HomeMy WebLinkAbout2015-10-08 Summit-1-Packet-releasedBudget Collaboration-Financial Summit 1
Board of Selectmen, School Committee, Appropriation Committee,
Capital Expenditures Committee
October 8, 2015
7:00 PM
AGENDA
1.P ro cedure for Meeting Minutes
2.F Y2017 Budget/Financ ial Dis c us s ion
Overview - Lexington's Financ ial Co nditio n (Carl)
F Y2017-2019 Revenue and Exp enditure Forec as t (R o b )
F Y2017-2019 Exp end iture P ro jectio n fo r Scho o l O p erating Budget (Mary)
F Y2017 Budget Calendar
3.Key Polic y Is s ues Related to FY2017 Bud get
4.R eview S p ecial To wn Meeting Warrant
S cho o l F acilities Plan Up d ate (Pat Goddard)
P ro p o s ed Town Manager's T as k Forc e for Sc hool P ro jects F inancing Plan
5.Es tablish Date: Summit 2
6.C o nfirm Spec ial Town Meeting Warrant Vote
7.Annual T o wn Meeting Lo cation Dis cus s io n
8.S electmen Cons ent Items
One-Day Liq uor Lic ens e - Private Birthd ay Party at Dep o t Building
Us e of the Battle Green - Lexington Minutemen
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:
Procedure for Meeting Minutes
PRESENTER:
Jo e Pato
ITEM
NUMBER:
1
SUMMARY:
The p ro cedure fo r S ummit meeting minutes will b e reviewed. The Selec tmen's Clerk will prepare the Summit
minutes and s hare with the Appropriatio n Co mmittee, Capital Expend itures Committee and Sc hool Committee
Chairs for review p rio r to having the Summit minutes ap p ro ved b y the Selec tmen.
SUGGESTED MOTION:
FOLLOW-UP:
Selec tmen's O ffic e
DATE AND APPROXIMATE TIME ON AGENDA:
10/8/2015
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
FY2017 Budget/Financial Discussion
PRESENTER:
Carl Valente, R o b Ad d els o n and Mary
Czajkows ki
ITEM
NUMBER:
2
SUMMARY:
See attached p res entation for d is cus s io n o f:
Overview - Lexington's F inancial Cond itio n (Carl)
FY2017-2019 Revenue and Expend iture Forec as t (Rob)
FY2017-2019 Exp enditure Projec tion for S c ho o l Operating Bud get (Mary)
FY2017 Budget Calend ar
SUGGESTED MOTION:
FOLLOW-UP:
DATE AND APPROXIMATE TIME ON AGENDA:
10/8/2015
ATTACHMENTS:
Des crip tion Type
Financial Summit 1 Pres entation Pres entation
School Superintendent's Pres entation Pres entation
Town of Lexington
Financial Summit I
Indicator Analysis:
Fiscal Years 2000-2015
Revenue and Expenditure Projections:
Fiscal Years 2017-2019
October 8, 2015
Table of ContentsTown of Lexington
Summit I –October 8th 2015
Introduction 1
Indicator Analysis
Indicator Summary 2
Dashboard 3
I.1 Revenues 10
I.2 State Aid 11
I.3 Revenues Related to Economic Growth 12
I.4 Property Tax Revenues 13
I.5 Uncollected Property Taxes 14
I.6 Expenditures per Department 15
I.7 Personnel Costs 16
I.8 Employee Benefits 17
I.9 Participants in Lexington Retirement System 18
I.10 Pension Liability 19
I.11 Debt Service 20
I.11(a)Projected Exempt Debt Service 21
I.12 Long-Term Debt 22
I.13 Reserves and Fund Balance 23
I.14 Population 24
Revenue and Expenditure Projections
Executive Summary 25
Revenue/Expenditure Projection- FY2017-FY2019 26
FY 2017 Policy Issues 30
Appendices
A Chapter 70 Aid 31
B Pupils as a Percentage of Population 32
C Other Post Employment Benefits (OPEB)33
D Other Reserves & Continuing Balance Accounts 34
E Average Residential Tax Bill 35
F Comparative Pension Liability Funding 36
G Revenue/Expenditure History 39
H Calendar & Budget Process 40
IntroductionTown of Lexington
Summit I –October 8th 2015
1
This packet of information includes:
a) An evaluation of the fiscal health of the Town of Lexington, presented through a series of indicators and, where
appropriate, comparative benchmarks.
b) A 3-year Revenue and Expenditure Projection.
c) Key policy issues facing the Town in FY2017.
This material provides an informed snapshot of Lexington’s financial condition to assist policymakers in preparing for the
FY17 Budget Process.
Using a series of recognized metrics from professional organizations, including the International City/County Management
Association (ICMA), the Government Finance Officers’ Association (GFOA), Moody’s Investor’s Service, and data from the
Town of Lexington, Massachusetts Department of Revenue, The Massachusetts Department of Elementary and Secondary
Education, and the U.S. Census Bureau, Town staff have compiled 15 indicators with which to evaluate the Town’s fiscal
health.
Lexington’s financial condition is sound. In particular,
Lexington has positive revenue growth, stable labor co sts as a percentage of total operating costs, adequate pension
funding and adequate reserves.
Lexington’s financial condition is satisfactory in the areas of expenditure growth and revenues related to economic
growth.
Lexington’s Health Insurance spending as a percentage of employee wages has dropped over five percent (from 26.9%
in FY2012 to 21.3% in FY2015), largely as a result of savings that the Town was able to realize due to joining the
Commonwealth’s Group Insurance Commission (GIC).
Some of the challenges the Town is facing include:
The Town’s primary challenge is related to funding critically needed capital projects. Within-levy debt service, exempt
debt service and projected exempt debt service is beginning to place pressure on operating budgets and, for taxpayers,
has placed Lexington fourth from the top of the 14 comparable communities.
An increasing school-aged population is placing growing pressure on the Town’s personnel and benefits costs.
The data in this report, however, suggests that the Town’s financial condition is strong and it is expected that Lexington will
maintain its Aaa credit rating.
Town of Lexington
Financial Summit I
Indicator Analysis:
Fiscal Years 2000-2015
Indicator Summary –FY2013-2015Town of Lexington
Summit I –October 8th 2015
2
F Favorable
F/M Favorable/Marginal
M Marginal
U Unfavorable
Chart Key
Indicator Summary 2012 2013 2014 2015
I.1 Revenues F F F F
I.2 State Aid U U F F
I.3 Revenues Related to Economic Growth F/M F/M F/M F
I.4 Property Tax Revenues F F F F
I.5 Uncollected Property Taxes F F F F
I.6 Expenditures per Department F F F F
I.7 Personnel Costs F F F F
I.8 Employee Benefits M F F F
I.9 Participants in Lexington Retirement System F F F U
I.10 Pension Liability M M M F
I.11 Debt Service F F F F/M
I.11a Projected Exempt Debt Service F M M M
I.12 Long-Term Debt F F F F
I.13 Reserves and Fund Balance F F F F
I.14 Population M M M M
Indicator Dashboard –FY2013-2015Town of Lexington
Summit I –October 8th 2015
Favorable Indicators
Indicator I.5: Uncollected Property TaxesIndicator I.4: Property Tax Revenues
% Change In Net Operating Revenues (constant dollars)
Property Tax Revenues (constant dollars)Uncollected Taxes as % of Net Prop. Tax Levy
3
Indicator I.1: Revenues
3.03%
3.94%
2.52%
0%
1%
2%
3%
4%
5%
2013 2014 2015
$96.0
$98.3
$101.6
$90
$100
$110
2013 2014 2015(millions)0.4%
0.5%
0.4%
0.0%
0.4%
0.8%
2013 2014 2015
8.07%7.63%7.67%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
2013 2014 2015
Indicator Dashboard –FY2013-2015Town of Lexington
Summit I –October 8th 2015
Favorable Indicators
4
Indicator I.7: Personnel Costs
Personnel Costs as % of Operating Expenses
56.8%58.7%58.3%
18.9%17.6%17.8%
10%
20%
30%
40%
50%
60%
2013 2014 2015
Salaries & Wages as % Operating Expenditure
Benefits as % Operating Expenditures
78.3%82.3%83.5%
0%
20%
40%
60%
80%
100%
1/1/2012 1/1/2014 1/1/2015
2.6%
0.9%
4.7%
0%
2%
4%
6%
2013 2014 2015
Indicator Dashboard –FY2013-2015Town of Lexington
Summit I –October 8th 2015
Favorable Indicators
Indicator I.12: Long Term Debt
Long Term Debt as % of Assessed Valuation Long Term Debt Per Capita
5Revised 10/17/2013
1.28%
1.38%
1.25%
0.8%
1.0%
1.2%
1.4%
2013 2014 2015
$3,235
$3,630 $3,594
$2,000
$2,500
$3,000
$3,500
$4,000
2013 2014 2015
Indicator Dashboard –FY2013-2015Town of Lexington
Summit I –October 8th 2015
Favorable Indicators
Reserves as % of Operating Revenue
Indicator I.13: Reserves and Fund Balance
6
2.3%4.5%
5.4%5.2%5.1%
6.4%7.7%
6.2%
11.8%
15.3%15.8%
0%
6%
12%
18%
2013 2014 2015Capital Projects Stabilization Fund as a % of Net Operating Revenue
General Stabilization Fund as a % of Net Operating Revenue
Free Cash as a % of Operating Revenue
Total Reserves as a % of Net Operating Revenue
Dashboard Highlights –FY2013-2015Town of Lexington
Summit I –October 8th 2015
Indicator I.8: Employee Benefits
Medical and Retirement Benefits as % of Wages & Salaries
6a
Indicator I.2: State Aid
State Aid as % of Operating Revenue
24.5%
22.1%21.3%
5.8%5.0%5.0%
0%
10%
20%
30%
40%
2013 2014 2015
Pension Assessment as a percentage of Wages & Salaries
Health Insurance Benefits as a percentage of Wages & Salaries
5.8%
6.0%6.2%
2%
4%
6%
8%
10%
2013 2014 2015
Indicator Dashboard –FY2013-2015Town of Lexington
Summit I –October 8th 2015
Marginal Indicators
7
0
10,000
20,000
30,000
40,000
2013 2014 2015
Under 20 20 - 29 years old 30 - 39 years old 50 - 59 years old
60 - 69 years old 40 - 49 years old 70 - 79 years old 80+
Indicator I.14: Population
5.36%5.36%5.88%
4.0%
4.5%
5.0%
5.5%
6.0%
2013 2014 2015
$887 $934
$1,068
$750
$800
$850
$900
$950
$1,000
$1,050
$1,100
2013 2014 2015
$633
$630 $608
$550
$600
$650
$700
$750
2016 2017 2018 8
Note: Does not reflect any potential increase in exempt debt service resulting from the planned School Department building projects.
Town of Lexington
Summit I –October 8th 2015
9
Unfavorable Indicators
634 663 660
391 409 415
694 725 747
503 520 511
0
500
1,000
1,500
2,000
2,500
2013 2014 2015
Active Participants Number of Retirees
Active Teachers Number of Retired Teachers
Indicator I.9: Participants in the Lexington
Retirement System
4.39%
2.04%2.90%
2.56%
3.03%3.94%
2.52%
0%
2%
4%
6%
8%
10%
12%
2000 2009 2010 2011 2012 2013 2014 2015Percentage (%)Fiscal Year
% Change -Net Operating Revenues (constant dollars)
Indicator I.1: Revenues
Revenue growth is one measure of the Town's ability to maintain existing
service levels. Lexington has witnessed some fluctuations in revenues in
constant dollars during the first half of this decade; despite this, growth has, for
the most part, been positive. The slowdown in FY2012 was indicative of the
slump in the national economy. This is also attributable to a decrease in State
Aid (Indicator 2) as well as decreasing Revenues Related to Economic Growth
(Indicator 3). Nevertheless Property Tax revenue (Indicator 4) remains stable
despite the post-recession economic environment, and the trend overall
remains steady and favorable.
Town of Lexington
Summit I –October 8th 2015 A decrease in net operating revenues (constant
dollars) is considered a warning indicator.
Lexington Trend
Uncertain
Unfavorable
Marginal
Favorable
10
Fiscal Year 2000*20091 2010 2011 2012 2013 2014 2 2015
Gross operating revenue/transfers 81,597,556$ 144,131,700$ 146,116,341$ 152,465,461$ 160,271,333$ 168,234,519$ 177,271,556$ 184,930,094$
Less: Exempt Debt Service 120,000$ 5,632,643$ 5,746,385$ 5,753,550$ 5,721,834$ 6,599,081$ 6,927,654$ 7,423,332$
Net Operating Revenues 81,477,556$ 138,499,057$ 140,369,956$ 146,711,911$ 154,549,499$ 161,635,438$ 170,343,902$ 177,506,762$
CPI-U, prior calendar year 176.0 235.4 233.8 237.4 243.9 247.6 251.0 255.1
CPI-U, adjustment for constant dollars 100%74.8%75.3%74.1%72.2%71.1%70.1%69.0%Net Operating Revenues (constant
dollars)81,477,556$ 103,563,896$ 105,677,661$ 108,745,973$ 111,532,722$ 114,911,196$ 119,440,919$ 122,454,444$
Percent Change from prior year (net)-4.39%2.04%2.90%2.56%3.03%3.94%2.52%
1Gross Operating Revenue includes $799,539 in federal stimulus funds used to offset the fourth quarter cut in Chapter 70 aid.
*Denotes Fiscal Year where Proposition 2 1/2 Override was approved by voters.
2 Excluded Debt Service for FY14 and FY15 is net of appropriation of $1.6 million and $950,000,respectively, from Capital Projects Stabilization Fund to mitigate debt service
increases attributable to the Estabrook and Bridge/Bowman renovation projects.
Indicator I.2: State Aid
While the Town does not rely significantly on State Aid, any dependence on such
aid may be difficult to manage when there is a reduction in this funding. In order to
protect itself in this situation, the Town has a contingency plan for reductions in
State Aid. The Board of Selectmen adopted the recommendation of the 2006 Ad
Hoc Financial Policy Committee to create reserves capable of offsetting cyclical
downturns in state aid and local receipts.
