HomeMy WebLinkAbout2006-02-09-AC-summit4
Budget Collaboration/Summit 4
February 9, 2006
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A joint meeting ol'the Board ol'Selectmen, School mmittee and Finance Committees was held on
Thursday, February 9, 2006, at 6:30 p.m. in Fstabrook Hall. Chairman Krieger, Mr. Kelley, Mr. Pagett,
Mr. Cohen; and Mr. Manz; Mr. Valente, Town Manager; and Ms. Pease, Executive Clerk were
present.
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The Chairs othe School mmittee, Appropriations Committee and Capital Expenditures
Committee called their members to order.
FY2007 Budget — Open Issues
Mr. Valente reviewed the projected available revenue ol'$5,792,746 million. He asked if everyone was
comfortable with using $2 million From free cash and whether the state aid number he recommended
is too conservative and il'it should be adjusted. The House Ways and Means Committee state aid
number will not be available until alter the April school vacation. Consensus was to leave the numbers
as recommended until we have more concrete information.
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The group discussed reserves and wanted to know what to expect in the future reserves. Mr.
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Valente presented a Reserves Analysis table for the period FY200 to FY2007.
There was a discussion of the rising costs related to health care and special ed and that there may be
a need for an override on a yearly basis. Ms. Guttag is concerned about attracting good candidates
yearly -
for teaching if the Town, on a basis, has to put together an atrisk list.
Suggestion was made to reduce the free cash use from $2 million to $1.5 million. A majority of the
Selectmen do not want to dig any deeper into services and programs and are comfortable with the
Town Manager's recommendation to use $2 million from Free Cash.
Mr. Pagett is not comfortable and said the goal should be to live within constraints of a balanced
budget. The Town has never used free cash when considering an override; we are setting a dangerous
precedent.
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The Capital Expenditures mmittee is not comfortable with using $2 million from free cash. The
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Appropriation Committee position is 6-2 in lavor ol'using $2 million from ee cash. The School
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Committee voted 4 in support and probably in support.
The group requested preparation ol'a 1~Y2008 prolorma to estimate the anticipated dap.
Budget Collaboration/Summit 4 — February 9, 2006
Allocation of"New" FY2007 Revenue
Mr. Valente explained the recommended incremental revenue split ($5,792,746 revenues minus
$3,664,716 in shared expenses equals $2,128,030 to split between municipal and education. The
Town Manager recommends the money split be $1,535,878 (72%) for education and $593,152
(28%) for municipal, which is based on the FY2006 revenue split.
Mr. Pagett recommended a different split that would take into account the additional appropriation
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already made to the schools in the fall Special Town Meeting. This would establish a split 70%
education, 30% municipal. School Committee was concerned that this split would penalize the
students and also pits municipal against education. The consensus ofthe group was to accept the
methodology recommended by the Town Manager to allocate incremental revenues.
FY2007 Capital/Cash
Mr. Lamb, Chair of the Capital Expenditures Committee, is concerned about the Cash Capital
projections for FY2007, which by his analysis underfunds Cash Capital by approximately
$940,000. The CEC feels, however, that the Police and Lincoln Park capital items totaling
approximately $1 million should be borrowed.
There were questions regarding how Lexington's debt to tax levy rates compares to other AAA
rated communities. Mr. Valente responded that Lexington compares favorably and we are not
doing things differently from other similarly situated communities.
Budget Schedule
Reviewed the Budget timeline from tonight until the start of FY2007.
March 1 is the latest the budget can be given to the Appropriations Committee.
Upon motion duly made and seconded, it as voted to adjourn at 8:15 p.m.
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A true record; Attest:
Lynne A. Pease
Executive Clerk