2017-04-24-CEC-ATM-STM1-rpt (incl Updates Errata)

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CAPITAL EXPENDITURES COMMITTEE REPORT TO 2017 ATM&STM 2017-1 (with Updates&Errata) CPF balance would be after these Town Meetings if Town Meeting were to approve all of the CPC's recommendations. See Article 10 for what is being recommended to the 2017 ATM 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 12(b & f)), 13, & 14) Revolving-Fund Projects Revolving funds established under the provisions of Massachusetts General Laws (MGL) Chapter 44, Section 53E'/2, must be authorized annually by vote of the Town Meeting. (As the Schools Food Service Revolving Fund was established, instead, under MGL Ch. 548 of the Acts of 1948, it does not require Town Meeting's annual authorization or appropriation to use it.) 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 known to be contemplated in FY2018. 9