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Home My WebLink About2025-11-03 SB Packet - ReleasedSELECT BOARD MEETING Monday, November 3, 2025 Select Board Meeting Room, 1625 Massachusetts Avenue, Lexington, MA 02420 - Hybrid Participation* 6:30 PM AGENDA CONSENT AGENDA 1.Approve: One-Day Liquor License - Monroe Center for the Arts, 1403 Massachusetts Avenue Gallery Reception - Thursday, November 6, 2025 2.Approve: One-Day Liquor License - Off Beat Tap Company, 1403 Massachusetts Avenue Seasonal Suites Tap Dance Event - Friday, November 7, 2025 3.Approve: Town Manager Reappointment Commission on Disability - Nancy Wong 4.Accept Fund Terms: Elizabeth Whitfield Endowed Concertmaster Chair Fund 5.Approve: Water and Sewer Commitments ITEMS FOR INDIVIDUAL CONSIDERATION 1.Approve: FY2026 Water & Sewer Rates 6:35pm 2.Special Town Meeting 2025-2 - Article Discussions and Select Board Positions 6:45pm ADJOURN 1.Anticipated Adjournment 7:00pm Meeting Packet: https://lexington.novusagenda.com/agendapublic/ *Members of the public can attend the meeting from their computer or tablet by clicking on the following link at the time of the meeting: https://lexingtonma.zoom.us/j/82013535294? pwd=mGvKYC9PHOT8ByUHHa0a18jNRhRXpf.1 Phone +1 646 876 9923 Meeting ID: 820 1353 5294 Passcode: 848540 An Act Relative to Extending Certain State of Emergency Accommodations: https://www.mass.gov/the-open-meeting-law The next regularly scheduled meeting of the Select Board will be held on Tuesday, November 4, 2025 at 7:00pm via hybrid participation. Hearing Assistance Devices Available on Request All agenda time and the order of items are approximate and subject to change. AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: One-Day Liquor License - Monroe Center for the Arts, 1403 Massachusetts Avenue PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.2 SUMMARY: Category: Decision-Making Monroe Center for the Arts is requesting a One-Day Liquor License to serve wine for the purpose of their Gallery Reception, on Thursday, November 6, 2025 from 6:30 pm - 8:30 pm at 1403 Massachusetts Avenue. For reference, the area on the Event Diagram that is marked GREEN is where the event will take place in the building. SUGGESTED MOTION: To approve a One-Day Liquor License for the Monroe Center for the Arts to serve to serve wine at their Gallery Reception, on Thursday, November 6, 2025 from 6:30 pm - 8:30 pm at 1403 Massachusetts Avenue. Move to approve the consent. FOLLOW-UP: Select Board Office. DATE AND APPROXIMATE TIME ON AGENDA: 11/3/2025 ATTACHMENTS: Description Type MCFTA - EVENT DIAGRAM Backup Material AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: One-Day Liquor License - Off Beat Tap Company, 1403 Massachusetts Avenue PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.1 SUMMARY: Category: Decision-Making The Off Beat Tap Company is requesting a One-Day Liquor License to serve beer and wine for the purpose of the Seasonal Suites Tap Dance event reception, on Friday, November 7, 2025 from 7:00 pm - 9:00 pm at the Monroe Center for the Arts, 1403 Massachusetts Avenue. SUGGESTED MOTION: To approve a One-Day Liquor License for the Off Beat Tap Company to serve to serve beer and wine for the purpose of the Seasonal Suites Tap Dance event reception, on Friday, November 7, 2025 from 7:00 pm - 9:00 pm at the Monroe Center for the Arts, 1403 Massachusetts Avenue. Move to approve the consent. FOLLOW-UP: Select Board Office. DATE AND APPROXIMATE TIME ON AGENDA: 11/3/2025 ATTACHMENTS: Description Type Event Map Backup Material GROUND FLOORMIDDLE FLOORTOP FLOORMUNROE CENTER for the ARTS 1403 Massachusetts Avenue 781.862.6040 214 213211 212210 222 223 206 202204 200 201 203 216 301 303 304 300 310 312 316 318 320 322 324325 124 123 120 121 122 118114 104 103101 100 224 313 215 111 MCA OFFICE3173rd FlOOR 2nd FlOOR 1st FlOOR Maintenance Boiler Room