HomeMy WebLinkAbout2006-03-29-AC-min
March 29, 2006
Minutes
Town of Lexington Appropriation Committee
March 29, 2006
Members Present: A. Levine (Chair), D. Brown (Vice Chair), J. Bartenstein, R. Eurich,
P. Hamburger, P. Hoffman, D. Kanter, E. Michelson,. R. Addelson (Assistant Town
Manager for Finance; non-voting)
The meeting was called to order at 6:40 by Al Levine in Town Office Bldg. Rm. 111.
PM
1. E. Michelson volunteered to take minutes.
2. Deborah Brown presented a draft memo titled “Appropriation Committee Memo
to Budget Collaboration Group 3/29/06”. This three page memo is a summary of
an analysis that estimates the “gap” between expected revenues and the projected
expenses required to 1) sustain level services in FY 2007 and 2008 and 2)
maintain reserves at $5,570,000 through the close of FY 2008. In this memo it is
stated that this information is being presented to the Budget Collaboration Group
in order to determine if we have consensus on these goals and, if so, to discuss
options for achieving these goals. The memo then goes on to describe two
scenarios, an annual override scenario and a “one override for two budget years”
scenario, as well as some mitigating strategies to consider.
The committee unanimously approved the memo for presentation to the upcoming
summit and supported its use for discussion purposes.
3. The Budget Collaboration Group will meet tonight immediately following Town
Meeting. R. Addelson said the agenda will center on the School Committee’s
proposal to eliminate the request to include Question 4 (special education [SPED]
contingency) on the override, and to instead present a 4-step plan to be
implemented to address any SPED overages.
Step 1: Existing School Department Budget – apply surplus
balances in other school budget accounts
Step 2: Appropriation Committee Reserve Fund – raise the AC
reserve fund by $100,000 to $400,000 (funded mostly from the
$55,000 reduction of the Minuteman Voc estimate and by not
appropriating $40,000 for the Art. 32a strategic school plan) and
then draw from that.
Step 3: Use of FY2007 Free Cash – Use up to $200,000 (requires
Town Meeting action)
Step 4: Use of Stabilization Fund (requires Town Meeting action).
Discussion included comments that this approach is more favorable than a system
where the school budget is artificially inflated as a way to create a contingency
fund. Covering SPED overages through this proposed mechanism would preserve
mainstream educational and maintenance funding, and budgeting would remain a
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March 29, 2006
best attempt to estimate costs. There was a discussion about whether the larger
Reserve Fund now would have the increased funding specifically earmarked for
SPED purposes. Also discussed were the implications on the use of the Reserve
Fund if not all parts of the override passed. R. Addelson stated that this is a
transitional solution meant only for FY2007, and that the issue of SPED
contingency funding would be revisited for the FY2008 budget. A straw poll of
the committee found it 8-0 in favor of the School Committee’s proposal.
4. Article Updates:
a) Article 17 - DB and AL to work on the municipal writeup
b) Article 18 – EM to talk to Karen Simmons
c) Article 19, 20, 21, 22 – Voted to approve 8-0
d) Article 29, 30, 31, 32 – Voted to approve 8-0
Recessed – 7:28
Reconvened – 9:50 – Selectmen’s Meeting Room with the Board of Selectmen, School
Committee and Capital Expenditures Committee
1. School Committee’s SPED Contingency Proposal presented by Carl Valente and
then discussed.
JB asked would the $200,000 Free Cash be appropriated at a STM or at the ATM
– answer: ATM.
DK asked was the $100,000 additional Reserve Fund money to be earmarked for
SPED – answer: The decision was left up to the AC. It was then asked that the
ongoing School Department execution reports be forwarded to the AC.
RE asked where “surplus” school department budgets may emerge – answer:
energy and/or Sal Diff.
PH asked if it would be more appropriate to use a supplemental appropriation
instead of a reserve fund transfer. He also asked if SPED Reserve Fund transfers
would be asked for mid year or at the last moment.
AC voted 8-0 to support the SPED Contingency Proposal.
2. DB made a presentation of her memo. The purpose of the memo was to induce a
discussion of the revenue/expense gap and demonstrate the 2-year planning option
and options that existed to affect that gap. No action was taken on the memo.
3. Next Summit - Monday 8 pm.
4. Article Update – Article 32A will be indefinitely postponed; the Capital
Expenditures Committee recommends approval of $400,000 for Article 32H.
The meeting was adjourned at 10:50 .
PM
Eric Michelson
Approved June 26, 2006
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