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HomeMy WebLinkAbout2014-09-18-AC-min 9/18/14Minutes Minutes Town of Lexington Appropriation Committee September 18,2014 : Selectmen’s Meeting Room,Town OfficeBuilding,7:30p.m. : Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Mollie Garberg;Alan Levine;Beth Masterman;Eric Michelson;Andrei Radulescu-Banu; Rob Addelson (non-voting, ex officio) Members Absent:Susan McLeish; Richard Neumeier Other attendees: none The meetingwas calledto order at 7:35p.m. Minutes: 1.A motion was made and seconded to approve the Committee’s September 4, 2014 minutes forboth the open and executive sessions. The motion passed. VOTE: 6-0 Liaison Reports: 2. Visitor’s Center:Mr. Addelson reported that, next Monday,staff will be presenting the Board of Selectmen (BoS) with a proposal for the Town to assume responsibility foroperatingthe Visitors’ Centerstarting as soon as possible.There are two parts of the proposedprocess that require action on the partsof the BoS and this Committee: The BoS will be asked to recommend a reserve fund transfer of $35,000 to $40,000 to go into the Economic Development Department’s budget. AssumingBoS support,approval for the transfer will be asked ofthis Committee. These funds will be used to start the Town’s operation of the facility, i.e., to pay forimmediate expenditures, primarily staffing and the purchase of gift shop inventory. Gift shop revenue will be used to cover operating costs going forward. The BoS will be asked to approve the creation of a revolving fund for the Visitor’s Center. Assuming BoSapproval, this Committee will also be asked for such approval. Revenues from the gift shop will be paid into the revolving fund, and the fundwill have a spending limit of $100,000.Gift shop sales reached $200,000in 2005,thendeclined to $137,000 in 2013. These steps are needed to keep the gift shop open until the end of fiscal year (FY) 2015.Going forward, fundingforthe Visitor’s Center, as needed, and/or continuation of the revolving fund will be brought tothe Annual Town Meeting for re-approval each year. Mr. Addelson explained that the goal is to preserve the integrity of the Visitor’s Center and the important roleit plays in the Town.The extenuating circumstances associated with this issue warrant the Town taking these actions at this time. In response to questions, he said that it has not been determined whether any funds being requested from the Reserve Fundwill be reimbursed or whether the Town will seek another operator for the Visitor’s Center in the near future. It was 1 9/18/14Minutes noted that the Town owns the Visitor’s Center and the Chamber of Commerce has beenoperating the Visitor’s Center, including thegift shop,for the Town. Ad hoc School Master Planning Committee (AhSMPC):Mr. Levineand Mr.Radulescu-Banu reported on last Tuesday’sSchool Committee meeting, during which the Superintendent’s Enrollment Working Groupexplained thatLexington’s schools can expect a675 (+/-100) increase inenrollment over the next five years. This estimate is based on a linear projectionwith some “tweaking,”rather than on the more commonly-used Cohort Survival Method,because Lexington’s experience shows that the CohortSurvival Method is consistently underestimatingstudent increases.A straight-line approach is the only available alternative. At yesterday’s Clarke Middle School meeting with parents, Superintendent Ashsaid he did not recommend adding modular classroomsat the school, but parentsat the meeting were not convinced that this was an appropriate position considering the space needs. Another meeting is being scheduled, and the dialogue is continuing. A fall 2014 special town meeting will be required if the schools are to addany modular units. Water/Sewer Rates: 3.Using a handout, Mr. Bartenstein reviewed the Town’s process for calculatingthe water/sewer rates each yearand certain issues pertinent to the pending rate-making proceedings for FY2015. Heexplainedthatthe Town has three rate tiers: Tier 1 for the first 40 one hundred cubic feet (hcf)used; Tier 2 for the next 40 hcf; and tier 3 for usage above 80 hcf. There is a graduated water and sewer ratefor each tier. If a property has a separate meter for irrigation only, the Town charges the Tier 3 water ratefor all of the irrigationwater used and doesn’tapply a sewer charge. Each spring, Town Meeting approvesa budget for the Waterand Sewer Enterprise Fundsfor the coming fiscal year. In the fall of that fiscal year,the rates that need to be charged to meet the budget are determinedbased on projected usage.Over the years, there have been upward and downward trends in water and sewer usage for a variety of reasons. Water conservation efforts implemented in the 1980s resulted in dramatic reductions in water use statewide, and there is now a perennialwater surplusat the MWRA’s Quabbin Reservoir storage facility.Sewer usage has increased because the number of septic systems in Lexington has decreased as Title 5 has required more stringent standards and morehouseshave been connected with the Townsewers.In recent years, Lexington has experiencedan increase in the number of irrigation water meters. Projecting irrigation water useis complicated becauseweather patterns can impact that use. Since 2009,significant retained earnings (surpluses)in the Enterprise Fund haveresultedfrom usage in excess of projections, particularly at the Tier 3 level. The greatest contributorto this surplus has beenShire’s heavy use of water for its pharmaceutical processes.It was noted that retained earnings in excess of the amount prudent to be held in reserve can be used as a subsidy to decrease the water/sewer rates or can be used as cash capital to fund capital projects. There was general agreement that improving water and sewer use projections wouldbe desirableand would allow a more accurate projection of anticipated revenues. Although it is not possible to know all the summer irrigation water usage levels before the fallbillings are issued each fiscal year, Mr. Bartenstein believes the use ofsampledata, which isavailable, can inform the process and improve projections.Mr. Addelson reported thatthe FY2015 rates which will be recommended at the BoS meeting next week will result in a combined 2.1% increase for the averageuser. 2 9/18/14Minutes Next Meeting: 4.To avoid the Jewish holidays next week, the next meeting will be Tuesday evening, September 23, 2014. Adjournment: 5.A motion was made and seconded to adjourn the meeting at 9:20 p.m. The motion passed. VOTE: 7-0 The documentsused at the meeting arelistedin the Exhibit below. Respectfully submitted, Sara Arnold Recording Secretary ApprovedSeptember 10, 2015 Exhibit 1.Agenda,posted by Glenn Parker, Chair 2.FY2015 Water/Sewer Rate-Setting Issues, prepared by Mr. Bartenstein, September 18, 2014 3.Water Usage Trends Graphs, prepared by Mr. Parker, September 18, 2014 3