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

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Community Preservation Fund (CPF) A separate Town account for the deposit of all surcharges collected and State matching funds. Sub-accounts of CPF (sometimes referred to as "buckets") have been established to ensure that required shares of the CPF are either spent each year or allocated to the appropriate reserve funds. These are: • Open Space Reserve Fund(minimum of 10% annually) • Historic Resources Fund (minimum of 10% annually) • Community Housing Reserve Fund (minimum of 10% annually) • Unbudgeted Reserve Fund (remaining 70% of funds, less administrative costs) • Undesignated Fund Balance • Administrative/Operating Fund (up to 5%) The CPC is permitted to appropriate up to 5% of the funds for administration and operational expenses of the Committee. For example, these funds can be used to hire support staff,purchase office supplies, do mailings and cover the cost of professional services as needed. Any administrative monies not used in a given fiscal year are returned to the CPF annual reserve fund. Recreation projects are eligible for CPA funding but there is no minimum amount specified by the Act. Beyond these required disbursements, Town Meeting, acting upon the recommendations of the CPC, will decide the allocation of the remaining 70 per cent of annual CPA revenues. For example, the CPC could recommend and Town Meeting could allocate the remaining 70 per cent of annual revenue to one purpose, spread it evenly among all four, or set the funds aside for future spending. These allocations can be changed each year. Community Preservation Surcharge The locally raised share of CPA revenue comes from a surcharge (additional amount of tax) on real estate tax bills. Lexington voted a 3 per cent surcharge which is separately stated on each tax bill. Community Preservation Surcharge Exemptions Taxpayers currently exempt from real property taxes under Chapter 59 of Massachusetts General Laws are exempt from the CPA surcharge. In addition, Town Meeting approved exemption of the first $100,000 of taxable value of residential real estate. Exemptions, as well as the surcharge percentage, can be changed at any time with the approval of Town Meeting and subsequent voter referendum. Historic Resources "Historic resources" shall mean a building, structure, vessel, real property, document or artifact that is listed or eligible for listing on the State Register of Historic Places or has been determined 23