HomeMy WebLinkAbout2014-07-10-AC-min
7/10/14Minutes
Minutes
Town of Lexington Appropriation Committee
July 10, 2014
: ReedRoom,Town OfficeBuilding,7:30p.m.
: Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Mollie
Garberg;Alan Levine;Beth Masterman; Susan McLeish; Eric Michelson;Andrei Radulescu-Banu;
Rob Addelson (non-voting, ex officio).
Members Absent:Richard Neumeier
Other attendees: Carl Valente, Town Manager; Theo Kalivas, Budget Officer; David Kanter,
Capital Expenditures Committee; Robert Cohen, Town Meeting Member
The meetingwas calledto order at 7:32p.m.
Announcements:
1.Changes in the Appropriation Committee membership were reviewed.
Mr. Radulescu-Banu andMs. Masterman have joined the Committee filling vacancies created by
Ms. Schonfeld andMr. Cohen. Mr. Cohen reported that he recently resigned because his
professional commitments conflict with servingon the committee. He thanked the members for
their support.
Liaison Reports:
2.Mr. Levine reported having attended a meetingregarding the 20 year
contractthat the Town is negotiatingfor solar panels on six buildings in Lexington. Solar panels
forthe Hartwell Avenue town property are not included. Mr. Levine is comfortable that the
financial analysis for this project is reasonable. It is anticipated that the contract will be presented
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to the Board of Selectmen on July 28.It was notedthat this is a complicated project, partially
because the regulations governing solar electricity have beenfluid. There is a 2016 deadline for
accessing a capacity restriction.Mr. Levine suggested talking directly toMark Sandeen, Chair of
the Sustainable Lexington Committee, for more detailed information.
Mr. Levine reported that he attended the first meeting of the Ad hoc School Master Planning
Committee. The consultant for this project is currently meeting with the principals of all the
schools to assess the capacity of the buildings as they are presently used. The School
Administration Building will also be evaluated. The next meetingof this committeeis tomorrow
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(July 11). The consultants expect to issue a report in early September that will be used to
determine the need for expandingschool capacityin the near future. Aneed for such funding will
influence the decision whether to holda fall Special Town Meeting(STM).
It was noted that the Townhas not yet set a date fora special election to replace Deb Mauger, who
is resigningas a member of the Board of Selectmen.
Adjustments to the FY2014budget
3.:Mr. Addelson reviewedthe threetransfer
accounts/mechanisms that he recommends usingto balanceline items inthe FY14 budget:
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Reserve Fund:
The Appropriation Committee controls the use of funds in theReserve
Fund thatcan be used to cover line item deficitsthat result from unanticipated expenses.The
current balance of the FY2014 Reserve Fund is approximately $900,000.
Salary Adjustment Account:
Some salaries arenot finalized at the time of the Annual
TownMeeting. With BoS approval,fundsfrom this account can be transferred to the
appropriate line item for the finalized salaries.
3% Transfer:
The “3% transfer rule” allows the town to transfer unused funds from a
departmental budget to cover deficits in another part of the budget. The transferred funds
cannot be more than 3% of the budget of the department from which they are transferred.The
Appropriation Committee and the BoS must approve these transfers.
Mr. Addelsonreviewed the recommended amounts to be transferred, the sourcesforthose funds,
and the purpose for the transfers as outlined in thehandoutthatincluded the FY2014 Proposed Year
End Budget Adjustments.TheBoS has approved/endorsedthe proposed transfers from all three
sources, although two of the amounts have increased since they voted.They will be asked to
revote, as follows:
To increase the Salary AdjustmentAccount transfer by $12,000. This will allow a50-50
split between the budgets for the two fiscal years that are included in the first payroll check each
year.Past practice used a 60-40 split.
To increasethe transfer authorized by the “3%transferrule” by $6,700 to cover Legal
Services associated with the current contract negotiations for the solar panels.
Based on Mr. Addelson’srecommendations, the following votes were taken:
A motion was made and seconded to approve the transfer of $76,000from the Reserve Fund
to cover unanticipated expenses for unemployment insurance and property insurance, as
discussed and as outlined in the handout. The motion passed. VOTE: 8-0
A motion was made and seconded to approve the transfer, under the 3% rule,of$110,370,
which includes the $6,700 discussed above,asoutlined in the handout.The motion passed.
