2006-04-19 Community Preservation Act Report to TM

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projects like treating the Old Reservoir for water quality and vegetation control or even in acquiring additional recreational land. The Community Preservation Act requires that 10% of CPA funds raised (estimated at $230,000 for FY 07) must be allocated to open space, 10% to affordable housing and 10% to historic preservation. The funds may be spent or banked for use in future years. In addition to funding the projects which have just been described, the CPC recommends that the following reserves be approved by Town Meeting: $230,000 for open space, $230,000 for affordable housing, and $25,000 for historic preservation. (The CPC is recommending more than the required 10% historic preservation allocation in the projects we have proposed.) The CPC recommends that the remaining $1,530,000 (after accounting for administrative expenses of $25,000 and the $260,000 for capital projects) be deposited in the general unreserved fund balance of the Lexington Community Preservation Fund. All of these amounts that are spent on approved projects or allocated and reserved for future CPA projects will be matched by the State, with the projected first payment of $2.3 million to occur in October, 2007 (the funds are paid out with a one-year delay). We anticipate that our FY07 appropriations will be matched 100% with State funds at that time. We are pleased that our recommended capital projects, which were tax levy items, can now receive CPA funds, resulting in a savings of $260,000 in the Capital Plan Budget ($160,000 from the cash funded capital budget and $100,000 from the bond funded capital budget). The CPC would like to add that although we had wanted to renovate the Center Playground using CPA funds, current interpretations by the Department of Revenue of the allowable uses for recreation under the CPA statute do not allow it at this time. The CPC is in the process of putting together an application form for new CPA projects th that should be ready for distribution by May 15. New projects will be reviewed by the CPC by late summer for the probable fall Town Meeting. Projects will also be considered on a regular basis in the fall and the CPC’s recommended projects will be th placed on the Warrant by Dec. 30, for consideration at the annual spring Town Meeting in 2007. April 19, 2006 - 3 –