HomeMy WebLinkAbout2015-09-09-BOS-Packet-releasedSELEC T MEN'S MEETING
Wed nesday, September 9, 2015
Selec tmen Meeting Room
9:00 AM
AGENDA
PUBLIC COMMENTS
Pub lic c o mments are allo wed fo r up to 10 minutes at the b eginning of eac h meeting. Eac h s p eaker is
limited to 3 minutes for comment. Memb ers of the Board will neither c o mment no r respond , o ther than to
as k q ues tions of clarific ation. Speakers are encouraged to notify the Selec tmen's Offic e at 781-698-4580
if they wis h to s peak during pub lic comment to assist the Chairman in managing meeting times.
SELECTMAN CONCERNS AND LIAISON REPORTS
TOWN MANAGER REPORT
ITEMS FOR INDIVIDUAL CONSIDERATION
1.Propos ed FY2016 Water and Sewer R ates (20 min.)9:00 AM
2.Continued Grant of Loc ation - Verizo n/Evers o urc e - Philip Road (5 min.)9:20 AM
3.Approve Elks Reques t fo r an As s is tant Manager 9:25 AM
4.Res erve F und Trans fer Req uest-C ary Memo rial Build ing Renovatio n (10 min.)9:35 PM
5.Dis c us s ion of Sc hool District Building Projec ts Plan (5 min.)9:45 AM
6.Approve Bench Lo catio n (5 min.)9:50 AM
7.Selec tmen Co mmittee Ap p o intment - F und for Lexington (5 min.)9:55 AM
8.Dis c us s Pos sible Spec ial Town Meeting and Warrant Articles (10 min.)10:00 AM
CONSENT AGENDA
1.Approve Lo wering the Battle Green F lag o n Septemb er 11 10:10 AM
EXECUTIVE SESSION
1.Exec utive S es s io n-Exemptio n 2 (C o llective Bargaining) and Exemp tion 6
(Purc has e of Property)
10:15 AM
ADJOURN
The next regular meeting o f the Bo ard o f S electmen is sc heduled for Mond ay, S ep tember 21, 2015,
at 7:00 p.m. in the S electmen Meeting R o o m, 1625 Massac hus etts Avenue.
Hearing Assistance Devices Av ailable on Request
All agenda time and the order of items are approximate and
subject to change.
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Proposed FY2016 Water and Sewer Rates (20 min.)
PRESENTER:
Ro b Ad d els on, As s is tant Town
Manager fo r Financ e
ITEM
NUMBER:
I.1
SUMMARY:
This is the firs t of three disc ussions regard ing Water/Was tewater rates fo r FY2016. Our presentatio ns will be
as follows :
1. September 9, 2015:
R eview res ults o f F Y2015 water and s ewer o p erations , b illed c ons umptio n and retained earnings
his tory.
P res ent F Y2016 water and sewer b udgets as adopted at the 2015 annual town meeting (d irect and
ind irec t c o s ts) and p ro p o s ed revis ions to these b udgets, whic h will s erve as the basis fo r
c alc ulating FY2016 water and s ewer rates .
P res ent preliminary water and sewer rates fo r F Y2016
2. September 21, 2015: Rec eive p ublic c omments o n p reliminary water and s ewer rates for FY2016
3. Octo ber 5, 2015: Board o f Selectmen vo te o n recommend ed FY16 water and s ewer rates
Doc uments P ro vided (attached ) - Memo rand um fro m the Assistant Town Manager fo r F inance to the Town
Manager including:
FY2015 Was tewater Budget – Operating Res ults
Was tewater Bud get S p ending and His tory: F Y12 to FY16
FY2015 Water Budget – Operating Res ults
Water Bud get S p ending and Histo ry: F Y12 to FY16
Retained Earnings Histo ry
Water C o ns ump tion His tory: FY2006 to F Y2015
Preliminary F Y16 Water and Was tewater R ates
SUGGESTED MOTION:
NA
FOLLOW-UP:
Rob Addelso n, F inance
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 9:00 AM
ATTACHMENTS:
Des crip tion Type
Memorandum from the As s is tant Town Manager for Finance to the Town
Manager
Cover Memo
Town of Lexington
Comptroller’s Office
Robert Addelson, Assistant Town Manager for Finance Phone: (781) 862- 0500
Fax: (781) 861-2794
1625 MASSACHUSETTS AVENUE • LEXINGTON, MASSACHUSETTS 02420
To: Carl Valente, Town Manager
From: Rob Addelson, Assistant Town Manager for Finance
Date: August 27, 2015
Subject: Proposed FY2016 Water and Wastewater Rates
The attached packet contains information in support of the proposed FY2016 water and
wastewater rates. The packet includes:
FY15 Operating Results for the water and wastewater operations.
Water and wastewater expenditure history including proposed amendments to
the FY16 budgets adopted at the 2015 annual town meeting to serve as the
basis for proposed FY16 rates.
Water consumption history for FY06 to FY15 including estimates of FY2016
usage to be used in calculating proposed FY2016 water and wastewater rates.
A history of water purchased from the MWRA, by month, from 1998 through
June, 2015
Preliminary FY2016 water and wastewater rates.
A presentation of the combined impact of FY2016 water and wastewater rates at
various levels of annual usage.
A history of combined rate increases in Lexington and their impact on the cost
for the household of average usage
Retained earnings history for the water and wastewater funds
MWRA Advisory Board: Annual Water and Wastewater Retail Rate Survey,
November 2014.
FY15 Water and Wastewater operating results and FY2016 Water and
Wastewater Budgets:
FY15 Water Operating Results: As shown on page 1 attached, unaudited FY15
operating results were positive for both revenues collected and expenditures generating
a surplus of approximately $1.1 million of which approximately $86,000 is from
expenditures under budget and $1.01 million is from revenue in excess of estimates.
Revenues in excess of estimates are driven by two factors. The first factor is water
ii
usage in excess of estimates generating approximately $961,000 more than estimated.