VOTE: 8-0.
A motion was made and seconded to endorse the transferof $128,400, which includes the
$12,000 discussed above, from the Salary Adjustment Account for salaries in specific
departments, as recommended above andas outlinedin the handout. The motion passed.
VOTE: 8-0.
Mr. Addelson’shandout also identified a Snow and Ice FY14 budget deficit of $652,712. He
explained that the deficit would likely be funded, without the need for further Town Meeting action,
from the following sources:
$300,000from the set-aside in the FY15 budget for FY14 snow and ice removal, a
mechanism that is allowed by state regulation.
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The balance of $352,717 from theincrease in FY2015 state aid, which exceeded the
estimateused in setting the FY2015 budget at the Annual Town Meeting by approximately
$890,000.
FY15 Reserve Fund Transfer Request:
4.Mr. Valente asked thecommittee to consider a
FY15 Reserve Fund transfer to support the Hartwell Avenue/Alewife Station shuttle service, which
has recently experienced a significant cut in federal funding.
The non-profit 128 Business Council, a local Transportation Management Association, operates the
service and guarantees a taxi ride home, if necessary. Passengers from contributing properties pay
$1.00 each way; others pay $3.00.Town support of thisservice is part of the Town’s effort to
promote business activity on Hartwell Avenueand minimize single car trips.The Council reports
that ridership has been exceptionally good for a new service.
The program’s grosscostsare$172,000 annually. The Town received afederal grant covering 80%
of the costs topilot this service from August 31, 2013 to August 30, 2015. During the first year,
four of the seven property ownerson Hartwell Avenue providedmost of the remaining 20% and the
Town contributed $3,500.
The Town recently learned that the federal grant isbeing terminated as of August 30, 2014,
primarilybecause of the federalsequester. The Town is asking the Hartwell Avenue property
owners to assume 60% of the next year’s costs with the understanding that the Town will assume
40%, i.e. $69,120. The Town has received a verbal commitment from two of theparticipating
property ownersand a written commitment from the other two.
One possible source of the Town’s contribution would be the Transportation Demand Management
(TDM)Stabilization Fund. Both the BoS and the Transportation Advisory Committee (TAC)
supported the use of those funds for this purpose, although TAC asked that this be a one-year-only
request. However, becauseTDMfunds are not available withoutTown Meetingapproval,and Mr.
Valente needs assurance of available funds by early August, he did not pursue this option.
Discussion focused on the value of having this service, the desire for the Hartwell Avenue property
owners to contribute as much as possible, and support for having the bus provide service to
Lexington residents. Mr. Valente said that the 128 Business Council has been asked to include a
Lexington stop during its reverse commute.
It was generally agreed that an immediate vote to release the funds would beprematureas awritten
commitment has not yet been received from all participating Hartwell Avenue property owners.A
motion was made and seconded to indicate the Committee’s willingness to support the 40% funding
from the Reserve Fund when the need arises. The motion passed. VOTE: 8-0
Minutes:
5.A motion was madeand seconded to approve the Committee’s minutes for
February 26, 2014, March 19, 2014, April 6, 2014, and May 7, 2014.The motion passed. VOTE:
6-0-2.
Future Meetings:
6.It is unlikely that there will be an August meeting. Mr. Parker will
distribute a Doodle poll for an early September meeting; election of officers will be included on that
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agenda. It is probable that there will be a NovemberSTM, which will require weekly meetings in
October. An effort will be made to hold meetings on Thursday evenings; the next best day of the
week is Tuesday, followed by Wednesday.
The meeting was adjourned at 8:57p.m.
A list of documents and other exhibits used at the meeting is set forth below.
Respectfully submitted,
Sara Arnold
Approved September 4, 2014
Exhibits
1.Agenda,posted by Glenn Parker, Chair
2.Agenda Item Summary, Lexington Board of Selectmen Meeting, June 30, 2014,including
FY2014 Proposed Year End Budget Adjustments
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