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

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. � � . �.. . � �.. �":�.:�. .:�..�.... ".:�..:�..:�..:��.� The Select Board is committed to ensuring fiscal responsibility and sustainable growth through careful budget and financial planning for FY2025,focusing on preserving the Aaa bond rating,avoiding operating overrides,and planning for significant projects like the new Lexington High School.The FY2025 budget, developed without a Proposition 21/2 Operating Override, supports the Soard's vision for Lexington, emphasizing staffing,environmental initiatives,capital improvements,and infrastructure maintenance to achieve a balanced financial plan that aligns with community priorities. Staffing-The budget incorporates staffing expansions to address the operational needs arising from new town bylaws and to continue investments in environmental initiatives, such as electric vehicles and enhancing our food waste and composting program.Specifically,it funds new roles such as an Assistant Superintendent of Public Grounds and a part-time Code Enforcement Officer, in response to the requirements of new tree and noise bylaws,as well as fire and mechanical inspectors due to the uptick in development from zoning bylaw modifications. These additions reflect the town's commitment to managing increased service demands while adhering to stricter regulations. Capital Improvement and Infrastructure-The Capital Improvement Program is designed to make timely investments in town assets,enhancing public services.The FY2025 Capital Budget includes funds for the new Lexington High School and allocates $6.0 million for renovations at 173 Bedford Street. This renovation is crucial for reorganizing town assets in light of the high school project and will make the building suitable for the School Administration staff during the construction period.The work involves installing an elevator,replacing the HVAC system,adding a sprinkler system,and reconfiguring interior spaces.Additional updates will be required after the Lexington Police Department relocates,especially to improve accessibility,fire protection,and new electric HVAC systems. 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 I ��--��,,m��„�� _��r�,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 Ilevy growth for future capital projects. This ��:��:��'rm:�� approach allows us to build reserves for forthcoming capital endeavors,particularly the renovation or reconstruction of Lexington High School. IOur commitment to this fund has not only provided tax relief to citizens by ��,ar-��c�c�,��„�,�m,�debt service excluded from Proposition 21/2 but also prepares us for significant capital projects ahead. 8