MASS. AVE. Seasonal Suites Gallery Reception AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: Town Manager Reappointment PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.5 SUMMARY: Category: Decision-Making The Town Manager is requesting that the Select Board approve the reappointment of Nancy Wong to the Commission on Disability. State Conflict of Interest Law online training is up-to-date for Nancy Wong. SUGGESTED MOTION: To confirm the Town Manager's reappointment of Nancy Wong to the Commission on Disability with a term set to expire October 30, 2028. Move to approve the consent. FOLLOW-UP: Town Manager's Office. DATE AND APPROXIMATE TIME ON AGENDA: 11/3/2025 ATTACHMENTS: Description Type Application Backup Material Submit Date: Oct 22, 2025 First Name Middle Initial Last Name Home Address Suite or Apt City State Postal Code Primary Phone Alternate Phone Employer Job Title Lexington MA Boards & Committees Application Form Profile Attendance to a regularly scheduled meeting of the board or committee of interest is strongly encouraged when considering applying for membership. All committee meetings are open to the public and are posted at least 48 hours in advance of the meeting in our www.lexingtonma.gov/calendar. If you are appointed to the board or committee for which you have applied, information from this application will be used to contact you regarding your appointment from the appointing authority as well as the Town Clerk’s Office. Please do not offer information on this application you would prefer we not use. Applications will be kept on file and considered as vacancies occur for up to six months unless otherwise noted. If you have any questions or need more information regarding the completion of the application, please contact either the Select Board Office at 781-698-4580 or the Town Manager’s Office at 781-698-4540. Nickname Preferred Title (i.e. Mr., Ms., Mx., Dr., Rev .....) Alternate Email Address (Optional) Length of Residence in Lexington (Note: ZBA requirement is a minimum of 8 years) 20 What Precinct do you live in? Precinct 1 Nancy Wong Lexington MA 02420 Home disabled Nancy Wong Upload a Resume Conflict of Interest Law Training Certificate Work Address disabled from stroke Which Boards would you like to apply for? Commission on Disability: Submitted Interests & Experiences Please tell us about yourself and why you want to serve. Special Training and/or Qualifications former hospital admin. Why are you interested in serving on a board or commission? to know what is safe for community How did you hear about the board or commission for which you are applying? onlinr Have you recently attended any meetings of the board or committee for which you are applying? Yes No Have you confirmed your availability to attend the board or committee's meetings? (i.e. can attend at the time the committee regularly meets) Yes No Do you currently serve on another board or committee? Yes No If yes, please list date of most recent Conflict of Interest Law Training. 02/05/2022 Nancy Wong AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Accept Fund Terms: Elizabeth Whitfield Endowed Concertmaster Chair Fund PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.6 SUMMARY: Category: Decision-Making Elizabeth Whitfield Endowed Concertmaster Chair Fund The Select Board is being asked to accept the terms of the Elizabeth Whitfield Endowed Concertmaster Chair Fund, established by the Lexington Symphony in honor of founding concertmaster Elizabeth Whitfield. The Fund will support the annual compensation of the Symphony’s concertmaster and will be managed by the Trustees of Public Trusts. SUGGESTED MOTION: To accept the terms of the Elizabeth Whitfield Endowed Concertmaster Chair Fund, to be managed by the Trustees of Public Trusts. Move to approve the consent. FOLLOW-UP: Select Board Office. DATE AND APPROXIMATE