2024-03-18 SB Packet - Released - Laserfiche WebLink

Browse Search

Aaa Bond Rating-The Town of Lexington has maintained an Aaa credit rating,which is the highest credit rating a municipality can receive.This rating,affirmed by Moody's Investors Service,reflects the town's strong fiscal management, characterized by conservative budgeting, a sizeable and wealthy tax base, healthy reserves and liquidity,and voter support for debt exclusions.Holding an Aaa rating allows the town to borrow funds at the most favorable interest rates,providing significant financial advantages for managing the town's debt and financing its projects. Capital Stabilization Fund-The Capital Stabilization Fund(CSF)underwent a policy revision in Fa112021 to allocate new levy growth from specified commercial and industrial development to the CSF,rather than that growth becoming part of general revenue.This strategy aims to preserve levy capacity for managing sudden increases in debt service for major capital projects,such as high school construction.For FY2025, the budget maintains this approach,with$4,036,373 transferred to the CSF from the tax levy,consistent with FY2024.This amount is expected to increase as new levy growth is calculated for FY2025,with an additional transfer planned for the Fall 2024 Special Town Meeting. After this budget cycle, the CSF balance will exceed$36.0 million.The CSF plays a crucial role in our fiscal strategy,setting aside new tax levy growth for future capital projects.This approach allows us to build reserves for forthcoming capital endeavors,particularly the renovation or reconstruction of Lexington High School.Our commitment to this fund has not only provided tax relief to citizens by reducing debt service excluded from Proposition 21/2 but also prepares us for significant capital projects ahead. . � . ��.�.. � �°�. ��. . . � . . . � ��" �. ��."� As we approach the conclusion of the American Rescue Plan Act(ARPA)funding period,we are pleased to present an update on the allocation and utilization of ARPA funds in our community.The Town of Lexington was allocated a total of$9,903,381 in ARPA funds, aimed at addressing the impacts of the COVID-19 pandemic and f ostering recovery across critical sectors. As of February 5,2024,the Select Board has approved spending totaling$9,110,345.The funds have been allocated to the following initiative areas: • Economic Stimulus&Resiliency:The largest portion,approximately 37%of the funds,was earmarked to support our local economy,including bolstering the cultural sector,aiding small businesses,enhancing community events,updating digital platforms,improving public spaces, and fostering bikeway mobility and engagement. • Public Health&Safety:With 26%of the funding,this area focused on bolstering the town's health department and public safety measures in response to the pandemic. • Housing:16%of the funds were allocated to address housing needs,ensuring support for those affected by the pandemic in securing stable housing. • Pandemic Response:l3%of the funds were directly used for pandemic-related expenditures, including testing,vaccination programs,and other immediate health needs. • PIRs(Program Improvement Requests):6%of the funds have been utilized for enhancing the Food Waste Program,acquiring a new electric vehicle for the Health Department,and formulating an ADA Town Building Self Evaluation and Transition Plan. • Food Insecurity:A smaller,yet crucial2%of the funds addressed food insecurity,ensuring that residents affected by the pandemic have access to necessary resources. 7