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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
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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.
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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
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