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APPROPRIATION COMMITTEE-ATM 20 t 8
<br /> Funds Requested Funding Source
<br /> Line Item 1200: Regional Schools
<br /> $2,126,217 GF
<br /> The Minuteman Regional High School (MRHS) Committee has approved an FY2019 budget of
<br /> $21,160,140, a $2,160,661 increase (11.37%) over FY2018. The increase is the net effect of a 3.8% in-
<br /> crease in the cost of operations and a $1,467,560 increase in debt costs attributable to construction of the
<br /> new MRHS building.
<br /> The FY2019 budget reflects a reduced high school enrollment of 543 students and the conversion to a
<br /> career academy model of education. The goal is to create a smaller school with a higher percentage of in-
<br /> district students that can still offer a diverse and high-quality selection of relevant education and training
<br /> opportunities. The plan is for the transition to the new model to be completed in time for the beginning of
<br /> school in the fall of 2019 and the occupancy of the new building.
<br /> The assessment to the Town of Lexington is increasing by $455,886, or 27.3%, over last year's assess-
<br /> ment. While the per-student operating assessment has increased only 9%, the debt service cost allocated
<br /> to Lexington has risen 131%.
<br /> District Developments
<br /> A special district-wide vote held in 2016 secured approval for the construction of a new $144,900,000
<br /> school building to replace the aging current facility. Construction is under way and appears to be on-
<br /> budget and on-schedule for occupancy in fall 2019. The cost of this project will be offset by almost
<br /> $44,000,000 from the Massachusetts School Building Authority (MSBA). The balance not funded by the
<br /> MSBA will be bonded. The annual debt service costs for the project will be borne not only by district
<br /> members, but also by out-of-district students from non-member towns, who will be charged a new state-
<br /> authorized facilities fee for capital costs. Lexington was first assessed debt service costs for the new facil-
<br /> ity in FY2017, and the annual amount of its capital assessment will steadily grow to over $675,000 by
<br /> FY2021.
<br /> The district currently has ten member towns. However, following a negative vote by the voters of the
<br /> town of Belmont in the special district-wide referendum election held in 2016 to approve the construction
<br /> of the new MRHS facility, a subsequent vote by Belmont's Town Meeting, and approval by the remain-
<br /> ing member towns, Belmont will leave the district effective July 1,2020.
<br /> Budget Overview
<br /> This is the last budget for the school in the current building. The high school enrollment has continued to
<br /> drop and is below the new building target size of 628 students. Staffing changes include a net increase in
<br /> academic, vocational, administrative, and support staff of 0.5 FTEs. The school will take advantage of
<br /> any further enrollment-dependent staff changes that may emerge. Salaries, which make up 60% of the
<br /> operating budget, are increasing$323,000 after factoring in contractual obligations.
<br /> Total health insurance costs will increase by almost$175,000 assuming 4%inflation in costs. In anticipa-
<br /> tion of a new building, the capital building repairs budget is reduced to $5,000. The contribution to the
<br /> District's Stabilization Fund is $300,000, increasing that fund balance to $755,000 in order to have mon-
<br /> ey to purchase furniture, fixtures and equipment for the new building. Debt service payments rise to
<br /> $1,480,615 as debt service for the new construction begins. A $50,000 payment will be made toward the
<br /> funding of the District's $16,938,000 Other Post-Employment Benefits (OPEB)unfunded liability.
<br /> As of October 1, 2017, 568 full-time students (high school and post-graduate) were enrolled, of whom
<br /> 50% received special education (SPED) services. Roughly 59% of these students were from the ten in-
<br /> district towns while 41% were from out-of-district and withdrawing towns. Total full-time enrollment
<br /> decreased by 50 students, with in-district enrollment decreasing 10 students, out-of-district enrollment
<br /> decreasing 37 students, and a decrease of 3 students from the withdrawing towns. On a more positive
<br /> note, freshman enrollment is at a three-year high and anticipated to continue to rise with the opening of
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