TIME ON AGENDA: 11/3/2025 ATTACHMENTS: Description Type TPT- executed Elizabeth Whitfield Concertmaster Chair Fund MOU Backup Material AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: Water and Sewer Commitments PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.4 SUMMARY: Water & Sewer Commitments Finals July 2025 - $ 24,122.55 SUGGESTED MOTION: Move to approve the Consent FOLLOW-UP: Treasurer / Collector DATE AND APPROXIMATE TIME ON AGENDA: 11/3/2025 ATTACHMENTS: Description Type 11/3/25 Comm Cover Memo AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: FY2026 Water & Sewer Rates PRESENTER: Carolyn Kosnoff, Assistant Town Manager Finance ITEM NUMBER: I.1 SUMMARY: This is the second and final meeting on proposed water and wastewater rates for FY2026. The Select Board held a public hearing regarding proposed rates on Friday, October 17th. At this meeting, the Board reviewed the results of FY2025 water and wastewater operations; Enterprise fund retained earnings histories; the FY2026 water and wastewater budgets as adopted at the 2025 annual town meeting (including downward adjustments to be approved at the Fall STM 2025-2 on November 3, 2025); estimated FY2026 water and wastewater usage projections; and preliminary FY2026 water and wastewater rates. Tonight’s agenda item is for the purpose of setting FY2026 water and wastewater rates. The proposed rates are on slide 3 of the attached presentation and represent an combined increase $36.40 or 3.4% for the average Lexington household. The proposed water rates are slightly lower than advertised and presented at the public hearing on October 17, 2025, and the proposed wastewater rates remain the same as proposed. Additional details may be found in the attached presentation and revised rate memo. SUGGESTED MOTION: Move that the Board approve proposed FY2026 water and wastewater rates shown on page 3 of the attached rate presentation. FOLLOW-UP: New rates will be effective for the Fall 2025 semi-annual billing period; bills to be issued in November. DATE AND APPROXIMATE TIME ON AGENDA: 11/3/2025 6:35pm ATTACHMENTS: Description Type FY2026 Water & Sewer Rate Update_Final Vote Presentation FY2026 Water & Sewer Rate Memo - Revised Backup Material Town of Lexington Water and Wastewater Rate Setting – Final for Approval Fiscal Year 2026 November 3, 2025 Town of Lexington Select Board– November 3, 2025 2 •Final proposed water rates for FY2026 have been revised slightly downward from an increase of 3.5% to an increase of 3.3% •FY2026 wastewater rates remain as originally proposed, an increase of 3.4% •Bedford’s estimated FY2026 consumption has been revised to reflect a level estimate compared to the FY2025 estimate (700,000 HCF) •Bedford’s total FY2025 consumption has been updated to reflect consumption & billing adjustments in the final quarter of 2025 •Combined increase in proposed utility rates for FY2026 is 3.4% which reflects increases in the annual utility budgets and nearly flat consumption estimates Updates to proposed FY2026 rates since October 17th Public Hearing: FY2026 Proposed Utility Rates (Revised) FY2026 Proposed Rates (Revised) Town of Lexington Select Board– November 3, 2025 3 ** Rounding on % change may differ slightly between tiers due to rates being rounded to the whole penny. Consumption Estimates (Revised) Town of Lexington Select Board– November 3, 2025 4 MWRA Community Comparison Town of Lexington Select Board– November 3, 2025 5 Town of Lexington Select Board– November 3, 2025 6 Want to track your water usage? Sign up for the Town’s tool for FREE! https://lexingtonma.gov/1547/Track-Monitor-Water-Usage https://eyeonwater.com/login Need Utility Assistance? Customers who qualify for the Federal Low Income Home Energy Assistance Program (LIHEAP) may be also be eligible for a discount on water and sewer bills. Contact Human Services at 781-698-4840 