2017-03-22-AC-min - Laserfiche WebLink

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03/22/2017 AC Minutes It was noted that a member of the Capital Expenditures Committee may present a motion to ATM to amend Article 21: Appropriate to Post Employment Insurance Liability Fund, reducing the amount for the Post Employment Insurance Liability (PEIL) fund and allocating the amount reduced to the Capital Stabilization Fund or the Pension Fund. Identified pros and cons included: • The PEIL and Pension Funds are allowed to invest in markets that get a higher rate of return than most other funds. • A tangible benefit from investment in the PEIL Fund will only be realized when it is sufficiently funded that benefit payments can be made from its investment returns • Reducing the level of funding identified in the Article would be less supportive of the BoS policy to work towards fully funding the PEIL fund. • Given the need for large capital projects, further funding the Capital Stabilization Fund would help curtail tax increases, although the amount that's being discussed would have a minimal impact. Mr. Bartenstein and Mr. Radulescu-Banu expressed opposition to reducing the amount going to the PEIL fund. Mr. Michelson said he needed to consider the issue further. Mr. Levine, Ms. Basch, Mr. Padaki, and Ms. Yan said they would likely support reducing the amount allocated to the PEIL fund from $1.8 million to $1.2 million and appropriating the balance to the Capital Stabilization Fund. Mr. Michelson explained that because the Town of Belmont elected to withdraw from the Minuteman Regional Vocational School District within 60 days after that Town's rejection of the school replacement project in the district -wide referendum, Belmont will not be liable for the debt service associated with building a new facility. This puts Belmont in the same position as the six towns that left the district when the new district agreement was adopted, even though Belmont will remain a member of the district through July of 2020. Going forward, any Town withdrawing from the district would continue to carry responsibility for the debt service. 3. Adjourn The Committee adjourned at 7:20 p.m. The documents used at the meeting are listed below. Respectfully submitted, Sara Arnold, Recording Secretary Approved: March 29, 2017 Exhibits • Agenda, posted by John Bartenstein, Chair 2