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APPROPRIATION COMMITTEE-ATM 2018 Article 10: Appropriate the FY2019 Community Preservation Committee Operating Budget and CPA Projects Funds Requested Funding Source Committee Recommendation 10(a)IP 10(b)Approve (9-0) $9,241,516 CPF- $8,670,516 10(c,e-h,k-1)Approve (9-0) GF- $571,000 10(d)Approve (6-3) 10(i)Approve (7-2) 10(j) Disapprove (3-5-1) The Community Preservation Act (CPA) is a State statute that allows municipalities to raise a surcharge on property taxes for local use for purposes related to historic preservation, open space protection, out- door recreation, and affordable housing. The State provides matching funds (the amount depending on monies available and demand from adopting communities) from fees imposed on real estate transactions, including mortgage refinancing. While the CPA provides broad guidance on the appropriate use of funds, it allows for a considerable measure of local control by 1) establishing a local Community Preservation Committee (CPC) to review and make recommendations on candidate CPA projects to Town Meeting and 2) authorizing Town Meet- ing to approve CPC-recommended projects. Town Meeting may not increase a CPC-recommended ap- propriation,nor may it alter the stated purpose of an appropriation,but it may decrease an appropriation. Communities adopting the CPA have each implemented the statute in a way that reflects local opportuni- ties, priorities and needs. One of Lexington's opportunities lies in the inventory of municipal and school buildings that qualify as historic buildings and which are therefore eligible for CPA funding. These pro- jects can be funded through a combination of Lexington taxpayers' CPA surcharges and State matching funds. Since Lexington's adoption of the Community Preservation Act in 2006, the CPC has recommended and Town Meeting has approved a total of$66,153,115 for CPA projects. These funds have supported 55 his- toric preservation projects, preserved 87 acres of open space, created or preserved 37 recreational facili- ties, and created or supported 371 units of affordable housing. Of this total, $14.2 million or 21% of the Town's total project costs (exclusive of Administrative expenses) has been received from the State as matching funds. Funding Sources and CPA Categories The requests recommended by the CPC for FY2019 are listed below. The funding source for each request is entirely CPF unless otherwise noted. All CPA projects must qualify for CPA funding under one (or more) of the following categories: Open Space, Historic Resources, Affordable Housing, or Outdoor Recreation. The CPA fund has a restricted account for each category, along with an Unallocated Reserve that can be used for any qualifying project. CPA funds are appropriated from an eligible restricted account when feasible, or from the Unallocated Reserve. Each year, at least 10% of annual CPA revenues must be spent in each of three CPA categories: open space(excluding recreational use),historic resources, and community housing. Beginning in FY2007, following voter approval, the Town began to assess a Community Preservation Surcharge of 3% of the property tax levied against all taxable real property. For owners of residential property, the assessed value used to calculate the surcharge is net of a $100,000 residential exemption. Community Preservation funds can be used for those purposes defined by the Community Preservation Act, MGL Ch. 44B. Such purposes include the acquisition and preservation of open space, the creation 28