2009-12-16-CPC-min - Laserfiche WebLink

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Community Preservation Committee Wednesday, December 16, 2009 Legion Room 7:00 pm Present: Betsey Weiss, Chair, Joel Adler, Norman Cohen, Marilyn Fenollosa, Vice Chair, Jeanne Krieger, Wendy Manz, Nathalie Rice, Admin. Asst., and Dick Wolk. Absent for the CPC : Leo McSweeney and Sandy Shaw Present from the Selectmen were George Burnell and Peter Kelley. Capital Expenditures Committee (CEC) were Charles Lamb, Chair, Ted Edson, David Kanter, and Shirley Stoltz. Members of the Appropriation Committee (AC) in attendance were Al Levine, Chair, John Bartenstein, Richard Eurich, Mollie Garberg, Susan McLeish, Glen Parker and Joe Pato. Also in attendance were Town Manager, Carl Valente, Assistant Town Manager of Finance, Rob Addelson, Stewart Kennedy, and Deb Mauger Ms. Weiss called the meeting to order at 7:09 pm. The purpose of the meeting was to decide on the appropriate funding for the Busa property. The property was authorized for purchase through bonding at the Special Town Meeting in spring of 2009. 1. Busa Property – Decision on Payment - The meeting commenced with a presentation by Mr. Addelson. He noted that his presentation was based on two assumptions; (1) that all current CPC projects would be funded, and (2) that the CPC would keep a minimum of $2 million dollars in the Undesignated Fund Balance. He stated that the total of all projects before the CPC was $5,699,329, leaving a shortfall of $1,547,689. He explained that an appropriation from the Undesignated Fund Balance (UFB) would therefore be needed both to cover this shortfall and to pay the debt service for the Busa acquisition. Mr. Addelson then turned to four scenarios for covering the Busa debt service while maintaining a minimum $2 million dollar balance in the UFB. All scenarios were based upon a 3.5% interest rate. The first scenario, which showed appropriation of the current CPA projects and no debt service for Busa, left a $4,742,754 balance in the Undesignated Fund Balance. The second scenario, a three-year bond, with level debt service of $1.54 million annually (decreasing slightly in years two and three) showed that the CPA balance would be $3.2 million. The third scenario, which showed level debt service over a five year period, left approximately $3.8 million in reserve. Mr. Addelson’s fourth option was a front-end loaded payment of $2.7 million in debt service with approximately $850,000 and $830,000 respectively for each of the two years thereafter. This scenario brought the Undesignated Fund Balance to $2 million. There was a general discussion of various aspects of Mr. Addelson’s presentation. Mr. Kanter asked if an additional appropriation beyond the $98,000 voted at the Special 1