2016-03-21-CEC-ATM-rpt - Laserfiche WebLink

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CAPITAL EXPENDITURES COMMITTEE REPORT TO 2016 ATM See the CPA Summary in the Brown Book (Appendix C, Page C -3) for a summary of the CPF status including what projects have been funded from the CPF since its inception in Lexington and what is being requested in FY2017. Also see the CPC's report to these Town Meetings for its projection of what the CPF balance would be after these Town Meetings if Town Meeting were to approve all of the CPC's recommendations. See Article 8 for this year's projects recommend by the CPC. Enterprise -Fund Projects The Town operates three enterprise funds for revenue - producing activities funded outside the tax levy by user fees: water distribution, wastewater distribution [sanitary sewers], and certain Recreation and Community Programs (R &CP) services, such as the golf course, swimming pools, and tennis courts. Unlike property -tax revenues, enterprise -fund fees are not subject to a limit under Proposition 2'/2. Recreational playground restoration and equipment, in contrast, is not fee generating and capital investment for such equipment is therefore, normally funded as part of the small- ticket program of the GF. The 2012 amendments to the CPA expanded the range of recreation projects that are eligible under that Act; therefore, many recreational projects since then have been submitted to our CPC with requests for use of the CPF as the fund source. That continues this year and you'll find many of the recreation projects coming before this ATM will be for full or partial funding from the CPF rather than from the EF or GF. $100,000 per year is paid from the R &CP Enterprise Fund for Lincoln Field debt service that is expected to continue until February 1, 2018, when that debt will be retired. Coming before this Town Meeting are recommendations for capital projects in support of responsibilities of the Departments that manage the Water, Sewer, and R &CP Enterprise Funds. (See Articles 86, k, m, & n), 9, 10(b & e), and 12) (Funding for the Water Distribution System Improvements was in the November 2, 2015, STM #2, Article 4.) Revolving -Fund Projects Revolving funds established under the provisions of Massachusetts General Laws Chapter 44, Section 53E'/2, must be authorized annually by vote of the Town Meeting. The fund is credited with only the departmental receipts received in connection with the programs supported by such revolving fund, and expenditures may be made from the revolving fund, without further appropriation, for those programs. Revolving funds are usually expended to cover non - capital costs and, therefore, this Committee normally doesn't report on their annual authorizations unless a capital expense is contemplated. Such an expense is not contemplated in FY2017. Small- Ticket Projects Capital projects that do not qualify as big - ticket projects are funded from the tax levy. Generally, they cost between $25,000, the minimum qualification for consideration as a non -CPF capital expenditure, and $1 million, and represent projects that should be funded on a regular, timely basis to maintain Town infrastructure. With the creation of the Department of Public Facilities as well as the Building Envelope "set- aside" passed in the June 2006 operating override, a new emphasis has been placed on continual infrastructure maintenance, a move that this Committee applauds. We continue to work closely with the stewards of our assets to prioritize, plan, and project such work for a period of five years or more. 8