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<br /> TOWN MANAGER
<br /> Personnel FY2019 FY2020 Budget
<br /> Full Time 8� 8 The FY20 budget process continued the collaborative ef-
<br /> Part Time 1 1 fort among the Board of Selectmen, School Committee,
<br /> Appropriation and Capital Expenditures Committees, and
<br /> municipal staff. Four budget summit sessions resulted in con-
<br /> ROLE: As the Chief Executive Officer of the Town, es- sensus on a balanced budget for Town Meeting consideration
<br /> tablished in the Selectmen-Town Manager Act, the Town that addressed many pressing needs. The FY20 General Fund
<br /> Manager administers the policies and procedures of the budget totals$229,022,571,an increase of$7,770,530 or 3.5%
<br /> Board of Selectmen, enforces bylaws and actions passed by over the adopted FYI budget. Chart 1 shows the breakdown
<br /> Town Meeting, proposes the operating and capital budgets, of the expenditures by use.
<br /> and manages the daily operation of all Town departments.The For several years,the Town has been preparing for several
<br /> Town Manager's Office also includes the Human Resources capital debt exclusion projects focused primarily on public
<br /> Office. safety and school improvements. To support these projects,
<br /> APPOINTED by the Board of Selectmen, James Malloy has the Board of Selectmen recommended and Town Meeting ad-
<br /> served as the Town Manager since October 2018. opted the creation of a Capital Projects Stabilization Fund. In
<br /> anticipation of these potential projects,the 2019 Annual Town
<br /> tThe Public Information Officer position was developed and added Meeting appropriated $1,536,759 into the Capital Projects
<br /> to staff in FY2019.
<br /> Stabilization Fund.This reserve fund now has a balance of ap-
<br /> Form of Government proximately$23.7 million. Table 1 shows the amounts voted
<br /> into and out of that fund since FY16. The amounts appropri-
<br /> The current Town Manager/Selectmen/Town Meeting form ated for Property Tax Relief and Other School and Municipal
<br /> of government dates back to a 1968 Act of the State legis- Capital Projects help to alleviate the tax burden on residents.
<br /> lature based on a plan developed by the Town Structure of Town Meeting also appropriated $1,885,486 (Article 10)
<br /> Government Committee. Lexington had previously operated into the Other Post-Employment Benefits (OPEB) Trust
<br /> under a Selectmen/Executive Secretary plan. The Selectmen/ Fund to help fund the liability for retiree health care costs.
<br /> Town Manager Act brought major realignment of responsi- The balance as of July 1, 2019 in the OPEB trust fund was
<br /> bilities including changes in methods of appointment, closer $17,659,386.
<br /> supervision of administrative functions,and centralized con- Free Cash as of July 1, 2018 was certified at $13,401,094
<br /> trol of purchasing. which was appropriated to support the FY19 capital and op-
<br /> erating budgets and to finance a portion of the contribution
<br /> to the Capital Projects Stabilization Fund. Table 2 shows the
<br /> 4-year history of the certification and uses of Free Cash.
<br /> w
<br /> Finance
<br /> In February 2019, the Town issued $54.645 million in gen-
<br /> 'I,,;,�Gp�I������C;,i�;,i p22��t1U2 , ' eral obligation bonds for capital financing, including the
<br /> construction of Hastings Elementary School, Lexington
<br /> Children's Place, Fire Headquarters, and various other pur-
<br /> poses. The bonds were sold at a true interest cost of 3.212%
<br /> and a weighted average maturity of 13.631 years. Moody's
<br /> Investors Service,Inc.reaffirmed Lexington's Aaa bond rating
<br /> Ij;ll X57 for this sale, citing the Town's wealthy tax base, conservative
<br /> budgeting, financial management and voter support of debt
<br /> 22 51.6 exclusions. In February and June of 2019, the Town issued
<br /> bond anticipation notes (BANs) for a total of$8.371 million
<br /> (net interest cost of 1.77%) and $4.540 million (net interest
<br /> 5200M000 cost of 1.51%), respectively. These BANs funded multiple
<br /> V,220,666 �2municipal and school projects including building and infra-
<br /> structure construction,recreation facilities and technology.
<br /> �u141 ti61 SNhIrLnJ Mwkoa l llil .,laptl �VtiVrdVf7, (continued on next page)
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<br /> 76 1 TOWN OF LEXINGTON 2019 ANNUAL REPORT
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