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HomeMy WebLinkAbout2018-03-08-AC-min 03/08/2018 AC Minutes Minutes Town of Lexington Appropriation Committee (AC) March 8, 2018 Place and Time: Hudson Room, Cary Memorial Building, 7:30 p.m. Members Present: John Bartenstein, Chair; Alan Levine, Vice-Chair & Secretary; Ellen Basch; Eric Michelson; Richard Neumeier; Sanjay Padaki; Andrei Radulescu-Banu; Lily Manhua Yan; Carolyn Kosnoff, Assistant Town Manager, Finance (non-voting, ex-officio) Members)Absent: Jian Helen Yang Other Attendees: David Kanter, Vice-Chair and Clerk, Capital Expenditures Committee (CEC); The meeting was called to order at 7:40 p.m. 1. Announcements, Consent Agenda Mr. Bartenstein reported that, subsequent to this Committee's March 1 meeting, the CEC had added two articles to their list of supported articles for the Consent Agenda, as follows: • Article 16(a): Hydrant Replacement Program • Article 27: Appropriate to General Stabilization Fund: The CEC supported Indefinitely Postponing (IPing) the article as proposed by the Board of Selectmen. After discussion, it was determined that no one on this Committee objected to these being included on the Consent Agenda. Mr. Bartenstein will so inform the Town Manager. It was noted that it is the Moderator who ultimately makes the decision regarding inclusion and that it is possible to remove an item from the Consent Agenda if anyone changes his/her mind. 2. Liaison Reports: Capital Expenditures Committee Mr. Kanter reviewed the Articles on which the CEC had not taken a position when he last met with this Committee, as follows: • Article 10: Appropriate the FY2019 Community Preservation Committee (CPC) Operating Budget and Community Preservation Act(CPA)Projects: ➢ (b) Community Center Sidewalk: The BoS believe that they are close to having an agreement with the Masons for a sidewalk from Marrett Road to the Lexington Community Center that crosses the Mason's land. The CEC will likely support the project. (j): Lowell Street/Farmview Affordable Housing; Supplemental Funds: The CPC voted to endorse this project earlier in the day, with$600,000 coming from Community Housing CPA funds and the balance coming from the CPA Undesignated Funds. The CEC will take a position at its next meeting. • Article 16: Appropriate for Municipal Capital Projects and Equipment ➢ (e) Center Streetscape Improvements Design: Improvements to the Massachusetts Avenue/Woburn Street intersection have been identified as Phase 1 of this multi-year project. The Board of Selectmen (BoS)recently voted to exclude installation of a traffic light at this intersection and no new alternative designs have been identified. 1 03/08/2018 AC Minutes Additionally, it has not yet been determined whether the 25% design work for the other phases of the project meet the criteria recommended by an ad hoc committee and approved by the BoS. The CEC is reluctant to support this project because it does not appear to be ready for the ATM; its position remains pending. ➢ (f)Automatic Meter Reading System: A report outlining options and costs for an automated system is being reviewed by staff. The CEC wants to see a return-on- investment analysis before taking a position. Ms. Kosnoff explained that staff is working with the consultant to prepare a report and recommendation for the BoS on March 19. She explained that an automated system would allow quarterly billing and reduce abatements. She will distribute a report on past abatements. • Article 22: Visitors' Center Funding and Article 23 Visitors' Center Funding (Citizen's Article): Article 23, a Citizen's Article, is included in the warrant in case the action proposed by the Selectmen under their Article 22 fails to include all the funding the proponents of the Citizen's Article seek at this time to advance the project closer to construction. Either article is worded broadly enough to cover construction costs (currently estimated at approximately$4.0 million)but the FY2019 Recommended Budget and Financing Plan (aka: Brown Book) recently approved by the Selectmen only includes $200,000 for design work. Non-allocated funds are not available because they have been used for other projects. Mr. Kanter envisions that an expenditure above the $200,000 would have to come from the Capital Stabilization Fund. The BoS plans to discuss non-town funding options at its March 19 meeting, after which the CEC plans to take a position. • Article 24: Appropriate to Post-Employment Insurance Liability Fund: The CEC is supporting this article while strongly encouraging a review of financial policies related to managing the Town's discretionary funds. • Article 27: Appropriate to General Stabilization Fund: Mr. Kanter does not plan to present an amendment to this article to the ATM, as previously envisioned. The CEC is supporting its being IP'd, and it is now on the Consent Agenda for that purpose. • Article 30:Amend FY2018 Operating, Enterprise and CPA Budgets: The CEC plans to take a position after additional information is available. • Article 31:Appropriate for Authorized Capital Improvements: The CEC plans to take a position after additional information is available. • Article 32: Amend General Bylaw- Regarding Financial Committees (Citizen Article): A draft Motion and explanation are going to Town Counsel. The CEC supports this article. • Article 35: Resolution to Request Warrant Articles to be Accompanied by Financial Projections (Citizen Article): The CEC met with Mark Andersen,proponent of this article, and suggested that creating a template at the end of a long review process, which occurs before the ATM begins, was likely overreaching. Staff already prepare a Capital Improvement Program (CIP) template that provides much of the information Mr. Andersen is seeking. Mr. Andersen was encouraged to IP the article and work "behind the scenes"to make changes in the process. The CEC supports Wing the project. 2 03/08/2018 AC Minutes During subsequent discussion, it was agreed that there may be steps that can be taken during the pre-ATM process that would facilitate greater understanding of projects by Town Meeting members. 