2021-11-08-AC-STM-rpt - Laserfiche WebLink

Browse Search

2.02.1-1 STM APPROPRIATION COMMITTEE I NOVEMBER 2021 to commence within a few years, while the Lexington High School project may begin within five to ten years.Whether the High School is eventually renovated or replaced,the total cost will almost certainly far surpass any prior capital project in the Town. It is desirable to grow the Capital SF in advance of the sharp rises in debt service that will follow immediately after bonds are issued to fund a high school project. The requested appropriation into the CSF would transfer$570,300 from the balance of"new growth"rev- enue,which is property tax revenue in excess of the estimate approved for the FY2022 budget. A small part of this new growth, about $57,000, can be traced to the recent PSDUP-based developments that are currently under construction at 186 Bedford St. and on Watertown St. (Waterstone and Bridges). This is only the preliminary new growth amount for these two partially completed projects. The final new growth revenue will be larger once they are completed. Another PSDUP-based development at 1050 Wal- tham St. is also expected to generate significant new growth in the coming fiscal year(s). This appropriation into the Capital SF is consistent with a process recently recommended by the Town Manager's Financial Working Group to earmark a portion of current and future revenue from two compo- nents of new growth for the Capital SF: (1) that from properties developed under the framework of the rezoning/PSDUP process; and (2) that from properties developed under the recently approved zoning changes for the Hartwell Innovation Park (C-HIP, see Art. 45 from the 2021 ATM). The purpose of this earmark is to establish a reliable and growing source of recurring revenue from the tax levy to support the Capital SF,which has heretofore been funded exclusively with one-time funding sources. The balance in the Capital SF on September 30, 2021, was $21,096,702. This balance reflects transfers approved at the 2021 ATM. It should be noted that this fund is already being used to mitigate the impact of debt service on existing exempt capital projects and selected non-exempt capital projects. Therefore, not all of the present balance will be available to offset costs of the police station and high school projects. The Committee recommends approval by a vote of(8-0). Article 4 Amend FY2022 Operating and Enterprise Budgets Funds Requested Funding Source Committee Recommendation See below See below Approve(8-0) At last spring's Annual Town Meeting,operating and enterprise fund budgets were presented and approved based on the FY2022 Recommended Budget and Financing Plan published on February 22, 2021. This article proposes several modest adjustments to those budgets in view of developments which have occurred since that time. Line numbers in the tables for this section refer to budget categories in the Plan. Proposed changes to the FY2022 Community Preservation Fund budget are addressed in Article 6. Operating Budget Town staff is proposing both increases and decreases in the FY2022 operating budget, resulting in a net reduction of$180,870. The details of, and reasons for,the changes are set forth below. Line From To Change 2140 Unemployment $ 300,000 $200,000 $ (100,000) The Town's unemployment costs experienced year-to-date have been lower than anticipated, largely be- cause there have been minimal COVID-related claims and payments. Town staff thus proposes to reduce 4