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HomeMy WebLinkAbout2008-10-BOS-min Budget Collaboration-Financial Summit 1 October 1, 2008 A joint meeting of the Board of Selectmen, School Committee and Finance Committees was held on Wednesday, October 1, 2008, at 7:30 p.m. in the Selectmen Meeting Room, Town Office Building. Present: Chairman Cohen, Mrs. Krieger, Mr. Kelley, Mr. Manz and Mr. Burnell; Mr. Valente, Town Manager, Ms. Pease, Executive Clerk; Dr. Ash, Superintendent; Ms. Dunn, Assistant Superintendent; all members of the School Committee; all members of the Appropriation Committee, except Mr. Levine; and all members of the Capital Expenditures Committee. The purpose of the meeting was to evaluate the fiscal health of the Town through a series of financial indicates and comparative benchmarks; to present a three-year projection of revenues and expenditures and outline the FY2020 budget calendar and issues. 1. Financial Conditions Overview and Budget Projections Key Financial Trends in Lexington. Mr. Valente presented the Town’s financial condition: strong in tax collections, stable labor costs as a percentage of total operating costs, adequate pension funding, revenues related to economic growth and low debt service; satisfactory in the areas of revenue and expenses per household and level of reserves; and unsatisfactory in the areas of state aid and employee liabilities. Mr. Valente presented information on where Lexington stands financially. Detailed information on the following indicators was presented: 1. State Aid 2. Revenues Related to Economic Growth 3. Personnel Costs 4. Employee Benefits 5. Debt Service 6. Reserves and Fund Balance FY2010-2012 Revenue and Expenditure Projections. Mr. Addelson presented three-year projections of revenues and expenses to facilitate discussion as the Town plans the FY2010 budget. The projections were based on maintaining the current level of services. The projections show a shortfall of $1,247,154 in FY1010, $2,339,969 in FY2011 and $2,406,865 in FY2012. To the shortfall we have to add the variable cost drivers, which include a one percent increase for municipal and school wages and new debt service. Key assumptions include: Property Tax Levy (2.5 percent of property tax growth and new growth of $1.9 million annually); State Aid (level funding); Local Receipts (historical averages and elimination of PILOTS in FY2010); Available Funds ($2.620 million in free cash applied in FY2010 and $2 million annually thereafter); Revenue Offsets (overlay at $750,000 in FY2010 and FY2012, increasing to $925,000 in reevaluation year, level funded $300,000 set aside for snow and ice deficit annually); Other Revenues (reduced water and sewer indirects as per 6-year Budget Collaboration-Financial Summit 1 – October 1, 2008 phase-down, growth in recreation benefit costs); Revenues set aside for non-recurring expenses ($2.93 million in free cash to fund reserves - $350,000 for SPED, $840,000 for cash capital, $450,000 for OPEB, $470,000 for FY2009 supplemental funding for energy bills, and $820,000 for other unspecified needs). Mr. Kanter requested that a cash capital policy be put in place. Policy Issues Related to FY2010 Budget. Mr. Valente reviewed the FY2010 budget policies issues: 1. The national economy/crisis in the financial markets – do not know what the impact will be. 2. Potential 9C State Aid reductions for FY2009 – it is possible that the governor could make adjustments to state aid. Do not think will affect FY2009, but need to watch. 3. Wages/Benefits (collective/coalition bargaining) – this is 76 percent of the budget and needs to be discussed. 4. Use of one-time revenue sources to balance FY2010 budget – currently have robust free cash. Will continue to analyze to make sure use of one-time revenue only for non- recurring costs. 5. Potential debt exclusion (roads/intersections/sidewalks/traffic calming) – there are no funds for major road work without a debt exclusion and Chapter 90 money has not increased in years. Staff will provide options to Selectmen. 6. Energy Costs – in process of bidding for natural gas and electricity for next 3 years. The Appropriation Committee provided recommendations on a financial strategy and possible goals. For a long-term goal they suggest making changes to the Town’s economic model to maximize the growth rate of our recurring revenue with minimal reliance on operating overrides and to minimize the growth rate of recurring expenses. For a short-term goal they suggest slowing the growth in health insurance expenses. Strategic imperatives to achieve the goals include accelerating the growth in commercial tax revenues and other revenue sources; slowing the growth in health insurance expenses; being circumspect about the FY2010 operating budget and its effects on future operating budgets; maintaining, developing or disposing of capital assets efficiently. 