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HomeMy WebLinkAbout2023-04-24-AC-min 04/24/2023 AC Minutes 1 Minutes Town of Lexington Appropriation Committee (AC) April 24, 2023 Place and Time: Robbins Room – Cary Memorial Building, 1605 Massachusetts Ave.; 7:00p.m.–7:30 p.m. Members Present: Glenn Parker, Chair; Anil Ahuja; John Bartenstein; Alan Levine, Secretary; Eric Michelson; Sean Osborne; Carolyn Kosnoff, Assistant Town Manager, Finance (non-voting, ex officio) Members Absent: Sanjay Padaki, Vice-Chair; Lily Manhua Yan Other Attendees: None At 7:05 p.m. Mr. Parker called the meeting to order. Announcements and Liaison Reports No announcements or liaison reports were made. Increase the FY2023 authorization of the Lexington Tree Fund Revolving Fund The Department of Public Works requested an increase in the current fiscal year authorization for the Lexington Tree Fund Revolving Fund from $75,000 to $125,000. This would fund tree replace- ment at the Center Recreation Area where a large number of trees were recently removed. Changing the annual authorization of a revolving fund can be done with the approval of the Select Board and the Appropriation Committee. The Select Board approved this request at a meeting on April 12. The Committee approved the request by a vote of 6-0. Mr. Parker signed a printed request form on behalf of the Committee and returned it to Ms. Kosnoff. Updated financing of the lead and copper removal project for Town water infrastructure Per Ms. Kosnoff, the original motions under Article 5(a) and Article 13 assumed that only a portion of the cost of the Water Department’s Lead and Copper Program (a.k.a. “Lead Service Line Re- placement”) would be eligible for no-interest 10-year loan financing from the Massachusetts Water Resources Authority (MWRA). The Town has recently learned that the entire cost of this program is eligible, and taking full advantage of the MWRA financing will save the Town $286,000 in inter- est costs. To make this change, the motion for Article 5(a) was modified to add $1,300,000 of additional debt service, and funding under Article 13 was modified to be entirely debt-based. For the funding of Ar- ticle 13, this eliminated $500,000 in Water Enterprise Funds Retained Earnings and $800,000 in Water User Rates, and added $1,300,000 to the $2,909,580 of Water Enterprise Fund debt that was previously in the request, for a total of $4,209,580 in debt. The Committee voted to recommend approval of the revised motions for Article 5(a) and Article 13 by a vote of 6-0. Minutes of Prior Meetings Minutes from the Committee meeting on April 3 were approved by a vote of 6-0. 04/24/2023 AC Minutes 2 Minutes for the meetings of March 16 are currently outstanding. Future Meetings An agenda has been posted for 7:00 p.m. on Wednesday, April 26. This meeting will be cancelled if there is no business for the Committee. Adjourn The meeting was adjourned at 7:28 p.m. Respectfully submitted, Glenn P. Parker Approved: May 11, 2023 Exhibits ● Agenda, posted by Mr. Parker