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APPROPRIATION COMMITTEE-2018 ATM Article 27: Appropriate to General Stabilization Fund Funds Requested Funding Source Committee Recommendation none IP The Board of Selectmen does not recommend an appropriation into the Stabilization Fund at this town meeting. This Committee supports this decision, and therefore there is no action that need be accom- plished under this article. A history of appropriations into the Stabilization Fund may be found in the ap- pendices of the Town Manager's FY2018 Recommended Budget&Financing Plan. In this context, there has been discussion of whether an appropriation into the Fund should be made in order to follow the recommendations of the Ad Hoc Financial Policy Committee in 2006. Given the ma- turity of the recommended budget at this point, any such appropriation would need to come by repro- gramming funds that are recommended to be put into other reserve vehicles. Since this is not desirable, at least to some on this Committee, a more prudent course may be to pursue a review of policies on reserves after this town meeting concludes. Article 28: Appropriate from Debt Service Stabilization Fund Funds Requested Funding Source Committee Recommendation $124,057 DSSF Approval (9-0) In August 2006,the Town received a lump-sum reimbursement of approximately $14 million from the Massachusetts School Building Authority(MSBA)to cover its remaining obligation for construction pro- jects previously completed at Clarke and Diamond Middle Schools and Lexington High School. The Massachusetts Department of Revenue(DOR)required the Town to set aside the excess funds from this up-front reimbursement for these public school construction projects, and to apportion those funds over the life of the bonds related to the projects to help fund the debt service. The 2009 Annual Town meeting voted to establish a specified stabilization fund under G.L. c. 40 Section 5B called the Debt Service Stabilization Fund(DSSF). The $1,739,894 remaining from the FY2007 set- aside was then appropriated into the DSSF. This fund allows the Town to invest the set-aside funds be- yond the one-year arbitrage limit that would otherwise apply. The bonds for the subject school construc- tion projects mature in 2023,which will also be the final year for the required annual appropriations from the DSSF. The Committee recommends approval of this request(9-0) 51