2. Capital Summit – Town Manager’s Task Force Mr. Valente reviewed the report/recommendations on the Town Manager’s Task Force on Capital Projects. They also provided a matrix of the available buildings and the space available and building needs of each. The findings/recommendations are: 1) need to see the results of the school master plan before going further; 2) request funding to conduct feasibility of Munroe School; 3) defer the next phase of engineering/design for a Senior/Community Center until the results of the School Master Plan and the Munroe feasibility study are completed; 4) request a business plan from Munroe Center for the Arts; 5) prioritize building reuse; 6) defer issuing RFP for sale of Munroe until further discussion; 7) other concerns – replace fire alarm and sprinkler Budget Collaboration-Financial Summit 1 – October 1, 2008 system at Munroe, remember needs of Supportive Adult Day Care Program and reevaluate a multi-generational community center facility. 3. Special Town Meeting (November 17-19) A corporate citizen of Lexington has asked that the Town have a Special Town Meeting to take up a rezoning issue that would allow expansion for a tenant who will move elsewhere if not able to expand. The Selectmen will decide on October 6 whether to have a Special Town Meeting. Other possible articles would be tweaks to the current fiscal budget, a Munroe study, and two land acquisition articles that were postponed at the 2008 Annual Town Meeting that would be funded by Community Preservation Act money. Mr. Kanter will request an article to make minor administrative changes to the way CEC reports. 4. State Ballot – Question 1 The Board of Selectmen, School Committee, Appropriation Committee and Capital Expenditures Committee went on record as being strongly opposed to Question 1, which would repeal the state income tax. 5. Establish Date: Collaboration-Summit Meeting 2 The next Collaboration-Summit meeting will be held on November 12, 2008 at 7:30 p.m. 6. Executive Session: School Committee and Selectmen Upon motion duly made and seconded, it was voted 5-0 by roll call vote to go into executive session for a matter of litigation, with no intent to return to open session. Upon motion duly made and seconded, it was voted to adjourn at 9:00 p.m. A true record; Attest: Lynne A. Pease Executive Clerk Selectmen’s Meeting October 6, 2008 A regular meeting of the Board of Selectmen was held on Monday, October 6, 2008 at 7:30 p.m. in the Selectmen Meeting Room, Town Office Building. Chairman Cohen, Ms. Krieger, Mr. Kelley, Mr. Manz, Mr. Burnell; Mr. Valente, Town Manager; and Ms. Pease, Executive Clerk, were present. Selectmen Concerns and Liaison Reports Mrs. Krieger passed out copies of a presentation that was made at the last HATS meeting by the Massachusetts National Guard, who will be relocating to Hanscom Air Force base. The new building will be about 270,000 sq. ft. and will house 300 employees over next 3 to 4 years. The st 1 phase of the project is fully funded and will begin in October 2009. The building will be certified Leeds silver, which is a requirement of all federally funded programs. Mrs. Krieger hopes the Town will expect the same from any new commercial development in Lexington. Mr. Cohen attended the celebration of the Minuteman “Jack Eddison” Bikeway, and accepted on behalf of the Town, a sign that says the Bikeway was inducted into the Rail-Trail Hall of Fame. There will be three or four of the signs put on the bikeway. The bikeway is heavily used and it is a great asset to Lexington. Because of many calls to the Town Clerk’s office, Mr. Cohen let the audience know that the State prepares the ballots for the November 4 election and the Town is currently waiting to receive them from the State. They hope to receive them sometime next week. Mr. Manz, who attended a few grand openings this past week hopes that Town Meeting members will have a chance to tour the new facilities because they are the shape of today’s new manufacturing facilities, which are space intensive but not people intensive. Town Manager Report Mr. Valente announced that the new Lexington web site has been officially launched. The new address is www.lexingtonma.gov. He encouraged residents to check out the “join our email lists” which will allow residents to sign up to receive certain information. The new webpage is organized differently with separate sections