A review of FY15 usage versus estimates (see page 2 attached) shows the largest
drivers of excess usage attributable to Bedford (generating approximately $406,000 in
surplus revenue), Tier 3 usage (approximately $197,000 in surplus revenue) and
irrigation accounts (approximately $335,000 in surplus revenue). The second factor is
actual non-rate revenue approximately $49,000 in excess of estimates.
FY2016 Water Budget: There is one change proposed to the FY2016 budget as adopted
at the 2015 annual town meeting: a $71,394 decrease in debt service based on a
review of the debt service impacts of the those projects funded in the February 2015
bond sale. (See page 4 attached)
Based on the proposed revision to the FY2016 water budget adopted at the 2015
annual town meeting, the FY2016 water budget will be $10,022,950 inclusive of indirect
costs, which represents a $752,070 increase, or 8.1%, over the final FY2015 budget.
The largest driver of the growth in the budget is a $657,172 increase, or 10.9%, in the
MWRA assessment. The increase in assessment is attributable to Lexington’s share of a
7.7% increase in the FY16 MWRA water operations budget and our increased usage of
approximately 3% in water purchased from the MWRA between calendar year 2013 and
2014 (the FY16 assessment is a function of the Town’s calendar year 2014 purchases of
water from the MWRA).
FY15 Wastewater Operating Results: As shown on page 5 attached, unaudited FY15
operating results were positive for both the revenue and expenditure budgets
generating a surplus of approximately $0.53 million of which approximately $117,000 is
from expenditures under budget and approximately $415,000 is from revenue in excess
of estimates. Of the revenue in excess of estimates, approximately $241,000 is from
non-rate revenue in excess of estimates and approximately $174,000 is attributable to
usage in excess of estimates.
FY2016 Wastewater Budget: There are two changes proposed to the budget as adopted
at the 2015 annual town meeting: a $119,771 increase in debt service based on a
review of the debt service impacts of the those projects funded in the February 2015
bond sale and a $71,540 decrease in the MWRA assessment based on the final
assessment adopted by the MWRA Board of Directors in June 2015 (see page 6
attached).
Based on the proposed revision to the FY2015 Wastewater budget adopted at the 2015
annual town meeting, the FY2016 wastewater budget will be $9,151,553 inclusive of
indirect costs, which represents a $366,065 decrease, or 3.8%, over the final FY2015
budget.
On a combined basis, water and wastewater budgets are increasing 2.1% from FY2015
to FY2016.
iii
Proposed FY2016 Rates:
Preliminary water and sewer rates are proposed to increase 0.9% on a combined basis
for the average user of 120 hundred cubic feet (hcf), reflecting a 7.7% increase in
water rates (page 7 attached) and a 2.3% decrease in wastewater rates (page 8
attached).
A factor that is mitigating the increase in water rates in FY16 is the proposed use of
$275,000 of projected 7/1/15 water retained earnings attributable to FY15 Bedford
usage in excess of FY15 estimates. The additional Bedford usage resulted in excess
revenue of approximately $406,000, of which $275,000 is proposed to be applied to
offset a portion of the increase in the FY16 MWRA assessment attributable to the
increased Bedford usage in the summer of 2014 for the continuation of its flushing
program, which was not anticipated when FY15 rates were approved. It is proposed
that approximately $131,000 of the $406,000 be set-aside to mitigate increases in the
FY17 MWRA assessment attributable to excess Bedford usage in the spring of 2015. In
the absence of the use of this $275,000 in retained earnings, retained earnings to
support the FY16 water budget is decreasing by $50,000 from FY15 to continue the
practice of reducing the use of retained earnings as a revenue source for the water
operating budget, a practice that began in FY13. Correspondingly, the use of retained
earnings to support the FY16 wastewater operating budget is also proposed to be
reduced by $50,000 which will eliminate the use of wastewater retained earnings to
support the wastewater operating budget, leaving retained earnings solely for the
financing of capital.
The impact of the proposed FY16 rates on a low (50 hcf), average (120 hcf) and high
user (240 hcf) is shown on page 9 attached. Also shown is the impact on a
hypothetical commercial user of 1000 hcf per year.
Assumptions on estimated usage to build the preliminary FY16 rates are shown on page
2 attached. In an effort to show wet year versus dry variations, the history of water
purchased from the MWRA by month and fiscal year from 1997 to 2014 is shown in the
attached page 3. Based on a review and analysis of the data shown on pages 2 and 3,
some changes in estimates of usage have been made with the most pronounced being
the increase in estimated Bedford usage. This increase is based on my conversations
with Bedford’s Director of Public Works and his estimates of how much water Bedford
will buy from Lexington in FY16.
iv
Historical Rate Increases: Cost Impact on Household of Average Usage
For the period FY06 to FY14, the table below depicts the impact of annual changes from
in water and wastewater rates on the costs of a household using 120 HCF annually, the
MWRA’s determination of average household usage throughout its system.
Water Sewer Total
$ Change
from
Prior Year
%
Change
from
Prior
Year
Preliminary
FY2016
520.32$ 1,001.24$ 1,521.56$ 13.56$ 0.9%
FY2015 483.20$ 1,024.80$ 1,508.00$ 51.20$ 3.5%
FY2014 463.60$ 1,017.20$ 1,480.80$ 73.48$ 1.6%
FY2013 448.00$ 1,008.80$ 1,456.80$ 49.48$ 3.5%
FY2012 436.79$ 970.52$ 1,407.32$ 157.28$ 12.6%
FY2011 411.60$ 838.44$ 1,250.04$ 9.64$ 0.8%
FY2010 407.60$ 832.80$ 1,240.40$ (48.80)$ -3.8%
FY2009 415.60$ 873.60$ 1,289.20$ 36.40$ 2.9%
FY2008 379.20$ 873.60$ 1,252.80$ -$ 0.0%
FY2007 379.20$ 873.60$ 1,252.80$ 77.60$ 6.6%
FY2006 355.20$ 820.00$ 1,175.20$
3.1%Average Annual Change: FY06
to FY15
Annual Water and Sewer Charges for Household Using 120 HCF
per Year
Retained Earnings History
A Retained Earnings history including estimates of retained earnings as of 6/30/15 is
shown on page 10.