for more information on this financial assistance program. Memoranda To: Steve Bartha, Town Manager From: Carolyn Kosnoff, Assistant Town Manager for Finance Date: October 28, 2025 Subject: Proposed FY2026 Water and Wastewater Rates (REVISED) The attached packet contains information in support of the proposed FY2026 water and wastewater rates. The following reports are included for your reference: a.FY2025 Operating Results for the water and wastewater operations b.Water consumption history and chart for FY2018 to FY2025, and estimates of FY2026 usage used for calculating proposed FY2026 water and wastewater rates (REVISED 10/28/2025) c.Water consumption and graphs provided by MWRA- MWRA system wide CY2022 -CY2024; and Lexington CY2022 - CY2024 d.Water and wastewater expenditure history including amendments to the FY2026 budgets proposed for the 2025 Fall Special Town Meeting to serve as the basis for proposed FY2026 rates e.Proposed FY2026 water and wastewater rates (REVISED 10/28/2025) f.A history of water purchased from the MWRA, by month, from 2006 through September, 2025 with a highlight on recent summer usage g.A presentation of the combined impact of FY2026 water and wastewater rates at various levels of annual usage (REVISED 10/28/2025) h.Community comparison of water and sewer charges and assessments from MWRA Advisory Board's 2024 Annual Water and Wastewater Retail Rate Survey i.FY2025 and FY2026 MWRA assessments for all peer communities that utilize MWRA for water and sewer services FY2025 Water and Wastewater Enterprise Operating Results The Water Enterprise ended FY2025 with an operating surplus of approximately $2,119,000. This surplus was due to revenues exceeding estimates by $1,918,000, plus a turn-back of $201,000 in expenditures. Surplus revenue was primarily generated from $1,233,000 in excess user charges. Irrigation revenue exceeded estimates by $418,000, but was partly offset by lower than projected usage by the Town of Bedford. Revenues also benefited from $687,174 in interest income. Water Enterprise expenses were under budget in several areas including compensation and contractual services. Detailed Water Enterprise operating results for FY2025 can be found on page 7. Town of Lexington . 1 A review of FY2025 billed water use versus budgeted estimates (page 9) shows that estimated usage across tiers 1, 2 and 3 down aligned with projections. Tiered usage continues to reflect the downward trend in domestic consumption that began in FY2018 (with the exception of FY2021 which reflected a change in behaviors related to the pandemic), though this trend appears to be leveling off. The Sewer Enterprise ended FY2025 with net operating income of $360,000, which reflects a $243,000 revenue surplus and turn-backs of $118,000 in expenditures. Wastewater revenue benefited from slightly higher than projected receipts from tiered revenue, as well as collection of liens and interest income. Expenses were favorable in compensation, contractual services, and supplies. Detailed Wastewater Enterprise operating results for FY2025 can be found on page 8. FY2026 Water and Wastewater Enterprise Fund Budgets On a combined basis, Lexington's water and wastewater budgets are increasing 3.7% from FY2025 to FY2026. Detailed budgets for the enterprise funds are on pages 12 and 13. Enterprise Budgets FY2025 Budget FY2026 Budget*$ Change % Change Water Enterprise $ 13,357,484 $ 13,950,718 $ 593,234 4.4% Wastewater Enterprise $ 12,821,490 $ 13,193,477 $ 371,987 2.9% Combined Enterprise Budgets $ 26,178,974 $ 27,144,195 $ 965,221 3.7% *Reflects water and wastewater budget adjustments proposed for the Fall 2025 STM-2 for actual debt service and final MWRA assessments. The FY2026 Water Enterprise budget is $13,950,718 inclusive of indirect costs, which represents a $593,234 increase, or 4.4%, from the final FY2025 budget. This increase