2011-09-08-HATS-min - Laserfiche WebLink

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HATS Meeting September 8, 2011 Final Meeting Minutes issued for the Record Members Present Elise Woodward, Chair, Michael Rosenberg, Bedford Selectmen, Doris Cole, Concord Planning Board; Dorothy Steele, Massport; Sharon Williams, Massport Not in attendance: Sara Mattes, Lincoln Selectmen Others present Rob Addelson, Lexington Finance Director, Lynn Salmger, Concord Finance Committee, Michelle Matteo, Bedford Capital Expenditure Committee Chair, Chris Whelan, Concord Town Manager; Tim Higgins, Lincoln Town Administrator; John Kearney, Lincoln Finance Committee; Rick Reed, Bedford Town Manager Ms Woodward opened the meeting at 7.30 p m and welcomed everyone Challenges and Opportunities for Budgeting in FY13: Lexington Finance Director(Mr. Rob Addelson): Lexington begins the budget process collaboratively and early in the fall, with a summit conference series to flesh out overarching policy issues Key financial town institutions include the School Committee, Capital Expenditures Committee, Appropriation Committee, and Community Preservation Committee, who focus on process and have a significant impact on capital budgeting The first scheduled summit is held on 10/5 to walk through a series of financial indicators updated on an annual basis giving a full picture of revenues and expenditures and a sense of the fiscal health of the community. Summits in recent years have included health insurance because of its claim on limited dollars. They also give everyone a chance to review current status, provide a 3-year revenue and expenditure projection and allow the town to see how current spending can impact the longer-term future There are 3 significant elementary school projects to include renovations and reconstruction, some covered by grant funding. The summits help determine when to go to town meeting for funding and to voters as well. There are 3-5 summits per budget year on an as-needed basis. There is also a summit meeting typically in early January to review projected revenue for the upcoming fiscal year and apply a model the town has used to allocate revenue between municipal and school operations. As Lexington approaches FY13, the most significant challenge will be municipal health insurance, in particular as it pertains to the law that governs municipal health insurance and the decision about joining the GIC (which will involve an agreement between management and unions). Lexington has avoided operating overrides for the last 3-4 years, is living within its means, and has put money in the stabilization fund for 6-7 years due to a drawdown of the Reserve Fund in Lexington. Lexington currently has about$8.5m in reserves. Reserves are maintained to provide services during a difficult time such as a recession Lexington plans to operate within its budget for FY13 A large liability is post retirement health benefits The most recent OPEB analysis indicated the 30-year liability is a little over $400m. Lexington pays on a pay-as-you-go basis at about$6m for retiree health insurance. The annual required contribution is $22m a year. A trust has been established and annual contributions over the last 4 fiscal years have been made in the amount of about $450k per year, which is comparable to the level of government reimbursement(Medicare Part D) They had hoped to contribute more but Lexington has moved from full funding to about 88% The operating budget for the General Fund is about $148m and the balance of the Stabilization Fund is about $8 5m