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2022 ATM,2022-1 STM APPROPRIATION COXMTTEE 21 MARCH 2022
<br /> The Town's Community Center, which had been closed since March 2020, was re-opened to the public on August
<br /> 18, 2021, soon after the start of FY2022. The Recreation Enterprise Fund has begun to receive revenue from user
<br /> fees again,but the Town continued to provide additional support for the Recreation Department during FY2022.
<br /> On March 2, 2022, the Massachusetts School Building Authority (MSBA) voted to invite the Town into the first
<br /> phase of a collaborative process to fund of the renovation or replacement of Lexington High School. A special town
<br /> meeting will be called to request funding for the Feasibility Study phase of the MSBA funding cycle.
<br /> FY2023 Revenue and Budget
<br /> The main body of this report contains the Committee's analysis of all the appropriation requests that make up the
<br /> next fiscal year's budget. Here we discuss some of the overarching trends in Town finance.
<br /> The FY2023 Recommended Budget and Financing Plan (the "Brown Book") opens with the Report of the Town
<br /> Manager. The first two tables below are taken from that section, which provides a comprehensive overview of the
<br /> estimated revenue and proposed budget for the coming fiscal year.
<br /> Tax Levy Dedicated to Capital Stabilization Fund
<br /> Starting in FY2022,the budget incorporated a new line in the revenue summary for a portion of the tax levy that is
<br /> earmarked for the Capital Stabilization Fund. This is based on a recommendation from the Town Manager's
<br /> Financial Guideline Working Group which allocates a portion of new growth in the tax levy derived from
<br /> development in commercially zoned areas of Lexington. For the prior year and this year, the dollar amounts are
<br /> small, but in the coming years this earmark will grow in proportion to commercial development. This guideline will
<br /> be suspended once debt service for a new or renovated Lexington High School begins.
<br /> Revenue Source FY2022 FY2023 $ % %of Total
<br /> Tax Recap Projected Change Change Revenue
<br /> Property Tax Revenue $ 204,171,602 $ 212,056,053 $ 7,884,450 3.9% 81.4%
<br /> Tax Levy Dedicated to CSF $ 57,138 $ 57,138 $ — -% —%
<br /> State Aid $ 16,492,260 $ 16,784,662 $ 292,402 1.8% 6.4%
<br /> Local Receipts $ 12,627,933 $ 13,488,108 $ 860,175 6.8% 5.2%
<br /> Available Funds $ 17,825,379 $ 18,507,776 $ 682,397 3.8% 7.1%
<br /> Revenue Offsets $ (1,961,196) $ (2,331,557) $ (370,361) 18.9% (0.9)%
<br /> Enterprise Receipts $ 1,432,356 $ 1,805,613 $ 373,257 26.1% 0.7%
<br /> Gross General Fund Revenues $ 250,645,473 $ 260,367,794 $ 9,722,321 3.9% 100.0%
<br /> Less-Revenue Set-Aside for $ 16,678,401 $ 19,896,592 $ 3,218,191 19.3% 7.6%
<br /> Designated Expenses
<br /> Net General Fund Revenues Is 233,967,072 1$ 240,471,202 Is 6,504,130 2.8% 1 92.4%
<br /> The Gross General Fund Revenue for FY2023 is projected to increase by 3.9%. State aid is estimated to grow by
<br /> 1.8%this year,which is largely a result of diminished growth in Chapter 70 aid for education.
<br /> Once the Town's "new growth" tax revenue is certified in the fall, the tax levy may increase resulting in higher
<br /> gross revenue, and creating free cash in the current fiscal year that may be appropriated at a subsequent special
<br /> town meeting.
<br /> The following table summarizes the FY2023 recommended budget in comparison to FY2022.
<br /> FY2023 %
<br /> Budget Program Appropriated Recommended Change Change
<br /> Budget
<br /> Education 1000 $ 126,507,019 $ 131,478,345 $ 4,971,326 3.9%
<br /> Shared Expenses 2000 $ 64,540,037 $ 64,190,302 $ (349,735) (0.5)%
<br /> Municipal Departments 3000-8000 $ 42,920,017 $ 44,802,554 $ 1,882,537 4.4%
<br /> Subtotal-Operating Budget $ 233,967,073 $ 240,471,201 $ 6,504,128 2.8%
<br /> Cash Capital $ 10,136,491 $ 13,491,037 $ 3,354,546 33.1%
<br /> Other(Approp.to reserves,misc.) $ 6,541,910 $ 6,405,555 $ (136,355) (2.1)%
<br /> Total-General Fund IS 250,645,474 1$ 260,367,793 1$ 9,722,319 3.9%
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