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HomeMy WebLinkAbout2017-03-15-AC-min03/15/2017 AC Minutes Minutes Town of Lexington Appropriation Committee (AC) March 15, 2017 Place and time: Ellen Stone Room (moved from Cotton Room), Cary Memorial Building, 7:30 p.m. Members present: John Bartenstein, Chair; Alan Levine, Vice -Chair & Secretary; Ellen Basch; Eric Michelson; Andrei Radulescu-Banu; Sanjay Padaki; Lily Manhua Yan; Jian Helen Yang; Carolyn Kosnoff, Assistant Town Manager, Finance (non-voting, ex officio) Members Absent: Richard Neumeier Other Attendees: Carl Valente, Town Manager; Dawn McKenna, Chair, Tourism Committee The meeting was called to order at 7:41 pm. 1. FY2018 Budget Issues and Report to 2017 Annual Town Meeting (ATM) on Financially Related Warrant Articles ATM articles were reviewed in preparation for Committee votes on their merits and to determine whether additional information was necessary for writing of the Committee's report. Discussion and/or actions were taken on the following articles: • Article 30: Adjust Retirement Cost of Living Adjustment (COLA) Base for Retirees: Mr. Valente disclosed that as an employee he is personally impacted by the outcome of this article. He explained that employees contribute to their pension plans, and the pensions are largely funded by those contributions. COLAs are currently applied to the first $13,000 a retiree receives. The Lexington Retirement Board has voted to approve increasing that base to $14,000, subject to a favorable vote by Town Meeting. There is current uncertainty about the actuarial impact of increasing the COLA base on the annual normal costs and the Town's unfunded liability for pension costs, and Mr. Valente said he would make further inquiry of the retirement system's actuary on that question. The Retirement Board is authorized to create a payment schedule for fully funding the pension liability. Its currently proposed schedule defers recognition of the increase in amortization payments required by the COLA base increase until FY2023 and FY2024, when the unfunded liability is expected to be retired. Mr. Valente believes the Retirement Board's proposed schedule was designed to keep the increase in the Town's pension funding obligations to 5% per year. He noted, however, that the funding schedule is subject to negotiation with the Town, and that he would prefer to make the additional unfunded liability payments earlier, rather than later, as this would allow those contributions to grow at a favorable rate of return (currently estimated at 7.75%) for a longer period of time. It was agreed that additional questions would be presented to Bob Cunha, Chair, Retirement Board, at this Committee's next meeting. There was discussion about pension payments, including COLAs, being part of the package of "total compensation" which the Board of Selectmen should take into account when engaging in collective bargaining with Town employees. There was also discussion about other uses to which the revenue stream which will be freed up once the Town has fully funded its pension liabilities could be put, including additions to the Capital Stabilization Fund and additional OPEB funding. 1 03/15/2017 AC Minutes • Article 5: Appropriate FY2018 Enterprise Funds Budgets: Mr. Bartenstein reviewed the article. ➢ A motion was made and seconded to support Article 5. The motion passed. VOTE: 8-0 • Article 6: Appropriate for Senior Services Program: Mr. Bartenstein noted that this program has $41,000 remaining from prior year appropriations. Despite the substantial carryover balance, there was a consensus not to revisit the Committee's prior unanimous vote to support the requested $30,000 appropriation. The program needs more participation. • Article 7: Appropriate for Updating the Town's Comprehensive Plan: Ms. Yan reviewed the article. ➢ A motion was made and seconded to support Article 7. The motion passed. VOTE: 8-0 • Article 10(d): Appropriate for the FY2018 Community Preservation Committee Operating Budget and CPA Projects: Affordable Units Preservation Pine Grove Village/Judges Way: Ms. Yan reviewed Article 10(d). ➢ A motion was made and seconded to support Article 10(d). The motion passed. VOTE: 8-0 • Article 11: Appropriate for Recreational Capital Projects: It was noted that Mr. Neumeier would prepare material for this article. • Article 12(q): Appropriate for Municipal Capital Projects and Equipment: Highway Sign Machine: Mr. Padaki reviewed this item. There were questions about the cost benefits of the equipment. ➢ A motion was made and seconded to support Article 12(q). The motion passed. VOTE: 5-2-1 • Article 15: Appropriate for School Capital Projects and Equipment: Ms. Yang reviewed this article. ➢ A motion was made and seconded to support Article 15. The motion passed. VOTE: 8-0 • Article 16(b): Appropriate for Public Facilities Capital Projects: Lexington High School Air Conditioning— Teacher Planning Offices and Library. Ms. Basch reviewed this item. ➢ A motion was made and seconded to support Article 16(b). The motion passed. VOTE: 8-0 • Article 17: Appropriate for Hastings School Replacement Design: Mr. Levine reviewed this article. ➢ A motion was made and seconded to support Article 17. The motion passed. VOTE: 8-0 • Article 18: Appropriate for Visitors Center (Citizen Article): Ms. McKenna reported that the Tourism Committee, which is spearheading this citizen article, is meeting on March 22 at 4:30 p.m. to finalize preparation of the motion and on March 27 with the Board of Selectmen (BoS) to request their support of that motion. The motion is expected to request additional funding needed through either schematic design or design development for a new Visitors Center. The Tourism Committee would like the new facility operational by 2020, in time for Plymouth's 400th anniversary, which is expected to generate an influx of tourists to the Boston area. This would require construction to begin in 2018. This Committee generally agreed that its position on this article should remain pending until the final motion is available. 2 03/15/2017 AC Minutes • Article 19: Appropriate for Advice and Analysis - Getting to Net Zero: Mr. Radulescu- Banu reviewed this article. Mr. Michelson expressed his opposition, noting that Lexington can learn from other Towns and does not need to spend money to be a leader of such efforts. ➢ A motion was made and seconded to support Article 19. The motion passed. VOTE: 4-3-1 • Article 20: Accept Harbell Street: It was noted that residents pay for the upgrades necessary for a street to be accepted, but then the Town assumes responsibility for maintenance. ➢ A motion was made and seconded to support Article 20. The motion passed. VOTE: 8-0 • Article 24: Appropriate to and from Specified Stabilization Funds: Ms. Yang reviewed this article and reported that she is still collecting data for the report. It was noted that withdrawals from the stabilization funds would be identified as funding sources in other articles, including items in Article 4. • Article 36: Amend General Bylaws Municipal Modernization Act (M11IA): Ms. Basch explained that there are certain "local option" sections of the MMA which Town staff wish to implement which require approval by Town Meeting. There was a review of remaining tasks required to finalize the report, which should go to the printer on Monday or Tuesday. 2. Minutes A motion was made and seconded to accept the minutes, with edits, for March 9, 2017. The motion passed. VOTE: 8-0 3. Next Meeting Mr. Bartenstein reported that the next meeting will be on Thursday evening when Bob Cunha, from the Retirement Board, plans to attend to discuss Article 30. During the ATM, this Committee will meet from 6:30-7:30 p.m. before each Town Meeting session. 4. Adjourn The Committee adjourned at 10:17 p.m. The documents used at the meeting are listed below. Respectfully submitted, Sara Arnold, Recording Secretary Approved: April 3, 2017 Exhibits • Agenda, posted by John Bartenstein, Chair • Lexington Retirement COLA 13K-14KAnalysis, presented by Mr. Valente, 3