2016-04-18-AC-STM4-rpt - Laserfiche WebLink

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APPROPRIATION COMMITTEE - STM 2016 -4 (PART 1) Additional funding will come from a "capital fee" added to the tuition for out -of- district students. These funds will offset annual debt service assessed to District members. Capital assessments will be recalculated annually according to a formula spelled out in the school's Re- gional Agreement. Half of the total annual debt service is allotted to ach member proportionally based on the four -year enrollment averages. Another 40% of the total annual debt service is allotted proportionally based on the State's "Combined Effort" (this is the "wealth factor" in the Chapter 70 formula). The re- maining 10% comes from a flat 1% of the total annual debt service in every member's assessment. A financial model provided by MRHS projects Lexington's FY2020 assessment at $2,499,221, of which $665,537, or 27 %, would go towards debt service on this project. This would account for approximately $37 out of the projected FY2020 tax bill for a home of median - assessed value. The model assumes that the relative proportion of Lexington's enrollment does not deviate widely from the current average, and that the number of out -of- district enrollments at MRHS does not change significantly. If this project is not approved, the impact on both the Town and the school will be severe. MRHS will be forced to undertake a more expensive and time- consuming renovation project. The estimated cost for a renovation that would solve only the existing building system and code deficiencies is $106 million. This option would not reconfigure the school's layout for the Career Academy model, nor would the building be "right- sized" for a smaller school enrollment. With no swing space, the renovation would create up to ten years of continual disruption and displacement. The District would forego $44,100,000 of MSBA re- imbursement, and member towns would face higher capital assessments, because the District cannot add a capital fee for out -of- district tuition without an MSBA- approved project. This project is the result of years of planning. It considers and respects the financial needs of the member communities and the educational goals of the school. It is the most affordable approach, and it is the most effective way to continue educating an important segment of Lexington's high school population. The Committee recommends approval of this request (7 -0 -1). Article 2016 -4.4: Amend General Bylaws — Capital Expenditures Committee Funds Requested Funding Source Committee Recommendation None N/A Approve (8 -0) This article has no direct financial impact on the Town, but the Committee feels it is important to offer its endorsement of this article. The Capital Expenditures Committee (CEC) is currently required to have five members, which recent ex- perience has shown places an undue burden on the CEC. The motion would raise the upper limit on the size of the CEC to seven. The Appropriation Committee recognizes the heavy workload taken on by the volunteers serving on the CEC. Starting in the fall of each year and continuing for up to five months of weekly and sometimes bi- weekly meetings lasting hours, they perform an intensive annual review of the Town's capital planning, purchasing, and funding, covering every municipal department item by item. This does not include the numerous liaison visits to meetings of other Town boards and committees. Town staff have expressed appreciation for the insights that this process yields, and the resulting reports form a vital part of the Town's institutional memory. With the advent of several major capital projects, and more on the horizon, the Town's capital budget has been increasing in both capacity and complexity, and this has increased the burden on the CEC. In order to continue providing the same quality of work, the CEC must have more members. The Committee recommends approval of this request (9 -0). 4