Water retained earnings as of 6/30/2014 was $2,119,458 from which $1,010,345 was
voted at the 2015 annual town meeting for FY16 capital and $200,000 was voted to
support the FY16 water operating budget. Retained earnings as of 6/30/2015 is
projected to be approximately $2.0 million due to the positive operating results of FY15
(see page 1). Contributing to these positive results is usage by Bedford in excess of
estimates which resulted in payments from Bedford being approximately $406,000
greater than projections. Also contributing to the positive results of FY15 is irrigation
usage in excess of estimates which resulted in payments from irrigation accounts
approximately $335,000 greater than projections, and Tier 3 usage in excess of
estimates which resulted in approximately $197,000 greater than estimates.
v
Wastewater retained earnings as of 6/30/2014 was $2,072,941 from which $1,390,500
was voted at the 2015 annual and special town meetings for wastewater capital.
Retained earnings as of 6/30/2015 is projected to be approximately $1.2 million due to
the positive operating results of FY15 (see page 5) less the $1,395,000 cited above
used for capital.
It has been the practice to maintain a balance in retained earnings for a variety of
reasons including the funding of unanticipated emergency spending; to cover potential
revenue shortfalls; and, to serve as a source of working capital so that general fund
cash – at the expense of general fund investment income - does not have to be used
for water and wastewater fund operating cash. It is proposed that this practice
continue and any amounts in excess of these thresholds be applied to mitigate rates or
finance capital.
Community Comparisons
Finally, included is a comparison of Lexington’s proposed rates with those of the other
MWRA member communities based on the MWRA Advisory Board’s Annual Water and
Wastewater Retail Rate Survey issued in November 2014 (see page 11 attached).
Please let me know if you have any questions.
Revenues FY 2015 Budget FY 2015 Actuals Difference
User Charges 8,479,774$ 9,440,624$ 960,850$
Non-Rate Revenue
Penalties & Interest Late Charges 30,000$ 33,018$ 3,018$
Betterments 1,500$ 1,357$ (143)$
Tax Liens/Titles Redeemed 140,000$ 4,232$ (135,768)$
2013 Water Liens 1,585$ 1,585$
2014 Water Liens 40,930$ 40,930$
2015 Water Liens 171,594$ 171,594$
New Meter Charge 40,000$ 60,076$ 20,076$
Misc. Dept Revenue 10,000$ 18,836$ 8,836$
Bedford Demand Charge 1 60,000$ (60,000)$
Premiums on Bonds/Notes Issued -$ -$ -$
Interest Earned 7,500$ 6,133$ (1,367)$
sub-total Non-rate Revenue 289,000$ 337,762$ 48,762$
Retained Earnings 500,000$ 500,000$ -$
Water Enterprise Total Revenues 9,268,774$ 10,278,386$ 1,009,612$
1 Actual collections against Bedord Demand Charge included in user charges collections
Expenses
Direct Costs
Compensation 674,611$ 593,594$ 81,017$
Expenses
Contractual Services 188,900$ 157,591$ 31,309$
Utilities 5,500$ 13,025$ (7,525)$
Supplies 161,000$ 188,934$ (27,934)$
Small Equipment 34,000$ 26,184$ 7,816$
Debt 1,379,622$ 1,378,688$ 934$
MWRA 6,035,866$ 6,035,893$ (27)$
Total Direct Costs 8,479,499$ 8,393,909$ 85,590$
Indirect Costs
Equipment Maintenance and Depreciation 28,708$ 28,708$ -$
Auto Insurance 9,729$ 9,729$ -$
Indirect Departmental Expenses 266,555$ 266,555$ -$
Workers' Compensation 15,042$ 15,042$ -$
Employee Benefits 173,851$ 173,851$ -$
Retirement Costs 100,557$ 100,557$ -$
Indirect Town Expenses 179,198$ 179,198$ -$
General Insurance 15,636$ 15,636$ -$
Total Indirect Costs 789,275$ 789,275$ -$
Water Enterprise Total Expenses 9,268,774$ 9,183,184$ 85,590$
FY 2015 Surplus/(Deficit) -$ 1,095,203$ 1,095,203$
Water Enterprise Fund - Town of Lexington
FY 2015 Budget - Operating Results
page 1
