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CAPITAL EXPENDITURES COMMITTEE REPORT TO 2011 ATM
<br /> minimum annual trust fund match of 75%, has been reintroduced in the current session; however, there is
<br /> no assurance of if and when it would be passed and signed by the Governor.
<br /> This has been the history, at the State level, of its distributions under the CPA in the years relevant to
<br /> Lexington:
<br /> For Communities Having Adopted CPA(out of total of 351)
<br /> Year in which match Percentage of Total of all CPA Total Match
<br /> distributed Number Massachusetts Surcharges ($M) Amount($M) Percentaget
<br /> FY2008 (Actual) 113 32.2% $68.1 $68.1 100.0%
<br /> FY2009 (Actual) 127 36.2% $74.1 $54.6 73.7%
<br /> FY2010 (Actual) 135 38.5% $78.2 $31.5 40.4%
<br /> FY2011 (Actual) 142 40.5% $82.0 $25.9 31.6%
<br /> tAdjusted,if necessary,for$-amount rounding Totals $302.4 $180.1 59.6%
<br /> Note: In FY2011, one small community voted to adopt the CPA (with a 1% surcharge) that will have a
<br /> very-small effect on the FY2012 match. Another 4 communities have recently voted to adopt the CPA, so
<br /> their first match would not be until at least FY2013.
<br /> And here is the matching received by Lexington from the State, along with a projection for FY2012:
<br /> Year Prior-Year's CPA State Matching Percentage Total
<br /> in which match received Surcharge Collectedt 1st Round 2nd Round 3rd Round Total Match Amount
<br /> FY2008(Actual) $2,556,362 100.0% N/A N/A 100.0% $2,556,362
<br /> FY2009(Actual) $2,777,882 67.6% 1.8% N/A 69.4% $1,927,708
<br /> FY2010(Actual) $2,931,678 34.8% 0.9% 0.5% 36.2% $1,060,390
<br /> FY2011 (Actual) $3,042,587 27.2% 0.6% 0.4% 28.2% $858,729
<br /> Total Actual $11,308,509 Received to date 56.6% $6,403,189
<br /> FY2012(Projected) $3,181,549 TBD TBD TBD 27.0% $859,000
<br /> Totals incuding projected $14,490,058 50.1% $7,262,189
<br /> I As used by the State
<br /> At this time, the latest estimate by the Massachusetts Department of Revenue (DOR) with regard to the
<br /> potential match percentage for FY2012 is that the 1st Round should be 25%. (As shown above, our prior
<br /> experience in the 2nd & 31-d rounds has been in the range of 1.8% to 1.0% more.) For the FY2012
<br /> projections in the above table, we're using the same estimate of this year's match percentage that the
<br /> Town is using which, in turn, is the same estimated match amount as shown in the Brown Book
<br /> (Appendix C, Page C-3).
<br /> Although there are other factors that will reduce in the size of the State's CPA Trust Fund from which the
<br /> matches are made (e.g., its administrative expenses and interest earned on that Fund), the following is a
<br /> year-to-year comparison of CPA Trust Fund collections at the Registry of Deeds, its revenue source, for
<br /> the first five months of this fiscal year the latest data we have been given, so far.
<br /> CPA Trust Fund Collections at the Registry of Deeds($M)
<br /> Month FY2010 FY2011 Change Percentage
<br /> Sep $2.287 $2.364 $0.077 3.4%
<br /> Oct $2.132 $2.479 $0.347 16.3%
<br /> Nov $2.272 $2.442 $0.170 7.5%
<br /> Dec $2.146 $2.530 $0.384 17.9%
<br /> Totals: $8.837 $9.815 $0.978 11.1%
<br /> Source:Community Preservation Coalition communication,February 10,2011
<br /> We believe the Town projected match for this year is not unreasonable. If the final match percentage were
<br /> to be 25% (which includes nothing from the 2nd and 31-d Round), then the estimated match amount would
<br /> be $795,387 which is $63,613 less than the Town's currently budgeted estimate. As the projected
<br /> balance in the CPF if all proposed projects and the administrative budget for FY2012 were approved is
<br /> presently calculated to be at least $2,041,669 [CPC Communication, March 15, 2011], that reduction
<br /> from the estimated match amount is not a material consequence.)
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