1984-01-BOS-min - Laserfiche WebLink

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./ 1 -3- Selectmen's Meeting January 17, 1984 endorsed in principle the components of the local aid formula with the understanding that certain aspects of the formula will be refined and the Administration is willing to work with municipalities on the matter. He recommended that it may not be in.the best interest of the Town to pursue separate formulas for this region as it would result in competi- tion among municipalities and not getting a proposal which would pro- vide an additional aid for Lexington. He forecast approximately $145,000 additional for the Town this year and added that notice of actual dollars under the Administration's formula should be received during the next week and,if the formula can be expedited, the Cherry Sheets should be received in March or April. Senator Richard Kraus was present to request the Board's consider - ation of the adoption of a "Resolution in Support of the Two Percent Limit or Resolution in Support o.f Proposition Two ". He is seeking to change the basic formula in an effort to assist communities in coping with inflation. He reviewed his proposal with the Board and compared its features with the current system of taxation and budget setting. He proposes adoption of legislation which would enable any community by referendum to set its own tax rate at any level up to a maximum of 2 percent or full and fair market value and would distribute local aid on a need basis, assuming that each community's property tax rate is two percent or at a higher f igure' if� such is possible under Mass. law, without re- ferendum vote. This would allow cities and towns to take advantage of their own wealth and still keep up with future inflation. He advocates adoption of a revenue plan which would provide suf- ficient funds to meet costs of both local and state,government as property taxes are reduced to the indicated maximum or two percent; such plan to include at a minimum the annual appropriation.to local aid of 40% of the increase in state revenues. The Senator added that the process, if adopted, would come into play a year hence. Following brief discussion, the Board thanked Senator Kraus for his presentation and invited further input and reports from him on progress with the proposal. Mr. Hutchinson reviewed with the Board the revised expense budget requests f or ' FY' 85 of the following: Acct #2250 - Appropriations Committee #2370 - Trustees of Public Trusts, Historical Commission, unbedgeted committees. #2525 - Collector /Treasurer Dept. #2575 - Foreclosure/Redemption Account #2925 - Office Machines - Capital Outlay #2930 - Office Machines - Maintenance and Repairs #2935 - office Services - Copier Supplies Sen. Kraus "Prop 2" FY'85 Budget