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

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CAPITAL EXPENDITURES COMMITTEE REPORT TO 2011 ATM So while the match level has fallen substantially since our first match, we emphasize that even at the DOR's currently estimated 1St Round percentage, our Town will receive a significant contribution toward the cost of our CPA-funded projects to supplement the direct funding from the surcharge that is part of our tax levy. With that estimated balance after all currently contemplated FY2012 actions, our projection for the CPA funding available for FY2013 would be as follows: Source Amount Projected End-of-FY2012 Balance $2,041,669 Application of LAND Grant toward Cotton-Farm Purchase $500,000 Costs (Conditional on Mass DOR Concurrence) Estimated FY2013 Surcharge at 3% Rate with 2.5% $3,084,604 increase over FY2012 Budgeted Surcharge and 91% collection Estimate State Match Received in FY2013 at 25% match $752,343 with 91% collection of FY2012 Budgeted Surcharge Estimated FY2013 Interest Income on the CPF Balance $33,000 Estimated Total Available for FY2013 $6,411,616 Existing Obligations (last of debt service for purchases of -$1,930,300 the Busa &Cotton Farms) Estimated Discretionary Funding Available in FY2013 with $4,481,316 Surcharge at Current Percentage Projects are put forth to Town Meeting for action by a Community Preservation Committee (CPC) whose membership is prescribed in the Code of Lexington as follows: § 29-23A. There is hereby established a Community Preservation Committee pursuant to Section 5 of Chapter 44B of the General Laws (the "Act") consisting of nine members. The Board of Selectmen shall appoint three members of the Community Preservation Committee and the following bodies shall each select one of its members for membership on the Community Preservation Committee: the Conservation Commission, the Planning Board, the Recreation Committee, the Historical Commission,the Housing Authority and the Housing Partnership. Town Meeting only has the options of approval, reduction, or disapproval; it cannot change the purpose, but Town Counsel has provided an opinion that Town Meeting can change the funding mechanism (cash or debt). As with any capital project, the CEC will give our recommendation on each of the projects put before the Town Meeting. (See Article 8) The CPA provides an alternative funding mechanism for capital projects. The CPA creates a separate pool of money that can be used for a limited set of projects and cannot be prioritized against the Town's traditional capital needs. It is this dichotomy of funds and debate that is challenging. See the CPA Summary in the Brown Book (Appendix C, Page C-3) for a summary of the CPF status as of its publication on February 28th of this year. Enterprise-Fund Projects The Town operates three enterprise funds for revenue-producing activities funded outside the tax levy by user fees (water distribution, wastewater distribution [sanitary sewers], and certain recreation services, such as the golf course, swimming pools, and tennis courts). (Recreational playground equipment, in contrast, is not fee generating, and capital investment for such equipment is therefore funded as part of the small-ticket program.) $100,000 per year is paid from the Recreation Enterprise Fund for Lincoln Field debt service (which is expected to continue until February 1, 2018, when that debt will be retired). Unlike property-tax revenues, enterprise-fund fees are not subject to a limit under Proposition 21/2. 13