HomeMy WebLinkAbout1990-11-26-AC-MIN.pdf APPROPRIATION COMMITTEE MEETING
NOVEMBER 26, 1990
Present:
J. Pagett M. O'Sullivan
M. Mairson J. Curry
R. Sousa G. Burnell
R. Levy J. Ryan
* General discussion on Art. 3 (Unpaid Fir 90 School Bills), see handout,
"AC recommendations to Town Meeting re: Art. 3"
*attempt to put School Comm. on notice, but find it difficult to get a
guarantee from the S.C. that the same won't occur in FY 91
* discuss methods on eliminatirng the suprise issue
* AC feels it has no alternative but to suggest approval
*While we see this as the only practical solution available to Town
Meeting we are concerned that the deficit was not anticipated by the
School Department. Any deficit should be identified at an earlier date
-- .
in order to insure there is the ability and flexibility to respond to chang-
ing conditions. The AC is encouraged that SC has already identified a
potential $400,000 problem in FY 91 and has begun to address the
potential problem.
*The further into FY 91 one gets the more drastic the cuts will be in
order to close the deficit.
* General discussion of Art. 2 (Pine Meadows/ Meagherville Development)
* discussion of "incremental" costs
* J. Pagett has had some discussions with Lisa Albergini, Community
Builders, a limited partnership
* Community Builders has a track record at the Franklin School
* Lexington Savings will hold the mortgage and will require a
guarantee
* at end of investment period what will Lexington have?
* worst case senario, all rents dry up, Town left with a $378K mtg
* general discussion on C.707 & Sect. 8 subsidies, is Town liable for
non-performing rents, how solid is the Commonwealth's committment
with 18 back-up certificates
* AC's concerns are primarily in the area of incremental school costs,
the infrastructure, drainage, street lighting
* AC would like to have available a 5 year cash flow projection
* is the town on the hook if there should be a default?
* LEXHAB estimates the school costs to be approximately $250K
(40 students @ $5300 ea.), with taxes due the Town pegged at $26K
*what are the plans if any to liquidate the limited partners if
necessary
* AC has many issues with the project as they relate to the Town's
finances