2011-03-03-AC-min - Laserfiche WebLink

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March 3, 2011 Minutes Town of Lexington Appropriation Committee March 3, 2011 Place and time. Ellen Stone Room, Cary Hall, 7:30 p.m. Members Present. Glenn Parker, Chair; Susan McLeish; Alan Levine; Robert Cohen; Joe Pato, Vice Chair; Eric Michelson; Richard Neumeier; John Bartenstein, Vice Chair and Secretary; Mollie Garberg; Rob Addelson (non- voting, ex- officio) Other Attendees. Jeff Crampton; Jane Pagett; Richard Pagett; Wendy Manz, Chair CPC The meeting was called to order at 7:35 p.m. 1. Article 17 — Community Preservation Act (CPA) Surcharge. Jeff Crampton and Jane Pagett were in attendance to speak in support of Article 17, which proposes to reduce the CPA surcharge from 3% to 1 %. (Alan Seferian is the primary sponsor but could not attend.) Mr. Crampton noted that large upcoming capital expenditures proposed for the replacement and renovation of schools and other buildings will necessitate one or more debt exclusion overrides. Proponents of the Article hope that a reduction in the CPA surcharge will provide relief to taxpayers and increase the chances that these overrides will succeed. They also believe that the Town needs to slow down the pace of spending for CPA programs, and that this change will force the Community Preservation Committee (CPC) to focus on highest priority projects. There was discussion regarding how much the change would reduce taxes for an average resident, and whether any other communities have put a similar reduction into effect. The committee also discussed whether, if the article passed, the Town would be required to maintain the surcharge above 1 % until previously incurred debt service is discharged. If approved by Town Meeting, the proposed change in the CPA surcharge would be submitted to popular referendum in 2012 and, if approved by the Town, would go into effect in FY 2013. The debt service in FY2013 would be about $1.9m and the revenue generated from a 1 % surcharge would generate $1.1 m, plus whatever additional amount is realized from the state match. Even if this amount alone is not sufficient, it is likely that the Town would be able to fulfill the debt service using a combination of annual revenue and unallocated reserves in the CPC fund. After FY2013, all current debt obligations for CPC projects would be discharged. Therefore, the obligation to repay existing debt should not affect the proposed reduction to 1 %. Wendy Manz, Chair of the CPC, was in attendance to present the case in opposition to Article 17. Ms. Manz acknowledged concerns about the Town's anticipated need for one or more large debt exclusion overrides but stated that the CPC nevertheless supports the current 3% CPA surcharge. -1-