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HomeMy WebLinkAbout2008-02-13-AC-min February 13, 2008 Minutes Town of Lexington Appropriation Committee February 13, 2008 Place and Time: Town Office Building, Room G-15, 7:00 PM Members Present:Alan Levine (Chair), John Bartenstein (Secretary), Deborah Brown, Pam Hoffman, Susan McLeish, Michael Kennealy, Eric Michelson, Rob Addelson (ex officio, non- voting) Also present (at resumed meeting following Budget summit): Tom Griffiths and Tom Diaz of the School Committee; Maryellen Dunn, Assistant Superintendent for Finance and Business; Dawn McKenna The meeting was called to order at 7:01 p.m. Lexington Public Schools Budget 1.In preparation for Budget Collaboration-Summit Meeting 5, scheduled for later in the evening, the Committee discussed further the pending proposal to utilize $350,000 in arguably non-recurring Free Cash, which will be freed up by “pre- funding” a Special Education (SPED) reserve in that amount from anticipated FY2008 school surpluses, to help close the existing gap in the schools proposed FY2009 operating budget. Deborah Brown and Eric Michelson circulated a preliminary draft of a future year budget projection in order to help the Committee evaluate the likely amount of a budget gap that may develop for FY2010 and what that may imply for FY2009 budget decisions. It was noted that the School Committee had voted resolutions at its February 11 meeting not only to request a reallocation at the Annual Town Meeting of $350,000 of its anticipated FY2008 surplus to fund a SPED reserve, but also to leave an additional $350,000 of any FY2008 surplus that may be realized unspent with the understanding that it would flow to Free Cash and be available to further fund the SPED reserve and/or to help reduce or avoid an override in FY2010. There was a discussion of updated financial data in the memo on “Summit V – FY09 School Committee Budget Request” from Asst. Supt. Maryellen Dunn to Supt. Paul Ash. Concerns were expressed that it was difficult to make fair year-to-year comparisons in terms of both dollars and number of employees expressed, e.g., as FTEs. The changing treatment of facilities costs and personnel was one complicating factor. In light of the projection of a large surplus for FY2008, Committee members were also interested in comparing the proposed FY2009 budget against a FY2008 budget adjusted downward to reflect the likely recurring savings with respect to the appropriated budget (and that were assumed to be recurring in the preparation of the FY2009 School budget). The Committee was polled regarding the use of $350,000 of funds originally proposed to fund a SPED reserve as funds available for the 2009 operating budget. Four approved, one was not in favor, and two felt they required additional information to reach a conclusion. February 13, 2008 Budget Summit Meeting 2. The committee joined the Budget Summit Meeting in the Selectmen’s Meeting Room where presentations were made by the Town Manager, Carl Valente, and the School Committee Chair, Tom Diaz, regarding the state of the Municipal and Public School Budgets. Both budgets are now within funding levels anticipated for 2009. Alan Levine reported that the Appropriation Committee had discussed the school budget. He mentioned that, in general, while there is no criticism regarding the worthiness of the programs in the budget, there are concerns raised about the future sustainability of the programs in fiscal years 2010 and beyond by the significant increase from FY2008 to FY2009 which looks larger if one takes the projected FY2008 surplus into account. He stated that all parties have to recognize the risks inherent in the budget as proposed. He reported that, while the Committee has not formally voted for or against the budget, four members were in favor of utilizing $350,000 of free cash originally designated to fund a SPED Reserve to fund the 2009 operating budget, one was against, and two did not believe that we had enough information to support a decision. The Committee would like to do further analysis and will provide comments in their budget report. The Budget Summit Meeting ended at 8:30. Further School Budget Committee Discussion 3. Tom Diaz, Tom Griffiths and Maryellen Dunn joined the Committee in Room G-15. A discussion of the school budget and the difficulty in evaluating it on an overall basis and understanding the real rate of growth then ensued. It was concluded that Pam Hoffman would follow up with members of the School Committee and Maryellen Dunn to determine a number for FY2008 that would be more useful in comparing with the FY2009 request and in determining a percentage increase. Maryellen Dunn provided insight into future cost increases that will be helpful for the Committee’s financial projections. Warrant 4. There was a discussion of the Warrant articles and preliminary assignments as follows: Article 4 – Schools – PH, MK, RE; Schools SPED – MK; Minuteman – EM; Municipal – AL and SM; Shared Expenses – RE; Facilities – SM; Tourism - DB Articles 5&6 – JB Article 7 – RE Article 8 – JB Article 9 - EM with assistance from DB and AL Articles 10-13 EM and RE Articles 14-15 DB Articles 16-17 JB Article 18 PH and RE Article 19 DB and RE Article 20 SM Article 21 RE Article 22 DB Article 23 MK Articles 24-25 DB Article 26 SM Article 27 PH Article 28 SM February 13, 2008 Article 29 DB Articles 32-33 SM Article 41 MK Article 44 RE and MK Article 48 RE Tourism Committee 5. Dawn McKenna briefly discussed amounts generated from fees paid for group tours led by Battle Green guides, the surplus generated by the Liberty Ride, and the objective of establishing a revolving fund for Tourism. Deborah will follow up with her regarding a mechanism to accomplish this. Report Schedule 6. The goal is to distribute the report at the first session of Town Meeting on March 19. March 18 (AM) the report goes to the printer; March 17 – meet to approve; March 15 and/or 16 - report edit session; March 13 – near final draft; March 6 – mostly complete draft. Future Meetings 7. Thursday, February 21, Tuesday February 26, Thursday February 28 (if needed), March 3, March 10, March 12 (8:30), March 17, March 19 6:30 (prior to the start of Town Meeting). The meeting was adjourned at 9:55 PM Respectfully Submitted, Susan McLeish Approved February 21, 2008