is primarily due to an increase in the annual MWRA assessment of $218,618 or 2.6% compared to FY2025, and an increase in cash capital investment (page 12). The FY2026 Wastewater Enterprise budget is $13,193,477 inclusive of indirect costs, which represents a $371,987 increase, or 2.9%, over the final FY2025 budget. This increase is attributable to a $180,203, or 2.0% increase in the MWRA assessment compared to the FY2023 budget and the addition of $100,000 in cash capital (page 13). The largest expense in both the water and wastewater budgets is our annual assessment from the MWRA which for FY2026 represents 62.0% and 70.7% of the total budgets, respectively. Several factors impact the Town's MWRA assessments from year-to-year, though they are largely driven by changes in the MWRA's annual budget. Our water assessment will also fluctuate based on Lexington's consumption of water during the previous calendar year, and our Town's percent share of consumption in relation to the total MWRA system. For wastewater, our assessment will fluctuate based on our Town's average sewer flows from the past three calendar years and our Town's wastewater contamination levels. 2 Proposed FY2026 Water and Wastewater Rates Preliminary water and wastewater rates are proposed to increase 3.4%, on a combined basis. This average increase reflects a 3.3% increase in water rates and a 3.4% increase in wastewater rates. The proposed rate calculations are based on budgeted expenses and estimated water and wastewater consumption for fiscal year 2026. Detailed rate calculations are on pages 14 and 15. PROPOSED FY2026 RATES Residential / Commercial / Industrial FY25 Water Rates Proposed FY26 Water Rates % Change FY25 Wastewater Rates Proposed FY26 Wastewater Rates % Change Tier 1 $5.06 $5.23 3.4%$10.27 $10.62 3.4% Tier 2 $7.59 $7.84 3.3%$16.78 $17.35 3.4% Tier 3 $10.02 $10.35 3.3%$26.69 $27.60 3.4% Irrigation $10.02 $10.35 3.3%NA NA NA Municipal $3.92 $3.93 0.3%$3.68 $3.68 0.0% Hanscom/Lincoln Labs $7.46 $7.71 3.4%NA NA NA VA Hospital $8.92 $9.21 3.3%NA NA NA Bedford $3.77 $3.78 0.3%NA NA NA Flat Sewer Rate (annual)NA NA NA $470.03 $486.05 3.4% ** Rounding on % change may differ slightly compared to pages 14 & 15 due to rates being rounded to the whole penny. The proposed 3.3% increase in water rates is primarily attributable to the increase in the FY2026 water budget. Total consumption estimates are mostly flat compared to FY2025, though minor adjustments were made to various categories of water users. Irrigation consumption for FY2026 is estimated on historical trends but may exceed projections based on the summer trend of usage, which is currently in-line with the prior summer. Surplus revenue would add to Retained Earnings and may be used for cash capital, or to cover shortfalls that may be experienced in future years. The proposed 3.4% increase in wastewater rates is attributable to the 2.9% increase in the FY2026 wastewater budget and wastewater flows that are projected for the coming year. The estimated consumption used to build the preliminary FY2026 rates is shown on page 9. Projected FY2025 Water and Sewer Consumption for Rate Calculation Estimates for FY2025 Rates Estimates for FY2026 Rates $ Change % Change Total Water Consumption 2,222,000 2,222,000 $ — 0.0% Total Sewer Consumption 920,000 918,000 $ (2,000) -0.2% 3 Staff estimated consumption from review and analysis of the data shown on pages 9 and 11, including averages of the Town's usage by category. These estimates were further adjusted for the recent trend experiences which may be reflective of future consumption levels. Water trends can vary depending on weather, and in an effort to show wet year versus dry year variations, the history of water purchased from the MWRA by month and fiscal year from 2006 to 2025 is presented on page 16. Wholesale Water and Sewer Rates Bedford's contractual