2018-06-27-AC-min - Laserfiche WebLink

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06/27/2018 AC Minutes Beginning in Fiscal Year 2019 the Town will issue supplemental tax assessments for new construction that increases the value of the structure by 50% or more, which should generate a modest amount of additional revenue. 2. Financing Plan for Lexington High School(LHS) Science Classroom and Laboratory Project: Ms. Kosnoff identified options for funding a $1.1 million project requested by the School Committee to increase science laboratory space at LHS, as follows: • Free Cash: It is anticipated that the FY2018 free cash would be certified by the State prior to the fall 2018 Special Town Meeting (STM) when this project would be presented to Town Meeting for approval. Ms. Kosnoff suggested that this may be the most logical approach. • Additional New Growth: It is currently anticipated that new growth will generate approximately $2.8 million in FY2019 revenue, up from the $2.5 million estimate used at the 2018 Annual Town Meeting, but the final number could be higher. Any new growth revenue that is recognized beyond the original estimate could be appropriated at a fall special town meeting. • Debt Financing: This would be a short-term bond, not more than five years, • Capital Stabilization Fund: This was originally identified as a cushion to be used for softening the tax burden associated with a number of debt-excluded projects that have been approved. Mr. Levine suggested that the funding source doesn't make a lot of difference. He noted that the timing of the project is critical and should start as soon as possible, adding that because Town Meeting must approve the project and revenue source,perhaps the fall STM should be held earlier than is now being considered. 3. FY2018 Budget Update and Year-End Transfers: Ms. Kosnoff discussed the requested transfers, all of which have been supported/approved by the BoS, as follows: • Reserve Fund Transfer: The School Committee and School Department had originally understood that the $106,000 needed for the School Department's Master Planning effort could come from a 2016 appropriation, but, as discussed at this Committee's June 7 meeting, it has been determined that those funds are not available for this purpose. Funding must now come from the School Department's operating budget or from the Reserve Fund. The pros and cons were discussed at the June 14 Budget Summit. A motion was made and seconded to approve a FY2018 Reserve Fund transfer of $106,000 to the Town Facilities Account for the School Department's Master Planning, as discussed. VOTE: 7-0 • Revolving Fund Adjustments —FY2018: The requests are for an additional $10,000 for each of the following revolving funds: ➢ The Public, Educational, and Governmental(PEG) Access Revolving Fund: The additional funds are needed because of a revised contract with LexMedia. Ms. Kosnoff added that when residents transition from using cable to streaming, the Town loses revenue. She also noted that in FY2019 the Peg Access Revolving Fund will become a special revenue fund, per State regulation. A motion was made and seconded to increase the PEG Access Revolving Fund authorization by $10,000. VOTE: 7-0 2