HomeMy WebLinkAbout2015-01-13-CEC-min
Minutes of the
Lexington Capital Expenditures Committee (CEC) Meeting
January 13, 2015
Town Office Building, Reed Room; 8:00 ..
Location and Time:
AM
Jill Hai, Chair; David Kanter, Vice-Chair & Clerk; Elizabeth Barnett;
Members Present:
Rod Cole
Wendy Manz
Member Absent:
Carl Valente, Town Manager; Rob Addelson, Assistant Town Manager for
Others Present:
Finance; Melissa Jones, Management Analyst, Finance Department; Sara Arnold,
Recording Secretary; Richard Neumeier, Appropriation Committee; Kate Colburn,
Precinct 4 Town Meeting Member
Documents Presented:
Notice of Public Meeting/Agenda for January13,2015
Excluded Debt Service Summary ($50 increases to average residential tax bill): Draft
Model with Sample Data for Analysis; January 12, 2015; prepared by the Finance
Department
Excluded Debt Service Summary ($100 increases to average residential tax bill):
Draft Model with Sample Data for Analysis; January 12, 2015; prepared by the
Finance Department
Excluded Debt Projection; Draft Model with Sample Data for Analysis;
January 12, 2015; prepared by the Finance Department
Within Levy Debt Projection; Draft Model with Sample Data for Analysis;
January 12, 2015; prepared by the Finance Department
Fiscal Year 2016 Town ManagerÈs Preliminary Budget and Financing Plan;
January 12, 2015 (ÅWhite BookÆ)
Wendy Manz E-Mail to the CEC; January 11, 2015 3:30 ..; Subj: Center
PM
Committee Report, with attached Selectman Peter Kelley Interoffice Memorandum to
the Board of Selectmen (BoS), January 7, 2015, Subject: Use of Design Funds for
VisitorsÈ Center
Draft #2 Minutes of the CEC Meeting, December 9, 2014 (Distributed by Mr. KanterÈs
e-mail to the other CEC Members and Ms. Arnold, December 18, 2014 9:30 ..)
PM
Draft Minutes of the CEC Meeting, December 15, 2014 (Distributed by Mr. KanterÈs
e-mail to the other CEC Members and Ms. Arnold, December 21, 2014 0:37 ..)
AM
Draft #3 Minutes of the CEC Meeting, December 16, 2014 (Distributed by
Mr. KanterÈs e-mail to the other CEC Members and Ms. Arnold,
January 4, 2015 9:02 ..)
PM
Draft #3 Minutes of the CEC Meeting, January 6, 2015 (Distributed by Mr. KanterÈs
e-mail to the other CEC Members and Ms. Arnold, January 10, 2015 9:41 ..)
PM
Draft Minutes of the CEC Meeting, January 8, 2015 (Distributed by Mr. KanterÈs
e-mail to the other CEC Members and Ms. Arnold, January 11, 10:10 ..)
PM
Page 1 of 4
Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
January 13, 2015
Ms. Hai called the meeting to order at 8:00 a.m.
Call to Order:
Updates to the FY2016Ã2020 Capital Improvement Projects (CIPs) and Other
It was noted that further discussion of the capital projects
Proposed Capital Projects
:
would be postponed until next weekÈs meeting.
Updates and DiscussionRegarding this CommitteeÈs Positions on the FY2016Ã
Mr. Valente and Mr. Addelson
FY2020 Capital Program and Potential Financing Plans:
reported that staff have been preparing a model for analyzing the financial impact of capital
projects that are being considered. It was stressed that the identified projects and
associated costs identified in the distributed handouts were based on reasonable
assumptions, but should not be used as representing decisions that still must be made by
the School Committee, the Selectmen, and Town Meeting. The current exercise is to
determine whether the modeladdressesthe questions, not whetherthe data included in the
model is the correct data to be used. It was noted that the model assumes 5% annual
increases in revenue and growth, which is consistent with past assumptions.
The model includes three components:
Those projects that are likely candidates for debt exclusion over the next four years
(e.g., new fire station, new police headquarters, a new elementary school, and major
renovations at the other elementary schools and the two middle schools), and how
those are financed;
Those projects that will fall within the levy-limit; the Town typically allocates
$5.0 million for such projects; and
A process that identifies the financial impacts so that it can be determined whether
those impacts are acceptable. This includes a focus on the following:
The amount that would be withdrawn from the Capital Project/Debt Service
Reserve/Building Renewal Stabilization Fund (ÅCapital Stabilization FundÆ) to
smooth out the impact on the average tax bill; and
The annual increase in the average tax bill for debt-exclusion projects.
Ms. Jones reviewed the handouts, which demonstrated two options:
An approach that results in a $50 annual increase in the average residential tax bill
for debt exclusion projects; and
An approach that results in a $100 annual increase in the average residential tax bill
for debt exclusion projects.
She explained that there are some important outstanding questions, including:
Should the Town pursue a replacement Hastings Elementary School without
Massachusetts School Building Authority (MSBA) financial assistance, considering
MSBAÈs recent denial of the TownÈs Statement of Interest (SOI) for the coming year?
Can budgets over the next four years include a $2.0 million allocation into the Capital
Stabilization Fund as has been previously discussed?
The handouts include analyses for alternative answers to these two questions.
Staff added the following in response to questions:
The Capitalization Stabilization Fund currently has about $8.0 million in it.
The Capitalization Stabilization Fund will be exhausted in FY2020 or FY2021, based
on the scenarios included in the current draft modeling.
Page 2 of 4
Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
January 13, 2015
The draft modeling uses the Ad hoc Town-wide Facilities Master Planning
CommitteeÈs cost estimates for new separate Police and Fire Department facilities.