rate and the rate charged to municipal operations is based on Lexington's wholesale water rate. The wholesale rate for any given year is calculated by dividing the Town's current MWRA assessment by our total consumption from the previous calendar year (the FY2026 MWRA assessment is a function of the Town’s calendar year 2024 purchases of water from the MWRA). Water purchased from MWRA in calendar year 2024 increased by 2.3%, however our share of the total MWRA system decreased slightly (1.3%) compared to the prior year. For FY2026 the wholesale cost of water increased 0.3%. Staff is recommending that our municipal wastewater rate remain flat for FY2026 as the calculated wholesale rate is lower than the FY2025 wastewater rate. The wholesale sewer rate is calculated by dividing the Town's current MWRA sewer assessment by an average of the past three calendar years of sewer flows (the FY2026 assessment is a function of the Town’s calendar years 2022-2024 sewer flows to the MWRA). Historical Rate Increases: Cost Impact on Household of Average Consumption For the period FY2010 to FY2026, the table below depicts the cost impact of annual changes in water and wastewater rates on a household consuming 120 hundred cubic feet (HCF) annually, which is the MWRA’s determination of average household usage throughout its system. As noted above, the FY2026 proposed rates would increase the annual combined cost of water and sewer for an average household by 3.4% or approximately $74.40 per year. 4 Annual Water/Sewer Charges for Household Using 120 HCF/Year Water Sewer Total $ Change from Prior Year % Change from Prior Year FY2026 $732.00 $1,543.60 $2,275.60 $74.40 3.4% FY2025 $708.40 $1,492.80 $2,201.20 $78.80 3.7% FY2024 $708.40 $1,414.00 $2,122.40 $100.40 5.0% FY2023 $670.40 $1,351.60 $2,022.00 $82.80 4.3% FY2022 $664.80 $1,274.40 $1,939.20 $112.00 6.1% FY2021 $615.60 $1,211.60 $1,827.20 $69.60 4.0% FY2020 $573.60 $1,184.00 $1,757.60 $120.00 7.3% FY2019 $554.00 $1,083.60 $1,637.60 $96.40 6.3% FY2018 $544.40 $996.80 $1,541.20 $20.80 1.4% FY2017 $526.40 $994.00 $1,520.40 $40.77 2.8% FY2016 $501.96 $977.67 $1,479.63 $(28.37)-1.9% FY2015 $483.20 $1,024.80 $1,508.00 $27.20 1.8% FY2014 $463.60 $1,017.20 $1,480.80 $24.00 1.6% FY2013 $448.00 $1,008.80 $1,456.80 $49.48 3.5% FY2012 $436.79 $970.52 $1,407.32 $157.28 12.6% FY2011 $411.60 $838.44 $1,250.04 $9.64 0.8% FY2010 $407.60 $832.80 $1,240.40 Average Annual Change: FY2011 to FY2025 3.9% Staff analysis on actual meter data indicates that the average consumption for a single family household in Lexington is approximately 70 HCF/year, significantly lower than the 120 HCF/year as defined by the MWRA. Based on consumption of 70 HCF/year, proposed FY2026 rates would increase the annual combined cost of water and sewer by $36.40 per year. Annual Water/Sewer Charges for Household Using 70 HCF/Year Water Sewer Total $ Change from Prior Year % Change from Prior Year FY2026 $ 366.10 $ 743.40 $ 1,109.50 $36.40 3.4% FY2025 $ 354.20 $ 718.90 $ 1,073.10 $37.80 3.7% FY2024 $ 354.20 $ 681.10 $ 1,035.30 $49.00 5.0% FY2023 $ 335.30 $ 651.00 $ 986.30 $39.90 4.2% FY2022 $ 332.50 $ 613.90 $ 946.40 $54.60 6.1% FY2021 $ 308.00 $ 583.80 $ 891.80 $34.30 4.0% FY2020 $ 287.00 $ 570.50 $ 857.50 The impact of the proposed FY2026 rates on a low (50 HCF), average (120 HCF) and high user (240 HCF) is shown on page 17. Also shown is the impact on an average 5 single family home in Lexington and a hypothetical commercial user of 1000 HCF per year. Enterprise Fund Retained Earnings History The retained earnings history of both the Water and Wastewater Enterprise funds as of June 30th are in the table below. The retained earnings balance will fluctuate from year- to-year and will increase by surplus revenue collected and unexpended appropriations. It will decrease due to annual operating losses, appropriations for capital improvements