for residents, businesses, visitors and also an e- government section (things you can do on-line). Mr. Valente recognized Candy McLaughlin, who is Webmaster, for all the work done on the new webpage and also the team she has been working with. Selectmen’s Meeting – October 6, 2008 Water and Sewer Rates Mr. Addelson, Assistant Town Manager of Finance, presented the proposed FY2009 water and sewer rates. The proposal is to raise the rates by 2.7 to 3 percent for water and sewer; there is a 9.5 percent increase in water rates and there will be no change in the sewer rates. It is recommended that $463,000 from the water retained earnings be used to fund the FY2009 water budget. Mr. Bartenstein provided copies of water and sewer analyses he prepared using estimated and 3- year average consumption numbers; he believes that the rates should not be raised more than needed. He hopes that by the next rate hearing the Town will have an approved policy on using reserves. Mr. Addelson and Mr. Valente want to get one more year of data for averaging. They believe the proposed rates will give them the flexibility they need. Upon motion duly made and seconded, it was voted 4-1 (Kelly opposed) to establish the FY2009 water rates as shown in the table below. Upon motion duly made and seconded, it was voted 5-0 to establish the FY2009 sewer rates as shown in the table below. Type Water/hcf Sewer/hcf Residential/commercial Block 1 2.97 6.01 Block 2 4.45 9.82 Block 3 5.86 15.60 Irrigation 5.86 NA Municipal 1.62 2.30 Hanscom 4.29 NA VA Hospital 5.12 NA Bedford-water 1.89 NA White House Study Mr. Lapointe, Vice Chair of the Council on Aging, presented information on the Conceptual and Feasibility Study Report that was done for the Muzzey Senior Center and White House by Bargmann Hendrie + Archetype, Inc. (BH+A). BH+A performed the following tasks: confirm senior services program requirements; analyze development parameters of “White House” site; develop alternative site and building plans for “White House” site; investigate existing conditions and historic character of “White House”; assess code compliance and building systems of Muzzey Senior center and estimate construction and project costs. Selectmen’s Meeting – October 6, 2008 The Report conclusions are: senior services program requires approximately 26,300 gross square feet; projected occupancy load requires a maximum of 99 parking spaces; two-building campus at Muzzey and White House sites does not make sense; Muzzey is unsuitable as one anchor of two-building Senior Center campus; attractive and efficiently designed, two-story building is feasible at White House site; the preferred concept consists of 22,500 gross square feet for Senior Center only and the estimated total project cost, assuming 2010 construction start, is $12.1 million. Next steps include: releasing the Executive Summary as a public document; put on the Town’s webpage; have the Appropriations and Capital Expenditures Committees study the report. There were concerns about where the important Adult Day Care Program would be located. The Council on Aging currently does not have a strategy for where to put the Adult Day Care Program. The Selectmen will evaluate the report. Beal Company Presentation Mr. Nichols, Principal and Senior Vice President of the Beal Companies; Mr. Grant; Attorney; Mr. Connery, John Connery and Associates Revenue Analyst; Mr. Connors, VistaPrint; Mr. Larson, Larson & Associates; Mr. Kalauskas, BSC Group Traffic Expert; and Mr. Gloski, BSC Group Architect, presented site design drawings, traffic mitigation and fiscal analysis information of the proposed project at Three Ledgemont Center, 97 Hayden Avenue. The Beal Company is requesting that a Special Town Meeting be held for rezoning approvals to allow the project to move forward. Currently VistaPrint, who is experiencing rapid growth and requires additional space, leases Two Ledgemont Center. They would like to remain in Lexington. Date for Special Town Meeting – Open Warrant Upon motion duly made and seconded, it was voted 5-0 to call a Special Town Meeting for Monday, November 17, 2008, and to close the warrant on Friday, October 10, 2008, at 12:00 noon. Approve FY2009/2010 Goal Setting Selectmen approved the list and assignments of Policy Issues, Goals for FY2009-2010 and Other Issues as discussed at the Goal Setting held on July 8, 2008. Future Meetings Budget Presentations will be made to the Selectmen on Wednesday, December 3, 2008, Thursday, December 4, 2008, Monday, December 8, 2008 and Thursday, December 11, 2008 from 8:00 a.m. to 10:00 a.m. Selectmen’s Meeting – October 6, 2008 Selectmen meetings will be