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APPROPRIATION COMMITTEE-2019 ATM to increase the tax levy above the limits of Proposition 2'/z to fund the Maria Hastings School,the new Fire Headquarters, and the Lexington Children's Place(PreK). Town Meeting appropriated a total of$102 mil- lion for these three projects, and the Town will be paying the associated debt service for up to 30 years. The Town still has two major capital projects in the immediate future: the new Police Station and the ren- ovation or replacement of Lexington High School. The Police Station project is already in the design phase and the construction cost is estimated at$25.6 million. The high school project remains a very big question mark. The Town is acutely aware of the need for additional space, improved security, and updated facilities at Lexington High School, but as of now it is impossible to say how the Town will eventually address those needs. A key step in defining a plan is to engage with the Massachusetts School Building Authority (MSBA) by submitting a Statement of Interest(SOI)describing the needs and concerns related to the school.The School Department recently submitted its first SOI regarding the high school, but the MSBA frequently declines to act on the first SOI it receives for many projects. Depending on the relative urgency of SOIs from other school districts across the state, it may be one or more years before our SOI is selected for further consid- eration. Once accepted, the MSBA will work with the Town to detennine what kind of project would best address the needs of the school,which could range from renovation and/or expansion all the way up to total reconstruction. While the Town has the option to begin design work without the MSBA's participation, none of the design costs incurred prior to MSBA acceptance would be eligible for matching reimbursement from the MSBA, and it's possible that the MSBA would not deem the designs suitable for the project. Without any specific plans, we can offer no estimate for the total cost for the high school project, but we believe that it will require major construction involving one or more buildings.At the upper end,a complete replacement of the high school could cost in the ballpark of$350 million,based on our predicted enrollment needs and the cost per square foot of recently completed school construction projects outside of Lexington. We assume less-expensive options would still cost in the ballpark of$100 million or more. The Town finance staff and the major boards and committees have begun to consider the future impact of debt service for a high school project in its capital planning, but it is difficult to make any concrete projec- tions until the scale of the project can be narrowed down. Instead, we are left with a looming cost in the low-to-medium hundreds of millions of dollars with an indeterminate starting date. The Town finance staff and the major boards and committees have begun to consider the future impact of debt service for a high school project in its capital planning, but it is difficult to make any concrete projec- tions until the scale of the project can be narrowed down.Instead,we are left with a looming low to medium 9-figure expense with an indeterminate starting date. If the project costs fall in the window discussed above,it would require excluded debt-funding and approval in a voter referendum.Our concern is that,given the current tax burden,voter approval could be challenging to obtain. A key factor in this decision will be voter perception of the Town's ability to make the best use of tax funds.Part of that perception will rely on a clear and comprehensive explanation of the priorities we weigh when approving capital projects, and the prudent spacing of projects over the years to avoid unrea- sonable jumps in the tax rate. We urge Town Meeting to consider these points carefully, starting with this Town Meeting and going for- ward. Updates This report presents the official positions of the Committee as of the date of publication. The Committee will continue to meet as necessary during Town Meeting and it may revise its official positions based on new or updated information. The Committee will also provide an oral report to Town Meeting on each article. The oral report will summarize the Committee's current position, which may have been updated following publication of this report. 5