or to mitigate rate increases. Retained Earnings History Certified as of 6/30/2022 Certified as of 6/30/2023 Certified as of 6/30/2024 Projected Retained Earnings as of 6/30/2025 Water Enterprise $ 769,999 $ 3,216,062 $ 2,813,094 $ 3,538,000 Wastewater Enterprise $ 1,807,854 $ 1,625,447 $ 1,617,019 $ 1,251,000 Water retained earnings as of June 30, 2024 was $2,813,094 and is projected to be approximately $3,538,000 as of June 30, 2025. The year-over year increase reflects surplus revenue of $2,119,000, offset by the use of $1,434,440 in capital appropriations in the FY2026 budget. Wastewater retained earnings as of June 30, 2024 was $1,617,019, and is projected to be approximately $1,251,000 as of June 30, 2025. The decrease in wastewater retained earnings is due to cash capital appropriations of $809,931 in the FY2026 budget, partly offset by FY2025 operating surplus as noted in the Operating Results section above. It has been the practice of the Town to maintain a balance in retained earnings for a variety of reasons including the funding of unanticipated emergency spending; to cover potential revenue shortfalls; and to serve as a source of working capital so that General Fund cash does not have to be used for water and wastewater fund operations. It is proposed that this practice continue and any amounts in excess retained earnings be applied to finance capital projects. Community Comparisons Finally, included is a comparison of Lexington’s proposed rates with those of the other MWRA member communities based on the MWRA Advisory Board’s Annual Water and Wastewater Retail Rate Survey for 2024 (page 18) and a comparison of assessments for all member communities that purchase water and wastewater services from the MWRA (page 19). 6 Water Enterprise Operating Results - FY2025 Revenues FY2025 Revised Budget FY2025 Actuals Favorable/ (Unfavorable) User Charges $ 12,985,484 $ 14,218,390 $ 1,232,906 Non-Rate Revenue Penalties & Interest Late Charges $ 40,000 $ 43,373 $ 3,373 Tax Liens/Titles Redeemed $ 890 2024 & Prior Water Liens $ 17,307 2025 Water Lien $ 164,607 Total Tax Titles/Water Liens $ 190,000 $ 182,804 $ (7,196) New Meter Charge $ 40,000 $ 51,393 $ 11,393 Misc. Dept Revenue $ 12,000 $ 20,226 $ 8,226 Backflow Testing $ 40,000 $ 71,804 $ 31,804 Interest Earned $ 50,000 $ 687,174 $ 637,174 Sub-total Non-rate Revenue $ 372,000 $ 1,056,774 $ 684,774 Retained Earnings $ — $ — $ — Water Enterprise Total Revenues $ 13,357,484 $ 15,275,164 $ 1,917,680 Expenses - Direct Costs Compensation $ 971,418 $ 923,588 $ 47,830 Expenses: Contractual Services $ 392,200 $ 280,748 $ 111,452 Utilities $ 18,000 $ 13,946 $ 4,054 Supplies $ 134,200 $ 98,050 $ 36,150 Small Equipment $ 70,000 $ 68,083 $ 1,917 Cash Capital $ 1,000,000 $ 1,000,000 $ — Debt $ 1,368,116 $ 1,368,116 $ — MWRA $ 8,432,204 $ 8,432,204 $ — OPEB $ 3,045 $ 3,045 $ — Total Direct Costs $ 12,389,183 $ 12,187,780 $ 201,403 Indirect Costs Equipment Maintenance and Depreciation $ 33,701 $ 33,701 $ — Auto Insurance $ 6,236 $ 6,236 $ — Indirect Departmental Expenses $ 334,356 $ 334,356 $ — Workers' Compensation $ 18,823 $ 18,823 $ — Employee Benefits $ 201,648 $ 201,648 $ — Retirement Costs $ 204,544 $ 204,544 $ — Indirect Town Expenses $ 164,960 $ 164,960 $ — General Insurance $ 4,033 $ 4,033 $ — Total Indirect Costs $ 968,301 $ 968,301 $ — Water Enterprise Total Expenses $ 13,357,484 $ 13,156,081 $ 201,403 FY2025 Surplus/(Deficit)$ — $ 2,119,083 $ 2,119,083 7 Wastewater Enterprise Operating Results - FY2025 Revenues FY2025 Revised Budget FY2025 Actuals Favorable/ (Unfavorable) User Charges $ 12,461,490 $ 12,585,357 $ 123,867 Non-Rate Revenue Penalties & Interest $ 60,000 $ 48,113 $ (11,887) Tax Liens/Titles Redeemed $ 1,755 2024 & Prior Sewer Liens $ 33,743 2025 Sewer Lien $ 317,870 Total Tax Titles/Sewer Liens $ 260,000 $ 353,367 $ 93,367 Previous Connection Charges $ 0 $ 