2019-01-17-AC-min - Laserfiche WebLink

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01/17/2019 AC Minutes annually funded in part by about$75,000 from the tax levy. The cost of the new building that is being brought to the 2019 ATM for approval is expected to be covered by lot sales and fee increases that went into effect on July 1, 2017. Ms. Kosnoff noted that the cemetery operation was not intended to function as an enterprise fund. Review of Proposed Warrant Articles for the 2019 Annual Town Meeting (ATM) Ms. Basch reported on efforts to develop an Inter-Municipal Agreement(IMA) with Minuteman Technical High School (Minuteman Tech). This IMA would grant the Town joint access to certain expanded athletic facilities on the grounds of Minuteman Tech in exchange for funding part of the construction costs. There is still a considerable amount of work to be done. Her comments included: • IMAs can only be for 25 years. • Minuteman Tech originally asked Lexington to contribute $8.5 million, but if some elements (i.e., the tennis courts, stadium seating and restrooms) were removed from the project, Lexington's portion might be reduced to $4.9 million. This would have to be approved by the Minuteman Tech School Committee. Noting that all Community Preservation Act (CPA) approved projects for FY2020 are to be funded entirely with cash—Ms. Basch and Ms. Kosnoff reported on the CPC positions, as follows: • The CPC did not support $2.3 million for the Center Streetscape project. • It has asked for a reduction in the amount requested for the Battle Green Phase III project. • It supported an allocation of$1.0 million for the Minuteman Tech IMA,but if that is not ready for the 2019 ATM, there was interest in supporting the Diamond Middle School project. • There is one small land purchase that has not yet been disclosed. Negotiations for a potential purchase of a larger piece of land have not been completed, and therefore will not be ready for the 2019 ATM. Ms. Kosnoff reported the following: • The Department of Revenue (DOR)regulates the CPA process. There is a citizen's warrant article to reduce Lexington's surcharge for CPA funding from 3% to 1%, which the DOR would not allow if the resulting annual surcharge revenue would be lower than the total debt service for previously approved projects. Additionally, if this warrant article were to pass, it would then need to be approved by referendum during a general election. • The request for construction funding for a new Police Headquarters building (contingent on approval of a debt exclusion) may be brought to a fall 2019 special town meeting, or to the 2020 ATM. The project cannot move forward until the new Fire Department Headquarters are completed and the Fire Department staff vacate the swing space on Bedford Street. • Approximately $60 million in bonds will be issued during the second week of February, which will affect the debt service used in the financial model. Assuming projects move forward as now envisioned, the goal of holding annual increases in within-levy capital funding to a maximum of 5%will be difficult to meet without a larger than planned withdrawal from the Capital Stabilization Fund. • It is anticipated that the lower level of the Cary Memorial Building may be used as swing space while the Visitors' Center is rebuilt. Minutes A motion was made and seconded to approve the draft December 13, 2018 minutes, as amended. The motion passed. VOTE: 7-0. 2