On a constant dollar basis, State Aid has steadily increased from 2004 -2009,
before decreasing in FY2010, FY2011, and again in FY2012 as a result of the
economic downturn. However, it has increased substantially in FY13, FY14 and
FY15.
Town of Lexington
Summit I –October 8th 2015
Reduced State Aid as a percentage of operating revenues
is considered a warning indicator, particularly if the Town
does not have adequate reserves to offset reductions.
1Net Operating Revenue and Cherry Sheet Revenue include $799,539 in federal stimulus funds used to offset the FY 09 fourth qu arter cut in Chapter 70 aid.
11
Lexington Trend
Uncertain
Favorable
Marginal
Unfavorable
8.2%
6.9%6.4%5.8%5.4%5.8%6.0%6.2%
2%
4%
6%
8%
10%
2000 2009 2010 2011 2012 2013 2014 2015Percentage (%)Fiscal Year
State Aid as % Of Operating Revenue
Fiscal Year 2000 20091 2010 2011 2012 2013 2014 2015
Cherry Sheet Revenues (Less Offset Items)7,553,282$ 9,589,026$ 8,962,015$ 8,454,991$ 8,341,106$ 9,334,513$ 10,144,659$ 11,081,189$
Less: School Building Reimbursements 863,984$ -$ -$ -$ -$ -$ -$ -$
Net State Aid Revenues 6,689,298$ 9,589,026$ $8,962,015 $8,454,991 $8,341,106 $9,334,513 $10,144,659 $11,081,189
Net Operating Revenues 81,477,556$ 138,499,057$ 140,369,956$ 146,711,911$ 154,549,499$ 161,635,438$ 170,343,902$ 177,506,762$
State Aid as a % of operating revenues 8.2%6.9%6.4%5.8%5.4%5.8%6.0%6.2%
CPI-U, prior CY 176.0 235.4 233.8 237.4 243.9 247.6 251.0 255.1
CPI-U, adjustment for constant dollars 100%74.8%75.3%74.1%72.2%71.1%70.1%69.0%
Net State Aid Revenues (constant dollars)6,689,298$ 7,170,279$ 6,747,062$ 6,267,018$ 6,019,471$ 6,636,169$ 7,113,183$ 7,644,446$
Percent change from prior year
(constant dollars)-2.9%-5.9%-7.1%-3.9%10.2%7.2%7.5%
7.94%8.22%
7.49%
8.24%
7.63%
8.07%
7.63%7.67%
5.0%
6.0%
7.0%
8.0%
9.0%
2000 2009 2010 2011 2012 2013 2014 2015Percentage (%)Fiscal Year
Economic Growth Revenues as a % of Operating Revenues
Indicator I.3: Revenues Related to Economic Growth
Economic growth revenues are responsive to changes in the economy. A balance between
growth and other (non-economic growth) revenues mitigates the effects of economic growth
or decline. During a recession, a high percentage of non-economic growth revenue is an
advantage. During a slowing economy, the Town should maintain sufficient reserves to
protect against slowing revenue growth. A decrease in building permit fees may also be a
leading indicator of smaller future increases in the tax levy. The large increase in FY2010
building-related fees is partially a result of large one-time permits, including Shire HGT
($392,761) and Cubist ($216,000).
Town of Lexington
Summit I –October 8th 2015 Decreasing economic growth revenues, as a percentage of net
operating revenues, is considered a warning indicator.
12
1Net Operating Revenue includes $799,539 in federal stimulus funds used to offset the FY 09 fourth quarter cut in Chapter 70 aid.
Fiscal Year 2000 20091 2010 2011 2012 2013 2014 2015
Net operating revenues (constant dollars)81,477,556$ $103,563,896 $105,677,661 $108,745,973 $111,532,722 $114,911,196 $119,440,919 $122,454,444
Building-Related Fees & Permits 853,523$ $1,073,306 $1,777,132 $1,481,549 $1,233,827 $1,430,124 $1,403,956 $1,556,881
Motor Vehicle Excise (MVE)3,642,106$ $4,161,316 $3,664,628 $4,052,006 $3,924,928 $4,300,549 $4,695,332 $4,941,045
Levy Growth from New Residential Construction 353,976$ $1,526,313 $1,206,197 $1,112,487 $1,222,142 $1,400,099 $1,451,904 $1,686,061
Levy Growth from New Industrial/Commerical Growth 897,607$ $533,896 $206,414 $1,208,359 $960,174 $1,297,354 $635,052 $408,312
Levy Growth from Personal Property 719,000$ $1,216,440 $1,058,669 $1,105,704 $1,164,220 $841,492 $930,379 $802,610
Total: Economic Growth Revenues 6,466,212$ $8,511,271 $7,913,040 $8,960,105 $8,505,291 $9,269,618 $9,116,623 $9,394,909
CPI-U, prior calendar year 176.0 235.4 233.8 237.4 243.9 247.6 251.0 255.1
CPI-U, adjustment for constant dollars 100%74.8%75.3%74.1%72.2%71.1%70.1%69.0%
Revenues related to economic growth
(constant dollars)6,466,212$ 6,364,378$ 5,957,340$ 6,641,419$ 6,137,958$ 6,590,033$ 6,392,350$ 6,481,152$
Economic Growth Revenues as a % of Operating
Revenues 7.94%8.22%7.49%8.24%7.63%8.07%7.63%7.67%
Lexington Trend
Uncertain
Favorable
Marginal
Unfavorable
Notes:
Building Related Fees & Permits inclusive of all Building, Wiring, Gas & Plumbing permits, FY 2000-2015.
$61.14
$82.78
$87.27 $90.58 $92.82 $95.97 $98.33
$101.59
$50
$60
$70
$80
$90
$100
$110
2000*2009 2010 2011 2012 2013 2014 2015Property Tax Revenues(millions)Fiscal Year
Trend in Property Tax Revenues (in Constant Dollars)
Indicator I.4: Property Tax RevenuesTown of Lexington
Summit I –October 8th 2015 A decline in property tax revenues (constant
dollars) is considered a warning indicator.
Lexington Trend
Uncertain
Unfavorable
Marginal
Favorable
Property tax revenues are analyzed separately because they are the Town's
primary revenue source for both operating and capital spending. Increases due
to operating overrides should be noted for their impact on taxpayers' ability to
pay. On a constant dollar basis, Lexington has seen consistent growth in this
area since 2000. This growth continues favorably into Fiscal 2015.
13
Fiscal Year 2000*2009 2010 2011 2012 2013 2014 2015
Property Tax Levy and CPA Surcharge 61,263,838$ 119,093,124$ 124,695,369$ 131,108,723$ 137,644,548$ 145,063,863$ 152,461,138$ 159,542,871$
Less: debt exclusions 120,000$ 5,632,643$ 5,746,385$ 5,753,550$ 5,721,834$ 6,599,081$ 8,527,654$ 8,373,332$
Less: Comm. Pres. Act surcharge N/A 2,754,960$ 3,027,909$ 3,153,000$ 3,307,000$ 3,478,000$ 3,691,000$ 3,907,000$
Net Property Tax Revenues 61,143,838$ 110,705,521$ 115,921,075$ 122,202,173$ 128,615,714$ 134,986,782$ 140,242,484$ 147,262,539$
CPI-U, 2000 base year 176.0 235.4 233.8 237.4 243.9 247.6 251.0 255.1
CPI-U, adjustment for constant dollars 100%74.8%75.3%74.1%72.2%71.1%70.1%69.0%
Property Tax Revenues (constant dollars) $ 61,143,838 $ 82,781,033 $ 87,271,297 $ 90,578,837 $ 92,817,258 $ 95,965,915 $ 98,334,551 $ 101,590,228
Percent increase over prior year (constant -2.0%5.4%3.8%2.5%3.4%2.5%3.3%
Notes:
*Denotes Fiscal Year where Proposition 2 1/2 Override was approved by voters.
CPA was adopted in Lexington in 2006
Indicator I.5: Uncollected Property Taxes
An increase in uncollected property taxes may indicate an inability by
property owners to pay their taxes due to economic conditions.
Additionally, as uncollected property taxes rise, liquidity decreases,
resulting in less cash on hand for the Town to invest. Bond rating
agencies generally consider uncollected taxes in excess of five percent
as a warning trend. Lexington has maintained a strong position on this
indicator, even during the current economic downturn.
Town of Lexington
Summit I –October 8th 2015 Uncollected property taxes (as a percent of the property tax levy) of 5-8
percent is considered a warning indicator by bond rating organizations.
Lexington Trend
Uncertain
Unfavorable
Marginal
Favorable
1 Includes exempt debt, but excludes Community Preservation Act Surcharge (see Indicator 4 for a number inclusive of both)
14
2.7%
0.4%
0.8%
0.1%
0.7%
0.4%0.5%0.4%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
2000 2009 2010 2011 2012 2013 2014 2015Fiscal Year
Uncollected Taxes as a % of Net Property Tax Levy
Fiscal year 2000 2009 2010 2011 2012 2013 2014 2015
Property Tax Levy1 61,263,838$ 116,338,164$ 121,667,460$ 127,955,723$ 134,337,548$ 141,585,863$ 148,770,138$ 155,635,871$
Reserved for Abatements & Exemptions 763,112$ 1,276,988$ 850,587$ 896,369$ 1,023,396$ 770,344$ 779,391$ 953,485$
Net Property Tax Levy 60,500,726$ 115,061,176$ 120,816,873$ 127,059,354$ 133,314,153$ 140,815,520$ 147,990,747$ 154,682,386$
Uncollected Taxes as of June 30 1,632,556$ 493,115$ 960,210$ 136,474$ 868,845$ 530,914$ 808,356$ 630,929$
Uncollected Taxes as a Percentage of
Net Property Tax Levy 2.7%0.4%0.8%0.1%0.7%0.4%0.5%0.4%
1.9%
4.4%
3.5%
0.2%
2.6%
1.1%
4.6%
0%
2%
4%
6%
8%
10%
2000 2009 2010 2011 2012 2013 2014 2015Fiscal Year
% Change -Total Operating Expenditures
Indicator I.6: Expenditures Per Department
Increasing operating expenditures can indicate that the cost of providing services is
exceeding the Town's ability to pay. Increasing expenditures may also indicate that the
demographics of the Town are changing, requiring increased spending in related services.
Town of Lexington
Summit I –October 8th 2015 Increasing operating expenditures, in constant dollars, may be a warning
indicator if increases are the result of fixed or unsustainable costs.
Lexington Trend
Uncertain
Unfavorable
Marginal
Favorable
15
Fiscal year 2000*2009 3 2010 4 2011 5 2012 6 2013 2014 2015
Education 45,998,542$ 63,828,802$ 65,905,578$ 69,484,008$ 72,892,034$ 76,628,356$ 79,978,598$ 85,272,802$
Shared Expenses (Benefits, Debt)12,548,933$ 29,195,602$ 31,239,975$ 32,866,993$ 33,202,243$ 33,546,502$ 32,232,035$ 35,430,532$
Public Works 6,537,136$ 8,300,676$ 8,424,261$ 8,414,202$ 8,359,134$ 8,407,651$ 8,885,551$ 9,338,665$
Public Facilities1 -$ 8,430,075$ 8,763,578$ 9,974,653$ 9,242,458$ 9,343,330$ 9,667,013$ 9,958,057$
Public Safety2 7,287,524$ 9,953,574$ 10,530,736$ 10,528,156$ 10,961,859$ 11,504,167$ 11,534,278$ 12,237,587$
Library 1,354,201$ 1,886,081$ 1,907,300$ 1,957,036$ 1,999,081$ 2,028,190$ 2,144,832$ 2,137,906$
Human Services 412,759$ 493,666$ 376,979$ 443,098$ 484,833$ 1,040,093$ 1,091,789$ 1,071,060$
Community Development 875,758$ 1,245,197$ 1,260,291$ 1,444,153$ 1,540,809$ 1,539,790$ 1,555,554$ 1,883,207$
General Government 2,224,652$ 4,084,851$ 3,702,269$ 3,805,831$ 4,219,292$ 4,823,334$ 5,194,704$ 4,782,252$
Total Operating Expenditure 77,239,505$ 127,418,524$ 132,110,966$ 138,918,131$ 142,901,743$ 148,861,414$ 152,284,352$ 162,112,068$
Total Operating Expenditure (constant dollars)77,239,505$ 95,278,328$ 99,459,872$ 102,969,058$ 103,126,963$ 105,829,782$ 106,778,011$ 111,834,293$
Percent change from prior years -1.9%4.4%3.5%0.2%2.6%0.9%4.7%
1 From FY 2000-FY 2008 cost of Public Facilities are components of spending in Public Works and Education
3 Includes $799,359 of Health Insurance costs that were financed with federal stimulus funds paid to the Town to offset the fourth quarter cuts in Chapter 70 Aid.
4 FY2010 does not include prospective cost of contractual settlements.
5 Increase between FY10 and FY11 for Public Facilities is attributable to unanticipated costs associated with mitigating PCBs at the Estabrook Elementary School.
6 The FY2012 expenditures for Public Works reflect a one-time expenditure of $290,590 to mitigate the effects of the heavy snow storm on October 29th, 2011
Notes:
* Years of successful overrides
2 Does not include estimated retroactive pay to Police personnel based on a yet-to-be-
settled contractual agreement for FY10-12.
64.5%
56.3%55.9%55.8%56.0%56.8%58.7%58.3%
11.8%
19.0%19.5%19.2%19.9%18.9%17.6%17.8%
10%
20%
30%
40%
50%
60%
70%
2000 2009 2010 2011 2012 2013 2014 2015
Total Personnel Costs as a Percentage of Operating Expenses
Salaries & Wages as a percentage of Operating Expenditures Benefits as a percentage of Operating Expenditures
Indicator I.7: Personnel CostsTown of Lexington
Summit I –October 8th 2015 Increasing personnel costs as a percentage of
total spending is considered a warning indicator.
