HomeMy WebLinkAbout2006-08-31-AC-min
August 31, 2006
Minutes
Town of Lexington Appropriation Committee
August 31, 2006
Place and time: Town Office Building, Room 111, 7:30 p.m.
Members present: Al Levine (Chair), John Bartenstein (Secretary), Rod Cole, Rick
Eurich, Pam Hoffman, David Kanter, Eric Michelson
Also present: Michael Young, Budget Officer; John Fedorochko
Minutes.
1. John Bartenstein suggested two changes to the procedure for taking
minutes. First, he proposed to prepare and circulate promptly after each meeting a draft
set of abbreviated “basic minutes,” summarizing the essential topics discussed and
actions taken. The designated minute-taker for the evening could then work from this
basic draft to prepare a more detailed version. Ideally, this would facilitate and expedite
the process of preparing detailed minutes, and at the same time ensure the existence of at
least a basic and timely record of every meeting. Second, to smooth out the burden of
minute-taking, John proposed to circulate a scheduled rotation of responsibility for the
detailed minutes, with members free to swap as necessary depending on their availability
and other commitments. Both changes were agreed to on a trial basis.
Rod Cole’s draft minutes of the July 26, 2006 meeting were reviewed and several
changes were proposed. David Kanter will circulate a revised version for consideration
at the next meeting.
Announcements.
2. The first Budget Collaboration Meeting/Summit has now
been scheduled for Thursday, September 21, at 7:30 p.m. in High School Commons II.
thst
This means that the Committee will be meeting three weeks in a row, on the 14, 21 and
th
28 of September.
Staff and Member Reports.
3. Michael Young discussed the Town Manager’s
plans for the first Summit meeting and the status of preliminary estimates of revenue and
other key financial data for the FY08 budget. He also explained the process for
determining the Town’s free cash balance as of the end of FY07, which is still ongoing,
and for the ultimate certification of free cash by the DOR later in the fall. He reported
that a new DOR representative has been assigned responsibility for reviewing
Lexington’s financial accounts.
Michael reported that the final state aid number for FY07 was about $660,000
above the estimates used at the spring Town Meeting, and about $1 million higher than
last year. Most of the increase, about $620,000, comes from an increase in Chapter 70
(school) funds, and the balance results from changes in lottery funds and other
miscellaneous items.
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August 31, 2006
There was a discussion of the possible need for a Special Town Meeting this fall
to appropriate funds for the DPW barn replacement project. Michael reported on the
status of planning for that project and said that the final decision whether to proceed with
a Special Town Meeting would likely be made at the Board of Selectmen meeting
scheduled for September 18.
There was a discussion of the reported deficit in the school department’s FY06
budget earlier in the summer and the steps that were taken to resolve the problem.
Michael explained that the apparent shortfall was mostly attributable to the erroneous
allocation of certain capital expenditures to the operating budget, and that Town staff had
helped the school department analyze and correct the problem.
It was noted that this Committee still has not received any of the Superintendent’s
monthly status reports to the School Committee tracking the performance of actual to
budgeted results. Al Levine has had several contacts with the School Committee chair
about getting copies of these reports on a regular basis, and will follow up again.
Michael Young then reported some recent good news relating to Massachusetts
School Building Authority (MSBA) reimbursements. Thanks to diligent efforts by
school staff to document building expenses, MSBA reimbursements for the completed
secondary school renovation projects will be coming in, after completion of the final
project audit, about $1.3 million higher than had been anticipated after the audit. After
paying off bond anticipation notes (BAN’s) due August 25, a balance of $2,286,000
remains. Of that balance, $453,941is attributable to exempt debt (outside the levy), and
must be applied to the retirement of that debt. The remainder of $1,832,659 is
attributable to within-levy debt. It is possible that this amount could be treated as an
addition to the Town’s General Fund balance during FY07, which would then become
available for appropriation as free cash for FY09. However, the Town’s financial staff is
currently studying a recent Information Guideline Release (IGR) issued by the DOR
(IGR No. 06-101, “Guidelines for the Application of School Building Grants”), which
may call for a different treatment.
David Kanter reported on his recent participation in the selection committee for
the new school department financial officer to replace Ann Giombetti, who will be
departing in November. There was strong support for the candidate finally selected,
Mary Ellen Normen Dunn, who has most recently been employed in the Natick school
system and previously worked with Carl Valente and Rob Addelson in the Town of
Needham. Dunn’s possible title will be Assistant Superintendent for Finance and
Operations.
Financial Policies.
4. The Committee resumed its discussion of the report and
recommendations of the Financial Policy Review Committee, focusing on the portion of
the report addressed to Reserve Policies. Specific issues discussed were the Stabilization
Fund (is the target level adequately defined, how large should it be, when should you
spend it, and how should you replenish it?), the Appropriation Committee Reserve Fund,
and proposed “continuing balance accounts.”
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August 31, 2006
The meeting concluded at 9:55 p.m.
Respectfully submitted,
John Bartenstein
Approved September 14, 2006
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