2015-11-02-AC-STM#2-rpt - Laserfiche WebLink

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APPROPRIATION COMMITTEE - NOVEMBER 2015 STM #2 A newly passed State regulation allows a regional school district to recover capital costs from out -of- district students in the form of a "facilities fee," but only for MSBA- approved projects. If Wayland were allowed to leave the District, and the District then opted for a renovation project instead of the MSBA- approved replacement project, Wayland would escape having to pay its share of the costs for bringing the school up to building code and putting the building in a condition allowing it to remain accredited. What are Lexington's Interests? Lexington's interests are the same as the District's: proceeding to update the school by the most economi- cal method. Approval of the MSBA project would benefit the District in two ways: 1) it would provide the District with a 40% State reimbursement on a new building; and 2) it would allow the District to recover a portion of its share of the capital costs from out -of- district students in the form of a facilities fee. Recommendation and Analysis This Committee is divided on the Wayland withdrawal request. Majority Position: Four of the seven committee members present during our deliberation on this article believe there is a financial downside to approving Wayland's request for withdrawal because it would of- fload pension and OPEB liability to other District members with no apparent benefit. If Lexington were to vote `No', Wayland's withdrawal process would end here and now because agreement must be unanimous among all member towns. The majority note that in 2014 and 2015, the District tried but failed to get the unanimous approval of all of its members to update its Regional Agreement. The proposed revision was a compromise that would have addressed shortcomings preventing new towns from joining the District; changed the weight of each mem- ber's school committee vote and liability for operating and capital costs; and allowed a member town to withdraw from the District with only a two- thirds majority vote. Lexington was one of the first towns to approve this revised agreement. Wayland, ironically, was the only town to reject it. Rejecting Wayland's request for withdrawal and stopping the process could trigger the reopening of negotiations for updating the Regional Agreement in ways that benefit the entire District. The majority also note that approval for the MSBA project requires either unanimous approval from all 16 member -towns or support from a majority of voters in a District -wide referendum. Letting Wayland out of the District could make that process harder. Wayland would remain a District member until July 2017, long after the June 30, 2016 deadline for accepting the MSBA project, and Wayland's Town Meeting might not support a project that could subject the Town to future facilities -fee costs for out -of- district students. Minority Position: Three committee members favor indefinite postponement of the article, believing there is no requirement to take action before the spring and that views on the best course of action could well change between now and then. One of the minority members voted to recommend approval of Wayland's request should the matter come to a vote and two abstained without taking a position on the merits. The minority is concerned that keeping municipalities in the District against their will could have negative repercussions for the future operation of the District School Committee and the decision - making process for updating the Minuteman facilities. While the consequences of a dysfunctional relationship among the district towns are impossible to quantify, the minority believe they are significant enough to outweigh the relatively minor financial implications of Wayland's withdrawal. As long as Wayland enrollment remains low, Wayland's share of any costs will be less than one percent. Even if several other small towns with similar enrollments also withdraw, the financial implications for Lexington would still be relatively small. The minority feel that the most important challenges the District faces are resolving the current governance issues, addressing the inequities of in- district versus out -of- district fee levels, and creating an environment that encourages enrollment growth and fair sharing of all costs. They do not envision, at least at present, how disapproval of Wayland's request to withdraw will help move the district forward. The Committee recommends disapproval of this request (1 -4 with 2 abstentions). 3