Lexington Trend
Uncertain
Unfavorable
Marginal
FavorableIncreasing salaries and wages as a percent of operating expenditures may be an indicator of two
trends: 1) First, it may point to future pension and health insurance costs since both of these items
are related to the number and compensation level of employees. 2) Second, if salaries and wages as
a percent of operating expenditures are increasing, it may be an indicator of deferred maintenance of
the Town's infrastructure. Wages and benefits as a percentage of total expenditures have remained
relatively constant, a positive indication that the Town is not sacrificing capital and maintenance in
order to fund personnel.16
Fiscal Year 2000 20092 2010 2011 2012 2013 2014 2015
Operating Expenditures 77,239,505$ 127,418,524$ 132,110,966$ 138,918,131$ 142,901,743$ 148,861,414$ 152,284,352$ 162,112,068$
Total Municipal Wages 1 13,153,420$ 18,401,946$ 19,379,531$ 20,380,966$ 19,209,439$ 20,390,111$ 21,164,252$ 21,605,890$
School Wages 36,641,456$ 53,372,059$ 54,440,560$ 57,098,128$ 60,874,480$ 64,117,953$ 68,271,626$ 72,889,506$
Public Facilities Wages3 -$ 3,204,821$ 3,610,074$ 3,661,447$ 3,947,830$ 3,743,963$ 4,482,549$ 4,701,526$
Benefits 9,108,833$ 24,163,229$ 25,702,400$ 26,650,960$ 28,380,746$ 28,083,601$ 26,822,039$ 28,905,912$
Total Wage & Benefit Costs 58,903,709$ 99,142,054$ 103,132,564$ 107,791,502$ 112,412,496$ 116,335,627$ 120,740,466$ 128,102,834$
Salaries & Wages as a percentage of
Operating Expenditures 64.5%56.3%55.9%55.8%56.0%56.8%58.7%58.3%
Benefits as a percentage of Operating
Expenditures 11.8%19.0%19.5%19.2%19.9%18.9%17.6%17.8%
Total Wage & Benefit Costs as a percentage
of Operating Expenditures 76.3%77.8%78.1%77.6%78.7%78.2%79.3%79.0%
2 Includes $799,359 in both Operating Expenditures and Benefits costs that were financed with federal stimulus funds paid to the Town to offset the FY 09 fourth quarter cuts in Chapter 70 Aid.
Operating expenditures include Wages and Expenses for all operating departments.
3 Between FY 2000-FY2008 Public Facilities Wages were part of the amounts shown in "Municipal" and "School"
Wages.
1 Does not include estimated retroactive pay to Police personnel based on a yet-to-be-
settled contractual agreement for FY13-15.
Indicator I.8: Employee BenefitsTown of Lexington
Summit I –October 8th 2015 Increasing employee benefit costs as a percentage of
wages and salaries is considered a warning indicator.
Fringe benefits represent a significant and increasing share of the Town's
operating costs. However, this analysis excludes fringe benefits such as sick
leave buy-back liabilities and vacation accruals. Regardless, benefit spending as
a percentage of wages and salaries has almost doubled since 2000, though it
has leveled off in recent years. Note that per the current pension funding
schedule, the Lexington Retirement System's unfunded pension liability will be
retired in 2025. For an explanation of the increase in the Pension Assessment,
please see Indicator 10.17
Lexington Trend
Uncertain
Unfavorable
Marginal
Favorable
12.9%
27.6%28.5%28.2%26.9%24.5%22.1%21.3%5.4%
4.6%4.7%4.6%4.8%5.8%5.0%5.0%
0%
10%
20%
30%
40%
2000 2009 2010 2011 2012 2013 2014 2015
Health Insurance and Retirement Benefits as a Percentage of Wages & Salaries
Health Insurance Benefits as a percentage of Wages & Salaries Pension Assessment as a percentage of Wages & Salaries
Fiscal Year 2000 20091 2010 2011 2012 2013**2014 2015
Health Insurance Benefits 6,442,875$ 20,681,318$ 22,030,891$ 22,920,405$ 22,616,553$ 21,635,504$ 20,730,153$ 21,167,000$
Pension Assessment 2,665,958$ 3,481,911$ 3,671,509$ 3,730,555$ 4,015,915$ 5,137,392$ 4,730,629$ 4,932,601$
Wages & Salaries - Municipal 2 13,153,420$ 18,401,946$ 19,379,531$ 20,380,966$ 19,209,439$ 20,390,111$ 21,164,252$ 21,605,890$
Wages & Salaries - Schools 36,641,456$ 53,372,059$ 54,440,560$ 57,098,128$ 60,874,480$ 64,117,953$ 68,271,626$ 72,889,506$
Wages & Salaries - Public Facilities3 -$ 3,204,821$ 3,610,074$ 3,661,447$ 3,947,830$ 3,743,963$ 4,482,549$ 4,701,526$
Total Wages & Salaries 49,794,876$ 74,978,826$ 77,430,164$ 81,140,542$ 84,031,750$ 88,252,027$ 93,918,427$ 99,196,922$ Health Insurance Benefits as a percentage of Wages &
Salaries 12.9%27.6%28.5%28.2%26.9%24.5%22.1%21.3%
Pension Assessment as a percentage of Wages & Salaries 5.4%4.6%4.7%4.6%4.8%5.8%5.0%5.0%
Total Benefits Spending as % of Wages 18.3%32.2%33.2%32.8%31.7%30.3%27.1%26.3%
1 Includes $799,359 of Health Insurance costs that were financed with federal stimulus funds paid to the Town to offset fourth quarter cuts in Chapter 70 funds.
2 Does not includes estimated retroactive pay to Police personnel based on a yet-to-be settled contractual agreement for FY13-15.
3 Between FY2000-FY2008 Public Facilities Wages were part of the amounts shown in "Municipal" and "Schools".
**The FY2013 Pension Assessment is inclusive of a one-time supplemental appropriation of $1 million to offset the increase in liability attributable to a reduction in the assumed rate of return to 7.75% and revised assumptions of employee mortality.
Indicator I.9: Retirement ParticipantsTown of Lexington
Summit I –October 8th 2015 An increase in retirement system participants, without fully funding the
associated post-retirement health costs, is considered a warning trend.
Lexington has an aggressive approach to funding its pension liabilities,
and recently implemented a plan to begin to slowly fund its post-
employment health liabilities. Nevertheless, since 2000 the town has
maintained a fairly stable balance in its number of retirees versus active
participants in the system. For more information on the Town's Other Post
Employment Liabilities, (OPEB), please refer to Appendix C, OPEB.
Note: Teachers do not belong to the Lexington Retirement System, and are instead members of the Massachusetts Teacher Retirem ent System (MTRS). Previous to
2012, data for the number of active and retired teachers had not been compiled for this indicator. It is for this reason that there is no data for 2000 –2011.
18
670 613 627 632 626 634 663 660
351 388 389 393 387 391 409 415----
693 694 725 747
----
495 503 520 511
0
500
1,000
1,500
2,000
2,500
2000 2009 2010 2011 2012 2013 2014 2015
Participants in Lexington Retirement System
Active Participants Number of Retirees Active Teachers Number of Retired Teachers
Calendar Year (as of December 31)2000 2009 2010 2011 2012 2013 2014 2015
Number of School Employees (Non-teaching)N/A 311 327 337 326 325 339 332
Number of Municipal Employees N/A 302 300 295 300 309 324 328
Active Participants 670 613 627 632 626 634 663 660
Number of Retirees 351 388 389 393 387 391 409 415
Active Teachers - - - - 693 694 725 747
Number of Retired Teachers - - - - 495 503 520 511
Total 1021 1001 1016 1025 2201 2222 2317 2333
Uncertain
Lexington Trend
Favorable
Marginal
Unfavorable
employment health liabilities. For more information on the
Indicator I.10: Pension LiabilityTown of Lexington
Summit I –October 8th 2015 An unfunded pension liability or increase in the
unfunded liability is considered a warning indicator.
As of January 1, 2015, the actuarial valuation of assets was $138.9 million and
the Retirement System was 83.5% funded. The increase in total liability and
reduction in percent funded is due to a decrease in the assumed rate of return
from 8% to 7.75% and revised assumptions in regard to life expectancy, i.e.
people are living longer and thus drawing benefits from the system longer. Also
see Appendices C and F for additional information regarding the Lexington
retirement system.
19
84.7%88.4%90.8%88.8%
78.3%
82.3%83.5%
0%
20%
40%
60%
80%
100%
1/1/2004 1/1/2006 7/1/2008 1/1/2010 1/1/2012 1/1/2014 1/1/2015
Pension Liability (% funded)
Actuarial Date 1/1/2004 1/1/2006 7/1/2008 1/1/2010 1/1/2012 1/1/2014 1/1/2015
Total Liability 98,031,000$ 111,724,000$ 125,412,000$ $133,456,115 $154,907,134 $158,134,597 $166,400,000
Pension Assets 83,050,000$ 98,759,000$ 113,880,000$ $118,558,908 $121,339,690 $130,168,913 $138,876,496
Pension Liability (unfunded)14,981,000$ 12,965,000$ 11,532,000$ $14,897,207 $33,567,444 $27,965,684 $27,523,504
Percent Funded 84.7%88.4%90.8%88.8%78.3%82.3%83.5%
Indicator I.11: Debt ServiceTown of Lexington
Summit I –October 8th 2015 Debt Service exceeding 20 percent of operating revenues is
considered a warning indicator by the credit rating organizations.
Over the last ten years, Lexington has invested extensively in new capital projects; five separate
school reconstruction projects, new athletic fields, a street reconstruction project, a $26 million
Public Services Building, and renovations to the Bridge and Bowman School as well as a new
Estabrook School have been funded through the successful passage of debt exclusion votes by
residents. This increase in exempt debt service has resulted in increases in the budget and
consequently in taxes to Lexington citizens. Within-levy debt has fluctuated slightly throughout
the last five years, dependent upon the short-term capital needs of the community. However,
since FY 2004 the amount of debt per capita and per household has remained relatively steady.
Debt levels were set to “spike” slightly with the approval of the Debt Exclusion for the
Bridge/Bowman and Estabrook school projects, but that effect has been reduced with the
$1,600,000 of debt service mitigation approved by Town Meeting in 2013 and $950,000 in debt
service mitigation approved by Town Meeting in 2014.20
3.26%
5.06%
5.41%
5.32%
5.04%
5.36%
5.36%
5.88%
2%
3%
4%
5%
6%
7%
2000 2009*2010 2011 2012 2013 2014 2015
Within-Levy Debt Service as a % of General Fund Revenue
$270 $727
$785
$805
$797
$887
$934 $1,068
$200
$400
$600
$800
$1,000
$1,200
2000 2009*2010 2011 2012 2013 2014 2015
Residential Share: Total Net Debt Service per Household
Fiscal Year 2000 2009*2010 2011 2012 2013 2014 2015
Gross Exempt Debt Service 120,000$ 5,593,372$ 5,746,385$ 5,753,550$ 5,721,834$ 6,599,081$ 8,527,654$ 8,373,332$
Exempt Debt Mitigation -$ -$ -$ -$ -$ 400,000$ 1,600,000$ 950,000$
Net Exempt Debt Service 120,000$ 5,593,372$ 5,746,385$ 5,753,550$ 5,721,834$ 6,199,081$ 6,927,654$ 7,423,332$
Within Levy Debt Service 3,419,863$ 3,755,361$ 4,315,849$ 4,614,721$ 4,675,464$ 5,462,902$ 5,409,996$ 6,461,491$
Total Net Debt Service 3,539,863$ 9,348,733$ 10,062,234$ 10,368,271$ 10,397,298$ 11,661,983$ 12,337,650$ 13,884,823$
Commercial/Industrial Share of Total Net Debt Service 877,378$ 2,062,330$ 2,157,343$ 2,254,062$ 2,315,478$ 2,651,935$ 2,837,660$ 3,017,602$
Residential Share of Total Net Debt Service 2,662,485$ 7,286,402$ 7,904,891$ 8,114,209$ 8,081,820$ 9,010,048$ 9,499,991$ 10,867,221$
Lexington Trend
Uncertain
Favorable
Marginal
Unfavorable
operating and capital spending. Any decrease in property tax revenues should be monitored to ensure that collections
are at a high level. Increases due to operating overrides should be noted for their impact on taxpayers' ability to pay.
Indicator I.11(a): Projected Exempt Debt ServiceTown of Lexington
Summit I –October 8th 2015
This indicator shows Lexington’s history of exempt debt service,
and projects its growth into Fiscal 2018 (noted in green). The
graph on the left shows total Net Exempt Debt Service, but breaks
out separately Commercial/Industrial/Personal Property (CIP)
share and the Residential share. Like in the previous Indicator, the
Residential class debt burden is isolated from the CIP classes,
and it is this Residential share that is used to determine the effect
of Exempt Debt on Lexington households.
21
Uncertain
Unfavorable
Favorable
Marginal
Lexington Trend
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
2000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Commercial/Industrial/Personal Property Share Residential Share Net Exempt Debt Service
Net Exempt Debt Service CIP/Residential Share
$9.15
$435 $448
$447
$438
$472
$524
$571 $633 $630 $608
$0
$200
$400
$600
$800
2000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Residential Share of Net Exempt Debt Service per
Household
Fiscal Year 2000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Exempt Debt Service 120,000$ 5,593,372$ 5,746,385$ 5,753,550$ 5,721,834$ 6,599,081$ 8,527,654$ 8,373,332$ 8,574,645$ 8,339,155$ 8,070,682$
Exempt Debt Mitigation -$ -$ -$ -$ -$ 400,000$ 1,600,000$ 950,000$ 215,000$ -$
Net Exempt Debt Service 120,000$ 5,593,372$ 5,746,385$ 5,753,550$ 5,721,834$ 6,199,081$ 6,927,654$ 7,423,332$ 8,359,645$ 8,339,155$ 8,070,682$
Commercial/Industrial/Personal Property Share 29,743$ 1,233,898$ 1,232,025$ 1,250,822$ 1,274,252$ 1,409,671$ 1,593,360$ 1,613,320$ 1,900,983$ 1,896,324$ 1,835,273$
Residential Share 90,257$ 4,359,474$ 4,514,360$ 4,502,728$ 4,447,582$ 4,789,410$ 5,334,294$ 5,810,012$ 6,458,662$ 6,442,831$ 6,235,409$
Households 9,866 10,027 10,066 10,081 10,143 10,156 10,172 10,177 10,201 10,225 10,249
Debt Service per Residential Household 9.15$ 435$ 448$ 447$ 438$ 472$ 524$ 571$ 633$ 630$ 608$
Projected
1Gross Operating Revenue figure includes $799,539 in federal stimulus funds used to offset cuts in FY 09 Chapter 70 monies.
