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HomeMy WebLinkAbout1996-12-19-AC-MIN.pdf APPROPRIATION COMMITTEE MEETING MINUTES THURSDAY, DECEMBER 19, 1996 COMPTROLLER'S OFFICE, 7:30 PM PRESENT: R. Borghesani, S. Coit, R. Colwell, P. Lapointe, M. Miley, I. Mroczkowski, R. Pawliczek ABSENT: R. Leone, L. Peck, J. Ryan Discussion of Draft Warrant Article P. Lapointe noted that John Ryan and Norm Cohen independently suggested linking the capital financing proposals to a stabilization fund. On financial matters a town meeting resolution can not bind future town meetings. However, state statute provides for a stabilization fund and permits a balance to be carried from year to year. Paul stated that the town manager's proposed budget might include a$150,000 appropriation to initiate a stabilization fund. The Committee identified and discussed a range of issues related to the draft article, including: — Depreciation schedules and estimated annual depreciation charges — The need for a prospective model to suggest future annual capital financing needs — Phasing in of a long-term approach: Use a percentage of depreciation? Apply depreciation to new purchases only? — Viability of stabilization fund approach: For what purposes would town meeting appropriate stabilization funds? Would voters approve an override with a balance in a stabilization fund? — Need for educating, explaining, and building support of selectmen and other players R. Colwell moved, and M. Miley seconded adoption of the draft article as written. R. Borghesani suggested an alternative approach: simply reserve a place in the warrant now, propose 5% or some other reasoned percentage as a capital spending requirement, and draft the specific warrant article in the next several weeks. R. Colwell withdrew his original motion with the consent of M. Miley. The chair moved, and R. Colwell seconded, that the Appropriation Committee reserve an article in the warrant proposing guidelines for funding capital expenditures. Motion carried unanimously. Paul agreed to submit a memo by December 27 requesting that an article be reserved. To gather information on the municipal and school asset base, committee members agreed to talk to the town manager before contacting the DPW (Isabel) and the Fire Department (Mary). Roger agreed to gather information on school assets. School Committee Capital Budget Warrant Articles P. Lapointe distributed a December 18 memo from Jeff Young to Rick White reporting the School Committee's vote approving an FY98 capital budget request of$1,382,290, consisting of two items: — Technology hardware and equipment, $1,029,290 — Repairs and renovations to the school administration building, $352,000 The memo also requested that a second warrant article, the amount to be determined at a later date, be reserved to appropriate funds for the design and reconstruction of school buildings. APPROPRIATION COMMITTEE MEETING MINUTES THURSDAY, DECEMBER 19, 1996 Page 2 of 2 School Issues for Further Study Roger and Paul reported on a meeting earlier that afternoon with Jeff Young and Sandy Guryan. In a memo to Paul, Jeff had invited the Committee to further study special education; Paul had suggested a meeting to develop an agenda of issues for further analysis. In addition to special education, the following topics were identified in the meeting: 1. Class size, a key policy affecting elementary school operating budgets and space needs 2. Teacher loads, the middle school and high school equivalent of class size 3. The current contract with the Lexington Education Association 4. Foundation budgets, staffing, and other external benchmarks that might serve as "metrics" to assess the Lexington schools 5. Educational materials — textbooks, reference materials, software. Are they current? What is the replacement cycle? How far behind is the school system in replacing out-of-date materials? The committee discussed which of these deserve priority and how it could contribute to better understanding any of these topics. The committee agreed that two areas should receive attention: 1. Understanding the current teachers contract (Though there is little prospect of reopening the current contract, there was interest in influencing negotiations for the next contract.) 2. Class size and teacher loads Jeff had agreed to copy sections of the teacher contract and other materials for Roger and Paul. School Committee Capital Planning R. Borghesani reported on the School Committee's $67 million renovation and expansion proposal. He and Ron Colwell have attended ad hoc committee meetings with the architects, school administrators, one or two selectmen, school committee members, and representatives from the capital expenditures, permanent building, and building finance committees. This ad hoc committee is developing the specific warrant article request. Resolving the Estimated $1.7 Million 1997-98 Budget Gap A budget working group, consisting of Leo McSweeney and Dan Fenn, Rick White, Barrie Peitz, Jeff Young, Karen Dooks, Paul Hamburger, and P. Lapointe, has been meeting periodically. At a 7:30 AM meeting today, Leo and Rick presented an overview of estimated revenues and projected expenditures resulting in a $1.7 million General Fund gap. Rick projects about$2 million in incremental revenue and $3.7 million in incremental expenses. The schools will request about $3 million more, consisting of these anticipated incremental costs: — $1 million to fund 3.1% pay increase and other teacher contract provisions — $700,000 to sustain costs of additional 141 students — $600,000 for added special education costs — $700,000 for other cost increases: inflation, textbooks, materials, equipment, etc. The municipal increase will be about $700,000, reelecting a 1.5% wage increase and 3% increases in other expense categories. The group will meet again at 7:30 AM on Thursday, January 2, 1997. Next Meeting Dates January 9 and 23, 1997, at 7:30 PM in the comptroller's office. Note In the secretary's absence, S. Coit took meeting notes, and P. Lapointe prepared these minutes.