2008-04-09-CEC-min - Laserfiche WebLink

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Minutes Town of Lexington Capital Expenditures Committee April 9, 2008 Place and Time: Town Office Building, Room 111, 9:00 AM Members Present: Charles W. Lamb (Chair), Ted Edson (Vice-Chair), David G. Kanter, and Shirley Stolz Visitors: At 9:00 : Betsey Weiss (Chair, Lexington Community Preservation Committee [CPC]), AM Joel Adler (Member, CPC), Marilyn Fenollosa (Member, CPC), Richard Wolk (Member, CPC), Judy Pearson (Administrative Assistant, CPC), John Bartenstein (Lexington Appropriation Committee), Joyce Miller (Chair, Lexington Conservation Commission), and Carl Valente (Lexington Town Manager), At 10:00 : Jerry Van Hook (Chair, Lexington Sidewalk Committee) AM CWL called the meeting to order at 9:00 AM Land Acquisition Financing MF: Don’t know about future costs or projects that CPC will need funds for. The open-space bucket is approximately $1.1M after FY09 allocations are made. That could be used for the cash portion. $4.4M in the unallocated bucket (in addition to the $1.1M in land bucket). Pledging debt service would only be against the unallocated portion. CV: There is no right or wrong answer to debt versus cash. Now is a good time to borrow money. Income on our investments is about 3% or just under. If you drain the undesignated balance, it may cause concern for other groups. The affordable housing pot is about $840K at the end of FY09. Hancock-Clarke house would not be bondable because it’s a grant. He wouldn’t want to go beyond a 10-yr bond for the land. Timing will be tight because Bond Anticipation Note (BAN) is being issued in June. They would want to BAN this purchase in June or July, but timing would be tight to do it in June. RW: Both sellers were told they would close in July. CV: Town can float the funds prior to the bond, but they can’t cross fiscal years with the float because Free Cash freezes on July 1. Nor can they refinance an existing asset with CPA funds. TE, DGK, & CWL want “all cash”; SS would consider bonding 50% or less. The Public Hearing on the land purchases contemplated for the current Annual Town Meeting is scheduled for April 29—with presentation to Town Meeting expected on April 30.