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HomeMy WebLinkAbout2014-03-19-AC-min 2014-03-19 Minutes Minutes Town of Lexington Appropriation Committee March 19,2014 Place and time- Robbins Room, Cary Memonal Building, 7 30 p.m Members present Glenn Parker, Chair, John Bartenstem, Vice Chair and Secretary; Mollie Garberg; Alan Levine, Susan McLeish, Eric Michelson, Jonma Schonfeld Members Absent Robert Cohen, Richard Neumeier, Rob Addelson (non-voting, ex officio) Others Present Joe Pato, Board of Selectmen, Dawn McKenna, Chair, Tounsm Committee The meeting was called to order at 7 37 p.m 1 Announcements. Mr Bartenstem reported that Kevin McGuire, President of the Lexington Histoncal 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 position of the Society, but said that he would not be able to attend. 2. Minutes. There was a motion and second to approve the Appropnation Committee minutes for March 5, 2014 and March 12, 2014 VOTE 7-0 3 Liaison Reports by Staff and Members. Mr Addelson reported that some of the budget numbers in Articles 4 and 5 had been refined to reflect reductions in the FY2015 projected health insurance premiums Of the $1 0 million available from this reduction, 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 noted that the lower premiums will reduce the 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, Appropnate for Senior Service Program, noted that the program is currently available only for residents 60 and over She questioned whether the program should be extended, as the Town's special enabling act allows, to disabled residents under 60 who otherwise meet the eligibility criteria for 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 motion and second to endorse the BoS' OPEB funding policy VOTE 7-0 1 2014-03-19 Minutes Mr Parker will incorporate this position in his write-up on Article 15, Appropnate to Post Employment Insurance Liability Fund, for this Committee's report to the Annual Town Meeting. Mr Parker reported that Article 8(a), Appropnate the 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 pncmg. 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 4 Article Positions for Special and Annual Town Meetings. Mr Parker asked the Committee to revisit two articles to be addressed at the 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 9-0 last night to maintain its support of STM Article 2, neither the Board of Selectmen (BoS) Monday evening discussion of the project, nor its split(3-2) vote to support it, changed the position of anyone on the CPC It was noted that Selectman Chair Deb Mauger and Selectman Pato had voted against this article because of concern that a 10-year CPA debt for the Cary Building may 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 consider further tax increases as well as ways the Town 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 allow fewer projects to go forward on the basis of CPA support. Mr Addelson explained that a bond anticipation note (BAN)will be used for the initial funding of the project if the funding is approved at the STM, and some of the BAN can be paid off before issuing a bond if other funding sources become available He added that the Town can change the Cary Building funding sources voted at the March 24, 2014 STM at 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 the re-modeling, but he had to vote on the Cary Building project before that analysis was available He would like the Town to maintain some flexibility, and he supports a full debate of the issues He added that in his opinion there are valid reasons for the Community Center project to move forward, while the Cary Building project, although desirable and important, is discretionary at this time Ms McKenna added that taking the Cary Memorial Building out of commission for renovations will have a negative economic impact but the improved facility will have a positive effect. Mr Bartenstem noted that favorable interest rates on the issuance of bonds may 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 commented that this Committee's vote on this project had been delayed until further information was available Mr Michelson reported that he and Mr Cohen had distributed information about the program goals for the Visitors Center, as identified by the Tounsm Committee and Chamber of Commerce The Histoncal Society did not commit itself to these goals According to Mr Bartenstem, 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 Tounsm Committee unsuccessfully reached out to the Histoncal Society in an attempt to resolve their differences of opinion. Ms McKenna believes the Historical Society is concerned about the potential competition for earning rental 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 in support of appropriating design funds to renovate the building but voted 2-3 against supporting the program report that had been submitted by the Chamber of Commerce and the Tourism Committee Ms McKenna noted 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 Bartenstem, who was absent on March 12 when this Committee voted on most of the articles for the March 24t1i Town 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 5 Report to the Upcoming ATM. Mr Parker asked that all edits to the report be submitted to him by 2 00 p.m on Saturday There was a motion, which was seconded, to approve the draft report to the ATM with the 3 2014-03-19 Minutes understanding that there may be editonal changes of a non-substantive nature VOTE 7-0 6 Future Meetings. Starting March 24t1i meetings will be held at 6 30 p.m on Mondays and Wednesdays when Town Meeting is scheduled. The meeting was adjourned at 9 30 p.m A list of documents and other exhibits used at the meeting is set 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 Wnte-up on Article 8 (b)—Visitors Center—Design Phase, prepared by the Tounsm Committee, March 20, 2014 4