Note: Does not reflect any potential increase in exempt debt service resulting from the planned School Department building projects.
$583
$2,485
$2,467
$2,228
$2,065
$3,235 $3,630
$3,594
$-
$1,000
$2,000
$3,000
$4,000
2000 2009 2010 2011 2012 2013 2014 2015
Long-Term Debt Per Capita
0.39%
0.93%
0.98%0.91%0.85%1.28%1.38%
1.25%
0.0%
0.4%
0.8%
1.2%
1.6%
2000 2009 2010 2011 2012 2013 2014 2015
Long-Term Debt as a % of Assessed Valuation
Indicator I.12: Long Term DebtTown of Lexington
Summit I –October 8th 2015 Overall debt exceeding 10 percent of assessed valuation is
considered a warning indicator by bond rating agencies.
These financial indicators are evaluated by the credit rating organizations
because they are measures of both the community's debt burden as well as
its level of effort in investing in its capital facilities. On both measures,
Lexington has a strong profile. Note that the substantial increase from
FY2012 to FY2013 shown above is the result of voter -approved exempt debt
which is being used to finance the renovation of the Bridge and Bowman,
and reconstruction of the Estabrook School.
Lexington Trend
Uncertain
Unfavorable
Marginal
Favorable
22
Fiscal Year 2000 2009 2010 2011 2012 2013 2014 2015
Bonds Outstanding (all funds)17,686,201$ $74,457,027 77,270,164$ $72,458,630 $68,362,969 $106,330,421 $117,880,602 $116,613,728
Assessed Valuation 4,506,277,290$ $8,033,608,130 $7,891,590,610 $7,973,719,190 $8,026,687,320 $8,307,956,760 $8,555,595,350 $9,359,615,090
Population 30,355 29,959 31,325 32,526 33,098 32,870 32,473 32,443
Long-Term Debt as a % of
Assessed Valuation 0.39%0.93%0.98%0.91%0.85%1.28%1.38%1.25%
Long-Term Debt Per Capita $ 583 $ 2,485 $ 2,467 $ 2,228 $ 2,065 $ 3,235 $ 3,630 $ 3,594
Notes:
Sources: Outstanding Long-term Debt & Assessed value information from Bond Prospectus & Operating Statements
Population from U.S. Census Bureau, Town of Lexington annual census
Per Capita income estimated from U.S Census Bureau & Bureau of Economic Analysis, adjusted for inflation, using 2000 Census as base
Indicator I.13: Reserves and Fund BalanceTown of Lexington
Summit I –October 8th 2015
Declining reserves as a percent of operating revenues is a warning indicator.
The Government Finance Officers Association (GFOA) recommends an
undesignated fund balance between 5-15 % of operating revenues.
Lexington Trend
Uncertain
Unfavorable
Marginal
Favorable
The Town of Lexington has several types of reserves. Historically, the Town had
previously relied upon Free Cash as its primary source of reserves. The Selectmen's Ad
Hoc Financial Policy Committee made a series of recommendations to further strengthen
the Town's reserves and create a series of small, targeted reserves for specific purposes.
In recent years, the Town has strengthened its reserve position by augmenting and
transferring money into the Town's Stabilization Fund. This adds financial flexibility to the
Town's operations and provides a buffer against economic downturns. (See Indicator I.2)23
1Net Operating Revenues include $799,539 in federal stimulus funds used to offset the FY 09 fourth quarter cut in Chapter 70 aid.
2 The number for Free Cash reflects an estimate. Free Cash as of 6/30/15 and is currently pending certification by the Department of Revenue.
3 FY2015 figure does not include $9,447,832 appropriated at the 2015 Annual Town Meeting.
*Denotes Fiscal Year where Proposition 2 1/2 Override was approved by voters.
**This refers to funds that were appropriated but unexpended as of the end of the fiscal year, in addition to revenues collected that were in excess of
2.3%
4.5%
0.0%
5.2%5.4%5.7%5.5%5.4%5.2%5.1%
4.3%4.4%5.1%5.5%
8.2%
6.4%
7.7%
6.2%
4.3%
9.6%10.4%
11.3%
13.7%
11.8%
15.3%
15.8%
0%
6%
12%
18%
2000 2009 2010 2011 2012 2013 2014 2015
Reserves as a % of Operating Revenue
Capital Projects Stabilization Fund as a % of Net Operating Revenue General Stabilization Fund as a % of Net Operating Revenue
Free Cash as a % of Operating Revenue Total Reserves as a % of Net Operating Revenue
As of June 30th 2000*20091 2010 2011 2012 2013 2014 2015 2
Undesignated Fund Balance **5,013,984$ 10,445,940$ 11,254,915$ 12,795,000$ 16,400,000$ 13,927,089$ 17,370,882$ 15,072,830$
Reserves
Certified Free Cash 3,528,323$ 6,159,509$ 7,125,000$ 8,134,100$ 12,600,931$ 10,303,125$ 13,108,282$ 11,000,000$
General Stabilization Fund 18,280$ 7,133,877$ 7,523,979$ 8,376,820$ 8,556,561$ 8,744,262$ 8,895,689$ 9,056,939$
Capital Projects Stabilization Fund 3 3,990,714$ 8,048,466$
Net Operating Revenues 81,597,556$ 138,499,057$ 140,369,956$ 146,711,911$ 154,549,499$ 161,635,438$ 170,343,902$ 177,506,762$
Free Cash as a % of Operating Revenue 4.3%4.4%5.1%5.5%8.2%6.4%7.7%6.2%
General Stabilization Fund as a % of Net
Operating Revenue 0.0%5.2%5.4%5.7%5.5%5.4%5.2%5.1%
Capital Projects Stabilization Fund as a % of
Net Operating Revenue 2.3%4.5%
Total Reserves as a % of Net Operating
Revenue 4.3%9.6%10.4%11.3%13.7%11.8%15.3%15.8%
Indicator I.14: PopulationTown of Lexington
Summit I –October 8th 2015 Rapid changes in population which may effect service
levels may be considered a warning indicator.
A steady change in both population demographics and public school enrollment may signal
a need for increased service delivery and programs. Since 2000, Lexington has seen an
increase in its under-20 demographic of 12.7%, which is an indicator for increasing financial
burden on the public school system, likewise reflected in the steady increase in school
enrollment. Additionally, the town has also seen its 60-69 year old demographic increase by
36%, and it’s over 80 demographic by 12%. An increasing senior population is likewise
indicative of an increasing financial burden on the Town’s ability to provide social services
to this group.
Uncertain
Unfavorable
Favorable
Marginal
Lexington Trend
24
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2000 2009 2010 2011 2012 2013 2014 2015
Lexington, MA Population 2000-2015
Under 20 20 - 29 years old 30 - 39 years old 50 - 59 years old 60 - 69 years old 80+40 - 49 years old 70 - 79 years old
Notes:
Annual Population figures 2000-2015 come from Town Clerk.
School enrollment figures from Chapter 70 Foundation Enrollment statistics.
Calendar Year 2000 2009 2010 2011 2012 2013 2014 2015 % Change CY 2000-
2015
Under 20 7,566 7,540 7,949 8,277 8,928 8,785 8,649 8,526 12.7%
20 - 29 years old 2,573 3,018 3,185 3,496 3,421 3,470 3,398 3,374 31.1%
30 - 39 years old 3,617 1,992 2,197 2,257 2,162 2,144 2,128 2,058 -43.1%
40 - 49 years old 5,606 4,654 4,853 4,941 5,092 4,932 4,818 4,774 -14.8%
50 - 59 years old 4,657 5,000 5,122 5,291 5,269 5,241 5,110 5,142 10.4%
60 - 69 years old 2,922 3,389 3,597 3,690 3,746 3,789 3,856 3,973 36.0%
70 - 79 years old 2,637 2,231 2,240 2,305 2,289 2,336 2,355 2,432 -7.8%
80+1,929 2,135 2,182 2,269 2,191 2,173 2,159 2,164 12.2%
Totals 31,507 29,959 31,325 32,526 33,098 32,870 32,473 32,443 3.0%
LPS Enrollment 5,534 6,118 6,096 6,056 6,228 6,314 6,598 6,695 21.0%
Town of Lexington
Financial Summit I
Revenue and Expenditure Projections:
Fiscal Years 2017-2019
Town of Lexington
Summit I –October 8th 2015
Executive Summary-Projections
FY2017 –FY2019
25
Summary of Revenue/Expenditure Projections (supporting detail on next page)
B C D
Revenue Summary FY2016 FY 2017 FY 2018 FY 2019
Appropriated Projection Projection Projection
Total Revenues 193,320,111$ 199,542,604$ 203,102,652$ 207,415,149$
Expense Summary
Total Expenses 193,320,111$ 194,426,596$ 198,897,303$ 204,151,137$
Available Balance (0)$ 5,116,007$ 4,205,349$ 3,264,012$
Variable Cost Drivers FY 2017 FY 2018 FY 2019
Lexington Public Schools 3,095,956$ 5,487,785$ 9,147,215$
266,672$ 557,076$ 854,014$
800,000$ 1,578,125$ 1,694,375$
Total Variable Cost Drivers 4,162,628$ 7,622,986$ 12,335,604$
Projected balance/shortfall 953,379$ (3,417,637)$ (9,071,592)$
The difference between projected revenues and expenditures is characterized as “available balance”; that is, the available balance that can be used to fund
“variable cost drivers”, e.g., finance additional capital projects, provide for prospective salary increases, restore services eliminated or reduced in a prior fiscal
year, fund reserves, etc.
Budget decisions that are made within a given fiscal year often have significant implications for subsequent fiscal years. The revenue and expenditure projection
within this packet is intended to facilitate discussion among community “stakeholders” with the hope that it will result in the identification of issues that call for
further discussion and analysis as the FY17 budget cycle unfolds.
This forecast projects general fund revenues and expenditures for the period FY2017 to FY2019. It is important to emphasize that the projection is not a
proposed or recommended budget. It is a tool for planning, not budgeting.
The forecasting methodology is a maintenance budget approach; that is, the projected increase in costs needed to maintain the “current level of services”
reflected in the adopted FY16 budget. As a general rule, it only includes increases driven by estimated inflationary pressures, current collective bargaining
agreements and other existing purchase of service contracts.
Revenues are generally projected based on historical experience.
Municipal Wages - Cumulative impact of 1%
salary increase annually
Debt Service on $5 million of capital costs
annually
Town of Lexington
Summit I –October 8th 2015
Revenue and Expenditure Projections
FY2017 –FY2019
26
A B C D
Revenue Summary FY2016 FY 2017 FY 2018 FY 2019
Appropriated Projection Projection Projection
1 Property Tax Levy 154,493,901$ 160,856,249$ 167,377,655$ 174,062,097$ Reflects statutory annual growth of 2.5% and assumed new growth of $2.5 million annually.
2 State Aid 11,430,692$ 11,641,942$ 11,870,868$ 12,104,372$ Assumes FY16 Cherry Sheet Aid increasing at 2.0% in FY17, FY18 and FY19.
3 Local Receipts 11,769,694$ 12,541,371$ 12,613,220$ 12,687,440$ Assumes modest growth in local receipts based on evaluation of historical averages.
4 Available Funds 15,995,798$ 14,780,000$ 11,647,500$ 8,797,000$
5 Revenue Offsets (1,987,549)$ (1,943,061)$ (2,122,677)$ (2,003,329)$
6 Other Revenues 1,617,576$ 1,666,103$ 1,716,086$ 1,767,569$
7 Total Revenues 193,320,111$ 199,542,604$ 203,102,652$ 207,415,149$
Free Cash estimate of $11.0 million available for FY17 (7/1/15 certification)and $9.0 million for FY18 and
$7 million for FY19;FY17 includes $137,000 from TDM Stabilization Fund to support Lexpress and the
Alewife Shuttle,tapering to $117,000 in FY18 and $97,000 in FY19.All years include $395,000 of parking
meter funds and $105,000 of cemetery funds.In FY17-FY19,$1.2 million annually from balance of Health
Claims Trust Fund to be used to fund health insurance,resulting in an equal amount in the tax levy
becoming available to fund contributions to OPEB Trust per BoS policy.Includes in FY17 and FY18 use of
Capital Projects Stabilization Fund to offset projected LHS Modulars debt service in the amounts of $1.943
million and $830,500, respectively.
$750K for overlay in FY17 and FY19 and $900k in FY18 for reval yr. $300K set-aside for snow & ice
deficit annually; Also includes Cherry Sheet Assesments increasing at 3.5% annually and Cherry Sheet
Offsets (State Aid to Public Libraries).
Assumes FY16 Water, Sewer and Recreation Indirects increasing by 3% annually.
Town of Lexington
Summit I –October 8th 2015
Revenue and Expenditure Projections
FY2017 –FY2019
27
Expenditure Summary A B C D
FY2016 FY 2017 FY 2018 FY 2019
Appropriated Projection Projection Projection
Education
8 LPS Wages 78,675,324$ 82,261,325$ 85,963,615$ 88,529,572$
9 LPS Expenses 13,384,993$ 13,786,543$ 14,200,139$ 14,626,143$
10 Minuteman 1,172,736$ 1,231,373$ 1,324,875$ 1,708,150$
Municipal
11 Municipal Wages 28,283,802$ 28,415,327$ 28,773,714$ 29,136,760$
12 Municipal Expenses 15,191,922$ 15,531,172$ 15,980,022$ 16,470,451$
Shared Expenses
13 Debt Service 6,732,527$ 7,972,156$ 7,190,931$ 6,405,933$
14 Retirement 5,269,347$ 5,519,037$ 5,769,037$ 6,019,037$
FY17 through FY19 includes 3% for annual step increases. All years include a reduction of $500,000 in
"salary differential" to reflect savings from staff turnover. FY17 and FY18 include 2.25% and 2%
respectively to fund LEA Unit A contract.