Past experience indicates that the Lexington taxpayer will accept $50 annual
increases for debt-exclusion projects.
The capital projects included in the White Book are projects that are expected to be
funded within the tax levy; the validity and/or priority of these projects will be
nd
reviewed at the planned January 22 Budget Collaboration/Summit Meeting
(ÅSummit 5Æ).
The current value of the average residential property in Lexington is approximately
$820,000.
There arenÈt many Senior Citizens who take advantage of the programs that help
alleviate the tax burden for those with limited income.
Comments made during the discussion included the following:
The funding of a capital project should be spread out over many years so that those
who are benefitting from it are helping pay for it.
The Town has made an effort to maintain its level of services, which has minimized
the ability to reduce the tax levy.
It is the responsibility of the School Committee to make its recommendations
regarding the school projects based on education policies; and then all the relevant
boards, committees, and staff need to work together to develop an acceptable
financing strategy to present to Town Meeting and residents.
The School Committee is planning two public hearings on the school projects.
There was discussion about how the material in the handouts would be presented at the
January 22nd Budget Summit. It was again stressed that these are working documents and
the substance will be changed as more definitive information becomes available.
Initial Review of the FY2016 Town ManagerÈs Preliminary Budget & Financing Plan
(ÅWhite BookÆ):
Mr. Addelson provided the members their printed copy of the White Book. He noted that
Section XI is the FY2016 Capital Improvement Budget & Financing Plan.
Ms. Hai asked members to review those capital projects and be prepared to vote at the
th
CommitteeÈs January 20 meeting on the items for which this Committee current
preliminary position includes abstentions. If there are any questions or concerns about the
projects that this Committee should bring to the attention of those attending Summit 5,
th
those should be brought to her attention no later than this Saturday (the 17).
It was noted that the School Committee will not be voting on its position regarding the large
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school projects until the evening of January 20, which is between this CommitteeÈs
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January 20 morning meeting and the January 22 Summit 5. It was agreed that a meeting
nd
of this Committee will be posted for 6:30 .. on the 22 to provide this Committee a
PM
means to deliberate further regarding its preliminary positions, if the Chair deems that is
needed.
CommitteeÈs preparations for, and report to, the Budget Collaboration/ Meeting 4 on
As the capital presentation and discussion have been deferred until
January 15, 2015:
Summit 5, the Committee should just review the White Book, and specifically its Section XI,
from a general-overview perspective in preparation for this weekÈs Summit 4.
Page 3 of 4
Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
January 13, 2015
Preparation of the CommitteeÈs Report to the 2015 Annual and/or Special Town
Mr. Kanter reviewed the process for preparing the report. Although he has
Meeting(s):
recently distributed to the members a word-document version of the CommitteeÈs report to
last-yearÈs Annual and companion Special Town MeetingsÄwhose content can be viewed
as a source for the general information that might be included in this yearÈs reportÄhe will
be distributing a ÅshellÆ version for this yearÈs report which would be the starting point for
the Committee members to use in making their actual inputs to the first draft of this yearÈs
report. Any text included from last yearÈs report will be colored blue to distinguish it as a
carryover. Track changes should be used for edits. In the ÅshellÆ version, he plans to shift
the columns in the tables that provide historical data to provide a place for each member to
enter the FY2015 appropriations as well as in the CommitteeÈs 5-Year Capital Plan. The
key milestones for preparing the report were identified as follows:
th
February 10: Member drafts of the material for the front section of the report are
due to be submitted to Mr. Kanter. In most cases, it is expected that the members
will find that much of what had been in the 2014 report just can be updated by
deleting now-obsolete information and adding new background information if needed
because of new requests by the department in the 5-year plan.
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March 10: Approve the pending-final report.
thth
March 13: Have votes by any members that were not at the March 10meeting and
address any substantive new information since that meeting. Following this meeting,
and likely over the following weekend, Mr. Kanter would submit the final version of
the report to the School Print Shop and for posting to the TownÈs Website.
th
March 16: Make the printed report available to Town Meeting members, the BoS,
other committees, and Town staff. (The 2015 Annual Town Meeting and companion
rd
Special Town Meeting begin on March 23 with financial deliberations at the latter.)
None
Member Concerns and Liaison Reports:
The following votes on Minutes were taken:
Approvalof Minutes
:
A Motion was made and seconded to approve the Draft #2 Minutes of the CEC Meeting,
December 9, 2014, with the described editorial change.
Vote: 3Ã0Ã1 \[Mr. Cole abstained as
he was not at the meeting.\]
A Motion was made and seconded to approve the Draft Minutes of the CEC Meeting
December 15, 2014, with the described editorial changes.
Vote: 4Ã0
A Motion was made and seconded to approve the Draft #3 Minutes of the CEC Meeting,
December 16, 2014, with the changes as discussed. Vote:
3Ã0Ã1 \[Mr. Cole abstained as
he was not at the meeting.\]
A Motion was made and seconded to approve the Draft #3 Minutes of the CEC Meeting,
January 6, 2015, with the changes as discussed.
Vote: 3Ã0Ã1\[Ms. Barnett abstained as
she was not present at that meeting.\]
A Motion was made and seconded to approve the Draft Minutes of the CEC Meeting,
January 8, 2015, as presented
. Vote: 3Ã0Ã1\[Ms. Barnett abstained as she was not present
at thatmeeting.\]
A Motion was made and seconded at 9:47 .. to adjourn.
Adjourn:Vote: 4Ã0
AM
These Minutes were approved by the CEC at its meeting on January 30, 2015.
Page 4 of 4