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APPROPRIATION COMMITTEE-2018 ATM
<br /> $900,000 in FY2020, a revaluation year), and$400,000 that is set aside annually for potential deficits
<br /> in the snow and ice budget.
<br /> • Water and Wastewater Enterprise Fund indirect expenses are assumed to increase by 3% annually.
<br /> Recreation Enterprise Fund indirect expenses are assumed to increase by $7,000 per year. Additional-
<br /> ly,in FY2018 Recreation Enterprise Fund expenses will be offset by$214,292 in tax levy funding for
<br /> Community Center operations personnel. This expense will grow by 1.3% annually to accommodate
<br /> step increases, and the tax levy funding will increase with at that pace also.
<br /> Expense Assumptions
<br /> • Line items for FY2020-FY2022 do not include increases for unsettled cost-of-living adjustments
<br /> (COLAs) for salaries and wages. The potential impact of COLAs of different sizes initiated in
<br /> FY2020 is summarized at the end of the projection tables.
<br /> • The Lexington Public Schools personnel costs are assumed to increase by 2% annually for step
<br /> changes. Enrollment driven increases are based on the midpoint of school administration projections
<br /> showing enrollment growth of 164 in FY2020, 111 in FY2021 and 172 in FY2022. An increase in en-
<br /> rollment of 100 students is estimated to require a staffing increase of 19.32 FTE's at $72,338 per
<br /> FTE, an increase of approximately $1,412,000 in the operating budget.
<br /> • The Lexington Public School expenses for programs other than special education are assumed to in-
<br /> crease by 3% per year. Special education expenses for out-of-district tuition are net of the State Cir-
<br /> cuit Breaker reimbursement and are assumed to increase by 5% annually, while the expenses for spe-
<br /> cial education consultants and out-of-district transportation are assumed to increase by 3%per year.
<br /> • Municipal personnel costs are assumed to increase by 1.3% annually for step changes.
<br /> • Municipal expenses are assumed to increase by 3%per year.
<br /> • The assessment for Lexington's share of expenses for Minuteman Career and Technical High School
<br /> is assumed to increase by 4.5%per year. It is assumed that the number of Lexington students will in-
<br /> crease,but remain as a similar proportion of in-district students. Additional debt service payments for
<br /> capital improvements are projected to be $175,000 in FY2020, $150,000 in FY2021, and rising to
<br /> over$120,000 in FY2021.
<br /> • Appropriations for current and future contributory pension payments are assumed to follow the
<br /> schedule set up by the Retirement Board following the most recent actuarial evaluation of pension
<br /> costs. These costs are $6,005,537 in FY2020, $6,505,537 in FY2021 and $6,755,537 in FY2022.
<br /> • Health insurance costs are assumed to increase annually by 5%. While this growth is primarily driven
<br /> by anticipated increases in school staffing due to enrollment, the combination of inflation and other
<br /> staffing growth also contribute.
<br /> • Non-exempt debt service costs are assumed to support annual debt-funded project appropriations that
<br /> will grow at the rate of 5% per year. That translates to projected cost in FY2020 of $12,503,000,
<br /> FY2021 of $12,540,000 and FY2022 of $12,092,000. However, included in these costs are annual
<br /> payments in FY 2020 of$2,234,614,in FY2021 of$2,173,111, and in FY2022 of$2,111,607 towards
<br /> the costs of the 20 Pelham Rd. and 173 Bedford St. land purchases. Debt costs are shown as unmiti-
<br /> gated debt payments. The proposed mitigation payments are described in the revenue section.
<br /> • Dept. of Public Facilities costs include salaries and wages (assumed to grow by 1.3% annually for
<br /> step changes),utility bills, and other expenses (assumed to grow by 3%annually). Utility costs are as-
<br /> sumed to increase by 1.5% annually. The $410,000 Hartwell Ave solar panel lease is included in the
<br /> Facilities budget.
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