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HomeMy WebLinkAbout2017-04-05-AC-min04/05/2017 AC Minutes Minutes Town of Lexington Appropriation Committee (AC) April 5, 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; Jian Helen Yang; Carolyn Kosnoff, Assistant Town Manager, Finance (non-voting, ex officio) Member(s) Absent: Richard Neumeier; Lily Manhua Yan Other Attendees: David Kanter, Vice -Chair, Capital Expenditures Committee; Jeanne Krieger, Chair, Board of Trustees, Brookhaven at Lexington The meeting was called to order at 6:35 p.m. 1. Announcements Mr. Bartenstein reported that the Planning Board has voted on a final version of a motion under Article 42: Amend Zoning Bylaw Two -Family Homes and is expected to release a written report and the motion tomorrow. The motion will include three options for "by right" construction of two- family homes. The Planning Board continues to work on Article 40: Amend Zoning Bylaw Special Permits Residential Developments. Mr. Bartenstein also reported that he has requested guidance on what, if any, limitations fair housing laws impose on public discussion of the impact of proposed zoning bylaw changes on school enrollment. To date, guidance has not been provided. 2. Reserve Fund Transfer Request Ms. Kosnoff reported that a Purchase and Sale Agreement for 20 Pelham Road has been signed. Per the agreement, the Town is responsible for paying the Armenian Sisters $75,000 for site clean- up work that was conducted prior to the sale. The Town Manager has proposed that the funds come from a Reserve Fund transfer, which must be approved by this Committee. A motion was made and seconded to support the Reserve Fund transfer, as requested. The motion passed. VOTE: 7-0 Members of the Committee noted that a commitment had been made at an earlier budget summit to notify Town Meeting of any supplemental costs associated with the purchase in excess of the $8 million appropriated by Town Meeting in 2016. Ms. Kosnoff agreed to share this reminder with the Town Manager. 3. Minutes A motion was made and seconded to approve the March 20, 2017, March 27, 2017, and the March 29, 2017, minutes. The motion passed. VOTE: 7-0 4. Financially Related Warrant Articles for 2017 Annual Town Meeting (ATM) Article 16 (d) Appropriate for Public Facilities Capital Projects: Facility and Site Improvements: This article includes three components: Building Flooring Program; School Paving Program; and 1 04/05/2017 AC Minutes School Traffic Safety improvements. Mr. Kanter stated that the CEC plans to present an amendment to the motion specifying separate amounts for each component so that the funds cannot be used interchangeably. The CEC's view is that Town Meeting should be voting on each component separately to ensure transparency. Ms. Kosnoff explained the reasoning for maintaining fungibility, and said that the Town Manager, may review the issue at Town Meeting. It was generally agreed to defer taking a position on the proposed amendment until it comes up at Town Meeting so that the Town Manager's comments can be considered. Article 28: Amend FY2017 Operating, Enterprise and CPA Budgets: Ms. Kosnoff reviewed two items expected to be included in the motion under Article 28 that involve adjustments to the FY2017 budget: • Department of Public Works line item adjustments to provide funding for a summer intern in lieu of a contract employee. • An appropriation from the retained earnings of the Water Enterprise Fund to pay a supplemental invoice issued by the Massachusetts Water Resources Authority for water provided to the Town of Burlington on an emergency basis in 2016, for which Lexington had previously billed, and received payment from, Burlington Article 44: Amend Zoning Bylaw Brookhaven (Owner Article) : It was noted that this article primarily presents zoning issues, but has financial implications because Brookhaven and the Selectmen have entered into an agreement to revise Brookhaven's Payment in Lieu of Taxes (PILOT), as well as to make annual affordable housing mitigation payments over the next 15 years, if the article is approved. This agreement was negotiated by a team from the Town including the Board of Selectmen and the Planning Board. In response to questions, Jeanne Krieger, Chair of the Board of Trustees of Brookhaven, provided the following information: • Brookhaven purchased approximately six acres of land for the proposed expansion; before Brookhaven owned the property, a developer had planned to construct 13 condominiums on the site. • Brookhaven has had one other expansion since it was built; there is no additional land for expanding beyond the current proposal. • Brookhaven has been paying a PILOT since it opened per previous negotiated agreements with the Town. • The Board of Assessors reviewed Brookhaven's tax-exempt status for this fiscal year and found it entitled to continued exemption as a charitable organization for these reasons: ➢ The facility has a charitable mission to house and provide health care for the elderly. ➢ The costs are considered to be the lowest possible and reasonable. ➢ No one is asked to leave the facility if they run out of funds. • Should the Board of Assessors change Brookhaven's tax-exempt status during the period it is making affordable housing payments, Brookhaven would pay taxes and continue to pay the affordable housing mitigation payment, but the PILOT would end. • Brookhaven does not provide affordable housing and is not in a position to provide such; however, the small units do not pay for themselves and are subsidized by the larger units. This Committee decided not to take a position on the article but to provide to Town Meeting a report on the financial aspects of the proposal that has been drafted by Ms. Basch. 2 04/05/2017 AC Minutes A motion was made and seconded to approve the draft supplemental report with non -substantive changes that may be subsequently identified. The motion passed. VOTE: 6-0 (Ms. Yang departed shortly before the vote was taken.) 5. Adjourn The Committee adjourned at 7:30 p.m. The documents used at the meeting are listed below. Respectfully submitted, Sara Arnold, Recording Secretary Approved: May 15, 2017 Exhibits • Agenda, posted by John Bartenstein, Chair • Executed Reserve Fund Transfer Request • Brookhaven Mitigation Revised PILOT, 3/27/17 • Brookhaven MOU Conditions, 3.29.17 3