(A) (B) ( C ) (D) (E) (F) (G) (H) (I) (J) (K) (L) (M) (N) (O) (P) (Q) DESCRIPTION TIERHCF RANGE FY 2006FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015Estimates Used for FY2015 Rates10 Year Average5 year AverageEstimates for Preliminary FY16 Rates(1)WATERTIER 1 0-40678,957 685,189 692,360 673,076 680,747 669,898 668,771 677,967 677,135 677,006 670,000 678,111 674,155 674,000(2)WATERTIER 2 41-80153,558 141,115 152,098 116,055 117,493 117,536 103,386 106,650 106,000 102,919 110,000 121,681 107,298 107,000(3)WATERTIER 3 80+193,594 163,047 161,145 163,160 177,434 194,452 206,690 211,757 231,938 228,852 200,000 193,207 214,738 200,000(4)WATER TOTAL1,026,109 989,351 1,005,603 952,291 975,674 981,886 978,847 996,374 1,015,073 1,008,777 980,000 992,999 996,191 981,000(5)WATER - MUNICIPALFLAT RATE10,964 12,768 11,594 12,154 13,078 17,217 17,461 16,378 24,524 26,196 17,000 16,233 20,355 19,000(6)WATER-IRRIGATIONTIER 3215,651 172,174 253,909 198,300 167,201 288,811 229,764 259,106 287,953 293,073 244,000 236,594 271,741 265,000(7)WATER BEDFORDFLAT RATE658,558 543,765 567,208 511,273 545,198 611,682 556,733 635,024 651,226 746,380 580,000 602,705 640,209 625,000(8)WATER - VA HOSPITALFLAT RATE52,655 43,641 33,016 33,614 33,789 34,654 29,809 33,237 35,370 34,275 33,000 36,406 33,469 33,000(9)HANSCOM / LINCOLN LABSFLAT RATE263,609 258,943 237,924 235,542 214,910 238,236 266,648 256,648 231,201 238,980 240,000 244,264 246,343 238,000(10)WATER-BURLINGTONFLAT RATE1,607 - 43,221 - - - 7,025 - - 11,298 - 6,315 3,665 -(11)TOTAL WATER 2,229,153 2,020,642 2,152,475 1,943,174 1,949,850 2,172,486 2,086,287 2,196,767 2,245,347 2,358,979 2,094,000 2,373,465 2,454,651 2,161,000(12)SEWERTIER 1 0-40652,777 659,297 669,168 655,454 663,588 634,504 655,519 665,661 665,464 666,105 650,000 658,754 657,451 655,000(13)SEWERTIER 2 41-80145,164 134,383 145,727 112,225 114,368 110,847 100,327 103,928 103,415 100,709 108,000 117,109 103,845 104,000(14)SEWERTIER 3 80+169,230 151,419 149,007 157,472 170,784 178,401 197,406 208,380 228,377 225,110 195,000 183,559 207,535 200,000(15)SEWER TOTAL967,171 945,099 963,902 925,151 948,740 923,752 953,252 977,969 997,256 991,924 953,000 959,422 968,831 959,000(16)SEWER MUNICIPAL RATEFLAT RATE8,974 7,213 10,411 4,896 2,097 12,874 13,819 12,391 13,791 12,003 13,000 9,847 12,976 12,000(17)TOTAL SEWER 976,145 952,312 974,313 930,047 950,837 936,626 967,071 990,360 1,011,047 1,003,927 966,000 969,269 981,806 987,681TOWN OF LEXINGTONWATER CONSUMPTION HISTORY FY2006 thru FY2015 (in hundred cubic feet(HCF))page 2
MG JulAugSep OctNovDec Jan Feb MarAprMay JunTotalFY1998257.7 230.0 180.7 151.5 133.8 138.2 136.0121.3 133.9 135.6 184.7 195.6 1998.9FY1999247.9 219.7 180.9 140.3 120.0 122.9 148.3146.4 154.0 156.1 187.4 277.6 2101.5FY2000247.9 219.7 180.9 140.3 120.0 122.9 135.4125.5 135.7 130.1 142.9 177.7 1879.0FY2001211.6 184.3 170.5 147.6 141.4 145.1 148.7138.4 144.3 136.0 169.9 166.0 1903.8FY2002169.4 203.1 187.5 155.2 131.9 127.7 134.4119.5 124.4 130.2 161.6 169.6 1814.5FY2003229.6 255.8 195.0 159.4 130.1 147.2 153.4141.0 137.7 139.4 156.1 161.0 2005.7FY2004222.5 179.0 164.8 140.1 117.4 126.9 126.6120.4 118.7 123.1 152.0 185.7 1777.1FY2005191.9 181.2 168.9 138.7 116.0 117.8 116.5107.3 118.0 121.2 136.2 196.2 1710.0FY2006219.9 224.4 196.1 143.3 119.1 121.0 122.1109.3 123.2 129.4 148.6 157.3 1813.9FY2007201.3 203.9 159.5 135.3 109.7 109.0 117.0107.8 115.5 111.7 158.9 208.7 1738.2FY2008216.9 225.2 202.7 141.5 102.1 107.9 111.5103.8 121.3 122.2 149.6 185.2 1789.9FY2009190.0 167.6 162.5 131.0 115.3 125.0 135.4118.3 129.4 130.3 160.6 163.6 1729.0FY2010160.5 189.3 171.5 122.0 106.7 115.4 120.9106.1 116.9 113.3 157.3 181.4 1661.3FY2011241.7 231.1 192.6 139.2 112.5 115.8 117.6108.3 125.6 117.8 142.2 180.1 1824.4FY2012231.1 186.1 154.0 129.2 99.9 104.8 106.7104.3 107.7 123.4 147.9 165.1 1660.4FY2013236.3 239.1 176.8 135.6 118.0 113.6 120.9109.7 124.1 112.8 148.6 179.0 1814.3FY2014227.4 235.8 203.6 163.2 121.9 115.9 123.5104.1 107.5 119.8 151.1 207.9 1881.8FY2015229.1 231.6 215.6 177.7 125.1 126.5 131.5122.8 129.3 154.4 245.5 239.6 2128.8Average FY98-FY15218.5 211.5 181.3 144.0 118.9 122.4 128.1 117.5 126.0 128.2 161.2 188.7 1,846.2 Average FY06-FY15215.4 213.4 183.5 141.8 113.0 115.5 120.7 109.5 120.1 123.5 161.0 186.8 1,804.2 WATER PURCHASED FROM THE MWRA BY MONTH AND FISCAL YEAR: 1998 TO 2015page 3
