2023-01-05-AC-min - Laserfiche WebLink

Browse Search

01/05/2023 AC Minutes 2 the Social Security Administration has adopted a COLA of 8.7% for Social Security payments in calendar year 2023. The Town previously adopted 3% for FY2023; if 5% is adopted now, it will apply retroactively to the entire fiscal year. An increase in the COLA from 3% to 5% would give each retiree as much as, but no more than, $300 per year. The power to increase the COLA jointly rests in the Retirement Board, which has already given its approval, and the Select Board. Adoption of the 5% COLA will increase the present value of the pension liability by $1.3 million. Ms. Kosnoff showed a schedule of appropriations for the Retirement System, in which full funding is achieved in FY2029. In that schedule, the increase in the FY2023 COLA from 3% to 5% implies that just over $2 million more will need to be appropriated in FY2029, assuming there are no other changes in the appropriation schedule. When asked if there are any objections to the COLA increase, no AC member responded. Review of the List of Articles for the 2023 Annual Town Meeting Mr. Parker led the AC through a review of a draft list of articles for the 2023 annual town meeting primarily to start assigning topics to Committee members. The first article that generated discussion is a potential article regarding establishment of a stormwater utility. Two articles will be needed for such a utility to go forward, i.e., one to establish the utility (an enterprise fund), and one to set the bylaws for the utility including fee structures. Ms. Kosnoff noted that if the utility is established at the upcoming town meeting, the first revenue would not be received until FY2025. In the current year, the operating budget includes about $2.5M related to stormwater management. The annual expenditures are expected to rise significantly as EPA regulations take effect. Properties owned by nonprofit organizations in Lexington that are exempt from the payment of property taxes would not be exempt from payment of stormwater management fees. Such fees might be based, e.g., on the amounts of impervious surface on real estate parcels that would be determined by GIS mapping. There could be discounts for properties that have taken actions to mitigate stormwater runoff, but a scheme for that has not been fully worked out. Officials have discussed a reduction in property taxes to offset the increase in revenue from fees if a utility is established. A tax reduction could be accomplished several ways, one of which could be an operating underride. The possible strategies to offset fee increases were discussed at some length. The article on Public Facilities Capital includes a line for 173 Bedford St. renovations, which was noted to be intended to cover the design phase only. Mr. Levine pointed out that the total cost of renovating this building, if intended to house the School Administration, has been estimated to be about $6M, and that the move of the LPS Central Office to that building would be only one in a series of changes that have not yet been fully thought out and discussed. The line for the Children’s Room at the Library also refers to a potential project where the scope is not clear, i.e., it may be rather advantageous to combine the Children’s Room project with HVAC and other system work that is reportedly needed. “East Lexington Architectural Concept” likely refers to the East Lexington Fire Station. Any project at the Stone Building will be funded through the CPA, and hence will be moved to the CPA article. One action that is likely to be requested under the article on stabilization funds is the transfer of the balance from the Affordable Housing Stabilization Fund to the Affordable Housing Trust. The Affordable Housing Stabilization Fund then may be dissolved at this or a subsequent town meeting.