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HomeMy WebLinkAbout2007-05-17-AC-min May 17, 2007 Minutes Town of Lexington Appropriation Committee May 17, 2007 Place and time: Ellen Stone Room, Cary Memorial Hall, 7:30 PM Members present: Alan Levine (Chair), Deborah Brown (Vice-Chair), John Bartenstein (Secretary), Rod Cole, Rick Eurich, Pam Hoffman, David Kanter, Eric Michelson, Rob Addelson (ex officio, non-voting) Others present: Michael Young (Budget Officer) The meeting was called to order at 7:40 PM. Request for Reserve Fund Transfer. 1. Rob Addelson presented a four-page packet to the committee, dated May 17, 2007, titled “Reserve Fund Transfer Request”. The packet included: a. cover letter; b. summary of actions needed to close FY2007; c. summary of the FY2007 Operating Budget (Article 17) with appropriated amounts, adjustments, year-to-date expended, encumbered, remaining balances, and percentages spent; and d. Request to transfer $98,284 from the Reserve Fund to account # 10092002- 52110, Property & Liability Insurance Contractual Services. The proposed actions to close FY2007 include $206,523 in Reserve Fund transfers, $44,287 in transfers from the Salary Transfer account, and $232,473 in interdepartmental transfers between municipal line items, using the 3% rule of Chapter 77 of the Acts of th 2006, MGL c. 44, § 33B. The Committee will be asked to meet prior to June 28 to act on these items. As there have not been any significant changes in anticipated expenditure since April, the proposed actions are similar to those outlined at that time. Rob Addelson requested immediate action on the request for a Reserve Fund transfer of $98,284 to account # 10092002-52110, Property & Liability Insurance Contractual Services (a portion of the above-mentioned $206,523 in proposed Reserve Fund transfers.) This money is required to pay the final portion of premium bills on insurance policies before the close of the fiscal year. The need for additional money in the current fiscal year is due not to increased premiums or bad experience, but to a one-time move to synchronize to the insurer’s billing cycle. Appropriate levels of funds have been appropriated for FY2008. David Kanter recommended that in the near future the Town should take the further step of aligning the policy term to the Town’s fiscal year. The Committee voted unanimously to approve this transfer. Letter Concerning Override. 2. Alan Levine and Deborah Brown circulated a draft letter which they had prepared for submission to the editor of the Lexington - 1 - May 17, 2007 Minuteman in support of both the operating and debt exclusion overrides and asked for committee feedback. Members of the Committee made suggestions on the letter but it was agreed that the letter should be sent as the individual opinion of its authors rather than on behalf of the Committee. Miscellaneous. 3. Rod Cole reported briefly on a meeting he attended between Town officials and representatives of Shire Pharmaceuticals regarding Shire’s request to the Town to consider Tax Increment Financing (TIF) in connection with the possible expansion of its facilities at the old Raytheon Site, currently owned by Patriot Partners. Any such proposal would require approval by Town Meeting. The Committee discussed the need for a liaison to the Schools’ Financial Review Committee to replace David Kanter, who will be resigning at the end of June and joining the Capital Expenditures Committee. It was tentatively agreed that Rod Cole and Pam Hoffman would take on this assignment. The meeting was adjourned at 9:10 PM. Respectfully submitted, Eric Michelson Approved June 28, 2007 - 2 -