Water Enterprise Fund - Town of Lexington Budget and Spending History: FY12 to FY2016Direct Costs FY2012 ActualsFY2013 ActualsFY2014 ActualsFY2015 Final BudgetFY2015 ActualsFY2016 TM BudgetFY16 Revised Budget$ Change % ChangeCompensation 603,565$ 592,228$ 626,677$ 674,611$ 593,594$ 695,679$ 695,679$ 21,068$ 3.1%ExpensesContractual Services 172,569$ 152,244$ 123,014$ 188,900$ 157,591$ 188,900$ 188,900$ -$ 0.0%Utilities 4,892$ 6,848$ 8,218$ 5,500$ 13,025$ 5,500$ 5,500$ -$ 0.0%Supplies 190,453$ 160,256$ 251,794$ 161,000$ 188,934$ 161,000$ 161,000$ -$ 0.0%Small Equipment 19,350$ 13,916$ 11,990$ 34,000$ 26,184$ 34,000$ 34,000$ -$ 0.0%Debt 1,233,364$ 1,249,336$ 1,258,628$ 1,379,622$ 1,378,688$ 1,415,508$ 1,344,114$ (35,508)$ -2.6%MWRA 5,049,999$ 5,145,927$ 5,555,065$ 6,037,972$ 6,035,893$ 6,695,144$ 6,695,144$ 657,172$ 10.9%Total Direct Costs 7,274,192$ 7,320,756$ 7,835,386$ 8,481,605$ 8,393,909$ 9,195,730$ 9,124,337$ 642,732$ 7.6%Indirect Costs Equipment Maintenance and Depreciation 46,181$ 28,708$ 28,708$ 51,147$ 51,147$ 22,439$ 78.2%Auto Insurance 8,984$ 9,729$ 9,729$ 10,331$ 10,331$ 602$ 6.2%Indirect Departmental Expenses 272,807$ 266,555$ 266,555$ 337,981$ 337,981$ 71,427$ 26.8%Workers' Compensation 14,510$ 15,042$ 15,042$ 17,012$ 17,012$ 1,970$ 13.1%Employee Benefits 190,435$ 173,851$ 173,851$ 189,056$ 189,056$ 15,205$ 8.7%Retirement Costs 96,826$ 100,557$ 100,557$ 104,529$ 104,529$ 3,973$ 4.0%Indirect Town Expenses 175,317$ 179,198$ 179,198$ 184,157$ 184,157$ 4,959$ 2.8%General Insurance 13,454$ 15,636$ 15,636$ 4,401$ 4,401$ (11,235)$ -71.9%Total Indirect Costs 704,624$ 665,848$ 818,514$ 789,275$ 789,275$ 898,614$ 898,614$ 109,339$ 13.9%Water Enterprise Total Expenses 7,978,816$ 7,986,604$ 8,653,900$ 9,270,880$ 9,183,184$ 10,094,344$ 10,022,950$ 752,070$ 8.1% FY 2015 Final Budget -FY 2016 Rev. BudgetIndirect costs by category are intentionally not shown. Categories of indirect costs shown are from the updated indirect cost analysis conducted in the winter of 2012 for the FY14 budget and represent a re-definition of indirect cost categories from those used in prior fiscal years. Consequently, only the bottom lines are comparable across fiscal years.FY2016 Rate Settingpage 49/4/2015 8:50 AM
Wastewater Enterprise Fund - Town of Lexington
FY 2015 Budget - Operating Results
Revenues
FY 2015 Budget FY 2015 Actuals Difference
User Charges 9,139,297$ 9,313,395$ 174,098$
Non-Rate Revenue
Penalties & Interest 50,000$ 64,812$ 14,812$
Betterments 5,000$ 6,033$ 1,033$
Tax Liens/Titles Redeemed 250,000$ 6,613$ (243,387)$
2013 Sewer Lien 6,653$ 6,653$
2014 Sewer Lien 49,462$ 49,462$
2015 Sewer Lien 375,830$ 375,830$
Previous Connection Charges -$ 1,802$ 1,802$
Misc. Dept Revenue 10,000$ 13,377$ 3,377$
Premiums on Bonds/Notes Issued -$ 32,047$ 32,047$
Interest Earned 7,000$ 6,241$ (759)$
sub-total Non-Rate Revenue 322,000$ 562,871$ 240,871$
Retained Earnings 50,000$ 50,000$ -$
Sewer Enterprise Total Revenues 9,511,297$ 9,926,266$ 414,970$
Expenses
Direct Costs
Compensation 302,360$ 217,497$ 84,863$
Expenses
Contractual Services 144,900$ 146,556$ (1,656)$
Supplies 67,750$ 38,241$ 29,509$
Utilities 119,500$ 137,161$ (17,661)$
Small Equipment 13,500$ 12,859$ 641$
Debt 1,220,843$ 1,199,243$ 21,600$
MWRA 7,177,414$ 7,177,387$ 27$
Total Direct Costs 9,046,267$ 8,928,944$ 117,323$
Indirect Costs
Equipment Maintenance and Depreciation 25,561$ 25,561$ -$
Auto Insurance 6,486$ 6,486$ -$
Indirect Departmental Expenses 190,505$ 190,505$ -$
Workers' Compensation 6,996$ 6,996$ -$
Employee Benefits 53,540$ 53,540$ -$
Retirement Costs 20,692$ 20,692$ -$
Indirect Town Expenses 146,319$ 146,319$ -$
General Insurance 14,932$ 14,932$ -$
Total Indirect Costs 465,030$ 465,030$ -$
Sewer Enterprise Total Expenses 9,511,297$ 9,393,974$ 117,323$
FY 2015 Surplus/(Deficit) 0$ 532,292$ 532,292$
page 5
Wastewater Enterprise Fund - Town of LexingtonBudget and Spending History: FY12 to FY2016Direct CostsFY2012 Actuals FY2013 Actuals FY2014 ActualsFY2015 Final BudgetFY2015 ActualsFY2016 TM BudgetFY2016 Revised Budget$ Change % ChangeCompensation 201,519$ 203,310$ 174,223$ 302,360$ 217,497$ 296,917$ 296,917$ (5,443)$ -1.8%ExpensesContractual Services 157,724$ 147,825$ 99,058$ 169,900$ 146,556$ 144,900$ 144,900$ (25,000)$ -14.7%Supplies 68,006$ 62,972$ 124,979$ 45,250$ 38,241$ 67,750$ 67,750$ 22,500$ 49.7%Utilities 109,593$ 110,101$ 100,975$ 117,000$ 137,161$ 119,500$ 119,500$ 2,500$ 2.1%Small Equipment-$ 12,121$ 11,385$ 13,500$ 12,859$ 13,500$ 13,500$ -$ 0.0%Debt 1,016,551$ 927,193$ 1,112,818$ 1,220,843$ 1,199,243$ 940,679$ 1,060,456$ (160,387)$ -13.1%MWRA 6,802,875$ 6,954,177$ 7,014,300$ 7,183,735$ 7,177,387$ 7,041,716$ 6,970,176$ (213,559)$ -3.0%Total Direct Costs 8,356,268$ 8,417,699$ 8,637,738$ 9,052,588$ 8,928,944$ 8,624,962$ 8,673,199$ (379,389)$ -4.2%Indirect Costs Equipment Maintenance and Depreciation 33,617$ 25,561$ 25,561$ 40,984$ 40,984$ 15,424$ 45.9%Auto Insurance5,904$ 