Assumes increase of 3.0% to account for general inflationary increases.
FY17, FY18 and FY19 reflect the cost of steps estimated at 1.013%.
Assumes general inflationary increases of 3% with following exceptions: electricity at 7% per year
upon expiration of supply contract on 12/1/18 and natural gas at 5.5% at expiration of current supply
contract on 9/30/16;
Assumes 5% growth annually to baseline assessment+ Town's projected share of debt service for $10
million in design costs (net of MSBA) in each of FY18 and FY19 for a new school + town's estimated
share of debt service in FY19 (net of MSBA) on a $100 million bond for capital construction.
Based on Outstanding Within-Levy Debt for debt authorized and issued and projections for debt
authorized but yet to be issued. Includes gross debt service for modular classrooms which is offset in
FY17 and FY18 with Capital Projects Stabiliization funds.
Contributory Retirement assessment (based on 10 yr. amortization of unfunded liability and 7.75%
interest rate assumption) plus Non-Contributory payments @ $13,500 per year.
Town of Lexington
Summit I –October 8th 2015
Revenue and Expenditure Projections
FY2017 –FY2019
28
Expenditure Summary (continued)
A B C D
FY2016 FY 2017 FY 2018 FY 2019
Appropriated Projection Projection Projection
15 Benefits 25,250,981$ 26,631,118$ 27,961,514$ 29,358,430$
15a Medicare 1,478,328$ 1,552,244$ 1,629,857$ 1,711,349$
15b Health Insurance 22,750,714$ 24,002,003$ 25,202,103$ 26,462,208$
15c Dental 998,745$ 1,053,676$ 1,106,359$ 1,161,677$
15d Life 23,195$ 23,195$ 23,195$ 23,195$
16 Reserve Fund 900,000$ 900,000$ 900,000$ 900,000$
17 Workers Compensation 643,112$ 688,130$ 736,299$ 787,840$
18 Unemployment 200,000$ 200,000$ 200,000$ 200,000$
19 Property & Lib.
Insurance
860,309$ 688,340$ 743,407$ 802,880$
20 Uninsured Losses 200,000$ 225,000$ 250,000$ 275,000$
21 Capital 4,571,905$ 4,923,076$ 4,943,750$ 4,964,942$
22 Other 436,836$ 454,000$ 460,000$ 466,000$
23 Non-Recurring Expenses 10,647,832$ 3,500,000$ 3,500,000$ 3,500,000$
24 Unallocated Revenue 898,486$ 1,500,000$ -$ -$
25 Total Expenditures 193,320,111$ 194,426,596$ 198,897,303$ 204,151,137$
26 Available Balance (0)$ 5,116,007$ 4,205,349$ 3,264,012$
FY17-FY19 includes $2,500,000 for cash capital. FY17 includes 2.23 million for the Street
Improvement Program which includes the inflated base from the 2001 override plus amounts added
beginning in FY12 from general fund revenue in excess of what was needed for the operating budget
and savings resulting from joining the GIC. The amount for the Street Improvement program grows
by a 2.5% increase to the base in each of FY18 and FY19. FY17 includes $187,329 for Municipal
Building Envelope increasing annually by 2.5% deriving from the 2001 override which originally voted
funding for this program.
Level Funding
FY16 base increasing by 8% annually.
Assumes FY16 base growing at 5.5% and 5% thereafter .
Level Funding
Level Funding
FY16 base increasing by 7% annually.
FY17 includes an allocation of approximately $2.0 million to the Capital Stabilization Fund to mitigate
costs of pending major capital projects and is projected at $2.0 million in each of FY18 and FY19. In
FY17, approximately $1.5 million to the OPEB Trust Fund and is projected at $1.5 million in each of
FY18 and FY19.
FY16 is the unallocated balance of estimated FY16 revenue. FY17 is the proposed allocation set-aside
for yet to be determined priorities.
5% inc. in Medicare, reflecting an increase in the number of eligible employees and increases in wages
FY17 - FY19: Sr.Tax. work-off at $20K + $200k set-aside for unanticipated annual operating budget
needs + Set-Aside for Tax Levy Support of the Community Center program.
$25,000 increase annually to balance in this continuing balance account
Assumes FY16 base growing at 5.5% and 5% thereafter .
Town of Lexington
Summit I –October 8th 2015
Revenue and Expenditure Projections
FY2017 –FY2019
29
FY2017 FY2018 FY2019
Variable Cost Drivers
Lexington Public Schools 3,095,956$ 5,487,785$ 9,147,215$
266,672$ 557,076$ 854,014$
Debt Service on $5 million of capital costs annually 800,000$ 1,578,125$ 2,334,375$
Total Variable Cost Drivers 4,162,628$ 7,622,986$ 12,335,604$
Projected balance/shortfall 953,379$ (3,417,637)$ (9,071,592)$
Municipal Wages - Cumulative impact of
1% salary increase annually
Town of Lexington
Summit I –October 8th 2015
FY 2017 Policy Issues
1.Financing Plan for Increasing School Population
2.Financing Plan/Tax Impact for School Facilities
3.Financing Plan/Tax Impact for Public Safety Facilities
4.Funding for and use of the Capital Projects Stabilization
Fund
30
Town of Lexington
Financial Summit I
Appendices
1 The Foundation Budget Enrollment represents only students officially enrolled as of
October 1st in any given year, and is computed by the Massachusetts Department of Education.
*Includes Ch. 70 aid to both regional & local districts.
Source: Mass. Dept. of Education
Appendix A: Chapter 70 Comparative DataTown of Lexington
Summit I –October 8th 2015
The Chapter 70 formula is based on a variety of factors.
The table at right shows that Lexington receives slightly
below the average amount of Chapter 70 aid for
comparable communities.
31
LEXINGTON $1,432
ACTON-BOXBOROUGH*
ANDOVER
ARLINGTON
BEDFORD
BELMONT
CONCORD-CARLISLE*
LINCOLN-SUDBURY*
NEEDHAM
NEWTON
WELLESLEY
WESTON
WINCHESTER
$500 $1,000 $1,500 $2,000 $2,500
Appendix A: Chapter 70 Aid per Pupil
Average: $1,637
FY15 FY15 FY15
Foundation Chapter 70 Per Pupil
District Enrollment 1 Aid Average
LEXINGTON 6,695 9,584,428$ 1,432$
ACTON-BOXBOROUGH* 5,649 14,254,476$ 2,523$
ANDOVER 5,998 9,042,864$ 1,508$
ARLINGTON 5,141 10,234,582$ 1,991$
BEDFORD 2,608 4,145,009$ 1,589$
BELMONT 4,068 6,420,104$ 1,578$
CONCORD-CARLISLE* 3,967 5,454,053$ 1,375$
LINCOLN-SUDBURY* 5,090 8,127,929$ 1,597$
NEEDHAM 5,327 8,239,740$ 1,547$
NEWTON 12,650 19,617,930$ 1,551$
WELLESLEY 5,050 7,789,132$ 1,542$
WESTON 2,322 2,988,929$ 1,287$
WINCHESTER 4,302 7,572,048$ 1,760$
AVERAGE 5,297 8,728,556$ 1,637$
Appendix B: Per Pupil Population Comparative DataTown of Lexington
Summit I –October 8th 2015
This chart shows the ratio of pupils as a percentage of
the total population of a municipality (or in the case of
joint school districts, municipalities).
Compared to the average for similar communities &
school systems, Lexington has more students as a
percentage of the population. (Also see Indicator I.15)
32
*Includes combined enrollment and population
numbers for both the local and regional districts.
LEXINGTON 20.4%
ACTON-BOXBOROUGH*
ANDOVER
ARLINGTON
BEDFORD
BELMONT
CONCORD-CARLISLE*
LINCOLN-SUDBURY*
NEEDHAM
NEWTON
WELLESLEY
WESTON
WINCHESTER
10%13%15%18%20%23%25%
Appendix B: Pupil % of Population -Comparative Data
FY15
Foundation Population Pupils as
Enrollment 2013 Estimate % of Population
LEXINGTON 6,695 32,870 20.4%
ACTON-BOXBOROUGH* 5,649 28,028 20.2%
ANDOVER 5,998 34,477 17.4%
ARLINGTON 5,141 44,028 11.7%
BEDFORD 2,608 13,975 18.7%
BELMONT 4,068 25,332 16.1%
CONCORD-CARLISLE* 3,967 24,313 16.3%
LINCOLN-SUDBURY* 5,090 24,932 20.4%
NEEDHAM 5,327 29,736 17.9%
NEWTON 12,650 87,971 14.4%
WELLESLEY 5,050 29,090 17.4%
WESTON 2,322 11,853 19.6%
WINCHESTER 4,302 22,079 19.5%
AVERAGE 5,297 31,437 18%
District
Appendix C: Other Post Employment BenefitsTown of Lexington
Summit I –October 8th 2015
The Government Accounting Standards Board issued GASB Statement 45, which requires governments to measure and
report the liabilities associated with other (than pension) postemployment benefits (or OPEB). Reported OPEBs may include
post-retirement medical, pharmacy, dental, vision, life, long-term disability and long-term care benefits that are not associated
with a pension plan. Unlike pension obligations, there is no requirement that Massachusetts municipalities begin to fund this
liability. Nonetheless, over the last 4 fiscal years, Town Meeting has appropriated, at a minimum, the prior year’s Medicare
Part D payments made to the Town by the federal government to begin to fund the Town’s OPEB liability. The decrease in the
Town’s Liability from FY2012 to FY2013 is attributable in large part to lowered health insurance costs from the GIC and an
increase in the actuary’s assumed discount rate from 2.5% to 4.5%.33
(A)(B)(C)(D)(E)(F)(G)
FY Ending Normal Cost Amortization Total Town Retiree H.C.Medicare Annual
LIability Payments ARC Appropriation Part D Subsidy Unfunded
(B)+(C)(D)-(E)-(F)
2007 13,690,000$ 6,220,000$ 19,910,000$ 4,810,000$ 400,000$ 14,700,000$
2008 14,370,000$ 6,810,000$ 21,180,000$ 5,291,000$ 440,690$ 15,448,310$
2009 9,783,078$ 12,442,641$ 22,225,719$ 5,953,878$ 479,399$ 15,792,442$
2010 10,565,724$ 12,981,738$ 23,547,462$ 6,102,725$ 331,610$ 17,113,127$
2011 8,770,134$ 14,967,774$ 23,737,908$ 6,837,760$ 395,212$ 16,504,936$
2012 9,205,641$ 16,208,603$ 25,414,244$ 6,976,588$ 465,544$ 17,972,112$
2013 3,370,054$ 8,108,106$ 11,478,160$ 5,026,524$ 119,375$ 6,332,261$
2014 3,538,557$ 8,283,500$ 11,822,057$ 5,364,397$ 312,318$ 6,145,342$
Notes:
Other Post Employment Benefits (OPEB):
Source: FY2007-FY2009 data from report prepared by Financial Risk Analysts, Town of Lexington Post -Retirement Benefits Analysis as of June 30, 2006 issued March 9, 2007. FY2010-FY2011 from report prepared by Financial Risk
Analysts, Town of Lexington Post-Retirement Benefits Analysis as of June 30, 2009 issued June 2, 2010. FY2009-FY2012 data from report prepared by Financial Risk Analysts, Town of Lexington Post -Retirement Benefits Analysis as of
June 30, 2011 issued February 24, 2012, with the exception of the Retiree H.C. Appropriation which is based on the the FY11 appropriation increased by 6%. FY2013-FY2014 data from report prepared by Financial Risk Analysts, Town of
Lexington Post-Retirement Benefits Analysis as of June 30, 2013 issued February 21, 2014.
Medicare Part D Subsidy actual receipts, FY 2007-FY2012. A portion of FY13 includes actual payments made to the Town directly and a credit applied to our GIC bill attributable to the Medicare Part D payment the GIC received on the Town's
behalf. . FY14 is solely the credit to our GIC bill attributable to the Medicare Part D payment the GIC received on the Town's behalf.