3. FY2019 Budget issues and Report to 2018 Annual Town Meeting (ATM) on Financially-Related Warrant Articles: Articles were reviewed by those preparing material for this Committee's report to the ATM, as follows: • Article 4, Appr'opr'iate FY2019 Operating Budget Shared Expenses and Municipal Expenses: Ms. Yan discussed the material that she is preparing for her written report. ➢ Shaved Expenses: There is an overall 4.6% increase in shared expenses. The actuarial process used to determine costs for active employees versus retirees is extremely complex. After discussion, a motion was made and seconded to support the shared expenses portion of Article 4. The motion passed. VOTE: 8-0 ➢ Municipal Expenses: A new contract for refuse and recycling collection is resulting in a noticeable increase in Department of Public Works expenses. Ms. Kosnoff explained that the increase in Information Services reflects a transition from hardware purchases (capital budget) to using software services (operating budget). After discussion, a motion was made and seconded to support the municipal portion of Article 4. The motion passed. VOTE: 8-0 Mr. Neumeier reported that he may want to re-visit his support of Article 4 once he has completed his report on costs associated with legal services. • Article 5, Appropriate FY2019 Enterprise Funds Budgets: Mr. Bartenstein discussed the material on Enterprise Funds that he is preparing for his written report. ➢ Water and Wastewater Enterprise Funds: Because of a combination of factors, including a substantial decrease in Lexington's water consumption compared with the rest of the MWRA community in calendar year 2017, fall 2018 water and sewer rate increases should be modest. Retained earnings were substantially lower than expected, particularly in the water enterprise fund, which raises some accounting questions that will be addressed with the Department of Revenue when the certification process is undertaken at the end of FY2018. Because the retained earnings levels are lower than the desired target of$1 million in each fund, the major annual water and sewer capital improvements under Articles 17 and 18 will be funded entirely with borrowing this year. Recreational Enterprise Fund: The debt service for the Lincoln Street playing fields is now fully paid off. There is approximately$1.0 million in retained earnings. It was noted that the $250,000 request under Article 20(f), Community Center Design, would come from these retained earnings, while Community Preservation Act funds are being requested for Article 10(f), Center Track and Field Reconstruction. After discussion, a motion was made and seconded to support Article 5. The motion passed. VOTE: 8-0 3 03/08/2018 AC Minutes • Article 6, Appropriate,for Senior Services Program: Ms. Basch reviewed information shared at this Committee's March 1 meeting; this program has a surplus in its continuing balance account that is more than adequate to cover the funding needs of the program in FY2019 despite improvements in the benefit levels voted last year by the Board of Selectmen and other efforts to encourage greater participation. Staff has agreed that Ming this year's proposed annual appropriation of$30,000 would be appropriate and not detrimental to the program. After discussion, a motion was made and seconded to support Wing Article 6. The motion passed. VOTE: 8-0 • Article 9, Establish and Continue Departmental Revolving Funds: Ms. Basch discussed the material on Revolving Funds that she is preparing for her written report, noting that the Towns of Lexington and Bedford are going to share a senior services nurse. After discussion, a motion was made and seconded to support Article 9. The motion passed. VOTE: 8-0 • Article 14, Appropriate for Police Station Rebuild-Design: Mr. Neumeier reported that the current police headquarters building was built in 1956 and does not meet current standards. The current estimate for rehabilitation and expansion is approximately$22.2 million, with an additional $1.1 million needed to move the Hosmer House. There would be a cost for preparing swing space at 173 Bedford Street as well. This article is requesting over S 1.8 million in design funds. Construction funding would require a debt exclusion referendum—early 2019 at the earliest. Mr. Radulescu-Banu expressed concern with the excluded debt tax increase. After discussion, a motion was made and seconded to support Article 14. The motion passed. VOTE: 7-0-1 • Article 15, Appropriate for Recreation Capital Projects: Mr. Neumeier reported that $60,000 is a reasonable request for needed equipment. A motion was made and seconded to support Article 15. The motion passed. VOTE: 8-0 • Article 16(g), Appropriate for Municipal Capital Projects and Equipment: Sidewalk Improvements: It was noted that this project for$800,000 was previously approved by this Committee to be on the Consent Agenda. A motion was made and seconded to support Article 16(g). The motion passed. VOTE: 8-0 • Article 21, Appropriate to Reimburse Resident for Sewer Back Up (Citizen Article): Ms. Yan reported that because the Town was not negligent, the Town is not legally obligated to pay for the expenses incurred by a resident whose house was damaged by a sewer back up. The Town's insurance company denied coverage. It was agreed that Ms. Yan will write something short in support of the denial. Voting was postponed. • Article 32, Amend General Bylaw Regarding Financial Committees (Citizen Article): A motion was made and seconded to support Article 32. The motion passed. VOTE: 8-0 4 03/08/2018 AC Minutes 4. Next Meetings The next meeting will be held on March 15, 2018 to continue taking positions on the financial articles. 5. Minutes Review of the March 1, 2018 minutes was postponed until the next meeting The meeting adjourned at 10:05 p.m. Respectfully submitted, Sara Arnold, Recording Secretary Approved. March 15, 2018 Exhibits Agenda, posted by John Bartenstein, Chair 5