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HomeMy WebLinkAbout2014-03-19-AC-min 2014-03-19 Minutes Minutes Town of Lexington Appropriation Committee March19,2014 : RobbinsRoom,Cary MemorialBuilding,7:30p.m. :Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Mollie Garberg;Alan Levine;Susan McLeish;Eric Michelson; Jonina Schonfeld Members Absent:Robert Cohen; Richard Neumeier;Rob Addelson (non-voting, ex officio) Others Present:Joe Pato, Board of Selectmen; Dawn McKenna, Chair, Tourism Committee The meetingwas calledto order at 7:37p.m. Announcements: 1.Mr. Bartenstein reported that Kevin McGuire, President of the Lexington Historical Society, had contacted him. Mr. McGuire expressed appreciation for an invitation to attend to discuss the proposed warrant article for Visitor Center funding, and passed on the general positionof the Society, but saidthat he would not be able to attend. Minutes: 2.There was a motion and second to approve the Appropriation Committee minutes for March 5, 2014 and March 12, 2014. VOTE: 7-0 Liaison Reports by Staff and Members: 3.Mr. Addelson reported that some of the budget numbers in Articles 4 and 5 hadbeen refinedto reflect reductions in the FY2015 projected health insurance premiums.Of the$1.0 million available from thisreduction,the proposed budget includes$495,000 to fund the High School modular units and $505,000 for debt relief.In response to questions, Mr. Addelson notedthat the lower premiumswill reducethe base upon which a percentage increase will be estimated for FY2016, and in this sense could be viewed as recurring additional revenue; however, each year,he researches the market to determine the most likely percentage change for the coming year, and there is no guarantee that the savings will continue. Ms. Schonfeld, who is preparing the write-up on Article 6,Appropriate for Senior Service Program, noted that the program is currently available only for residents 60 and over. She questioned whetherthe program should be extended, as the Town’s special enabling act allows, to disabled residents under 60 who otherwise meet the eligibility criteriafor the program. It was agreed that this is ultimately a policy decision for the Board of Selectmen (BoS), to whom an extension of the program could certainly be advocated. Mr. Parker reported that the BoS recently adopted a policy relative to funding of the Other Post Employee Benefits (OPEB) liability trust fund. He described the policy and will forward a copy to Committee members after the meeting. There was a motionandsecond to endorse the BoS’OPEB funding policy.VOTE: 7-0 1 2014-03-19 Minutes Mr. Parker willincorporate this position inhis write-uponArticle 15,Appropriate to Post Employment Insurance Liability Fund, for this Committee’s report to the Annual Town Meeting. Mr. Parker reported that Article 8(a),Appropriatethe FY2015 Community Preservation Committee Operating Budget and CPA Projects: 39 Marrett Road –Community Center Sidewalk Construction,will likely be indefinitely postponed because of some safety concerns associated with the design that have been identified by the Scottish Rite staff. A new design will result in new pricing. Article 8 will be taken up on April 7 (“a time certain”), and it is unlikely that a new design will be ready at that time. Article Positions for Special and Annual Town Meetings: 4.Mr. Parker asked the Committee to revisit two articles to be addressed atthe March 24, 2014 Special Town Meeting (STM)and Annual Town Meeting (ATM): STM Article 2,Cary Memorial Building Upgrades: Mr. Parker reported that the Community Preservation Committee (CPC) voted 9-0last night to maintain itssupport of STM Article 2; neither theBoard of Selectmen (BoS) Monday evening discussion of the project,norits split (3-2) vote to support it,changedthe position of anyone on the CPC. It was noted that Selectman Chair DebMauger and SelectmanPato had voted againstthis article because of concern that a 10-year CPAdebtfor the Cary Buildingmay constrain the Town’s ability to respond to future needs. They are particularly concerned about recent school enrollment projections that indicate the Town may need a new elementary school in about five years. Mr. Pato added that he believes Lexington taxpayers are currently resistant to further tax increases. The Cary Building project will add $1.0 million in debt annually for ten years;another school will add $2.5 to $3.0 million annually for perhaps 20 years. Mr. Addelson suggested that the Town needs to consider the taxpayers willingness to considerfurther tax increasesas well as ways theTown can mitigate the increases. He plans to reevaluate his financial modelling