2011- 12-01-CPC-rpt (Needs Assessment Report)

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Town of Lexington Community Preservation Plan Overview Introduction In March of 2006, the residents of Lexington voted to adopt the Community Preservation Act (CPA), which set a 3% surcharge on property tax bills to be matched by State funding from the Massachusetts Community Preservation Trust Fund. The Lexington Community Preservation Committee was appointed at that time to make recommendations to Town Meeting for the utilization of the funds raised under the CPA. In its initial year, FY'07, the surcharge brought in approximately $2.5 million dollars, which was fully matched with State funds. Since FY'07, annual revenue from the local surcharge has steadily increased. It now stands at an estimated $3,263,355 available for FY'12. However, State matching funds, which are drawn from registry fees, have fallen, a function of falling home sales in Massachusetts over the last several years. Initially at a 100% match in FY'07, the percentage has dropped to 28%for FYI 2. This reduction is also due in part to an increase in the number of communities which have passed the CPA, and therefore compete with Lexington for limited funds. (To date there are 143 communities with CPA by-laws.) There is now legislation before the State legislature that would ensure a mandatory 75% State match for communities. This bill, which was titled SB 90 in the 2009 Legislative session, received support in committee, and will be reintroduced in the 2010 legislative session. To date the CPC has appropriated over $23,000,000 in funding for CPA projects in the four primary categories of Community Housing ($3.6 million); Historic Resources ($5.9 million); Open Space Preservation ($11.3 million) and Recreational Uses ($2.3 million). Over $6.4 million of these appropriations have been with State matching funds. The CPA statute requires that at least 10 %of the CPA funds received in each fiscal year be spent or reserved for each of the CPA's three main purposes: open space, historic resources, and community housing. CPA funds may also be also used for recreation projects or for the purchase of land devoted to recreation. CPA funds that are not expended in one year may be "banked" or carried over to subsequent years within each main designation. The remaining 70 % of CPA funds received in each fiscal year is available to be appropriated or banked, according to the Town's discretion. Up to five percent of the CPA funds raised annually may be used for administrative activities related to the work of the CPC. The Lexington CPC consists of nine members, one each appointed by the Conservation Commission, Planning Board, Housing Authority, Historical Commission, Housing Partnership and Recreation Committee, and three members appointed by the Board of Selectmen. 1