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HomeMy WebLinkAbout2017-03-16-AC-min03/16/2017 AC Minutes Minutes Town of Lexington Appropriation Committee (AC) March 16, 2017 Place and time: Selectmen's Meeting Room (moved from Parker Room), Town Office Building, 7:30 p.m. Members present: John Bartenstein, Chair; Alan Levine, Vice -Chair & Secretary; Ellen Basch; Eric Michelson; Richard Neumeier; Andrei Radulescu-Banu; Sanjay Padaki; Lily Manhua Yan; Jian Helen Yang Members Absent: Carolyn Kosnoff, Assistant Town Manager, Finance (non-voting, ex officio) Other Attendees: Bob Cunha, Chair, Retirement Board The meeting was called to order at 7:35 p.m. 1. FY2018 Budget Issues and Report to 2017 Annual Town Meeting (ATM) on Financially Related Warrant Articles ATM articles were reviewed in preparation for votes on their merit and to determine whether additional information was necessary in preparation of the report. Discussion and/or actions were taken on the following articles: • Article 30: Adjust Retirement Cost of Living Adjustment (COLA) Base for Retirees: Mr. Cunha provided historical context regarding the application of COLAs to Town pensions, discussed average pension amounts received by retirees, and reviewed the process for determining the COLA percentage (up to 3% annually). He also reviewed the Town's effort to fully fund its pension liability using actuarial estimates that are calculated every two years. In recommending an increase from $13,000 to $14,000 in the base amount on which the COLA is calculated, the Retirement Board worked with Rob Addelson, recently retired Assistant Town Manager, Finance, to develop an acceptable annual amortization schedule for the pension liability. Although it cannot be changed for FY2018, it can be altered in future years. In response to questions, Mr. Cunha said that this is a good time to implement an increased base because the pension fund is doing well, this is an actuary review year, and it keeps Lexington comparable to similar towns in the area. This Committee discussed the need for a systematic process for deciding on such increases and the importance of increases in the base being considered when negotiating compensation packages. It was agreed to include such comments in this Committee's report to the 2017 ATM. ➢ A motion was made and seconded to support Article 30. Mr. Neumeier recused himself from the vote because of a potential conflict of interest. The motion passed. VOTE: 6-2 It was agreed that a minority position would be included in this Committee's report to the ATM. • Because of being unable to attend the last meeting, Mr. Neumeier was asked to vote on the following articles, changing the vote total as indicated: ➢ Article 5: Appropriate FY2018 Enterprise Funds Budgets: VOTE: 9-0 ➢ Article 7: Appropriate for Updating the Town's Comprehensive Plan: VOTE: 9-0 1 03/16/2017 AC Minutes ➢ Article 10(d): Appropriate for the FY2018 Community Preservation Committee Operating Budget and CPA Projects: Affordable Units Preservation Pine Grove Village/Judges Way: VOTE: 9-0 ➢ Article 12(q): Appropriate for Municipal Capital Projects and Equipment: Highway Sign Machine: VOTE: 6-2-1 ➢ Article 15: Appropriate for School Capital Projects and Equipment: VOTE: 9-0 ➢ Article 16(b): Appropriate for Public Facilities Capital Projects: Lexington High School Air Conditioning — Teacher Planning Offices and Library. VOTE: 9-0 ➢ Article 17: Appropriate for Hastings School Replacement Design: VOTE: 9-0 ➢ Article 19: Appropriate for Advice and Analysis - Getting to Net Zero: VOTE: 5-3-1 ➢ Article 20: Accept Harbell Street: VOTE: 9-0 • Article 4: Appropriate FY2018 Operating Budget: Ms. Yang reviewed the Lexington Public School budget request. Mr. Michelson reviewed the Minuteman Technical High School budget request. Ms. Yan reviewed the program for Shared Expenses. Mr. Michelson reviewed the municipal program budget. Mr. Neumeier discussed his efforts to have the Town hire inside counsel to perform much of the work currently done using outside counsel, currently at an expense of over $400,000 annually, excluding bond counsel costs. He believes the current request for outside legal services should be reduced to enable funding the hiring of in-house counsel. ➢ A motion was made and seconded to support presenting an amendment to Town Meeting reducing the amount in Line Item 8120 for outside counsel from $410,000 to $150,000. The motion failed. VOTE: 3-6 It was agreed that this Committee's report to the ATM should include a discussion of this issue and encourage decision -makers to seriously consider this alternative. ➢ A motion was made and seconded to support Article 4. The motion passed. VOTE: 9-0 • Article 11: Appropriate for Recreational Capital Projects: Mr. Neumeier agreed to prepare material for a write-up of this article, for which unanimous approval has already been voted. • Article 21: Appropriate to Post Employment Insurance Liability (PEIL) Fund: Mr. Levine reviewed the article. It was noted that David Kanter, Vice -Chair, Capital Expenditures Committee, may present a motion to amend this article to reduce the amount for the PEIL Fund and thereby allow an increase in the amount appropriated into the Capital Stabilization Fund or the Retirement Fund. It was agreed to address such an amendment if and when it is made. Using a handout, Mr. Radulescu-Banu discussed whether the current funding request is in line with the Board of Selectmen's goals for funding the PEIL Fund. ➢ A motion was made and seconded to support Article 21. The motion passed. VOTE: 9-0 • Article 24: Appropriate to and from Specified Stabilization Funds: Ms. Yang reported on updated data for this Article. ➢ A motion was made and seconded to support Article 24. The motion passed. VOTE: 9-0 • Article 36: Amend General Bylaws Municipal Modernization Act (WA): Ms. Basch reported that the 2017 ATM Warrant includes five local options under the MMA for the ATM to consider accepting for the Town's implementation. There were outstanding questions regarding the local option under Chapter 41, Section 111F , which addresses appropriations into a Special Fund for Injured Police and Firefighters 2 03/16/2017 AC Minutes ➢ A motion was made and seconded to support all but the local option under Chapter 41, Section 111F included in Article 36. The motion passed. VOTE: 9-0. An effort will be made to obtain further information on the fifth local option in time to vote before the matter comes before the ATM. • Article 38: Amend General Bylaws Revolving funds: Resulting from the MMA, this article would allow the Town to expedite the process of establishing future revolving funds by including them in a bylaw. ➢ A motion was made and seconded to support Article 38. The motion passed. VOTE: 9-0 • Appendix A: Mr. Bartenstein noted that a Lexington bylaw requires this Committee to submit budget projections for future years [Code of Lexington § 29-11(A)]. Conservative estimates are typically used, sometimes projecting considerable deficits although the Town ultimately cannot incur deficits since its budget must be balanced; nevertheless, it is a useful exercise. • Introduction: Mr. Bartenstein reviewed his plans for an introduction to the Committee report. There was a review of remaining tasks required to finalize the report, which should go to the printer on Monday or Tuesday. 2. Next Meeting Mr. Bartenstein reported that the next meeting is Monday, March 20, from 6:30 p.m. to 7:30 p.m., immediately prior to the opening of the 2017 ATM and Special Town Meeting 2017-1. 3. Adjourn The Committee adjourned at 10:13 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 • Article ATM -21, OPEB/PEIL, prepared by Mr. Radulescu-Banu, March 16, 2017 3