scheduled for December 1, 2008, December 8, 2008, December 15, 2008, January 5, 2009 and January 12, 2009. Lions Club Request – Winter Clothing Drive Upon motion duly made and seconded, it was voted 5-0 to approve the request of the Lions Club to hold a Winter Clothing Drive on Saturday, November 8, 2008, from 9:00 a.m. to 2:00 p.m. at the Cary Memorial Building circular driveway. Battle Green Master Plan The Tourism Committee is interested in putting together a group to come up with a Master Plan for the Battle Green that was one of the suggestions in a report (The Battle Green – Town Commons Preservation Initiative, Historic Preservation Grant Program, Mass. Department of Environmental Management) done in May 2001. The Selectmen would like to see a draft charge and then discuss how best to go forward. Upon motion duly made and seconded, it was voted 5-0 to put together a charge for the Selectmen to review prior to moving forward with a Battle Green Master Plan. Approve Purchase and Sale Agreement - Moreland Avenue Upon motion duly made and seconded, it was voted 5-0 to approve the purchase and sale agreement for the sale of the Property (the “Purchase and Sale Agreement”) and the deed for the property that were delivered to the Board of October 6, 2008, and to approve the execution of these documents as well as any related conveyancing documents in order to effectuate the sale of the Property, which sale was approved by Article 45 of the 2008 Annual Town Meeting. Upon motion duly made and seconded, it was voted 5-0 to authorize the Town Manager to take all actions on behalf of the Town that are reasonably necessary, in the judgment of the Town Manager, to complete the sale of the Property by the Town to Don Ray Schomer and Margaret Naughton Schomer, as Trustees of the Don Ray Schomer and Margaret Naughton Schomer Trust, in accordance with the Purchase and Sale Agreement and the applicable Town Meeting vote, including without limitation signing closing forms and documents and settlement statements. Town Manager Appointment – Council on Aging Upon motion duly made and seconded, it was voted 5-0 to approve the Town Manager’s appointment of Marilyn Campbell to the Council on Aging for a three-year term to expire May 31, 2011. Selectmen’s Meeting – October 6, 2008 Reappointments/Appointments/Resignations Upon motion duly made and seconded, it was voted 5-0 to make the following appointments, reappointments and resignations: Communications Advisory Committee Accept the resignation of James Gonzaelz from the Communications Advisory Committee, effective immediately. Design Advisory Committee Appoint Virginia Johnson, Bahig Kaldas, Timothy Lee, Alenka Slezak and Colin Smith to the Design Advisory Committee for one-year terms to expire September 30, 2009. Appoint Bruce Creager, John Frey and Elizabeth Whitman to the Design Advisory Committee as associate members for one-year terms to expire September 30, 2009. Economic Development Advisory Committee Appoint Sigmar Tullman to the Economic Development Advisory Committee for a one-year term to expire September 30, 2009. Appoint Narain Bhatia to the Economic Development Advisory Committee for a two-year term to expire September 30, 2010. Human Services Committee Appoint Mimi Ballard to the Human Services Committee for a three-year term to expire September 30, 2011. Lexington Center Committee Appoint Christopher Bateman to the Lexington Center Committee to fill the unexpired term of Daphne Politis until September 30, 2010. Lexington Council for the Arts Reappoint Janet Post to the Lexington Council for the Arts for a three-year term to expire September 30, 2011. LexMedia Board of Directors Reappoint Timothy Counihan to the LexMedia Board of Directors, representing the Board of Selectmen, for a three-year term to expire September 30, 2011. Retirement Board Reappoint Michael McNabb to the Retirement Board, representing the Board of Selectmen, for a three-year term to expire October 18, 2011. Selectmen’s Meeting – October 6, 2008 Sidewalk Committee Reappoint Lisa Baci and Laura Cecere to the Sidewalk Committee for three-year terms to expire September 30, 2011. Accept the resignation of Suzanne Briggs from the Sidewalk Committee, effective immediately. Tourism Committee Reappoint Mary Jo Bohart, Joanne Myers and Paul O’Shaughnessy to the Tourism Committee for one-year terms to expire September 30, 2009. Consent Agenda Commitment of Water and Sewer Charges Upon motion duly made and seconded, it was voted 5-0 to approve the following water and sewer commitments: Commitment of Water/Sewer Charges for September 11, 2008 (Cycle 9) $137,846.92 Commitment of Water/Sewer