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APPROPRIATION COMMITTEE-2.020 ATM 25 March 2020
<br /> interest-only borrowing for a term of up to one year.They are issued for individual projects prior to bundling
<br /> the debt from several projects to create a single multi-year bond.
<br /> Project Total Total FY2021
<br /> TM Approval Final Payment Appropriation Debt Financing Debt Service
<br /> Wright Farm Purchase $3,072,000 $2,950,000 $351,050
<br /> ATM 2012 FY2024
<br /> Community Center Acquisition $10,950,000 $7,390,000 $880,100
<br /> STM 3/2013 FY2024
<br /> Cary Memorial Building Upgrades $8,677,400 $8,241,350 $786,000
<br /> STM 3/2014 FY2025
<br /> Center Track and Field Renovation $3,340,000 $2,829,000 $1,951,444
<br /> ATM 2018 FY2022
<br /> TOTAL $26,039,400 $20,550,350 $3,968,594
<br /> The debt service for the Wright Farm purchase will be paid from the Open Space Reserve, $560,000 of the
<br /> Community Center Acquisition debt service will be paid from the Historic Resource Reserve, and the re-
<br /> maining debt service payments will be paid from the Unallocated Reserve.
<br /> The practice of the Town, based on recommendations from the Appropriation Committee and Capital Ex-
<br /> penditures Committee,is to limit the size and duration of debt funded by the CPA to the practical minimum,
<br /> usually below the maximum that would be allowed by statute. This reduces the potential for long-term
<br /> financial commitments that would linger should the residents vote to rescind the CPA surcharge in the
<br /> future. That said,this practice should not be allowed to consign too much of the CPA annual revenue for
<br /> debt service,which would stifle the ability of the CPC to fund new projects directly with cash.
<br /> 10(o): Administrative Budget
<br /> The Community Preservation Act permits up to 5%of annual CPA funds to be spent on the operating and
<br /> administrative costs of the CPC. The CPC may pay for staff salaries, mailings, public notices, overhead,
<br /> legal fees, membership dues, and other miscellaneous expenses related to CPA projects. As in past years,
<br /> the CPC is requesting an appropriation of$150,000, which is well below the 5%cap. This money will be
<br /> used to fund the Committee's part-time administrative assistant, membership dues to the non-profit Com-
<br /> munity Preservation Coalition, administrative expenses, legal and miscellaneous expenses, and land plan-
<br /> ning,appraisals,and legal fees for open space proposed to be acquired using CPA funds.Funds appropriated
<br /> for administrative expenses but not spent in a given fiscal year revert to the CPA Undesignated Fund Bal-
<br /> ance at year's end.
<br /> The Committee recommends approval of 10(a-c,e-o) by a vote of(8-0).
<br /> The Committee supports indefinite postponement of 10(d).
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