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<br />Financial Summit Meeting III
<br />Board of Selectmen, School Committee, Appropriation Committee
<br />and Capital Expenditures Committee
<br />Thursday, January 31, 2019
<br />
<br />A Financial Summit meeting was held on Thursday, January 31, 2019 at 7:05 p.m. at the Samuel
<br />Hadley Public Services Building Cafeteria, 201 Bedford Street. Present for the Board of
<br />Selectmen (BOS) were Ms. Barry (Chair); Mr. Pato; Mr. Lucente; Mr. Malloy, Town Manager;
<br />Ms. Kosnoff, Assistant Town Manager for Finance; Ms. Hewitt; Budget Director; and
<br />Ms. Siebert, Recording Secretary. Ms. Hai was absent.
<br />Present for the School Committee (SC) were Ms. Jay (Chair); Mr. Alessandrini; Ms. Colburn;
<br />Ms. Lenihan; Ms. Sawhney; Dr. Hackett, Superintendent of Schools; and Mr. Rowe, Assistant
<br />Superintendent of Schools for Finance and Operations. Present for the Appropriation Committee
<br />(AC) were Mr. Parker (Chair); Mr. Bartenstein; Mr. Michelson; Mr. Levine; Mr. Padaki; Ms.
<br />Yan (late arrival); Mr. Neumeier; Ms. Basch; Mr. Nichols. Present for the Capital Expenditures
<br />Committee (CEC) were Mr. Lamb (Chair); Mr. Kanter; Mr. Cole; Ms. Beebee; Ms. Manz; and
<br />Mr. Smith.
<br />FY2020 Preliminary Budget and Financing Plan
<br />Mr. Malloy, Town Manager presented the preliminary FY2020 Operating and Capital Budget
<br />recommendations.
<br />The FY2020 budget is balanced. Revenue sources are projected to total $229,136,434, an
<br />$8,011,622 change over FY2019. The total Tax Levy projection for FY2020 is $183,792,412, an
<br />increase of $6,987,835 over FY2019. State Aid is projected at $16,211,973, an increase of
<br />$215,638 over FY2019. Local Receipts are projected at $14,086,885, an increase of $486,165.
<br />The recommended expenditures totals $229,136,434, an increase of $8,029,397over FY2019. It
<br />was noted that actual revenue has followed projected revenues over time, for the most part.
<br />Expenditures for the Lexington Public Schools in FY2020 are projected at $113,970,176, an
<br />increase over FY2019 of $5,858,731 over FY2019. Minuteman High School expenses are
<br />projected to be $2,489,979, an increase of $362,762 over FY2019. Municipal Department
<br />expenditures are projected at $40,264,265, and increase of $1,982,230 over FY2019. Shared
<br />expenses are expected to be $60,303,768, an increase of $794,910 over FY2019.
<br />Mr. Malloy highlighted a set-aside new line item in the summary: “Transition Free Cash Out of
<br />Operating Budget” for $700,000 and said that Moody’s, the bond rating agency, states that one-
<br />time revenue should not be used in support of the Operating Budget. Mr. Malloy recommends
<br />that the Town incrementally reduce its reliance over 5 years of Free Cash revenue in the
<br />Operating budget.
<br />Mr. Malloy noted two new anticipated sources of revenue: a 6% short-term rental room tax, from
<br />Airbnb-type properties, in the form of Local Receipts from the State; and a fee from third party
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