Charges for June 2008 (Finals) $ 53,221.93 Use of Battle Green – LPPTA Annual Halloween Parade Upon motion duly made and seconded, it was voted 5-0 to approve the request of the Lexington Preschool PTA to use the Battle Green for the annual Halloween Parade on Saturday, October 25, 2008 (rain date Sunday, October 26), from 8:45 a.m. to 11:00 a.m. Authorize Abatement for Gifted Land Upon motion duly made and seconded, it was voted 5-0 to authorize the abatement of unpaid real estate taxes, if any, on land donated to the Town by the Wheaton and Schumacher families. Sign State/Presidential Election Warrant Upon motion duly made and seconded, it was voted 5-0 to sign the State/Presidential Election Warrant for the November 4, 2008 election. Designate Alternate Voting Location Upon motion duly made and seconded, it was voted 5-0 to designate the Lexington High School as an alternate voting location in case of an emergency. Minutes Upon motion duly made and seconded, it was voted 5-0 to approve the minutes of September 8, 2008 and September 15, 2008. Executive Session Minutes Upon motion duly made and seconded, it was voted 5-0 to approve the executive session minutes of September 8, 2008 and September 15, 2008. Selectmen’s Meeting – October 6, 2008 Executive Session Upon motion duly made ands seconded, it was voted by roll call vote 5-0 to go into executive session for the purpose of land acquisition, litigation and collective bargaining, with no intent to return to open session. Upon motion duly made and seconded, it was voted to adjourn at 10:15 p.m. A true record; Attest: Lynne A. Pease Executive Clerk Selectmen’s Meeting October 20, 2008 A regular meeting of the Board of Selectmen was held on Monday, October 20, 2008 at 7:30 p.m. in the Selectmen Meeting Room, Town Office Building. Chairman Cohen, Ms. Krieger, Mr. Kelley, Mr. Manz; Mr. Valente, Town Manager; and Ms. Chabot, Assistant to the Executive Clerk, were present. Public Comment Mr. Sellars, 430 Concord Ave., asked to meet with Mr. Cohen regarding an ongoing matter in litigation. Mr. Cohen invited Mr. Sellars to call the Selectmen’s Office and make an appointment to see him. Town Manager Report Mr. Valente updated the Board on Governor Patrick’s recent announcement of budget cuts necessary to keep the state government in balance. The four areas that could impact the Town’s budget appear to be moderate. At the next Selectmen’s meeting Mr. Valente will present contingency plans for addressing state aid cuts that may happen in the future and a plan to deal with any reductions in the Town’s tax collections due to the economic downturn. Mr. Valente announced that he has appointed Charlotte Rodgers to the newly created position of Director of Human Services for the Town of Lexington. Charlotte has served as Acting Director of the department since February 2008. Mr. Cohen congratulated Ms. Rodgers on her appointment. Mr. Manz commented that one of the most valuable things Ms. Rodgers has been able to do for the Town is to give us some sense of the depth and breadth of the problems we face. Grants of Location National Grid – Follen Road Upon motion duly made and seconded, it was voted 4-0 to approve the petition of National Grid to install and maintain approximately 545 feet of 6” gas main in Follen Road, from the existing 4” main on Follen Road southerly to the existing 4” main at Richard Road. National Grid – Eaton Road Upon motion duly made and seconded, it was voted 4-0 to approve the petition of National Grid to install and maintain approximately 100 feet of 6” gas main in Eaton Road, from the existing 4” main on Eaton Road easterly to the existing 6” main at Eaton Road. Selectmen’s Meeting – October 20, 2008 Communications Advisory Committee Mr. Buczkowski presented the proposed amendment to the Comcast cable license. In response to Mr. Manz’s questions, Mr. Buzkowski explained that the Institutional Network (“I-Net”) is 100% out of service, only approximately 20% usable, and completely bypassed by the use of Internet service provided by RCN. Upon motion duly made and seconded, it was voted 4-0 to approve and sign the proposed Comcast Amendment, which amends Comcast’s license to remove its obligation to provide an Institutional Network (“I-Net”) which is no longer required by the Town in return for a $17,606 annual payment to the Town and also would only require Comcast to use “reasonable” efforts to locate a payment office in the Town. FY09 Water/Sewer Financial Assistance/Discount Program The Board previously approved the recommendation of the Tax Deferral and Exemption Study Committee to streamline the income guidelines for the Water/Sewer