2014-12-00-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 supplemented by State matching funds from the Massachusetts Community Preservation Trust Fund. The Lexington Community Preservation Committee (CPC) was appointed at that time to make recommendations to Town Meeting for the use of the funds raised by the surcharge under the CPA. In its initial year, fiscal year 2007 (FY07), the surcharge brought in approximately $2.5 million dollars, which was fully matched with State funds. Since FY07, annual revenue from the local surcharge has steadily increased. Latest figures are available for FY14, for which the surcharge raised $3,777,676. However, State matching funds, which come from a surcharge on Registry of Deeds transaction fees, have fallen since FY07. This is a function of two factors: falling home sales in Massachusetts over the last several years and increasing numbers of communities passing CPA bylaws and therefore competing for limited funds. (To date there are 158 communities with CPA bylaws.) The Community Preservation Act was amended in July of 2012 to allow, among other changes, the restoration and rehabilitation of recreational resources, the clarification of certain definitions, and the possible transfer of $25 million to the Statewide CPA Trust Fund from the State budget surplus monies. This resulted in an increase in the State Match Lexington received from $939,507 in FY12 (27.79% of the surcharge) to $1,932,347 in FY13 (54.09%). In FY14, however, that percentage dropped to 32.56% and Lexington received $1,230,116 out of the $11.4 million that was distributed to CPA communities. It is unknown to what extent budget surplus funds will be distributed to CPA communities in the future, under the Baker administration. Record of Lexington's CPA State Matching Funds (Source: Massachusetts Department of Revenue) I CPA STATE MATCHING FUNDS I TO DATE FISCAL PERCENTAGE AMOUNT YEAR 2007 100.00 $2,556,362 2008 69.40 $1,927,708 2009 36.17 $1,060,390 2010 28.22 $858,729