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APPROPRIATION COMMITTEE-2018 ATM Article 23: Appropriate for Visitors Center (citizen article) Funds Requested Funding Source Committee Recommendation unknown GF Pending This citizen's article and Article 22 are obviously closely coupled. This article was placed on the warrant by the Tourism Committee because it was uncertain as to whether a request for construction money would be made under Article 22. If funds for both construction documents and the construction are appropriated under Article 22, this article is very likely to be indefinitely postponed. If only an amount for construc- tion documents is provided under Article 22, there may be a request under this article to appropriate an amount to fund the construction of a new Visitors Center. The Tourism Committee considers it important to have construction of the Visitors Center completed by spring of 2020, in time for an anticipated increase in tourism due to celebrations commemorating the 400' Anniversary of the founding of Massachusetts Colony. Approval of construction money at this Town Meeting would prevent delays that could force the anticipated opening of the new Visitors Center to go later into 2020 than currently projected under Article 22. Since the construction of a new Visitors Center would require the closing and demolition of the present building, visitors to Lexington, whether seeking tourist information or rest facilities, would find inadequate resources at whatever temporary Visi- tors Center the town was able to create. The Tourism Committee points out that the design that may be presented under Article 22 is the product of an extensive design process involving all stakeholders. Approval of Article 22 signals the community's desire to proceed with the project. Not approving construction money could delay the completion of the project. The Tourism Committee will continue to work with the Economic Development office to pursue grant money and revenue that can be applied to the costs of the project. Article 24: Appropriate to Post Employment Insurance Liability Fund Funds Requested Funding Source Committee Recommendation $1,842,895 GF Approve (9-0) The Post Employment Insurance Liability (PEIL) Fund holds funds dedicated to future health care bene- fits for retirees. These benefits make up most of"other post-employment benefits"(OPEB). For a detailed discussion of OPEB,the present status of the PEIL Fund, and related issues,please see Appendix F. This article requests the appropriation of$1,842,895 into the PEIL Fund. As explained in Appendix F, "normal cost" refers to the present value of the expected post-retirement benefit obligation attributable to employee service during the fiscal year. The unfunded liability is the sum of the actuarially determined obligations incurred during current and prior fiscal years that have not been funded. Every year, the unfunded liability grows by the present value of future benefits earned dur- ing the current year, less any contribution to the PEIL Fund, and less the value of benefits provided to retirees during the current year through the operating budget. The requested amount is within the range of 35% to 100% of the normal cost of$4,648,019 for FY2019 calculated with a 7.5% discount rate. If the 7.5% discount rate assumption is accepted, the requested amount is consistent with the policy previously articulated by the Selectmen for the annual appropriation into the PEIL Fund (see Appendix F). If approved, this appropriation would increase the balance in the PEIL Fund from the current balance of $12,619,957 as of December 31, 2017, to approximately $14,500,000. 47