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TOWN OF LEXINGTON | 7
<br />Table 2: Uses of Unreserved Fund Balance
<br />FY Certified FY12 FY13 FY14
<br />FY Appropriated FY14 FY15 FY16
<br />Capital Stabilization Fund $950,000 $3,161,309 $6,405,035
<br />In support of operating budget $4,201,709 $4,100,000 $4,080,920
<br />Cash Capital $4,333,503 $2,000,000 $2,119,000
<br />Set-Aside for Unanticipated Current FY Needs $200,000 $200,000 $200,000
<br />Other Post-Employment Benefits $525,000 $119,000 $3,247
<br />Reserve for Federal/State Budget Reductions $750,000 $400,000
<br />39 Marrett Road Improvements Phase I $322,816
<br />Estabrook School Street Improvements $1,500,000
<br />Budget Adjustments (Hastings Gazebo, DPF benefits)$39,582
<br />Unallocated $101,137
<br />Total Certified Free Cash $12,600,931 $10,303,125 $12,808,202
<br />Finance
<br />In February 2015, Moody’s Investment Service reaffirmed
<br />Lexington’s Aaa bond rating, citing the Town’s wealthy
<br />tax base with continuing economic development activi-
<br />ties, healthy reserves and a track record of voter support for
<br />Proposition 2-1/2 operating overrides and debt exclusions.
<br />Lexington is one of approximately 30 Aaa communities in
<br />Massachusetts. In 2015, the Town issued $23.5 million in
<br />general obligation bonds for capital financing. The bonds
<br />were sold at a 1.84% interest rate for a five to ten-year
<br />term. In June 2015, two bond anticipation notes were is-
<br />sued for a total of $5.72 million with a Net Interest Cost of
<br />0.2309% on the $4.35 million bond anticipation note, and
<br />0.4144% on the $1.37 million bond anticipation note. They
<br />were used to finance school facilities capital projects de-
<br />sign, high school modular classrooms, a fire engine, school
<br />technology, and other capital projects.
<br />On March 23, 2015, a Special Town Meeting at Annual
<br />Town Meeting voted to appropriate $4,080,000 for the de-
<br />sign, engineering, and architectural services for construct-
<br />ing new school buildings and additions to existing school
<br />buildings.
<br />Economic Development
<br />Economic development continues to be a top priority for
<br />the Board of Selectmen. The Economic Development Di-
<br />rector, Melisa Tintocalis, works with the Town Manager,
<br />Board of Selectmen, Town departments, committees, busi-
<br />nesses and residents to increase commercial values and job
<br />growth, enhance Center vitality, and support the visitor-
<br />based economy in the Town.
<br />The Economic Development Director together with the
<br />128 Business Council, a Transportation Management As-
<br />sociation, and private sector partners secured funding for
<br />year three of the REV’s operation, a commuter shuttle con-
<br />necting Lexington’s Town’s largest job center, the Hartwell
<br />District, to the MBTA Alewife Red Line station, enabling
<br />employers to connect to the desirable inner core workforce.
<br />In addition, new intersection improvements are planned
<br />for Maguire and Hartwell, as well as the installation of the
<br />Town’s first bus shelter at Bedford and Hartwell.
<br />These types of initiatives have contributed to the construc-
<br />tion of the first private sector building in the Hartwell area
<br />in over 40 years. The project includes an 80,000 square foot
<br />life sciences building; it completes a four-building campus
<br />style development designed to attract additional life sci-
<br />ences companies to Lexington. According to the Town’s
<br />Assessor’s Office, the new project is expected to generate
<br />approximately $600,000 in additional property tax revenue.
<br />Human Resources
<br />The Human Resources Department spent a significant
<br />amount of time in fiscal year 2015 bargaining with the
<br />Town’s unions. The Town negotiates collective bargaining
<br />contracts on a staggered schedule so that they expire in dif-
<br />ferent years. This provides more certainty in budgeting for
<br />future personnel costs, as some bargaining units are likely
<br />to have settled contracts at any given time. The Town was
<br />able to reach settlements with the following unions; SEIU
<br />Local 888, Lexington Crossing Guards (FY16); Lexing-
<br />ton Municipal Managers Association (FY16); IAFF Local
<br />1491, Lexington Fire Fighters (FY16) and Cary Memorial
<br />Library Association (FY17). The Town recently received
<br />a decision in the Joint Labor Management Commission
<br />arbitration process with the Lexington Police Association
<br />that will result in a settled contract for the period of fis-
<br />cal year 2013 to fiscal year 2015. The Town also reached
<br />Town Manager continued from previous page
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