Appendix D: Other Reserves and Continuing Balance AccountsTown of Lexington
Summit I –October 8th 2015
34
ENDING BALANCES AS OF FISCAL YEAR END
FY10 FY11 FY12 FY13 FY14 FY15
7,523,979$ 8,376,820$ 8,556,561$ 8,744,262$ 8,895,689$ 9,056,939$
216,693$ 305,844$ 297,902$ 305,865$ 295,712$ 302,092$
Traffic Mitigation Stabilization Fund*284,515$ 327,159$ 346,478$ 96,562$ 29,077$ 88,830$
School Bus Stabilization Fund 4,603$ 18$ 18$ 18$ 18$ 18$
Special Education Stabilization Fund 710,970$ 1,064,210$ 1,067,142$ 1,069,456$ 1,071,495$ 1,073,638$
Other Post Employment Benefits (OPEB)*813,429$ 1,560,928$ 2,166,697$ 3,069,273$ 4,482,338$ 5,798,656$
Capital Projects Stabilization Fund*-$ -$ -$ -$ 3,990,705$ 8,048,466$
* FY15 does not reflect $9,447,832 Appropriated at 2015 Annual Town Meeting
Transportation Demand Mitigation Fund*
Stabilization Fund
Appendix E: Average Residential Tax BillTown of Lexington
Summit I –October 8th 2015
35
LEXINGTON
ANDOVER
ARLINGTON
BEDFORD
BELMONT
CANTON
CONCORD
NATICK
NEEDHAM
NEWTON
NORTH ANDOVER
WELLESLEY
WESTON
WINCHESTER
$5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000
Appendix E: Average Residential Tax Bill -FY2015
Municipality, as of FY2015 Single Family Parcels Average Value Single Family Residential Tax Rate Average Single Family Tax Bill
LEXINGTON 9,003 $820,366 $14.86 $12,191
ANDOVER 8,582 $577,689 $14.97 $8,648
ARLINGTON 7,991 $539,199 $13.55 $7,306
BEDFORD 3,434 $588,699 $14.62 $8,607
BELMONT 4,510 $847,928 $12.90 $10,938
CANTON 5,356 $473,171 $12.82 $6,066
CONCORD 4,586 $902,043 $14.29 $12,890
NATICK 8,479 $479,759 $13.82 $6,630
NEEDHAM 8,372 $818,436 $11.29 $9,240
NEWTON 16,964 $869,141 $11.61 $10,091
NORTH ANDOVER 6,258 $476,092 $14.39 $6,851
WELLESLEY 7,297 $1,152,734 $11.56 $13,326
WESTON 3,364 $1,470,602 $12.28 $18,059
WINCHESTER 5,620 $872,118 $12.14 $10,588
AVERAGE 7,130 $777,713 $13.22 $10,102
Appendix F: Comparative Pension Liability FundingTown of Lexington
Summit I –October 8th 2015
36
Funded Assumed Year Fully Last Actuarial
Ratio Rate of Return Funded Study
Lexington 83.5%7.75%2025 1/1/2015
Andover 48.3%7.75%2032 1/1/2014
Arlington 49.3%7.50%2033 1/1/2014
Belmont 51.2%7.75%2027 1/1/2014
Concord 81.0%7.50%2030 1/1/2014
Natick 61.1%8.00%2030 1/1/2013
Needham 67.9%7.75%2030 1/1/2014
Newton 50.8%7.65%2019 1/1/2015
Wellesley 67.5%7.00%2030 1/1/2013
Winchester 77.4%7.75%2029 1/1/2013
82.3%
48.3%49.3%51.2%
81.0%
61.1%
67.9%
50.8%
67.5%
77.4%
40%
50%
60%
70%
80%
90%
100%
Lexington Andover Arlington Belmont Concord Natick Needham Newton Wellesley Winchester
Funded Pension Ratio
Appendix F(i): Comparative Pension Liability FundingTown of Lexington
Summit I –October 8th 2015
37
Funded Assumed Year Fully Last Actuarial
Ratio Rate of Return Funded Study
Lexington 83.5%7.75%2025 1/1/2015
Andover 48.3%7.75%2032 1/1/2014
Arlington 49.3%7.50%2033 1/1/2014
Belmont 51.2%7.75%2027 1/1/2014
Concord 81.0%7.50%2030 1/1/2014
Natick 61.1%8.00%2030 1/1/2013
Needham 67.9%7.75%2030 1/1/2014
Newton 50.8%7.65%2019 1/1/2015
Wellesley 67.5%7.00%2030 1/1/2013
Winchester 77.4%7.75%2029 1/1/2013
7.75%7.75%
7.50%
7.75%
7.50%
8.00%
7.75%7.65%
7.00%
7.75%
6.5%
7.0%
7.5%
8.0%
8.5%
Lexington Andover Arlington Belmont Concord Natick Needham Newton Wellesley Winchester
Assumed Rate of Return
Appendix F(ii): Comparative Pension Liability FundingTown of Lexington
Summit I –October 8th 2015
38
Funded Assumed Year Fully Last Actuarial
Ratio Rate of Return Funded Study
Lexington 83.5%7.75%2025 1/1/2015
Andover 48.3%7.75%2032 1/1/2014
Arlington 49.3%7.50%2033 1/1/2014
Belmont 51.2%7.75%2027 1/1/2014
Concord 81.0%7.50%2030 1/1/2014
Natick 61.1%8.00%2030 1/1/2013
Needham 67.9%7.75%2030 1/1/2014
Newton 50.8%7.65%2019 1/1/2015
Wellesley 67.5%7.00%2030 1/1/2013
Winchester 77.4%7.75%2029 1/1/2013
Lexington
Andover
Arlington
Belmont
Concord
Natick
Needham
Newton
Wellesley
Winchester
2018
2020
2022
2024
2026
2028
2030
2032
2034
Year Fully Funded
Appendix G: History of Revenues and ExpendituresTown of Lexington
Summit I –October 8th 2015
39
Revenue Summary FY 20092 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Actual Actual Actual Actual Actual Actual Actual
Property Tax Levy 115,977,132$ 121,010,869$ 126,897,691$ 132,445,308$ 140,284,605$ 147,182,391$ 155,635,871$
State Aid 9,589,026$ 8,962,015$ 8,454,991$ 8,341,106$ 9,334,513$ 10,144,659$ 11,081,189$
Local Receipts 10,161,999$ 11,067,649$ 11,614,932$ 11,899,444$ 12,183,740$ 13,373,875$ 13,461,744$
Available Funds 5,620,168$ 6,053,619$ 6,838,842$ 7,733,170$ 7,249,652$ 12,473,510$ 11,012,293$
Revenue Offsets (1,508,732)$ (1,713,630)$ (1,687,257)$ (2,403,388)$ (1,645,350)$ (1,647,074)$ (2,488,161)$
Total General Fund Revenues 139,839,593$ 145,380,521$ 152,119,199$ 158,015,639$ 167,407,161$ 181,527,362$ 188,702,936$
Other Revenues
Revolving Funds 2,059,045$ 2,298,265$ 2,411,992$ 2,468,693$ 2,147,675$ 2,963,010$ 3,123,844$
Grants 141,454$ 136,553$ 124,073$ 126,573$ 91,284$ 90,786$ 117,486$
Enterprise Funds (Direct)17,117,790$ 17,530,671$ -$ 19,542,495$ 20,681,221$ 21,338,787$ 21,799,125$
Enterprise Funds (Indirect)1,649,339$ 1,701,209$ 1,615,973$ 1,564,441$ 1,512,892$ 1,497,405$ 1,487,905$
sub-total Other Revenues 20,967,628$ 21,666,698$ 4,152,038$ 23,702,201$ 24,433,072$ 25,889,988$ 26,528,360$
Total Revenues 160,807,221$ 167,047,219$ 156,271,237$ 181,717,841$ 191,840,233$ 207,417,350$ 215,231,296$
Expense Summary FY 2009 FY 2010 FY2011 FY2012 FY2013 FY2014 FY 2015
Actual Actual Actual Actual Actual Actual Actual
Education
Lex. Pub Schools Compen.53,372,059$ 54,440,560$ 57,098,128$ 60,874,480$ 64,117,953$ 68,271,626$ 72,889,506$
Lex. Pub Schools Expenses 8,946,145$ 9,753,464$ 9,308,258$ 10,314,624$ 10,807,819$ 11,706,972$ 12,383,296$
sub-total Lex. Pub. Schools 62,318,204$ 64,194,024$ 66,406,386$ 71,189,104$ 74,925,772$ 79,978,598$ 85,272,802$
Minuteman Reg. School 1,510,598$ 1,711,554$ 1,538,811$ 1,702,930$ 1,407,979$ 1,474,265$ 1,244,383$
sub-total Education 63,828,802$ 65,905,578$ 67,945,197$ 72,892,034$ 76,333,751$ 81,452,863$ 86,517,185$
Municipal
Municipal Compen.18,401,946$ 19,379,531$ 20,380,966$ 19,209,439$ 20,390,111$ 21,164,252$ 21,605,890$
Municipal Expenses 7,562,099$ 7,785,739$ 8,539,069$ 8,539,069$ 8,985,527$ 9,499,793$ 9,844,787$
sub-total Municipal 25,964,045$ 27,165,269$ 28,920,035$ 27,748,508$ 29,375,637$ 30,664,045$ 31,450,677$
Shared Expenses
Benefits & Insurance 25,233,150$ 26,993,423$ 28,008,696$ 28,380,746$ 28,083,601$ 26,822,039$ 28,905,912$
Debt (within-levy)3,755,361$ 4,315,849$ 4,614,721$ 4,849,052$ 5,462,902$ 5,409,996$ 6,524,620$
Reserve Fund -$ -$ -$ 900,000$ 900,000$ 900,000$
Public Facilties1 8,430,075$ 8,763,578$ 9,974,653$ 9,242,458$ 9,343,330$ 9,667,013$ 9,958,057$
sub-total Shared Expenses 37,418,585$ 40,072,851$ 42,598,070$ 43,372,256$ 43,789,832$ 42,799,048$ 45,388,589$
Revolving Funds 911,217$ 2,200,641$ 2,064,759$ 2,126,951$ 2,368,300$ 2,379,256$ 2,341,722$
Grants 140,974$ 136,549$ 124,073$ 124,073$ 91,284$ 90,786$ 68,659$
Capital & Reserves
Cash Capital (inc of roads)1,520,750$ 1,545,719$ 1,983,112$ 2,461,602$ 4,152,794$ 6,919,202$ 5,958,117$
Stabilization Fund 1,000,000$ 669,843$ 710,000$ -$ -$ 2,184,000$ 5,910,726$
CPA 2,897,349$ 3,015,893$ 3,215,552$ 3,360,117$ 3,531,782$ 3,205,052$ 4,011,213$
sub-total Capital & Reserves 5,418,099$ 5,231,455$ 5,908,664$ 5,821,719$ 7,684,576$ 12,308,254$ 15,880,056$
Enterprise Funds
Water 7,190,799$ 7,241,304$ 7,619,919$ 7,978,816$ 7,986,604$ 8,653,900$ 9,183,184$
Wastewater (Sewer)7,643,649$ 8,083,478$ 8,315,556$ 9,002,485$ 9,041,143$ 9,087,753$ 9,393,974$
Recreation 1,790,263$ 1,701,957$ 1,835,535$ 1,872,793$ 1,658,811$ 1,711,881$ 1,973,057$
Enterprise Capital 85,305$ 111,000$ 90,000$ 610,000$ 71,000$ 1,211,750$
sub-total Enterprise Funds 16,710,016$ 17,137,739$ 17,861,010$ 19,464,094$ 18,757,559$ 20,665,283$ 20,550,215$
Exempt Debt
Municipal 2,551,420$ 2,853,441$ 2,990,031$ 2,933,716$ 2,026,243$ 1,846,167$ 1,801,140$
School 3,081,223$ 2,892,944$ 2,763,519$ 2,788,118$ 4,172,838$ 5,081,487$ 6,543,162$
sub-total Exempt Debt 5,632,643$ 5,746,385$ 5,753,550$ 5,721,834$ 6,199,081$ 6,927,654$ 8,344,302$
Total Expenses 156,024,382$ 163,596,467$ 171,175,358$ 177,271,469$ 184,600,020$ 197,287,189$ 210,541,405$
Balance 4,782,839$ 3,450,752$ (14,904,121)$ 4,446,372$ 7,240,212$ 10,130,161$ 4,689,891$
1 From FY 2000-FY 2008 cost of Public Facilities are components of spending in Public Works and Education
2 Net Operating Revenue and Cherry Sheet Revenue includes $799,539 in federal stimulus funds used to offset the fourth quarter cut in Chapter 70 aid.
Appendix H: FY 2017 Budget ProcessTown of Lexington
Summit I –October 8th 2015
40
Important Dates
August 2015 February 2016
Issuance of Capital and Operating Budget Guidelines Summit V - Comment and Budget Deliberations February 18th (tent.)
Board of Selectmen Vote on the FY2016 Recommended Budget
Budget Decisions and Deliberations Concluded February 22nd
October 2015 FY2016 Recommended Budget submitted to Town Meeting February 29th
Summit I - Financial Indicators & Projections October 8th
Discuss Guidelines and Drivers March 2016
Town Manager Review of Capital Budget Requests Municipal Election March 7th (tent.)
November 2015 Town Meeting Commences (anticipated)TBD
Summit II - Revenue Projection and Allocation November 12th Budget Presentations by Town Manager TBD
Town Manager Review of Operating Budget Requests and Superintendant
December 2015 Town Meeting Begins Budget Deliberations TBD
Municipal Budget Workshops with Selectmen
School Committee Hearings on Budget
Summit III - Revenue Allocation TBD
January 2016
Submittal of FY2017 Superintendent's Recommended Budget to SC January 5th
Submittal of FY2017 Manager's Recommended Budget to BOS January 11th
Summit IV - Review of FY2017 Town Manager's Preliminary Budget January 14th (tent.)
Calendar Year 2015 Calendar Year 2016
Elections
Town Meeting
Town Manager
Summit
BOS
School Cmte.
January February March April May JuneJulyAugustSeptemberOctoberNovemberDecember
I II III IV VI
V
FY2017 Budget Process
I
II
III
IV
V
Lexington Public Schools
FY2017-19 Three Year Budget
Projections
Lexington Public Schools
October 8, 2015
1
Mission / Vision Statement
The Lexington Public Schools serve to inspire
and empower every student to become a
lifelong learner prepared to be an active and
resilient citizen who will lead a healthy and
productive life. Educators, staff, parents,
guardians and community members will honor
diversity and work together to provide all
students with an education that ensures
academic excellence in a culture of caring and
respectful relationships.
