2017-02-15-AC-min - Laserfiche WebLink

Browse Search

02/15/2017 AC Minutes request to allow expansion of its retirement community facilities. The Board of Assessors has re- determined that Brookhaven is a tax - exempt entity. Brookhaven currently provides Lexington with an annual payment in lieu of taxes (PILOT), and an increase in that amount has been proposed. Because the addition of 40 units would impact the Town's affordable housing ratio, and Brookhaven is unwilling to designate some of those units as affordable, mitigation payments are also being sought to allow the Town to build additional affordable housing. • Dawn McKenna, Chair of the Tourism Committee, is considering requesting funds under Article 18 at the ATM to advance efforts to rebuild the Visitors' Center. It was reported that the BoS does not support appropriating construction funds but they do support the release of some previously appropriated funds to further design efforts. • Ms. Kosnoff informed the BoS that the Town will be receiving approximately $2.0 million in premiums generated by the recent issuance of bonds, including some 30 year bonds, and some Bond Anticipation Notes (BANs). The premiums will be applied to lower the amount of borrowing for the particular projects. The True Interest Cost (TIC) is 3.06% for the bonds and 0.96% for the BANs. Ms. Kosnoff noted that although the Town has some outstanding bonds with lower interest rates, interest rates have been increasing recently and 30 -year bonds, which the Town is issuing for the first time, carry a higher interest rate. She also reported that the amount of debt carried by the Town is not expected to impact its Aaa credit rating. Ms. Yang reported that she had requested some pie charts from the School Department reflecting the components included in the school budget, and they are being prepared. 2. Minutes A motion was made and seconded to approved the February 2, 2017 AC Minutes, with minor edits. The motion passed. VOTE: 9 -0 3. Reserve Fund Transfer Mr. Bartenstein explained to new members that the operating budget approved by Town Meeting each year includes an allocation for a Reserve Fund, disbursement from which, by statute, is the responsibility of this Committee. These funds are available for unexpected or emergency expenses. The protocol is for the BoS to approve a request that is then brought to this Committee for approval. Appropriated funds not used by the end of the fiscal year go into free cash. In recent years, $900,000 has been appropriated for this line item, but the amount used has been considerably less. No FY2017 funds have been used to date. Ms. Kosnoff reported that the BoS is requesting a Reserve Fund transfer of $17,115 for hiring professional services to conduct a due diligence survey of the 20 Pelham Road property before completing a purchase and sale agreement. Included are $2,500 for an environmental study, $11,615 for surveying, and $3,000 for contingency funds. The $8.0 million previously appropriated for the purchase of the property is not available to cover these costs, nor is $150,000 previously appropriated for a second access road study, of which $43,000 remains unspent; any excess funds designated for the road study will flow to free cash. Ms. Yang stressed the importance of any Reserve Fund transfer being included in the total costs for this project. 2