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HomeMy WebLinkAbout2017-03-22-AC-min03/22/2017 AC Minutes Minutes Town of Lexington Appropriation Committee (AC) March 22, 2017 Place and Time: Ellen Stone Room, Cary Memorial Building, 6:30 p.m. Members Present: John Bartenstein, Chair; Alan Levine, Vice -Chair & Secretary; Ellen Basch; Eric Michelson; Andrei Radulescu-Banu; Sanjay Padaki; Lily Manhua Yan; Carolyn Kosnoff, Assistant Town Manager, Finance (non-voting, ex officio) Member(s) Absent: Richard Neumeier; Jian Helen Yang Other Attendees: None The meeting was called to order at 6:40 pm. 1. Announcements Mr. Bartenstein reported the following: • He had delivered a brief report to the Board of Selectmen (BoS) earlier that evening regarding this Committee's position on Article 30: Adjust Retirement Cost of Living Adjustment (COLA) Base for Retirees. The BoS plans to take a position on this Article on Monday evening, March 27. • It is anticipated that Article 10(k): Appropriate for the FY2018 Community Preservation Committee Operating Budget and CPA Project: Community Center Sidewalk will be indefinitely postponed because the planned location for that sidewalk has changed and further engineering work needs to be done. • Mr. Valente plans to provide some additional information regarding Article 10(h): Appropriate for the FY2018 Community Preservation Committee Operating Budget and CPA Project: Stone Building Feasibility Study. Mr. Valente wants to clarify that conceptual plans already exist and the requested funds would be used to support outreach and marketing to determine demand for use of the facility. • Two minor errors were found in this Committee's report to the 2017 Annual Town Meeting. It was determined that there was no need to file an erratum. 2. Financially Related Warrant Articles for 2017 Annual Town Meeting (ATM) It was noted that the Planning Board has five Articles which this Committee left as "pending" in its written report. Because some of them are expected to have financial implications, this Committee will be reviewing the Planning Board's report and discussing them in the near future. Ms. Kosnoff reported that the Department of Revenue had rejected a request by the Town of Lexington to use excluded debt for funding $477,000 of a previous supplemental appropriation for the elementary school modular buildings; the funds will now need to come from the tax levy. The Town's policy is to try to limit increases to within -levy debt service to no more than 5% per year. Ms. Kosnoff reported that the FY17 Recommended Budget and Financing Plan (aka: The Brown Book) is being updated with an erratum including a number of small changes, primarily related to funding sources. 1 03/22/2017 AC Minutes It was noted that a member of the Capital Expenditures Committee may present a motion to ATM to amend Article 21: Appropriate to Post Employment Insurance Liability Fund, reducing the amount for the Post Employment Insurance Liability (PEIL) fund and allocating the amount reduced to the Capital Stabilization Fund or the Pension Fund. Identified pros and cons included: • The PEIL and Pension Funds are allowed to invest in markets that get a higher rate of return than most other funds. • A tangible benefit from investment in the PEIL Fund will only be realized when it is sufficiently funded that benefit payments can be made from its investment returns • Reducing the level of funding identified in the Article would be less supportive of the BoS policy to work towards fully funding the PEIL fund. • Given the need for large capital projects, further funding the Capital Stabilization Fund would help curtail tax increases, although the amount that's being discussed would have a minimal impact. Mr. Bartenstein and Mr. Radulescu-Banu expressed opposition to reducing the amount going to the PEIL fund. Mr. Michelson said he needed to consider the issue further. Mr. Levine, Ms. Basch, Mr. Padaki, and Ms. Yan said they would likely support reducing the amount allocated to the PEIL fund from $1.8 million to $1.2 million and appropriating the balance to the Capital Stabilization Fund. Mr. Michelson explained that because the Town of Belmont elected to withdraw from the Minuteman Regional Vocational School District within 60 days after that Town's rejection of the school replacement project in the district -wide referendum, Belmont will not be liable for the debt service associated with building a new facility. This puts Belmont in the same position as the six towns that left the district when the new district agreement was adopted, even though Belmont will remain a member of the district through July of 2020. Going forward, any Town withdrawing from the district would continue to carry responsibility for the debt service. 3. Adjourn The Committee adjourned at 7:20 p.m. The documents used at the meeting are listed below. Respectfully submitted, Sara Arnold, Recording Secretary Approved: March 29, 2017 Exhibits • Agenda, posted by John Bartenstein, Chair 2