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APPROPRIATION COMMITTEE-ATM 2017 Article 10: Appropriate the FY2018 Community Preservation Committee Operating Budget and CPA Projects Funds Requested Funding Source Committee Recommendation 10(a-g,i-p)Approve (9-0) $6,775,140 CPF 10(h) Disapprove(3-6) 10(j) Support IP The Community Preservation Act (CPA) is a State statute that allows municipalities to raise a surcharge on property taxes for local use for purposes related to historic preservation, open space protection, outdoor recre- ation, and affordable housing. The State provides matching funds (the amount depending on monies available and demand from adopting communities) from fees imposed on real estate transactions, including mortgage refinancing. While the CPA provides broad guidance on the appropriate use of funds, it allows for a considerable measure of local control by 1) establishing a local Community Preservation Committee (CPC) to review and make rec- ommendations on candidate CPA projects to Town Meeting and 2) authorizing Town Meeting to approve CPC-recommended projects. Town Meeting may not increase a CPC-recommended appropriation, nor may it alter the stated purpose of an appropriation,but it may amend to decrease an appropriation. Communities adopting the CPA have each implemented the statute in a way that reflects local opportunities, priorities and needs. One of Lexington's opportunities lies in the inventory of municipal and school buildings that qualify as historic buildings and which are therefore eligible for CPA funding. These projects can be funded through a combination of Lexington taxpayers' CPA surcharges and State matching funds. Since Lexington's adoption of the Community Preservation Act in 2006, the CPC has recommended and Town Meeting has approved a total of$62,854,822 for CPA projects. These funds have supported 52 historic preservation projects, preserved 87 acres of open space, created or preserved 34 recreational facilities, and created or supported 355 units of affordable housing. Of this total, $13,507,639 or 21.5% of the Town's total project costs (exclusive of administrative expenses)has been received from the State as matching funds. Funding Sources and CPA Categories The requests recommended by the CPC are listed below. The funding source for each request is entirely CPF unless otherwise noted. All CPA projects must qualify for CPA funding under one (or more) of the following categories: Open Space, Historic Resources, Affordable Housing, or Outdoor Recreation. The Community Preservation Fund (CPF) has a restricted account for each category, along with an Unallocated Reserve that can be used for any qualify- ing project. CPA funds are appropriated from an eligible restricted account when feasible, or from the Unallo- cated Reserve. Each year, at least 10% of annual CPA revenues must be spent in each of three CPA catego- ries: open space (excluding recreational use),historic resources, and community housing. Beginning in FY2007, following voter approval, the Town began to assess a Community Preservation Sur- charge of 3% of the property tax levied against all taxable real property. For owners of residential property, the assessed value used to calculate the surcharge is net of a $100,000 residential exemption. Community Preservation funds can be used for those purposes defined by the Community Preservation Act, MGL Ch. 44B. Such purposes include the acquisition and preservation of open space, the creation and support of com- munity (affordable) housing, the acquisition and preservation of historic resources, and the creation and sup- port of recreational facilities. Beginning in FY2008, the Town began receiving State matching-funds to sup- plement the local surcharge. CPA items under this article will be funded from anticipated FY2018 revenue and CPA funds available from prior years. FY2018 revenue includes FY2018 CPA tax surcharges, anticipated to be $4,498,110, and the 26