Article 13(a) and (b) regarding three of the elementary schools, and 13(f) regarding the High School. • Renovation of the Stone Building at 735 Massachusetts Avenue. No funds are being requested for this project at this Town Meeting. • Reconstruction of several major arterial roads. There are several arterial roads that need reconstructing, probably through a debt exclusion. There is also the matter of the large amount of work that is needed on our sidewalks both in the Central Business District(CBD) and elsewhere in Town. While we are not aware, as of this report, of any debt exclusion for roads or sidewalks, see Articles 10(d) and(j) for the FY2012 funding. • Police Station renovations to accommodate improved working efficiencies. No funds are being requested at this Town Meeting. • Fire station headquarters redesign and renovations. Funds for renovating the equipment floor of the main station and providing additional space in modular facilities are being requested this year under Article 13(k). 10