2018-06-27-CEC-ATM-rpt (Combined Report with Updates & Errata)

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CAPITAL EXPENDITURES COMMITTEE REPORT TO 2018 ATM(incorporating Updates&Errata) See the CPA Summary in the Brown Book (Appendix C, Page C-7) for a summary of the CPF status including projects that have been funded from the CPF since its inception in Lexington and those being requested in FY2019 under Article 10. Also see the CPC's report to these Town Meetings for its projection of what the CPF balance would be after this Town Meeting if Town Meeting were to approve all of the CPC's recommendations. Enterprise Fund Projects The Town operates three enterprise funds (EFs) for revenue-producing activities funded outside the tax levy by user fees: water distribution, wastewater distribution [sanitary sewers], and certain Recreation and Community Programs (R&CP) services, such as the golf course, swimming pools, and tennis courts. Unlike property-tax revenues, enterprise-fund fees are not subject to a limit under Proposition 2%. Recreational playground restoration and equipment, in contrast, are not fee generating and capital investment for such equipment is therefore, normally funded as part of the small-ticket program of the GF. The 2012 amendments to the CPA expanded the range of recreation projects that are eligible for funding under that Act; therefore, many recreational projects have since have been submitted to our CPC with requests for use of the CPF as the fund source. That continues this year, many of the recreation projects coming before this ATM will be for full or partial funding from the CPF rather than from the R&CP EF or the Town's General Fund(GF). The R&CP Enterprise Fund has paid $100,000 per year for Lincoln Field debt service. The last such payment was on February 1, 2018, when that debt was retired. This Town Meeting will consider requests from the Departments that manage the Water, Sewer, and R&CP Enterprise Funds. (See Articles 15-18.) Revolving-Fund Projects Revolving funds established under the provisions of Massachusetts General Laws (MGL) Chapter 44, Section 53E%, must be authorized annually by Town Meeting vote. (As the Schools Food Service Revolving Fund was established, instead, under MGL Ch. 548 of the Acts of 1948, it does not require Town Meeting's annual authorization or appropriation to use it.) The fund is credited with only the departmental receipts received in connection with the programs supported by such revolving fund, and expenditures may be made from the revolving fund, without further appropriation, for those programs. Revolving funds are usually expended to cover non-capital costs and this Committee normally does nott report on their annual authorizations unless a capital expense is contemplated. Such an expense is not contemplated in FY2019. 9