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APPROPRIATION COMMITTEE-2.020 ATM 25 March 2020 split of healthcare premiums between employer and subscribers is 82/18 or 75/25 depending on the health plan chosen by the employee (the town pays a larger share for employees who choose a lower cost plan). The Brown Book,p. IV-6, contains a discussion of health-benefit costs, including changes in the numbers of subscribers since FY2016. The projected number of subscribers used for the FY 2021 budget represents an increase by 0.5%compared to FY2020 and 10.4%compared to FY2016. Solar Producer Payments (2300) This line item reflects payments for the installation and operating costs of the solar array at the Hartwell Ave compost facility. Against the annual cost of$410,000, which covers both the initial capital cost and maintenance costs, staff estimates that the array will generate $600,000 in payments from Eversource (the electric utility serving the Town), so the array is projected to generate a net contribution to the General Fund of$190,000. The recommended FY2021 budget is the same as the FY2020 budget. For FY2022,staff will review three full years of results to reassess funding levels. Note this budget item does not include the Town's rooftop solar arrays and payments in lieu of taxes for the solar operations, which are recorded under personal property taxes per the Massachusetts Department of Revenue.The Brown Book includes atable on p.IV-13 showing more complete estimates forthe Town's solar installations,with projected net revenues of over$400,000 in FY2021. Debt Service (2400) The Debt Service amount covers annual payments for within-levy debt service. Gross within-levy debt service is projected to rise 6.7%as indicated in the above table. When the set aside for land purchases and certain cemetery revenues are removed from the gross debt service totals, the net amount is projected to rise by 4.4%, which is below the Town's target ceiling of 5.0%, so there is no recommendation to use the Capital Stabilization Fund as a funding source here. The Town also makes annual payments for exempt debt service, but the funds for these payments do not need to be appropriated by Town Meeting. Every project funded with exempt debt must be approved by a majority of voters in a town-wide referendum, after which the Select Board sets the tax levy to provide sufficient funding. The portion of the tax levy raised for exempt debt service is exempt from the limits imposed by Proposition 2'/2. See p. IV-11 in the Brown Book for a detailed schedule of exempt debt. Staff estimates that the combined debt service for exempt and non-exempt debt will rise only 1.7% in FY2021. For more details on debt service, see the Debt Service section in the Brown Book. Reserve Fund (2500) The Reserve Fund provides a critical source of funding for extraordinary and unforeseen expenses during the fiscal year that can be tapped without the need for appropriation by Town Meeting. Requests for trans- fers from this fund are generally initiated by the Select Board and/or Town staff and require formal approval by the Appropriation Committee. The FY2021 requested appropriation for the Reserve Fund is $750,000, a reduction from the $900,000 that was appropriated from FY2014 to FY2020. During those years the fund has seen limited use.In FY2018,$106,000 was transferred from the fund,and in FY2019 the fund remained unused. At the end of the fiscal year any unused amount flows to Free Cash. Facilities (2600) The Department of Public Facilities manages the operation,maintenance, and custodial service of Lexing- ton's municipal and school buildings. This Department also supports the School Master Planning process; manages recurring maintenance of roofs, building envelopes, and HVAC systems; and implements other priority projects. The FY2021 projected total Public Facilities operating budget is $11,900,390 which rep- resents a 1.4%increase over FY2020. 13