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APPROPRIATION COMMITTEE-ATM 20 19
<br /> valuation increases which Lexington homeowners have experienced in recent years, attributable at least in
<br /> part to the investment of taxpayer funds in top quality schools and other infrastructure, represents real
<br /> value to the homeowner in the form of an increase in net worth that in most cases quite likely far exceeds
<br /> the tax increases and would probably not have been experienced in other,lower-tax communities.'
<br /> Even so, not all taxpayers will take comfort from stable and growing home values. Particularly for seniors
<br /> and other residents on a fixed income, or those for whom cash flow is otherwise an issue, and who wish
<br /> to remain in their homes and not sell or further borrow against them, the pressures of significant annual
<br /> tax increases are real and can be a source of concern, even distress. Opportunities for deferral on very fa-
<br /> vorable terms and other tax relief are available,but only to low or moderate-income seniors and other lim-
<br /> ited categorical recipients.
<br /> If we were done, or nearly done, with the current phase of perceived needs and demands for major capital
<br /> investment, the Town finances would be in excellent shape. As evidenced by this year's major proposed
<br /> revenue set-asides for cash capital, contribution to the PEIL Fund, funding of earlier land purchases, and
<br /> continued contribution, although more modestly,to the Capital Stabilization Fund,it is clear that the peri-
<br /> od of structural surplus continues, though our financial forecasts, set forth in Appendix A, suggest that
<br /> may be weakening and the inflationary pressures mentioned above could result in further weakening.
<br /> Of concern, however, is that those needs and wants for further improvements in infrastructure are not
<br /> done and will continue apace for the foreseeable future. To the extent future capital improvement pro-
<br /> jects, such as the Center Streetscape project and replacement of the Visitors' Center, are proposed to be
<br /> financed within the levy, there are risks that the resulting debt service will begin to impinge upon the
<br /> funds available for operating needs and continued generous funding of cash capital. And to the extent
<br /> that capital projects, such as the replacement of the Police Station, addition of gym and cafeteria facilities
<br /> to the Community Center, and ultimately renovation or replacement of Lexington High School, are of a
<br /> magnitude that will require additional debt exclusions, the issue of continued taxpayer support comes into
<br /> play.
<br /> Recognizing these pressures, the Board of Selectmen, senior Town managers, and other boards and com-
<br /> mittees are currently exploring options both to expand the Town's commercial base, and thereby ease the
<br /> pressure on residential taxpayers, and to shift some of the tax burden from those less able to manage fu-
<br /> ture increased tax burdens to those more able. Before the current Annual Town Meeting is a measure,
<br /> under Article 37, to double the tax exemptions available to the neediest senior citizens, veterans and the
<br /> blind. Under study is a possible adoption of the residential exemption, which would shift tax burdens
<br /> from lower-value homes to higher-value homes, or alternatively the possibility of special legislation, such
<br /> as has been obtained by the Town of Sudbury and a few other nearby towns, to create a local supple-
<br /> mental "circuit breaker" which would shift tax burdens based on income and help to keep tax burdens at
<br /> 10% or less of income.
<br /> Ultimately, however, there is no guarantee that such measures will be a panacea. As we move forward, it
<br /> may be necessary to recognize that there are limits to the number of capital projects we can practically
<br /> take on in the short run, particularly with the major, and clearly critical, need for a high school replace-
<br /> ment project looming. Determining where those limits lie will be one of our biggest challenges going
<br /> forward.
<br /> ' There is no guarantee, of course, that the recent phenomenon of significant growth in Lexington
<br /> residential home values will continue, but even in a time of significant recession following the 2008
<br /> financial crisis,those values tended to be more resilient than in other communities.
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