Discount Program for low- income residents. Ms. Rodgers, Director of Human Services, presented the proposed guidelines, which are the same as the federal Low-Income Home Energy Assistance Program (LIHEAP). A resident who receives assistance under LIHEAP, would qualify for the Town’s water/sewer discount of 30%. Upon motion duly made and seconded, it was voted 4-0 to adopt the Water/Sewer Discount financial assistance income guidelines and procedures as presented. Ambulance Service Rates Each year, based on the recommendation of the Town’s ambulance billing company, the Town adjusts ambulance service rates. These rates typically apply to those individuals with insurance coverage. Medicare sets its own reimbursement rates, for which the Town cannot balance-bill. Mr. Valente presented the recommended rates, which are approximately a 5% increase over the current rates. Upon motion duly made and seconded, it was voted 4-0 to approve ambulance service rates as presented, effective November 1, 2008. Eagle Letter – Gregory Muir Mr. Manz commented that Gregory’s project, the construction of raised paths in Willard’s Woods, was an impressive one. Upon motion duly made and seconded, it was voted 4-0 to send a letter of commendation to Gregory Muir congratulating him on attaining the highest rank of Eagle in Boy Scouting. Selectmen’s Meeting – October 20, 2008 Approve Bench Locations The Selectmen’s office received a request for a bench location somewhere near the Center that is close to the bikeway. Mr. Pinsonneault, Superintendent of Grounds, suggested two locations. The first is at the intersection of the bikeway and Fletcher Avenue where two benches could be located. The second is to the left of the Visitor’s Center and across the bikeway from the Church of our Redeemer where two benches could be located. Mrs. McKenna, 9 Hancock St., stated that she is an abutter to the proposed location near the Visitor’s Center. She has had trouble with graffiti to her barn and feels that teens may gather at the proposed bench location. She would like the opportunity to discuss the location with Mr. Pinsonneault and see if he could allay some of her concerns. Upon motion duly made and seconded, it was voted 4-0 to approve the location at the intersection of the bikeway and Fletcher Ave. The Board deferred approving the location to the left of the Visitor Center and across from the Church of our Redeemer until Mrs. McKenna could check in to it and let the Board know what she finds out. Appointments Board of Appeals Upon motion duly made and seconded, it was voted 4-0 to appoint Steve Coleman to the Board of Appeals as an Associate Member for a 1-year term to expire September 30, 2009. Lexington Center Committee Upon motion duly made and seconded, it was voted 4-0 to appoint Carol Liff to the Lexington Center Committee for a term to expire September 30, 2009 to fill the unexpired term of Joan Zahka. Consent Agenda Adjustment of Water and Sewer Charges Upon motion duly made and seconded, it was voted 4-0 to approve the following water and sewer adjustment: Adjustment of Water / Sewer Charges for October 20, 2008 $19,313.05 Employee Recognition Day Proclamation Upon motion duly made and seconded, it was voted 4-0 to sign the Employee Recognition Day Proclamation declaring Thursday, November 6, 2008 as Employee Recognition Day. Selectmen’s Meeting – October 20, 2008 Warrant for Special Town Meeting Upon motion duly made and seconded, it was voted 4-0 to sign the warrant for the Special Town Meeting to be held Monday November 17, 2008. One-Day Liquor License – St. Brigid Parish Upon motion duly made and seconded, it was voted 4-0 to sign a One-Day Liquor License to serve beer and wine for a St. Brigid Parish fundraiser on Saturday, November 1, 2008 from 6:00 p.m. to 11:00 p.m. at the parish. Bikeway Signage Upon motion duly made and seconded, it was voted 4-0 to approve a new Conservation Area sign at the entrance of the newly named Joyce Miller’s Meadow along the bikeway. Minutes Upon motion duly made and seconded, it was voted 4-0 to approve the minutes of October 1, 2008 and October 6, 2008. Executive Session Minutes Upon motion duly made and seconded, it was voted 4-0 to approve the executive session minutes of October 1, 2008 and October 6, 2008. Executive Session Upon motion duly made and seconded, it was voted by roll call vote 4-0 to go into executive session for the purpose of discussing land issues, and a litigation matter, with no intent to return to open session. Upon motion duly made and seconded, it was voted to adjourn at 8:10 p.m. A true record; Attest: Diana B. Chabot Assistant to the Executive Clerk