2023-03-20-CEC-ATM-rpt - Laserfiche WebLink

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CAPITAL EXPENDITURES COMMITTEE REPORT TO 2023 ATM The Capital Expenditures Committee (CEC): • Assesses Capital needs brought forward by each department(municipal and schools) as well as the Community Preservation Committee (CPC)through the annual budgeting process; • Works with those departments and the CPC to identify likely Capital needs for the next five years; • Independently considers public facilities, infrastructure systems, and prospective longer-term needs, as well as issues and facilities not being addressed within any department; and • Through this report and in presentations, advises Town Meeting about necessary and prudent investments to maintain, improve, and create facilities required to serve Lexington citizens safely, effectively,and efficiently. During the year, Committee members also work with,advise,and consult staff members in various departments and with other public committees—notably in budget summits with the Select Board (SB)2,the Appropriation Committee, and the School Committee—in an effort to shape a responsible Capital budget for Lexington. Please note these important caveats: • All cost figures are estimates and may not reflect the cost in then-year dollars. The degree of accuracy varies by project. Estimates that are several years into the future are the most uncertain. They are subject to refinement as projects are designed,bid,and built.Even relatively near-term work is subject to cost uncertainties until projects are bid and contracts signed because material, labor, and contract- management costs are often highly variable even over a period of just a few months. • The scope of future projects is also often highly uncertain. Accordingly, project budgets are subject to significant revision as the work is defined through the political and budgeting processes. • Dates for appropriations and taxpayer impact of financing projects, unless otherwise specified, are given in fiscal years,beginning July 1. Capital Projects Capital projects require careful analysis, budgeting, and broad support. Generally, recommended large Capital projects have been funded through borrowing, consistent with their expected life and annual budgeting for operating needs. Borrowing incurs debt service in later fiscal years, and this is funded in one of three ways: 1. Through the operating budget,which may `crowd' the budget for other Town needs. 2. Through the use of a Proposition 2'/2 debt-exclusion,which has the additional benefit of reinforcing broad community support. 3. Through the CPA, in which case, neither a debt-exclusion vote nor operating budget funds are required to use the CPF. However, there may be a separate funding for companion elements—usually essential—of the project that are not eligible for use of the CPF. This Committee applauds the Town departments' emphasis on continual infrastructure maintenance and upgrades. We continue to work closely with the stewards of our assets to prioritize, plan, and project the Capital work for a period of five years or more. The Projects Agenda The following are big-ticket items being considered in Lexington. Except for the first item identified by the SB as the Town's highest priorities—with which this Committee agrees—no priority ranking is intended; the rest of this listing is simply alphabetical. • School Buildings—Expansion, Renovation &Reconstruction (See Article 16.) • Community (Affordable)Housing—Development and Acquisition(See Articles 7, 10(n)) • Conservation/Open Space Land—Acquisition and Enhancement(See Articles, 10(g) &(h)) • Hartwell Avenue Transportation Management Overlay District Improvements (See Article 10(d).) 2 As of January 14, 2020, Select Board (SB) is the new name for what had been the Board of Selectmen (BoS). Although there are matters in this report that happened while that Town executive body was the BoS,to avoid confusion those are also identified in this report as the SB. 5