2019-03-25-AC-ATM-rpt - Laserfiche WebLink

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APPROPRIATION COMMITTEE-2019 ATM across Massachusetts. The matching funds are derived primarily from fees imposed on real estate transac- tions, including mortgage refinancing, and, in some years, may be supplemented through an appropriation of the State legislature. Beginning in FY2007, following voter approval, the Town began to assess a community preservation sur- charge of 3%of the property tax levied against all taxable real property.For owners of residential property, the assessed value used to calculate the surcharge is net of a $100,000 residential exemption. Community preservation funds can be used for those purposes defined by the Community Preservation Act, MGL Ch. 44B. Such purposes include the acquisition and preservation of open space, the creation and support of community (affordable) housing, the acquisition and preservation of historic resources, and the creation and support of recreational facilities. Beginning in FY2008, the Town began receiving State matching- funds to supplement the local surcharge. While the CPA provides broad guidance on the appropriate use of funds, it allows for a considerable meas- ure of local control by 1) establishing a local Community Preservation Committee (CPC) to review and make recommendations on candidate CPA projects to Town Meeting and 2) authorizing Town Meeting to approve CPC-recommended projects. Town Meeting may not appropriate more than the CPC-recom- mended amount,nor may it alter the stated purpose of a recommended appropriation,but it may appropriate less than the recommended amount. Each community adopting the CPA has implemented the statute in a way that reflects local opportunities, priorities and needs. One of Lexington's opportunities lies in the inventory of municipal and school build- ings that qualify as historic buildings and which are therefore eligible for CPA funding. These projects can be funded through a combination of CPA surcharges and State matching funds. All CPA projects must qualify for CPA funding under one or more of the following categories: Open Space, Historic Resources, Community Housing, or Outdoor Recreation. The Community Preservation Fund (CPF) has a restricted account for each category, along with an Unallocated Reserve that can be used for any qualifying project. CPA funds are appropriated from an eligible restricted account when feasible, or from the Unallocated Reserve. Each year, at least 10%of annual CPA revenues must be spent or allocated to the restricted reserves in each of the following categories: Open Space (excluding recreational use), Historic Resources, and Community Housing. Since Lexington's adoption of the Community Preservation Act in 2006 the CPC has recommended, and Town Meeting has approved a total of$72,244,115 for CPA projects. Of this total, $15.2 million or 21% of the Town's total project costs(exclusive of administrative expenses)has been received from the State as matching funds. CPA Projects and Funding The FY2019 CPA State match was $922,256 or 19.8% of the local revenue coming through the CPA sur- charge. This included a share of a$10 million distribution from the 2018 state budget surplus,which is not guaranteed to be available in future budgets. CPA items under this article will be funded from anticipated FY2020 revenue and any CPA funds available from prior years. FY2020 revenue includes FY2020 CPA tax surcharges, anticipated to be $5,105,000,the projected FY20 CPA State match of approximately$561,000(11.57%),and investment income of$20,000. CPA funds totaling $3,836,693 are available from prior years. The grand total estimated available for FY2020 CPA appropriations is $9,522,693. The requests recommended by the CPC for FY2020 are listed below. The Community Preservation Fund (CPF)is the funding source for each request unless otherwise noted. 27