2
Summary
Note: One-time expenses include retrofit of Minuteman Lease Space for Facilities
1 Above the Line - detail on pages 5-6 FY 2014
Appropriation
FY 2015
Appropriation
FY 2016
Appropriation
FY 2017
Projected
FY 2018
Projected
FY2019
Projected
2 Salary and Wages 69,153,948$ 73,496,851$ 78,675,324$ 82,261,325$ 85,963,615$ 88,529,572$
3 Expenses 12,246,559$ 13,127,078$ 13,384,993$ 13,786,543$ 14,200,139$ 14,626,143$
4 Total Above & Below the Line 81,400,507$ 86,623,929$ 92,060,317$ 96,047,868$ 100,163,754$ 103,155,715$
5 Percentage Change 6.42%6.28%4.33%4.29%2.99%
6
7 Below The Line - detail on pages 7-11
8 FY14-16 Benefits for new positions 610,380$ 642,332$ 623,783$
9
FY17 Salaries, Wages, benefits, steps &
COLA - enrollment growth 2,452,956$ 2,575,604$ 2,704,384$
10 Minuteman one-time Facility Expenses 300,000$
11 Minuteman Lease 168,000$ 168,000$ 168,000$
12 Minuteman Expenses 175,000$ 180,250$ 185,658$
13
FY18 Salaries, Wages, benefits, steps &
COLA - enrollment growth 2,287,631$ 2,402,012$
14 Pelham Rd Expenses 175,000$ 180,250$
15 Middle School Expenses 101,300$ 104,339$
16
FY19 Salaries, Wages, benefits, steps &
COLA - enrollment growth 3,292,572$
17 Hastings Expense Increases 110,000$
18
19 Above & Below the Line
20 Salary and Wages 69,764,328$ 74,139,183$ 79,299,107$ 84,714,281$ 90,826,850$ 96,928,541$
21 Expenses 12,246,559$ 13,127,078$ 13,384,993$ 14,429,543$ 14,824,689$ 15,374,390$
22 Total Above & Below the Line 82,010,887$ 87,266,261$ 92,684,100$ 99,143,824$ 105,651,539$ 112,302,930$
23 Percentage Change 6.41%6.21%6.97%6.56%6.30%
3
Key School Policy Issues
•Enrollment Growth
•Building Capacity
•Maximizing Existing Space/Capacity
•Redistricting
•Preserving and Maintaining Programs
•Program Improvements
•Financial Implications of above
4
Assumptions “Above” the Line:
(reflects current staffing and enrollment)
•Salaries & Wages: Includes 3% for step
increases, (-$500,000) for staff turnover
savings
•Salaries & Wages: Includes 2.25% in FY 17
for ALA & LEA Unit A and 2% for FY18 for
LEA Unit A only
•Expenses: Includes 3% increase
5
“Above” the Line
(reflects current staffing and enrollment)
Above the Line FY 2014
Appropriation
FY 2015
Appropriation
FY 2016
Appropriation
FY 2017
Projected
FY 2018
Projected
FY2019
Projected
Salary and Wages 69,153,948$ 73,496,851$ 78,675,324$ 82,261,325$ 85,963,615$ 88,529,572$
Expenses 12,246,559$ 13,127,078$ 13,384,993$ 13,786,543$ 14,200,139$ 14,626,143$
Total Above the Line 81,400,507$ 86,623,929$ 92,060,317$ 96,047,868$ 100,163,754$ 103,155,715$
Percentage Change 6.23%6.42%6.28%4.33%4.29%2.99%
6
Assumptions “Below” the Line:
(staffing changes due to projected enrollment growth)
•Salaries & Wages: Establishes FTE increase per
1.00% increase in enrollment
•Salaries & Wages: Uses aggregate estimated
benefits, workers comp, Medicare cost to add FTE
•Salaries & Wages: Uses Enrollment Working Group
FY17-19 District enrollment projections
•Salaries & Wages: ALA falls “below the line” in
FY18; LEA Unit A (teachers) falls “below the line”
line” in FY19 7
“Below” the Line
(staffing changes due to projected enrollment growth)
Below the Line FY2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
Enrollment 6,608 6,746 6,866 7,008 7,103 7,211
Percent Change in Enrollment 1.63%2.09%1.78%2.07%1.36%1.52%
FTE 963.56 989.12 1,035.73 1,065.21 1,084.53 1,106.20
Change in FTE 40.09 25.56 46.61 29.48 19.32 21.67
PIR FTE 12.68 15.10 9.37
Enrollment/Mandate FTE 27.41 10.46 37.24
FTE increase per 1.0% change in enrollment 16.81 5.01 20.94 14.25 14.25 14.25
Below the Line FY 2014
Appropriation
FY 2015
Appropriation
FY 2016
Appropriation
FY 2017
Projected
FY 2018
Projected
FY2019
Projected
Salaries Proj. - enrollment growth 1,492,898$ 998,103$ 1,119,509$
Benefits Proj. - enrollment growth 416,167$ 286,419$ 337,321$
Cost of 1% increase for current non-settled
contracts/agreements 165,407$ 219,144$ 880,978$
8
Assumptions “Below” the Line:
(reflects new and/or expanding facilities)
•Recurring staff related costs are inclusive of
benefits, workers comp, Medicare
•Only includes marginal cost increase for
projects, not total program costs
•Estimated cost of Elementary World
Language Program is additional $1,496,224
in FY18; inclusive of salaries, benefits,
supplies, and 1% increase to LEA –
Unit A (not included in projection)
9
“Below” the Line
(reflects new and/or expanding facilities)
FY 2017
Lexington Children's Place Lease - Minuteman
Recurring Costs One-time cost
School Salaries 37,487$
Facilities Salaries 134,238$
Facilities Expenses 343,000$ 300,000$
Sub Total 514,725$ 300,000$
Total 814,725$
FY 2018
Pelham Road Property Costs
Recurring Costs One-time cost
School Salaries 292,380$
Facilities Salaries 136,220$
Facilities Expenses 175,000$
Sub Total 603,600$ -$
Total 603,600$
Middle School Projects
Recurring Costs One-time cost
Facilities Salaries 136,220$
Facilities Expenses 101,300$
Sub Total 237,520$ -$
Total 237,520$
FY 2019
Hastings w.out MSBA
Recurring Costs One-time cost
Facilities Salaries 73,785$
Facilities Expenses 110,000$
Sub Total 183,785$ -$
Total 183,785$
10
FTE separated by category
Note: FY17-19 FTE Projected FTE derived from FY14-16 actual budgeted FTE by category. These figures are not used
in the projection/model but are intended to show consistency with the budget model and the number of FTE
added given varying enrollment increases. 11
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Key Policy Issues Related to FY2017 Budget
PRESENTER:
Carl Valente and Mary Czajko wski
ITEM
NUMBER:
3
SUMMARY:
See attached key polic y is s ues fo r disc ussion.
SUGGESTED MOTION:
FOLLOW-UP:
DATE AND APPROXIMATE TIME ON AGENDA:
10/8/2015
ATTACHMENTS:
Des crip tion Type
FY2017 Policy Is s ues Pres entation
Town of LexingtonSummit I –October 8th 2015FY 2017 Policy Issues1.Financing Plan for Increasing School Population2.Financing Plan/Tax Impact for School Facilities3.Financing Plan/Tax Impact for Public Safety Facilities4.Funding for and use of the Capital Projects Stabilization Fund30
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Review Special Town Meeting Warrant
PRESENTER:
Jo e Pato
ITEM
NUMBER:
4
SUMMARY:
See attached warrants fo r S p ecial To wn Meeting #1 and Spec ial Town Meeting #2.
Pat Goddard will provid e a Sc hool Fac ilities P lan Update.
Carl Valente will dis c us s a proposed To wn Manager Task F o rce fo r a Sc ho o l P ro jects F inancing Plan.
See attached warrants fo r S p ecial To wn Meeting #1 and Spec ial Town Meeting #2.
SUGGESTED MOTION:
FOLLOW-UP:
DATE AND APPROXIMATE TIME ON AGENDA:
10/8/2015
ATTACHMENTS:
Des crip tion Type
Special Town Meeting Warrant #1 - Schools Backup Material
Special Town Meeting Warrant #2 Backup Material
TOWN WARRANT
Town of Lexington
Special Town Meeting #1
Commonwealth of Massachusetts Middlesex, ss.
To any of the Constables of the Town of Lexington Greetings:
In the name of the Commonwealth of Massachusetts, you are hereby directed to notify the inhabitants of
the Town of Lexington qualified to vote in elections and in Town affairs to meet in the Margery Milne
Battin Hall in Cary Memorial Building, 1605 Massachusetts Avenue, in said Town on Monday,
November 2, 2015, at 7:30 p.m., at which time and place the following articles are to be acted upon and
determined exclusively by the Town Meeting Members in accordance with Chapter 215 of the Acts of
1929, as amended, and subject to the referendum provided for by Section eight of said Chapter, as
amended.
NOTE: There is a possibility that the Cary Memorial Building renovation project will not be
completed in time for Town Meeting to convene in the Margery Milne Battin Hall on November
2. If so, Town Meeting will be relocated to the Clarke Middle School Auditorium. Town Meeting
Members will be notified via the TMMA listserv and the Town’s website, prior to November 2, of
any relocation. Residents are asked to check the Town’s website to confirm the location of Town
Meeting. Signage will also be placed in front of the Cary Memorial Building if the relocation is
necessary.
ARTICLE 1 REPORTS OF TOWN BOARDS, OFFICERS, COMMITTEES
To receive the reports of any Board or Town Officer or of any Committee of the Town, or act in any other
manner in relation thereto.
(Inserted by the Board of Selectmen)
DESCRIPTION: This article remains open throughout the Special Town Meeting.
ARTICLE 2 APPROPRIATE FOR SCHOOL FACILITIES CAPITAL PROJECTS
To see if the Town will vote to appropriate a sum of money for: continuing the school facility master
planning study for specific capital projects for the Fiske, Hastings and Harrington Elementary Schools
and the Clarke and Diamond Middle Schools; design, engineering and architectural services for these
projects; and for the related remodeling, reconstruction or making extraordinary repairs to these or other
school facilities; for the construction of the buildings, including original equipment and landscaping,
paving and other site improvements incidental or directly related to such remodeling, reconstruction or
repair, determine whether the money shall be provided by the tax levy, by transfer from available funds,
by borrowing, or by any combination of these methods; determine if the Town will authorize the
Selectmen to apply for, accept, expend and borrow in anticipation of state aid for such capital
improvements; or act in any other manner in relation thereto.
(Inserted by the School Committee)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: This article is to request funding for the studies, design and construction of
school facilities to address current and anticipated school enrollment.
ARTICLE 3 LAND PURCHASE AND IMPROVEMENTS - 20 PELHAM ROAD
To see if the Town will vote to authorize the Selectmen to purchase or otherwise acquire, or to take by
eminent domain for municipal or school purposes, any fee, easement, or other interest in all or any part of
land known as 20 Pelham Road and shown as lot 65A on Assessors’ Property Map 31, owned by the
Congregation of Armenian Sisters of the Immaculate Conception, Inc.; for design, engineering and
architectural services for plans and specifications and related costs; and to make access and site
improvements and to remodel, reconstruct and make extraordinary repairs to the existing school building on
such property; and to appropriate a sum of money therefor and determine whether the money shall be
provided by the tax levy, by transfer from available funds, or by borrowing, or by any combination of these
methods; or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: This article requests funding to purchase the property at 20 Pelham Road for
municipal or school purposes and to make access and site improvements, remodel, reconstruct and
make extraordinary repairs to the existing school building on the property.
ARTICLE 4 APPROPRIATE FOR ENGINEERING STUDY – 20 PELHAM ROAD
To see if the Town will vote to raise and appropriate a sum of money for engineering studies and related
costs for access roads and sidewalks connecting Pelham Road, the property at 20 Pelham Road and the
Community Center at 39 Marrett Road and Marrett Road and any improvements that may be necessary to
Pelham Road to access 20 Pelham Road; determine whether the money shall be provided by the tax levy,
by transfer from available funds, by borrowing, or any combination of these methods; or act in any other
manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: Should Town Meeting approve the purchase of the 20 Pelham Road property, this
Article would fund the engineering study for roadways and sidewalks to connect this property to the
Community Center property, Marrett Road and Massachusetts Avenue.
And you are directed to serve this warrant not less than fourteen days at least before the time of said
meeting, as provided in the Bylaws of the Town.
Hereof fail not and make due return of this warrant, with your doings thereon, to the Town Clerk, on or
before the time of said meeting.
Given under our hands this 5th day of October 2015.
Joseph N. Pato Selectmen
Peter C.J. Kelley
Norman P. Cohen of
Suzanne E. Barry
Lexington
A true copy, Attest:
Richard W. Ham, Jr.
Constable of Lexington
TOWN WARRANT
Town of Lexington
Special Town Meeting #2
Commonwealth of Massachusetts Middlesex, ss.
To any of the Constables of the Town of Lexington Greetings:
In the name of the Commonwealth of Massachusetts, you are hereby directed to notify the inhabitants of the Town of
Lexington qualified to vote in elections and in Town affairs to meet in the Margery Milne Battin Hall in Cary Memorial
Building, 1605 Massachusetts Avenue, in said Town on Monday, November 2, 2015 at 7:35 p.m., at which time and place
the following articles are to be acted upon and determined exclusively by the Town Meeting Members in accordance with
Chapter 215 of the Acts of 1929, as amended, and subject to the referendum provided for by Section eight of said Chapter,
as amended.
NOTE: There is a possibility that the Cary Memorial Building renovation project will not be completed in time for Town
Meeting to convene in the Margery Milne Battin Hall on November 2. If so, Town Meeting will be relocated to the Clarke
Middle School Auditorium. Town Meeting Members will be notified via the TMMA listserv and the Town’s website, prior to
November 2, of any relocation. Residents are asked to check the Town’s website to confirm the location of Town Meeting.
Signage will also be placed in front of the Cary Memorial Building if the relocation is necessary.
ARTICLE 1 REPORTS OF TOWN BOARDS, OFFICERS, COMMITTEES
To receive the reports of any Board or Town Officer or of any Committee of the Town, or act in any other manner in
relation thereto.
(Inserted by the Board of Selectmen)
DESCRIPTION: This article remains open throughout the Special Town Meeting.
ARTICLE 2 AMEND MINUTEMAN REGIONAL AGREEMENT
To see if the Town will accept and approve the “Amendment to Minuteman Regional Agreement regarding the
Withdrawal of the Town of Wayland from the Minuteman Regional School District”, which was approved by the
Minuteman Regional School Committee on July 7, 2015 and which has been submitted to the Board of Selectmen
consistent with the current Minuteman Regional Agreement, or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
DESCRIPTION: The Town of Wayland voted to seek withdrawal from the Minuteman Regional School District. As
required, the District School Committee drafted an amendment to the Regional Agreement setting forth the terms by
which Wayland may withdraw from the District. The Amendment permitting the Town of Wayland to withdraw from
the District will become effective only if all sixteen member towns of the District, as well as the Commission of
Education, vote to approve this Amendment.
ARTICLE 3 TRANSFER OF PROPERTY TO LEXHAB
To see if the Town will vote to authorize the Board of Selectmen to transfer the land known as 34 Lowell Street and
further shown as Lot 2A on a plan of land entitled “Lowell Street, Lexington, Massachusetts, Assessor’s Map 20/Parcel
38, Subdivision Plan of Land Approval Not Required”, recorded at the Middlesex South Registry of Deeds in Plan Book
02015, Page 108, to the Lexington Housing Assistance Board, Inc. (“LexHAB”) for nominal consideration, or act in any
other manner in relation thereto.