6,486$ 6,486$ 6,826$ 6,826$ 340$ 5.8%Indirect Departmental Expenses 182,123$ 190,505$ 190,505$ 197,828$ 197,828$ 7,324$ 4.0%Workers' Compensation 6,524$ 6,996$ 6,996$ 7,439$ 7,439$ 442$ 6.8%Employee Benefits52,723$ 53,540$ 53,540$ 42,331$ 42,331$ (11,209)$ -21.3%Retirement Costs16,768$ 20,692$ 20,692$ 20,405$ 20,405$ (288)$ -1.7%Indirect Town Expenses 139,710$ 146,319$ 146,319$ 150,248$ 150,248$ 3,929$ 2.8%General Insurance12,645$ 14,932$ 14,932$ 12,294$ 12,294$ (2,638)$ -20.9%Total Indirect Costs 646,217$ 623,444$ 450,014$ 465,030$ 465,030$ 478,354$ 478,354$ 13,325$ 2.9%Sewer Enterprise Total Expenses 9,002,485$ 9,041,143$ 9,087,753$ 9,517,618$ 9,393,974$ 9,103,316$ 9,151,553$ (366,065)$ -3.8% FY 2015 Final Budget -FY 2016 Rev. BudgetIndirect costs by category are intentionally not shown. Categories of indirect costs shown are from the updated indirect cost analysis conducted in the winter of 2012 for the FY14 budget and represent a re-definition of indirect cost categories from those used in prior fiscal years. Consequently, only the bottom lines are comparable across fiscal years.FY2016 Rate Settingpage 69/4/2015 8:48 AM
FY16 Budget FY15 Budget FY14 Budget FY13 Actual FY12 Actual FY11 Actual FY10 Actual
Water Budget 10,022,950$ 9,268,774$ 8,696,792$ 8,148,142$ FY15 7,708,169$ 7,361,297$
Estimated Non-Rate
Revenue (299,000)$ (289,000)$ (283,000)$ (223,000)$ (265,100)$ (218,680)$ (256,000)$
Use of Retained
Earnings (475,000)$ (500,000)$ (500,000)$ (350,000)$ (650,000)$ (450,000)$ (525,000)$
Net Revenue to be
Raised from Water
Charges
9,248,950$ 8,479,774$ 7,913,792$ 7,575,142$ (915,100)$ 7,039,489$ 6,580,297$
abcdef
FY2015 RATES Block
Block Range
(HCF)
Block as %
of Subtotal
Estimated
Consumption
(HCF)Rate/HCF
residential
/commercial /
industrial
block 1 0-40 67.7% 670,000 $3.45
residential
/commercial /
industrial
block 2 41-80 11.1% 110,000 $5.18
residential
/commercial /
industrial
block 3 80+ 21.2% 210,000 $6.82
Subtotal 990,000
irrigation all @ block 3 rate 254,000 $6.82
municipal flat rate 17,000 $2.42
Hanscom/Linc. Labs flat rate 240,000 $5.08
VA Hospital flat rate 33,000 $6.07
Bedford-water flat rate 580,000 $2.44
Subtotal 1,124,000
Total 2,114,000
Block as %
of Total
Residential
Estimated
Consumption Rate/HCF Revenue
% Rate
Increase
residential
/commercial /
industrial
block 1 0-40 68.7% 674,000 3.71$ 2,503,885$ 7.7%
residential
/commercial /
industrial
block 2 41-80 10.9% 107,000 5.58$ 596,852$ 7.7%
residential
/commercial /
industrial
block 3 80+ 20.4% 200,000 7.35$ 1,470,272$ 7.7%
Subtotal 981,000 4,571,010$
irrigation all @ block 3 rate 265,000 7.35$ 1,948,111$ 7.7%
municipal flat rate 19,000 2.61$ 49,590$ 7.9%
Hanscom/Linc. Labs flat rate 238,000 5.48$ 1,303,537$ 7.7%
VA Hospital flat rate 33,000 6.54$ 215,928$ 7.7%
Bedford-water flat rate 625,000 2.64$ 1,647,563$ 7.9%
Subtotal 1,180,000
Total 2,161,000 9,735,738
Estimated Gross Water Charges 9,735,738$
Collection Rate 95%
Estimated Net Revenue 9,248,951$
revenue target 9,248,950$
difference 0$
RECOMMENDED FY2016 WATER RATES
PROPOSED FY2016 RATES
FY2016 Rate Setting
page 7
9/4/20158:41 AM
FY16 Budget FY15 Budget FY14 Actuals FY13 Actual FY12 Actual FY11 Actual FY10 Actual
Wastewater Budget 9,151,553$ 9,511,297$ 9,225,900$ 9,143,859$ 8,934,624$ 8,333,118$ 8,166,879$
Estimated Non-Rate
Revenue (320,000)$ (322,000)$ (320,300)$ (294,400)$ (362,900)$ (278,000)$ (300,000)$
Use of Retained
Earnings -$ (50,000)$ (100,000)$ (150,000)$ (300,000)$ (400,000)$ (625,000)$
Net Revenue to be
Raised from
Wastewater Charges
8,831,553$ 9,139,297$ 8,805,600$ 8,699,459$ 8,271,724$ 7,655,118$ 7,241,879$
abcded
FY2015 RATES Block
Block Range
(HCF)
Block as % of
Subtotal
Estimated
Consumption
(HCF) Rate/HCF
residential
/commercial /
industrial
block 1 0-40 69.6% 650,000 $7.05
residential
/commercial /
industrial
block 2 41-80 12.0% 108,000 $11.52
residential
/commercial /
industrial
block 3 80+ 18.5% 205,000 $18.31
municipal flat rate 13,000 $2.88
total 976,000
PROPOSED FY2016
RATES Block
Block Range
(HCF)
Block as % of
All Blocks
Estimated
Consumption
(HCF) Rate/HCF Revenue
% Rate
Increase
residential
/commercial /
industrial
block 1 0-40 68.3% 655,000 6.89$ 4,513,071$ -2.3%
residential
/commercial /
industrial
block 2 41-80 10.8% 104,000 11.25$ 1,170,071$ -2.3%
residential
/commercial /
industrial
block 3 80+ 20.9% 200,000 17.88$ 3,576,990$ -2.3%
