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02/19/15 AC Minutes There wasdiscussion whether the draft consensus document shouldconsiderredistricting and other possible administrative optionsfor providing some immediate relief at the schools which are currentlyover-capacity. There were also comments about the school buildings and sites thatwill be studied. It was noted that the Town plans to submit a Statement of Interest to the Massachusetts School Building Authority regarding the Town’s needto rebuild the Hastings Elementary School. The Town won’t know before December 2015 whether the project will be accepted for State funding assistance. At that point,the Town will need to decide whether to proceed on that project. Report to the 2015 Special and Annual Town Meetings: 4.Mr. Parker hopes that afirst th group of articles can be reviewed at the February 26meeting and that asecond group of articles can th be reviewed at the March 5meeting. He requested that all draft write-ups be submitted to him by th March 12.Discussion/commentsabout subjects that maybe part of the report includedthe following: Debt Service Stabilization Fund:This is useful for the smaller projects and can help stabilize the tax rate when there are peaks that are considered untenable. Adjust Retirement Cost of Living Adjustment(COLA)Base for Retirees:Mr. Addelson provided background information on this article. State law provides for a $12,000 base to which an annual cost-of-living adjustment may be applied but that base maybe increased by local option up to $13,000. The Massachusetts Public Employee Retirement Administration Commission (PERAC), whichprovides oversight and regulation of the state’s public pension systems,recentlyadopted a $13,000 base for members of the State Retirement System and the Teachers’ Retirement System, which includes Lexington teachers. The base for Lexington municipal employees is still $12,000but the Retirement Board has recommended that it be increased to $13,000.Mr. Addelson noted that PERAC has encouragedpublic employee retirement systemsto become fully funded by 2025 or 2030 rather than using the current state-mandated2040 target, and Lexington’s Retirement Board is considering such a change. The proposed increase in the COLA base would increasethe amount the Town needs to set aside annually to reach that goal. In response to concerns about the impact on the Town budget of an earlier full-funding target date,Mr. Addelson suggested that this is an issue the Committeemight wish to raise atthenext budgetsummit. Other Post Employment Benefits(OPEB):There was discussion about this year’s proposed appropriation to the OPEB stabilization fund. Funds for thiseffort are currently being drawn fromthe health insurance trustfund, which is no longer active.In response to questions, Mr. Addelson saidthat the health insurance trustfund could be drawn down at a faster rate, although a minimum balance should be retained in the event the Town withdraws from the state’sGroup Insurance Commission (GIC)and returns to a self-insurance program. STM 2 Article for Cary Memorial Building Sidewalk:The current designincludes granite pavers for the handicappedunloading zone. These add $30,000 to the cost, bringing the budget request to $192,000.It isn’t clear whether the Commission on Disability has reviewed the latest design. STM 2 Article for Pump Station Repairs:Engineering studies to determine the best way to address the pounding noise that is being heard in the Gleason Road area are going forward. There is a request for $750,000to address the problem.The necessary funds would be appropriatedfrom the wastewater fundretained earnings, which has a current balance of approximately $2,000,000. 2