2020-10-14-AC-STM#2-STM#3-rpt - Laserfiche WebLink

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(DRAFT V4) APPROPRIATION COMMITTEE 2020-2 AND 2020-3 SPECIAL TOWN MEETINGS 7 OCTOBER 2020 Town Meeting may create a specified stabilization fund, alter a fund's specified purpose, or make an appropriation from a fund by a two-thirds majority vote. Appropriations into specified stabilization funds are approved by a simple majority. Appropriations into a fund do not authorize expenditures but restrict future uses of the funds to purposes defined by the fund. The following transfers are requested under this article. Source (Withdrawal) Destination Committee Deposit Recommendation Capital SF ($1,100,000) Exempt Debt Service Approve(7-0) Transportation Demand Mitigation Payments $471352 Management/Public Approve(7-0) Transportation SF Capital Stabilization Fund This article requests an appropriation of$1,100,000 from the Capital Stabilization Fund.Withdrawals from this fund are used to pay portions of the debt service for the Town's capital projects. This includes some within-levy debt service, and also debt service for projects that are exempt from the limits of Proposition 21/2. In the latter case,this lowers the tax revenue that must be raised in excess of the levy limit. This helps to smooth out short term spikes in the tax rate that result from debt issued for exempt projects. The Town's estimated exempt debt service for the current fiscal year(FY202 1)is$17,300,000.This request would cover a portion of the debt service triggered by new long-term debt issued at the end of FY2020 for exempt capital projects including Hastings Elementary School, Fire Headquarter Building and Lexington Children's Place. The Town had previously planned to issue this debt in February 2021, but a highly favorable municipal bond market during the latter half of FY2020 motivated the Town to accelerate its schedule for issuing bonds. This decision increased the annual debt service in FY2021,but the Committee agrees that it was a prudent decision. Securing the lower interest rates will decrease the total cost of the debt to the Town, and over the long term this will reduce the need to use the Capital Stabilization Fund. The balance of the Capital Stabilization Fund as of the end of FY2020, including interest earnings was $251229,254. Transportation Demand Management/Public Transportation(TDM/PT) Stabilization Fund This article requests an appropriation of$47,352 into the TDM/PT Stabilization Fund. These funds were collected from developers under Memoranda of Agreement(MOAs)as part of their commitment to mitigate the impacts of zoning changes granted for their developments. The fund is used to support the Lexpress bus service, Rev Shuttle, and could support future transportation related initiatives. Since the 2020 Annual Town Meeting, the Town has received mitigation payments of$45,737 from Avalon and $1,615.34 from Brookhaven. This motion also requests Town Meeting's permission, under M.G.L. Ch. 40, § 5B, to deposit all future MOA payments for the TDM/PT Stabilization Fund from five entities without requiring appropriation by Town Meeting. Those entities are Avalon at Lexington Hills, Takeda Pharmaceuticals,Watertown Savings Bank, Brookhaven, and Lexington Place Condominium. The balance of the TDM/PT Stabilization Fund as of the end of FY2020 was $377,177. The Committee recommends approval of this request(7-0). 9