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APPROPRIATION COMMITTEE-2.020 ATM 25 March 2020
<br /> program, see Brown Book,p. XI-18,both to be appropriated under Article 12 (Municipal Capital Projects
<br /> and Equipment).No retained earnings are requested for appropriation from the wastewater fund.
<br /> Recreation Enterprise Fund
<br /> In 2015,following the inauguration of the Lexington Community Center(LCC),the Recreation Department
<br /> was reorganized to include LCC operations and renamed the Department of Recreation and Community
<br /> Programs (DRCP). This change resulted in increased costs for the Recreation Enterprise Fund as the
<br /> FY2016 LCC budget included$383,073 to fund 5.5 full time and seasonal staff to plan,manage and deliver
<br /> community programs along with the supplies needed. That level of staffing has continued through the pre-
<br /> sent. See the Brown Book,p. VII-9. The proposed appropriations for FY2021, and changes from the prior
<br /> fiscal year, are shown in the table below.
<br /> FY2020 FY2021 Dollar %
<br /> Recreation Enterprise Fund Appropriated Requested Increase Change
<br /> Compensation $1,471,683 $1,535,363 $63,680 4.33%
<br /> Expenses $1,481,895 $1,480,045 ($1,850) (0.12°/x)
<br /> Debt Service
<br /> Total Requested in Article 5 $2,953,578 $3,015,408 $61,830 2.09%
<br /> Indirect Expenses $269,681 $277,771 $8,090 3.00%
<br /> (transfer to General Fund)
<br /> Total $3,223,259 $3,293,179 $69,920 2.17%
<br /> The operational costs of programs offered by the DRCP are generally designed to be revenue neutral,with
<br /> charges to users matching the program's operating costs. However, to support LCC operations that are
<br /> generally available to all residents and are not fee-supported, a portion of LCC costs are now supported by
<br /> the tax levy. Accordingly, the motion includes a transfer of$218,916 in tax levy funds into the Recreation
<br /> Enterprise Fund,to be appropriated under this article.
<br /> In addition to the subsidy from the tax levy, sources of revenue include $375,000 from the Recreation
<br /> Enterprise Fund retained earnings, $1,448,963 from user fees for recreation, $465,300 from registration
<br /> fees for Community Center programs, and $775,000 from greens fees at Pine Meadows Golf Course. The
<br /> budgeted revenue from fees is based on projections. The Director of Recreation and Community Programs,
<br /> through the Recreation Committee, sets fees for use of the Town's playing fields,gyms, and other recrea-
<br /> tional facilities with the approval of the Select Board.
<br /> The Recreation Enterprise Fund has in the past contributed to the debt service on some recreation capital
<br /> projects,in particular the renovation of Lincoln Field some years ago. However,all recreation capital costs
<br /> are now covered using the General Fund through a combination of free cash, within-levy debt, excluded
<br /> debt(though not recently), and Community Preservation Act(CPA) funding.
<br /> The balance of retained earnings in the Recreation Enterprise Fund at the close of FY2019 was $669,744,
<br /> of which $555,000 is proposed to be appropriated at this annual town meeting. An appropriation from
<br /> retained earnings of$375,000 is requested under this article for application to the operating budget. An
<br /> additional$180,000 of retained earnings is requested for appropriation under Article 15,of which$100,000
<br /> would fund a design for the renovation of the clubhouse at the Pine Meadows Golf Course and $80,000
<br /> would be used to purchase equipment at the Pine Meadows Golf Course.
<br /> The Committee recommends approval by a vote of(8-0).
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