scenarios, and will look at the following: The current level of excluded debt service and the subsequent retirement of debt service, which will increase capacity. Balances in the CPA Fund that might be used to mitigate the debt service. The possibility of reducing the CPA surcharge, which would allowfewer projects to goforwardon the basis of CPA support. Mr. Addelson explained that a bondanticipation note (BAN) will be used for the initial funding of the projectif the funding is approved at the STM, and some of the BAN can be paid off before issuing a bond if other funding sources becomeavailable. He added that the Town can change the Cary Building funding sourcesvoted at the March 24, 2014 STMat a fall special town meeting. There was discussion about the modeling of the CPA funds, and it was noted that about 3/5ths of CPA income has already been allocated for pre-approved projects. 2 2014-03-19 Minutes Mr. Pato said he looks forward to seeing the results of there-modeling, but he had to vote onthe Cary Building project before that analysis wasavailable. He would like the Town to maintain some flexibility, and he supports a full debate of the issues.He added thatin his opinionthere are valid reasons for the Community Center project to move forward, while the Cary Building project, although desirable and important,is discretionaryat this time.Ms. McKenna addedthat taking the Cary Memorial Building out of commission for renovations willhave anegativeeconomic impactbut the improved facility willhave a positive effect. Mr. Bartenstein noted that favorable interest ratesonthe issuance of bondsmay not last.There was general agreement to not take a new vote on this article. ATM Article 8(b),Appropriate the FY2015 CPC Operating Budget and CPA Projects; Visitor Center –Design Phase: Mr. Parker commentedthat this Committee’svote on this projecthad beendelayed until further information was available. Mr. Michelson reported that he and Mr. Cohen had distributedinformation about the program goals for the Visitors Center, as identified by the Tourism Committee and Chamber of Commerce. The Historical Society did not commit itself to these goals. According to Mr. Bartenstein, Mr. McGuire said that the Historical Society believes that the Visitor Center should be renovated but they disagree with the programmatic goals that have been identified for the use of the building. Ms. McKenna reported that the Town owns the Visitor Center and it is rented by the Chamber of Commerce. The Chamber and the Tourism Committee unsuccessfully reached out to the Historical Societyin an attemptto resolve their differences of opinion. Ms. McKenna believes the Historical Society is concerned about the potential competition for earningrental space revenue during the months when the historical houses are open to the public. They are losing approximately $100,000 a year and worry that they could lose additional revenue with the new Visitor Center. It was noted that the BoS voted 5-0 insupport of appropriating design funds to renovate the building but voted2-3 against supporting the program reportthat had been submitted by the Chamber of Commerce and the Tourism Committee.Ms. McKennanoted that there will be a public process for developing the renovation plans, which will allow further discussion. It was moved and seconded to approve Article 8(b). VOTE: 7-0. Mr. Bartenstein, who was absent on March 12 when this Committee votedon most of the articles th for the March 24Town Meetings,added the following votes: yes on ATM Articles 4-11; yes on STM Article 3; abstain on STM Article 2. Ms. Schonfeld updated her abstention on ATM Article 15 to a yes. Report to the Upcoming ATM: 5.Mr. Parkerasked that all edits to the reportbe submitted to him by 2:00 p.m. on Saturday. There was a motion, which was seconded, to approve the draft report to the ATMwith the 3 2014-03-19 Minutes understanding that there maybe editorial changes of a non-substantive nature. VOTE: 7-0 th FutureMeetings: 6.Starting March 24, meetings will be held at 6:30 p.m. on Mondays and Wednesdays when Town Meeting is scheduled. The meeting was adjourned at 9:30p.m. A list of documents and other exhibits used at the meeting isset forth below. Respectfully submitted, Sara Arnold Recording Secretary Approved July 10, 2014 Exhibits 1.Meeting Agenda posted by Glenn Parker, Chair 2.Letter from the Lexington Chamber of Commerce and the Tourism Committee to the BoS regarding the Design Funding for the Lexington Visitors Center; October 18, 2013 3.TMMA Warrant Information Report: Corrections to Write-up on Article 8 (b) –Visitors Center –Design Phase; prepared by the Tourism Committee; March 20, 2014 4