2011-02-16-AC-min - Laserfiche WebLink

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February 16, 2011 free cash set aside for as yet identified needs). The current year's operating budget can be amended at the Annual Town Meeting under Article 24, and the Reserve Fund may also be a source to finance shortfalls. If a deficit still remains after all end -of -year transfers are done, an additional appropriation could be made at a special town meeting in the fall as long as it occurs before the tax rate is set, otherwise the statute provides that the deficit would be "certified to the board of assessors and included in the next annual tax rate." After discussion, the Committee approved the requested authorization by a vote of 7 -0 -0. 4. Article 13. Pat Goddard was in attendance to discuss DPF capital articles and gave a strategy overview. From 1997 -2009 (12 year period), an average of $11 m gross was spent a year in authorizations on capital including the amounts spent on major building projects. The DPF is using this amount as a benchmark to move forward with planning for future spending. In order to qualify for MSBA funds, buildings now need to be maintained. State reimbursements are no longer made at a 59% rate. Rather, it is now 31 % to 40% for those few projects that receive MSBA approval. Mr. Goddard handed out a chart entitled "Lexington Public School Facility Capital Spending $89.4m- $108.3m for 2010 -2019 TM (revised January 18, 2011)" summarizing a preliminary 10 -year facilities master planning budget. The draft plan shows considerable expenditures in FY2011 on the Bowman and Bridge projects, in FY2012 mainly on Estabrook, and in fiscal years 2013 -2019 spending on smaller projects and for building a stabilization fund for future facilities needs. In FY2017 there is a significant expenditure on Hastings. Mr. Goddard noted that major expenditures on Bridge and Bowman and Estabrook will not occur so early, and that the draft summary will require some modification to account for timing issues. The Committee raised a number of questions about the stabilization fund concept, including how it will be managed and what it will take to utilize the funds. It was noted that the stabilization fund issue could be deferred to a future meeting as it is not being brought up at the upcoming annual town meeting. Mr. Goddard also handed out an Executive Summary from the 1994 Town of Lexington Facility Study of the Lexington Public Schools. The document summarizes a plan to maintain buildings instead of replacing them. The current focus for this Annual Town Meeting will be on moving the Estabrook and Bridge and Bowman projects toward a debt exclusion as well as transitioning away from funding new buildings and more toward maintaining existing buildings. The Committee discussed planning and longer -term cost savings, roof replacements and mechanical overhaul thresholds; when a debt exclusion might be necessary; and whether maintenance should be an operating or override expense. It was agreed that planning for the debt exclusions is another item that should be addressed after Town Meeting. Mr. Goddard proceeded to review Article 13 specifics (see the Warrant and the "FY12 Town Manager's Preliminary Budget and Financing Plan" dated January 10, 2011 for more information). A summary follows: -2-