municipal flat rate 12,000 3.02$ 36,240$ 4.9%
total 971,000 9,296,372$
estimated gross revenue 9,296,372$
collection rate 95%
estimated net revenue 8,831,553$
revenue target 8,831,553$
difference of estimated net revenue to revenue target 0$
RECOMMENDED FY2016 WASTEWATER RATES
FY2016 Rate Setting
page 8
9/4/20158:43 AM
FY15 Cost
FY16
Proposed
Water 172.43$ 185.75$
Wastewater 352.71$ 344.51$
Combined 525.14$ 530.26$
$ Change from
FY15 5.12$
% Change from
FY15 1%
FY15 Cost
FY16
Proposed
Water 483.01$ 520.32$
Wastewater 1,025.07$ 1,001.24$
Combined 1,508.08$ 1,521.56$
$ Change from
FY15 13.48$
% Change from
FY15 0.9%
FY15 Cost
FY16
Proposed
Water 1,236.08$ 1,331.55$
Wastewater 2,950.66$ 2,882.07$
Combined 4,186.73$ 4,213.62$
$ Change from
FY15 26.88$
% Change from
FY15 0.6%
FY15 Cost
FY16
Proposed
Water 6,422.52$ 6,918.59$
Wastewater 16,866.71$ 16,474.63$
Combined 23,289.23$ 23,393.21$
$ Change from
FY15 103.98$
% Change from
FY15 0.4%
COMBINED WATER/WASTEWATER BILL - LOW,
AVERAGE AND HIGH USERS: IMPACT OF PROPOSED
RATE CHANGES
1000 HCF
50 HCF (low user)
120 HCF (average user)
240 HCF (high user)
FY2016 Rate Setting
page 9
9/4/20158:45 AM
Certified as of 6/30/2006Certified as of 6/30/2007Certified as of 6/30/2008Certified as of 6/30/2009Certified as of 6/30/2010Certified as of 6/30/2011Certified as of 6/30/2012Certified as of 6/30/2013Certified as of 6/30/2014Projected Certification as of 6/30/2015 WATER 2,090,334$ 2,496,655$ 2,537,249$ 2,113,729$ 1,622,052$ 1,952,253$ 2,066,566$ 2,324,007$ 2,119,458$ 2,000,000$ WASTEWATER 447,441$ 2,137,540$ 2,763,179$ 1,831,967$ 1,525,612$ 1,168,190$ 1,310,716$ 1,990,816$ 2,072,941$ 1,160,000$ RETAINED EARNINGS HISTORYFY16 Rate Settingpage 109/4/20158:52 AM
Page 11
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Continued Grant of Location - Verizon/Eversource - Philip Road (5 min.)
PRESENTER:
P enny Kane, Verizo n
ITEM
NUMBER:
I.2
SUMMARY:
This hearing was c o ntinued from the August 31 S electmen Meeting. The info rmation below is fro m the hearing
o n Augus t 31. Mr. Livs ey, Town Engineer has s c hed uled a meeting with the abutter, Mr. Shap iro , and the
Verizon Repres entative fo r Tues d ay, Sep temb er 8. I will s end you further informatio n when I rec eive it.
Joint p etitio n for ins tallation of a new p o le on Philip R o ad .
Install one JO p o le, P.325-5 on the northwes terly s id e of Philip Ro ad at a point ap p ro ximately 550' northerly
fro m the center of Roc kville Ave.
Engineering rec ommend s approval the p etition of Verizon/Eversource to ins tall a new p o le, P.325-5, o n Philip
Road.
SUGGESTED MOTION:
Mo tion to app ro ve the petition of Verizon New England, Inc. and Eversourc e Energy to lo cate poles, wires ,
cables and fixtures , inc luding the necessary anc hors , guys and other s uc h s us taining and protecting fixtures to
b e owned and us ed in c o mmo n b y your petitio ns , along and across Philip Road to install one (1) JO pole,
P.325-5, o n the northwes terly side o f Philip R o ad at a p o int approximately 550 feet northerly from the
centerline of R o c kville Avenue.
FOLLOW-UP:
A Street Op ening P ermit is required prior to exc avation. Since this petition ap p ears to be in o rd er, we
recommend that ap p ro val b e granted .
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 9:20 AM
ATTACHMENTS:
Des crip tion Type
Verizon/Evers ource petition for a pole on Phillip Rd Cover Memo
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Approve Elks Request for an Assistant Manager
PRESENTER:
Jo e Pato
ITEM
NUMBER:
I.3
SUMMARY:
The Elks will b e s ub mitting paperwo rk s hortly to the Selec tmen and the Alc oho lic Beverages Co ntro l
Commission (ABC C) fo r approval of a new liquo r manager. Since that will take a few months , it was
s uggested that they ap p o int an As s is tant Manager who wo uld b e respons ible fo r liquo r service. You are being
as ked to ap point Step hanie P icardi as the As s is tant Manager for the Lexington Lo d ge o f Elks. She has up to
d ate TIPS training and a CORI c hec k s howed no informatio n.
I have req uested Ms . Pic ard i, o r ano ther repres entative, attend your meeting in c as e you have any ques tions .
SUGGESTED MOTION:
Mo tion to app ro ve Step hanie P icardi as an As s is tant Manager fo r the Lexingto n Lodge of Elks .
