2006-03-29-AC-min - Laserfiche WebLink

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March 29, 2006 Minutes Town of Lexington Appropriation Committee March 29, 2006 Members Present: A. Levine (Chair), D. Brown (Vice Chair), J. Bartenstein, R. Eurich, P. Hamburger, P. Hoffman, D. Kanter, E. Michelson,. R. Addelson (Assistant Town Manager for Finance; non-voting) The meeting was called to order at 6:40 by Al Levine in Town Office Bldg. Rm. 111. PM 1. E. Michelson volunteered to take minutes. 2. Deborah Brown presented a draft memo titled “Appropriation Committee Memo to Budget Collaboration Group 3/29/06”. This three page memo is a summary of an analysis that estimates the “gap” between expected revenues and the projected expenses required to 1) sustain level services in FY 2007 and 2008 and 2) maintain reserves at $5,570,000 through the close of FY 2008. In this memo it is stated that this information is being presented to the Budget Collaboration Group in order to determine if we have consensus on these goals and, if so, to discuss options for achieving these goals. The memo then goes on to describe two scenarios, an annual override scenario and a “one override for two budget years” scenario, as well as some mitigating strategies to consider. The committee unanimously approved the memo for presentation to the upcoming summit and supported its use for discussion purposes. 3. The Budget Collaboration Group will meet tonight immediately following Town Meeting. R. Addelson said the agenda will center on the School Committee’s proposal to eliminate the request to include Question 4 (special education [SPED] contingency) on the override, and to instead present a 4-step plan to be implemented to address any SPED overages. Step 1: Existing School Department Budget – apply surplus balances in other school budget accounts Step 2: Appropriation Committee Reserve Fund – raise the AC reserve fund by $100,000 to $400,000 (funded mostly from the $55,000 reduction of the Minuteman Voc estimate and by not appropriating $40,000 for the Art. 32a strategic school plan) and then draw from that. Step 3: Use of FY2007 Free Cash – Use up to $200,000 (requires Town Meeting action) Step 4: Use of Stabilization Fund (requires Town Meeting action). Discussion included comments that this approach is more favorable than a system where the school budget is artificially inflated as a way to create a contingency fund. Covering SPED overages through this proposed mechanism would preserve mainstream educational and maintenance funding, and budgeting would remain a 1