2018-06-07-AC-min - Laserfiche WebLink

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06/07/2018 AC Minutes appropriation, master planning was not a bondable item. The Town was advised that it would be inappropriate to use funds from that appropriation for master planning. Ms. Kosnoff explained that two funding alternatives for master planning have been identified, as follows: • Asking the AC for a Reserve Fund transfer from the FY2018 Reserve Fund appropriation. Such transfers can only be used for extraordinary and unforeseen circumstances and must be approved by the AC. The FY2018 appropriation for the Reserve Fund was $900,000, none of which has been used. • Taking the funds from the School Department's FY2018 operating budget. The Department of Public Facilities does not have adequate excess FY2018 funds to pay for this project. Mr. Bartenstein reported that Kate Colburn, Vice Chair, School Committee, asked him whether this Committee would be willing to vote on the Reserve Fund transfer request at the Summit. In response to questions about this being an extraordinary and unforeseen expenditure, Ms. Kosnoff said that the bond counsel's position puts the need into that category. She also noted that the process for using the Reserve Fund is transparent whereas taking it from the operating budget is less so; additionally, the study was never intended to be an operating budget line item. Mr. Michelson objected to the master planning moving forward at this time because a new School Superintendent is starting on July 2 and needs time to absorb the issues. Other committee members felt that the master planning funds could be taken from the school operating budget. A straw poll indicated three supported using the Reserve Fund, four opposed using the Reserve Fund, and one abstained. Ms. Kosnoff noted that the need for additional high school laboratory classrooms is on the Summit agenda, but discussion of a pool for the high school swim teams will not be included. The Minuteman Tech pool is no longer available because the school building is being rebuilt without a pool. Efforts are being made to find an alternative pool for the teams to use. 3. Year-End Transfers: Ms. Kosnoff reported that, by statute, year-end transfers for FY2018 must be made by July 13, and AC approval is required for some items and customary for others. It was agreed to meet on June 27 to review and vote on the transfers. 4. Supplemental Tax Assessment: Mr. Bartenstein reported that the BoS is seeking comment through June 25 regarding the manner in which property taxes are assessed against new construction in Lexington. Usually, January 1 assessments are used, but State law now requires municipalities to make a pro rata assessment on the value of certain improvements to real estate made after January 1 if an occupancy permit is issued during the fiscal year and the new construction increases the home's or structure's value by over 50 percent unless the Town opts out. In the past, Lexington has opted out of this requirement, but the BoS are considering ending that opt-out. It is estimated that tax revenue would increase $200-300,000. 5. Minutes: A motion was made and seconded to approve the May 17, 2018 minutes after Ms. Arnold verifies and corrects one point associated with building an indoor pool. The motion passed. VOTE: 8-0 2