FOLLOW-UP:
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 9:25 AM
ATTACHMENTS:
Des crip tion Type
Proposed As s is tant Manager Information Backup Material
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Reserve Fund Transfer Request-Cary Memorial Building Renovation (10 min.)
PRESENTER:
Carl F. Valente, T o wn Manager; P at
Goddard, Direc tor o f F acilities
ITEM
NUMBER:
I.4
SUMMARY:
This req uest is regard ing the need fo r sup p lemental fund ing for the Cary Memorial Hall Reno vatio n Projec t.
There have been a number o f unknown conditio ns id entified during this p rojec t, many related to the removal o f
hazardous materials o r were safety related. While no t p art o f the o riginal pro jec t s c o p e of work, it mad e s ens e
to authorize a Change Order and have the projec t contrac tor ad d res s these problem areas . The projec t
contingency b udget, ho wever, has now been nearly exhaus ted and there is s ome concern that if there are future
unid entified rep airs need ed , there will no t b e fund s necessary for this purpos e.
SUGGESTED MOTION:
Mo ve to ap prove and rec o mmend to the Appropriatio n Committee a Res erve F und Trans fer of $150,000 fo r
the Cary Memorial Hall Reno vatio n Projec t.
FOLLOW-UP:
Staff will pres ent this req uest to the Appropriation C o mmittee at their meeting on S ep tember 10.
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 9:35 P M
ATTACHMENTS:
Des crip tion Type
Request for Trans fer from Res erve Fund Backup Material
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Discussion of School District Building Projects Plan (5 min.)
PRESENTER:
Jo e Pato
ITEM
NUMBER:
I.5
SUMMARY:
The b o ard will review any changes in status regarding the district sc hool build ing projec ts.
SUGGESTED MOTION:
FOLLOW-UP:
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 9:45 AM
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Approve Bench Location (5 min.)
PRESENTER:
Jo e Pato
ITEM
NUMBER:
I.6
SUMMARY:
The Selec tmen's Office received a req uest as king if a b enc h could be lo cated near the Minuteman Bikeway and
Wo b urn Street. Mr. Filadoro, S uperintend ent o f P ublic Grounds reviewed the area and s uggested the loc ation
s hown o n the attac hed drawing.
SUGGESTED MOTION:
Mo tion to app ro ve the proposed lo catio n for a bench to be lo cated on the Minuteman Bikeway b acked up to
10 Woburn S treet near the the Woburn Street inters ec tion.
FOLLOW-UP:
Selec tmen's O ffic e
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 9:50 AM
ATTACHMENTS:
Des crip tion Type
Proposed Bench Location Backup Material
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Selectmen Committee Appointment - Fund for Lexington (5 min.)
PRESENTER:
Jo e Pato
ITEM
NUMBER:
I.7
SUMMARY:
The Fund for Lexington Board needs a c lergy memb er to replac e Reverend Colletti, who retired. Rev. Dr.
Paul Shup e has agreed to b ecome a member.
SUGGESTED MOTION:
Mo tion to app o int R ev. Dr. Paul S hup e to the F und for Lexington Board as the C lergy Rep res entative.
FOLLOW-UP:
Selec tmen's O ffic e
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 9:55 AM
ATTACHMENTS:
Des crip tion Type
Fund for Lexington Charge Backup Material
29
FUND FOR LEXINGTON
Members: 6 members (2 Selectmen, 1 Clergy, 2 Service
Organization Representatives, and 1 Trustee)
Appointed By: Board of Selectmen
Length of Term: open
Appointments Made: As needed
Meeting Times: Quarterly, or as needed
Description - This Fund is devoted to three purposes: Beautification, Human
Services (primarily to include relief for those who are financially threatened by
property tax payments, or who face other financial problems), and Community
Betterment, an all-purpose account. The Board is responsible for soliciting
donations. In addition they review requests and disperse funds in accordance with
the criteria of the Fund.
Criteria for Membership - The Board of The Fund for Lexington (the Board)
shall consist of two members of the Board of Selectmen, one of whom shall be
Chair, the chair or his designee of the Trustees of Public Trusts, one resident
Clergy, and the presidents or their designees of two service or fraternal
organizations which are active within the Town. The identity of these
organizations is to be determined annually by the Board of Selectmen.
Ref. - Established by Selectmen October 16, 1995.
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Discuss Possible Special Town Meeting and Warrant Articles (10 min.)
PRESENTER:
Jo e Pato
ITEM
NUMBER:
I.8
SUMMARY:
You will disc us s a p o s s ib le S p ecial To wn Meeting in Novemb er and warrant artic les that may be inc luded .
SUGGESTED MOTION:
FOLLOW-UP:
Selec tmen's O ffic e
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 10:00 AM
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Approve Lowering the Battle Green Flag on September 11
PRESENTER:
Jo e Pato
ITEM
NUMBER:
C.1
SUMMARY:
The Battle Green flag has annually been lowered o n Septemb er 11 fo r the annivers ary o f 9/11.
SUGGESTED MOTION:
Mo tion to lower the Battle Green flag o n Frid ay, S ep tember 11, 2015, the annivers ary of 9/11, in memo ry of all'
tho s e who los t their lives.
FOLLOW-UP:
Selec tmen's O ffic e
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 10:10 AM
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Executive Session-Exemption 2 (Collective Bargaining) and Exemption 6 (Purchase of
Property)
PRESENTER:
Carl F. Valente, T o wn Manager
ITEM
NUMBER:
E.1
SUMMARY:
Item 1: Update o n c ollec tive bargaining with munic ip al c usto d ians.
Item 2: Update o n p o tential s ite fo r main Fire s tatio n.
SUGGESTED MOTION:
None
FOLLOW-UP:
NA
DATE AND APPROXIMATE TIME ON AGENDA:
9/9/2015 10:15 AM
ATTACHMENTS:
Des crip tion Type
Fire Station s ite analys is fee propos al Cover Memo