2020-01-14-AC-min - Laserfiche WebLink

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01/14/2020 AC Minutes FY2021 Budget Summit 3 In preparation for Budget Summit 3, Ms. Kosnoff reported the following: • The revenue model being used has not changed. • Staff presented the proposed budget to the Select Board (SB)last night. • The Town would like to collect one more year of data on solar panel energy generation before increasing solar energy revenue projections. • It has been decided to postpone a request to construct a new Police Headquarters facility until a fall 2020 special town meeting. A debt exclusion referendum will be scheduled to follow the appropriation of funds by the town meeting. The Town's recently adopted Integrated Building Design Policy has increased the project's cost by approximately $1.0 million, but some operating costs are expected to decrease because of increased efficiency in the use of energy. The current design preserves two outside walls in response to Historic Districts Commission comments/requests. The SB is exploring alternatives that would reduce costs. It was noted that the Director of Public Facilities believes that the cost of the facility increases about$100,000, due to inflation of construction costs, for each month that it is postponed. • Funds to design the Police Headquarters - approximately $1.8 million–have been appropriated. • There are plans to allow the sale of the Hosmer House to someone who would move it off site. • There is an increase in the Town Clerk's budget. • Staff will recommend that unallocated tax levy funds go into the Stabilization Fund, while the $200,000 in free cash not go into the Stabilization Fund. The FY2019 free cash has not yet been certified. Mr. Levine suggested that it might be better if a small portion of the funds recommended to be appropriated into the Other Post-Employment Benefits (OPEB) fund were rather put into the Capital Stabilization Fund (CSF), although he agreed that an amount sufficient to ensure continuation of the Town's Aaa bond rating should be appropriated for OPEB. His concern stems from the need to build a new high school. Mr. Nichols noted that the CSF account only gets 2%interest on its funds, while the OPEB fund is currently getting an 8.0%return. Ms. Kosnoff reported that the Town's actuary is currently evaluating the OPEB liability. She noted that bond agencies look at all the reserves—free cash, unallocated funds, OPEB, and the CSF and added that the date for a fully funded pension fund fluctuates. 2020 ATM Report Planning There was discussion about inviting article proponents to discuss selected articles. It was agreed that representatives from the School Department should be invited and that Matt Daggett should be invited to discuss his citizen article about development and affordable housing. For other articles, the AC author for the particular article should evaluate whether other invitations should be considered. Referring to each article, it was determined which articles would warrant comment by this Committee and who would assume responsibility for writing AC comments for the article. It was noted that the Lexington Housing Assistance Board had withdrawn its request for Community Preservation Act funds, Brookhaven at Lexington had submitted its annual payment($111,000 for FY2020), and a draft Warrant was distributed to the SB last night. 2