2017-10-16-AC-STM2-STM3-rpt - Laserfiche WebLink

Browse Search

A PPROPRIATION C OMMITTEE S PECIAL T OWN M EETINGS 2017-2 & 3 O CTOBER 10, 2017 An increase in the property tax levy of $500,000 is attributed to a revised estimate of new growth, which had been estimated at $2.5 million at the 2017 ATM, and is now estimated at $3.0 million. The final new growth number could be somewhat higher, but the precise new-growth amount is still being determined by the Assessing Department, and will be finalized when the FY2018 Tax Classification packet is released to the Board of Selectmen in NovemberDecember 2017. Any additional new growth recognized at that time will flow to Free Cash and be available for appropriation only after the books are closed, and Free Cash has been certified, for FY2018. State aid has increased by a little over $2 million based on the final Cherry Sheet numbers from the FY2018 State Budget approved by the Legislature in August. Most of that increase is attributable to an increase in Chapter 70 Education Aid over what had been estimated at the prior Annual Town Meeting. In this regard, itshould be noted that there have been substantial annual increases in State Aid for several years now as ity," such extraordinary increases are not expected to continue going forward. Other, more minor adjustments to revenue estimates result from increases in parking revenues, which will be offset by proposed appropriations for parking improvement projects as detailed in the discussion of Article 2017-3.5 below. It should be noted that to make monthly payments to the Town for electricity generated at the Hartwell Avenue solar facility, estimated to total $600,000 in FY2018, as opposed to giving the Town credit on its monthly bills, has s by that amount; however, as set forth in the table under Article 2017-3.5, this does not result in any net revenue increase to the Town as the proceeds will be applied to expenses that would otherwise have been covered by the credits. Debt Exclusion and Use of Capital Stabilization Fund As noted above, the major purpose pecial Town Meeting is to authorize borrowing so that the Town can move forward with three major capital projects: replacement of the Hastings School, which is needed to correct significant deficiencies in the existing building and to provide additional elementary school capacity as school enrollments have continued to grow; construction of a permanent facility for the LCP, currently split between the new and old Harrington School buildings, to correct serious inadequacies in that arrangement and also to free up four additional classrooms at new Harrington; and the long-planned Because the price tag for these three projects will be very substantial, currently estimated at approximately $85 million ($48,765,695 for the Hastings School after MSBA reimbursement of $16,513,723; $14,879,342 for the LCP; and $22,140,000 for the fire station with swing space), and servicing of the associated debt cannot practically be ac elected to proceed with a town-wide debt exclusion referendum vote, anticipated to be held in late Novem- ber or early December. In that referendum, Town voters will be asked to exclude from the limits of Propo- sition 2½ the debt service for each of these projects for the life of the debt, currently expected to be issued for 30 years. The appropriations sought at the Special Town Meeting for each project will be contingent on voter approval of a debt exclusion for that project. Voter approval of debt exclusions for all of the projects to be considered in STM 2017-2 would have a significant impact on residential (as well as commercial) tax bills. It would add in the early years, after all of the debt has been issued, about $8 million a year in annual debt service costs, gradually tapering down over the life of the debt as principal is paid off. Of particular concern is that, when the newly excluded debt is combined with already outstanding excluded debt for previously approved projects including the new Estabrook School, the recent additions to the Clarke and Diamond Middle Schools, and the renovation of the Bridge and Bowman Schools the excluded debt service component would roughly double in a short 6