2020-03-25-AC-ATM-rpt - Laserfiche WebLink

Browse Search

APPROPRIATION COMMITTEE-2.020 ATM 25 March 2020 made to the Town annually if the number of students residing at the development (Avalon at Lexington Hills)exceeded 111. The amount payable per student in excess of 111 was$7,100. The fund was dissolved at the 2018 ATM. Transportation Management Overlay District Fund(TMOD): funded by payments from those developers who choose to pay a transportation mitigation fee rather than taking responsibility for improving all the intersections in the area to a certain level as provided in Section 135-43.0 of the Zoning Bylaw.Per Section 135-43.C(5)(c) "any transportation mitigation fees paid to the Town are intended to be used to fund infra- structure improvements that are necessitated by the proposed development of the applicant." At the 2012 Special Town Meeting,the Capital Stabilization Fund was created to set aside funds for future capital projects, including but not limited to building renewal projects, and/or to mitigate the impact on taxpayers of debt service,both excluded and non-excluded, related to capital projects. Current Town policy has a goal of keeping debt service at approximately 5% of total revenue. When the Town must issue a particularly large bond, such as was needed for the new Estabrook School construction combined with the Bridge and Bowman school renovations,the Town's debt service rises sharply.This rise is typically followed by a period of lower growth in debt service while the Town pays down its existing debt,and limits additional borrowing,until debt service converges back on the goal of 5%of total revenue. Rather than adding the higher debt service directly into the tax levy,this fund allows the Town to smooth the impact of sudden increases in debt service on property tax bills. Town Meeting can set aside funds in periods when the Town has a surplus, and in later years these funds can be appropriated to directly reduce annual debt service,which in turn reduces the amount that must be raised in the tax levy. At the 2018 Annual Town Meeting, three new funds were created with dedicated revenue streams. The Visitor's Center Capital Stabilization Fund was established to serve as a repository for grants, gifts, or special fees related to the Visitor's Center building capital project. The Water System Capital Stabilization Fund was established for the specific purpose of reserving monthly payments received from the Town of Bedford per an agreement for the sale of water(water from the MWRA goes to Bedford through Lexing- ton's system). The agreement with Bedford has two components, 1)the cost of water used, and 2) a flat annual fee or"demand charge"that is split into monthly payments.The annual fee is set so as to cover costs of future infrastructure improvements related to the Lexington-to-Bedford water connection. It is envi- sioned that the monthly payments would be put into this stabilization fund for future capital projects instead of being applied annually for rate reductions. The annual fee for FY2018 was $62,175 and it will increase each year by a CPI factor. The Affordable Housing Capital Stabilization Fund was established to reserve payments from Brookhaven for affordable housing, commencing in FY2020 per an agreement in regard to the rezoning article for Brookhaven's expansion at the 2017 Annual Town Meeting. The table below shows the balances in stabilization funds as of March 12, 2020. Stabilization Fund Balance Transportation Demand Management $376,127 Traffic Mitigation $643,443 Special Education $1,148,715 Capital $25,158,929 Center Improvement $10,328 TMOD $98,143 Debt Service $437,058 Visitors Center $215,549 Affordable Housing Capital $0 Water System Capital $71,702 61