2011-10-19-AC-min - Laserfiche WebLink

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October 19, 2011 Minutes Town of Lexington Appropriation Committee Meeting October 19, 2011 Time and Location: Cary Hall, Legion Room, 7:30 p.m. Members Present: Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Joe Pato, Vice Chair; Robert Cohen; Mollie Garberg; Alan Levine; Eric Michelson; Richard Neumeier; Jonina Schonfeld; Rob Addelson (non- voting, ex officio) Others in Attendance: Carl Valente, Town Manager; Sam Silverman, Town Meeting Member; Mary Ann Stewart, School Committee; Margaret Coppe, School Committee The meeting was called to order at 7:36 p.m. Announcements. Mr. Parker requested someone to track the BoS meeting minutes and Mr. Pato agreed to do this. Special Town Meeting. Article 4 — Budget Adjustments (Carl Valente): Mr. Valente distributed a packet containing a summary entitled "FY2012 Operating and Capital Budget — Preliminary Adjustments" and supporting documents. He said that he would give just an overview of the most current numbers and turn over the presentation to Mr. Addelson to cover greater detail and answer any questions. The proposed adjustments are for both revenue (approximately $1.4m additional revenue is expected) and expenditures (approximately $1.2m in additional appropriations are proposed), leaving a positive balance of $255,551. It is hoped that there will be a reduction in the FY2012 health benefits budget in an amount yet to be determined, due to a reduction in claims, which would result in a larger balance. The document outlined four potential uses for some or all of the residual balance: 1) increasing the snow and ice removal budget; 2) funding reconstruction of streets and roads; 3) allowing the funds to flow to free cash that will become available for appropriation for the FYI budget; and 4) appropriating to the stabilization fund. Revised Revenue Adjustments: Mr. Addelson discussed the growth in revenue versus previous estimates. The largest driver is a $1.2m increase in the tax levy, attributable to new growth of approximately $3m versus the original estimate of $1.8m. New growth for FY12 is attributable to residential and commercial construction activity from FYI as well as personal property increases (i.e. business machinery). New construction of single family homes and condos totaled about $71 m in valuation, which translates to $1 m in new revenue, and commercial and industrial construction added about $25m in valuation, which translates to $680k in new revenue. Mr. Addelson answered questions about the projects that have impacted revenue. He explained in particular that new growth resulting from recent construction at Shire not subject to the TIF agreement will likely be offset by a temporary reduction in revenues (in effect, "negative new growth ") from the portion that is subject to the TIF, although the amounts offset will ultimately be recouped as additional new growth in future years when the TIF discounts are reduced.