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APPROPRIATION COMMITTEE-2018 ATM
<br /> Article 10(k) CPA Debt Service- $2,314,516
<br /> Projected debt service on the CPA projects is outlined in the following table. Two different types of debt
<br /> are used: Bond Anticipation Notes (BANs), and multi-year municipal bonds. BANs arrange interest-only
<br /> short-term borrowing for a term of up to one year. They are issued for individual projects prior to bun-
<br /> dling the debt from several projects to create a single multi-year bond. There are no BANs for CPA pro-
<br /> jects in the FY2019 budget.
<br /> Project/Approval Total Debt Debt BAN
<br /> Appropriation Financing Service Interest
<br /> Wright Farm Purchase $3,072,000 $2,090,000 $380,550 -
<br /> ATM 2012 Debt service ending FY2024
<br /> Community Center Acquisition $10,950,000 $7,652,500 $954,100 -
<br /> STM 3/2013 Debt service ending FY2024
<br /> Community Center Renovation $6,320,000 $451,000 $47,166 -
<br /> STM 11/2013,Amended STM 3/2014 Debt service ending FY2020
<br /> Cary Memorial Building Upgrades $8,677,400 $8,241,350 $838,400 -
<br /> STM 3/2014 Debt service ending FY2025
<br /> Center Track and Field Renovation $3,340,000 $2,829,000 - $94,300
<br /> ATM 3/2018 Estimated interest at 3%on 9
<br /> month short term note
<br /> Totals $2,220,216 $94,300
<br /> The last item, $94,300, represents estimated interest at 3% on a 9 month short term note for $2,829,000,
<br /> the CPA-eligible portion of the Center Track and Field Reconstruction Project.
<br /> The debt service for the Wright Farm purchase will be paid from the Open Space category, and the other
<br /> debt service payments will be paid from the Unbudgeted Reserves.
<br /> The practice of the Town,based on recommendations from the Appropriation Committee and Capital Ex-
<br /> penditures Committee, is to limit the size and duration of debt funded by the CPA to the practical mini-
<br /> mum, usually below the maximum that would be allowed by statute. This reduces the potential for long-
<br /> term financial commitments that would linger should the residents vote to rescind the CPA surcharge in
<br /> the future. That said, this practice should not be allowed to consign too much of the CPA annual revenue
<br /> for debt service, which would stifle the ability of the CPC to fund new projects directly with cash.
<br /> The Committee recommends approval(9-0) of 10(k).
<br /> Article 10(1)Administrative Budget- $150,000
<br /> The Community Preservation Act permits up to 5% of annual CPA funds to be spent on the operating and
<br /> administrative costs of the Community Preservation Committee. The Committee is allowed to use this
<br /> money to pay for staff salaries, mailings,public notices, overhead, legal fees, membership dues, and other
<br /> miscellaneous expenses related to CPA projects. Five percent of the anticipated FY2019 revenue from the
<br /> surcharge and State supplemental match is $272,850. However, as in past years, the CPC is requesting an
<br /> appropriation of $150,000. This money will be used to fund the Committee's part-time administrative
<br /> assistant,membership dues to the non-profit Community Preservation Coalition, administrative expenses,
<br /> legal and miscellaneous expenses, and land planning, appraisals and legal fees for open space proposed to
<br /> be acquired using CPA funds.
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