2024-03-18-AC-ATM-rpt - Laserfiche WebLink

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2024 ATM APPROPRIATION COXMTTEE 13 MARCH 2024 $4 million for FY2025. In addition, any unused free cash that is available at special town meetings is usually earmarked for the CSF. The CSF will play a crucial role in mitigating debt service for the Lexington High School project. ARPA Funds Since the start of the pandemic, the Town has budgeted conservatively in order to be prepared for unexpected financial shocks. While there have been some reductions in local receipts, driven largely by the downturn in tourism and restaurant industries, commercial and residential development have continued at a strong pace. This development has been responsible in large part for Lexington's continued fiscal growth. On top of that, Lexington was granted about $9.9 million in federal funds under the American Rescue Plan Act (ARPA). These funds are intended to support the local businesses and residents who were most negatively affected by the pandemic. The ARPA grant is administered by the Select Board and is not subject to appropriation by Town Meeting. The Committee has discussed the use of ARPA funds with the Select Board and we have raised no objections. All remaining ARPA funds must be committed by December 31, 2024, and paid out no later than December 31, 2026. In this case, "committed" means "under contract". This has made it difficult to deploy ARPA funds for certain purposes, such as the Lex250 Celebration, which is expected to require a lot of overtime pay for public safety employees. Lexington High School Project The Town expects to present the results of the Feasibility Study for the replacement or renovation of Lexington High School to the Massachusetts School Building Authority (MSBA) in late 2024. This is the third module of the MSBA process which will "develop and evaluate alternatives, and recommend the most cost effective and educationally appropriate preferred solution to the MSBA Board of Directors". An initial appropriation of $1,825,000 for this work was approved at the April 2022-2 Special Town Meeting, and another appropriation for $10 million will be requested under Article 26. This will fund at least three architectural designs to be presented to the Town and the MSBA. Program Improvement Requests A Program Improvement Request (PIR) is part of the Town's process to develop an annual operating budget. The Town first develops a "level service" operating budget that supports existing services at rates comparable to those of the prior year. Each PIR is a proposal from a Town department to update or initiate new services funded by the operating budget. The Town Manager reviews and approves PIRs for the recommended municipal operating and shared expenses budgets, and the Superintendent of Schools does likewise for the LPS operating budget. Once the complete operating budget is approved by Town Meeting, the successful PIRs become part of the "level service" operating budget in subsequent years. Thus, PIRs offer a transparent view into the growth of the budget beyond the core economic drivers. 3