(Inserted by the Board of Selectmen at the request of the LexHAB)
DESCRIPTION: The property in this article is owned by the Town of Lexington. This article will authorize the
transfer of ownership of the land to LexHAB.
ARTICLE 4 APPROPRIATE FOR WATER SYSTEM IMPROVEMENTS
To see if the Town will vote to make water distribution system improvements, including the installation of new water
mains and replace or clean and line existing water mains and standpipes, conduct engineering studies and purchase and
install equipment in connection therewith, in such accepted or unaccepted streets or other land as the Selectmen may
determine, subject to the assessment of betterments or otherwise; and to take by eminent domain, purchase or otherwise
acquire any fee, easement or other interest in land necessary therefor; appropriate money for such improvements and land
acquisition and determine whether the money shall be provided by the tax levy, by transfer from available funds,
including any special water funds, by borrowing, or by any combination of these methods; to determine whether the Town
will authorize the Selectmen to apply for, accept, expend and borrow in anticipation of or from federal and state aid for
such projects; or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: Funds requested in this article will be used to repair and replace large water mains in east
Massachusetts Avenue. Some of these water mains date from 1896 and have deteriorated and have pin-hole size
leaks.
ARTICLE 5 APPROPRIATE FOR PROPERTY IMPROVEMENTS - 241 GROVE STREET
To see if the Town will vote, upon recommendation of the Community Preservation Committee, to raise and appropriate a
sum of money to remodel, reconstruct and make extraordinary repairs and related improvements to the existing farm
house at 241 Grove Street for community housing purposes, and for other mitigation to the property, determine whether
the money shall be provided by the tax levy, by transfer from available funds, including the Community Preservation
Fund, by borrowing, or by any combination of these methods; or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: This article is to request funding for necessary improvements to the farm house on the Wright
Farm property owned by the Town in order to provide a unit of affordable housing.
ARTICLE 6 APPROPRIATE FUNDS FOR FIRE STATION SITE STUDY
To see if the Town will vote to appropriate a sum of money for studying potential sites for a fire station; determine
whether the money shall be provided by the tax levy, by transfer from available funds, by borrowing or by any
combination of these methods; or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: This article is to request funding for evaluating potential sites for a fire station.
ARTICLE 7 AMEND FY2016 OPERATING, ENTERPRISE FUND AND
COMMUNITY PRESERVATION BUDGETS
To see if the Town will vote to make supplementary appropriations, to be used in conjunction with money appropriated
under Articles 4, 5 and 8 of the warrant for the 2015 Annual Town Meeting, to be used during the current fiscal year, or
make any other adjustments to the current fiscal year budgets and appropriations that may be necessary; to determine
whether the money shall be provided by the tax levy, by transfer from available funds, from Community Preservation
funds or by any combination of these methods; or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: This is an article to permit adjustments to current fiscal year (FY2016) appropriations.
ARTICLE 8 APPROPRIATE TO AND FROM SPECIFIED STABILIZATION FUNDS
To see if the Town will vote to appropriate sums of money to and from Stabilization Funds in accordance with Section 5B of
Chapter 40 of the Massachusetts General Laws for the purposes of: (a) Section 135 Zoning By-Law, (b) Traffic Mitigation,
(c) Transportation Demand Management/Public Transportation, (d) School Bus Transportation, (e) Special Education, (f)
Center Improvement District; (g) Debt Service, (h) Transportation Management Overlay District, (i) Avalon Bay School
Enrollment Mitigation Fund, and (j) Capital Projects; and determine whether the money shall be provided by the tax levy, by
transfer from available funds, or by any combination of these methods; or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: This article proposes to fund Stabilization Funds for specific purposes and to appropriate funds
therefrom. Money in those funds may be invested and the interest may then become a part of the particular fund. The
use of these funds may be appropriated for the specific designated purpose by a two-thirds vote of an Annual or Special
Town Meeting.
ARTICLE 9 APPROPRIATE FOR AUTHORIZED CAPITAL IMPROVEMENTS
To see if the Town will vote to make supplementary appropriations to be used in conjunction with money appropriated in
prior years for the installation or construction of water mains, sewers and sewerage systems, drains, streets, buildings,
recreational facilities or other capital improvements and equipment that have heretofore been authorized; determine
whether the money shall be provided by the tax levy, by transfer from the balances in other articles, by transfer from
available funds, including enterprise funds and the Community Preservation Fund, by borrowing, or by any combination
of these methods; or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: This is an article to request funds to supplement existing appropriations for certain capital
projects in light of revised cost estimates that exceed such appropriations.
ARTICLE 10 APPROPRIATE FOR PRIOR YEARS’ UNPAID BILLS
To see if the Town will vote to raise and appropriate money to pay any unpaid bills rendered to the Town for prior years;
to determine whether the money shall be provided by the tax levy, by transfer from available funds, or by any
combination of these methods; or act in any other manner in relation thereto.
(Inserted by the Board of Selectmen)
FUNDS REQUESTED: unknown at press time
DESCRIPTION: This is an article to request funds to pay bills after the close of the fiscal year in which the
goods were received or the services performed and for which no money was encumbered.
And you are directed to serve this warrant not less than fourteen days at least before the time of said meeting, as provided
in the Bylaws of the Town.
Hereof fail not and make due return of this warrant, with your doings thereon, to the Town Clerk, on or before the time of
said meeting.
Given under our hands this 5th day of October 2015.
Joseph N. Pato Selectmen
Peter C.J. Kelley
Norman P. Cohen of
Michelle L. Ciccolo
Suzanne E. Barry Lexington
A true copy, Attest:
Richard W. Ham, Jr.
Constable of Lexington
Town of Lexington
Lexington, MA 02420
ECRWSS
Residential Patron
Lexington, MA
PRESORTED
STANDARD
U.S. Postage PAID
Boston, MA
Permit No. 3011
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Establish Date: Summit 2
PRESENTER:
Jo e Pato
ITEM
NUMBER:
5
SUMMARY:
The p ro p o s ed d ate fo r S ummit 2 is November 12, 2015.
SUGGESTED MOTION:
FOLLOW-UP:
DATE AND APPROXIMATE TIME ON AGENDA:
10/8/2015
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Confirm Special Town Meeting Warrant Vote
PRESENTER:
Jo e Pato
ITEM
NUMBER:
6
SUMMARY:
At the Selec tmen meeting o n Octo b er 5, 2015, the Bo ard signed Spec ial To wn Meeting warrants #1 and #2.
Upon examination of d etailed p lo t p lans d uring executive session, Ms . Cic c o lo dis c o vered that s he may have a
conflict of interes t with the Pelham property and dec id ed that she sho uld rec us e hers elf fro m vo ting to s ign the
warrant fo r Spec ial Town Meeting #1. As the Board entered executive sess io n with the dec lared intent to return
to o p en s es s ion only to ad jo urn, correc tive ac tio n could no t b e taken that night.
SUGGESTED MOTION:
1) Mo tion to res c ind the s igning of the No vemb er 2015 Spec ial Town Meeting #1 Warrant
2) Mo tion to s ign the Novemb er 2015 Spec ial T o wn Meeting #1 Warrant
FOLLOW-UP:
Selec tmen's O ffic e
DATE AND APPROXIMATE TIME ON AGENDA:
10/8/2015
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Annual Town Meeting Location Discussion
PRESENTER:
Jo e Pato
ITEM
NUMBER:
7
SUMMARY:
The Symp hony has reques ted the us e of Battin Hall for March 28 and 30 fo r very imp o rtant Symp hony
rehearsals. The Lexingto n High Sc hool Audito rium is availab le if the Board agrees to move Town Meeting on
tho s e two nights .
SUGGESTED MOTION:
FOLLOW-UP:
Selec tmen's O ffic e
DATE AND APPROXIMATE TIME ON AGENDA:
10/8/2015
ATTACHMENTS:
Des crip tion Type
Emails Regarding Symphony Reques t Backup Material
1
Lynne Pease
From:Carl Valente
Sent:Tuesday, October 06, 2015 6:38 PM
To:'Michelle Ciccolo'; Patrick Goddard; Lynne Pease
Cc:Norman Cohen
Subject:RE: Your help with Lexington Symphony scheduling
Michelle and Norman,
Town Meeting for these two dates can be at the High School. The BOS sets the location of Town Meeting. We have it
on the agenda for Thursday. If the Board approves, the Symphony can be accommodated at Cary.
Carl
Carl F. Valente
Town Manager
1625 Massachusetts Avenue
Lexington, MA 02420
781 698‐4545
781 861‐2921 (fax)
(When writing or responding please understand that the Secretary of State has determined that emails are a public record and,
therefore, may not be kept confidential.)
From: Michelle Ciccolo [mailto:mciccolo@gmail.com]
Sent: Monday, October 05, 2015 1:37 PM
To: Carl Valente <cvalente@lexingtonma.gov>; Patrick Goddard <pgoddard@lexingtonma.gov>; Lynne Pease
<LPEASE@lexingtonma.gov>
Subject: Fwd: Your help with Lexington Symphony scheduling
Not sure Norm or I should be in the middle of this... Should I have her call one of you?
---------- Forwarded message ----------
From: <vhecker@lexingtonsymphony.org>
Date: Sun, Oct 4, 2015 at 11:54 AM
Subject: Your help with Lexington Symphony scheduling
To: Michelle Ciccolo <mciccolo@gmail.com>, Norm Cohen <linorm@comcast.net>
Cc: Sam Wade <swade@lexingtonsymphony.org>, Jonathan McPhee <JBMcphee@aol.com>
Dear Michelle (and Norm) -
I am writing to ask for your help. Lexington Symphony is in a difficult situation
regarding a scheduling conflict for rehearsals for our concert in April 2016. Norm
is already aware of the situation, and I am hoping that the two of you together
as Selectmen might be able to help us.
We learned last week that all of our rehearsals in March (March 23, 28 and 30) at
Cary Hall, in preparation for our concert on April 2, conflict with Town Meeting.
This was a great surprise to us, as we had received confirmation for all dates for
2
our entire season of concerts and rehearsals at Cary Hall last Spring, and all dates
have been confirmed with musicians and soloists.
Our concert on April 2, 2016, is Lexington Symphony's biggest undertaking in its
entire 20 year history. It is called "The Essential Ring" and is a distillation of the
first 2 operas of Richard Wagner's "Ring Cycle" (which in its full version is 4
operas, each 4 hours long). This version has been entirely edited by Music
Director Jonathan McPhee, and will be a total of 3 hours. The program is a
collaboration with Symphony New Hampshire, where Jonathan also conducts.
There will be a with a combined orchestra of 110 musicians, and we have booked
8 spectacular international vocal soloists who are coming from all over the world
for two performances -- one at Cary Hall and one at Keefe Center for the Arts
Nashua. We are expecting huge press coverage for this.
Rehearsals in the venue where we are performing are essential for this
production. In addition to the huge orchestra and 8 solo singers, we have super-
titles for translation of the opera and lighting that need to be coordinated with
the music. The logistics for this program are extremely complicated. Because we
are doing 2 concerts in 2 different locations (which we normally do not), we have
only 2 evenings in Cary Hall to rehearse this program with full orchestra and
soloists, on Monday, March 28 and Wednesday, March 30, and one opportunity
for rehearsal in NH the following evening, Thursday, March 31. March 28 and 30
(particularly the 30th) are dates when we desperately need Cary Hall for
rehearsal, more that any other time in the orchestra's history. We can possibly
move the March 23 rehearsal to another location.
We have already discussed switching dates with Symphony New Hampshire
(moving ours to March 31 and theirs to March 30) but their venue is not
available on March 30. Not having dates to rehearse in Cary Hall prior to the
concert is just not an option for Lexington Symphony. All contracts with
orchestra players and singers have been signed and cannot be changed.
We are hoping that through your intercession, there might be a possibility of
moving Town Meeting to another location on March 28 and 30.
We would appreciate it so very much if you could help us with this predicament.
Norm suggested speaking with Deborah Brown. Jonathan McPhee is also willing
to speak with both of you, and anyone else that could have the influence to
change the meeting location.
This particular concert is so special, we have worked for months to put the
amazing cast together, Jonathan has put in countless hours on editing the score,
and it is a program that will make the Town of Lexington proud! We hope that
this one time for something as special as this, that the Town will take our
situation into consideration.
Thank you both so much for anything you can do to help. We appreciate all the
support that both of you have given to Lexington Symphony, and we hope that
others in the community will show their support by helping us with this issue.
If you have any questions, please call me at 617-599-8181 or General Manager
3
Samantha Wade at 781-704-5275.
With many thanks and best wishes,
Virginia
Virginia Hecker
--
Michelle Ciccolo Jackson
50 Shade Street, Lexington, MA 02421
781-307-7330 Mobile
781-862-0808 Home
Follow me on Twitter @mciccolo
Visit my website: www.michelleciccolo.com
Like my facebook page: https://www.facebook.com/michelleforlexington
AGENDA ITEM SUM M ARY
LEXINGTON BOARD OF SELECTMEN MEETING
AGENDA ITEM TITLE:
Selectmen Consent Items
PRESENTER:
Jo e Pato
ITEM
NUMBER:
8
SUMMARY:
A req uest was rec eived to serve beer and wine at a private b irthd ay p arty at the Dep o t Building o n Octo ber 17,
2015 from 9:00 p.m. to 12:00 midnight. A one-d ay liq uor licens e is needed bec aus e the func tion is b eing held
in a pub lic loc ation.
The Lexington Minutemen have req uest permis s io n to use the Battle Green for a drill and musket firing on
Saturday, October 10, 2015, fro m 1:00 PM to 3:00 PM. Polic e, Engineering have no c o nc erns. Pub lic Works
has no concerns as long as the Minutemen c lean up the area and there are no vehicles p arked o n the Battle
Green.
SUGGESTED MOTION:
Mo tion to app ro ve the Co nsent Agenda.
FOLLOW-UP:
Selec tmen's O ffic e
DATE AND APPROXIMATE TIME ON AGENDA:
10/8/2015
ATTACHMENTS:
Des crip tion Type
Lexington Minutemen Reques t for Battle Green Backup Material
One-Day Liquor Licens e Application - Birthday Party at Depot Backup Material