740 $ 740 Misc. Dept Revenue $ 10,000 $ 11,848 $ 1,848 Interest Earned $ 30,000 $ 64,623 $ 34,623 sub-total Non-Rate Revenue $ 360,000 $ 478,691 $ 118,691 Retained Earnings $ — $ — $ — Wastewater Enterprise Total Revenues $ 12,821,490 $ 13,064,049 $ 242,559 Expenses - Direct Costs Compensation $ 464,858 $ 423,941 $ 40,917 Expenses: Contractual Services $ 308,400 $ 275,668 $ 32,732 Supplies $ 55,000 $ 22,686 $ 32,314 Utilities $ 132,500 $ 108,099 $ 24,401 Small Equipment $ 40,500 $ 52,988 $ (12,488) Cash Capital $ 500,000 $ 500,000 $ — Debt $ 1,569,746 $ 1,569,746 $ — MWRA $ 9,153,352 $ 9,153,352 $ — OPEB $ 609 $ 609 $ — Total Direct Costs $ 12,224,965 $ 12,107,087 $ 117,878 Expenses - Indirect Costs Equipment Maintenance and Depreciation $ 27,598 $ 27,598 $ — Auto Insurance $ 3,467 $ 3,467 $ — Indirect Departmental Expenses $ 276,303 $ 276,303 $ — Workers' Compensation $ 6,866 $ 6,866 $ — Employee Benefits $ 66,046 $ 66,046 $ — Retirement Costs $ 72,384 $ 72,384 $ — Indirect Town Expenses $ 131,359 $ 131,359 $ — General Insurance $ 12,502 $ 12,502 $ — Total Indirect Costs $ 596,525 $ 596,525 $ — Wastewater Enterprise Total Expenses $ 12,821,490 $ 12,703,612 $ 117,878 FY2025 Surplus/(Deficit)$ — $ 360,436 $ 360,436 8 TOWN OF LEXINGTONWATER CONSUMPTION HISTORY FY2019 thru FY2025 (in hundred cubic feet(HCF)) A B (B-A)/A (1)DESCRIPTION TIER HCF RANGE FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Estimates for FY25 Rates 10 Year Average 5-Year Average Estimates for FY26 Rates % change FY26 vs FY25 Estimate (2)WATER TIER 1 0-40 644,456 635,458 688,356 642,648 659,014 627,822 648,243 642,000 655,022 653,217 642,000 —% (3)TIER 2 41-80 90,091 84,705 124,119 82,313 94,345 73,520 81,037 87,000 95,044 91,067 85,000 (2.3)% (4)TIER 3 80+194,533 190,371 172,745 180,313 192,055 193,252 193,974 188,000 200,695 186,468 188,000 —% (5)TOTAL 929,080 910,534 985,220 905,274 945,414 894,594 923,254 917,000 950,761 930,751 915,000 (0.2)% (6)WATER - MUNICIPAL FLAT RATE 31,826 23,641 35,908 23,634 59,114 14,300 53,023 30,000 37,313 37,196 30,000 (0.2)% (7)WATER-IRRIGATION TIER 3 339,772 306,548 504,998 330,409 469,583 297,749 401,712 360,000 384,145 400,890 360,000 —% (8)WATER BEDFORD FLAT RATE 657,483 756,890 772,132 750,662 827,086 671,074 680,488 700,000 711,510 740,288 700,000 —% (9)WATER - VA HOSPITAL FLAT RATE 24,444 11,349 5,913 14,055 18,873 5,391 35,524 10,000 20,660 15,951 12,000 20.0% (10) HANSCOM/LINCOLN LABS 110+111 234,333 227,734 208,616 183,406 253,246 243,362 216,605 205,000 228,201 221,047 205,000 —% (11)WATER-BURLINGTON FLAT RATE —2,883 ——————1,841 —— (12)TOTAL WATER 2,216,938 2,239,579 2,512,787 2,197,854 2,568,498 2,126,470 2,310,606 2,222,000 2,356,254 2,343,243 2,222,000 —% (13)SEWER TIER 1 0-40 636,342 627,872 680,647 635,775 651,895 622,339 642,703 636,000 647,521 646,672 636,000 —% (14)TIER 2 41-80 88,283 83,318 121,881 80,865 92,543 72,487 79,585 86,000 93,266 89,472 84,000 (2.3)% (15)TIER 3 80+192,973 189,217 170,119 178,642 190,071 191,748 191,999 186,000 198,939 184,516 186,000 —% (16)TOTAL 917,598 900,407 972,647 895,282 934,509 886,574 914,287 908,000 939,726 920,660 906,000 (0.2)% (17)SEWER- MUNICIPAL FLAT RATE 10,511 11,349 8,683 11,808 15,549 15,295 17,829 12,000 13,147 13,833 12,000 —% (18)TOTAL SEWER 928,109 911,756 981,330 907,090 950,058 901,869 932,116 920,000 952,873 934,493 918,000 (0.2)% (19)GRAND TOTAL 3,145,047 3,151,335 3,494,117 3,104,944 3,518,556 3,028,339 3,242,722 3,142,000 3,309,127 3,277,736 3,140,000 (0.1)% 9 Usage in HCFWater & Wastewater Consumption Trends Sewer Tier 1 Sewer Tier 2 Sewer Tier 3 Water Tier 1 Water Tier 2 Water Tier 3 Irrigation FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Estimates for FY26 Rates — 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 10 11 Water Enterprise Fund - Town of Lexington Budget and Spending History: FY2021 to FY2025 Direct Costs FY2021 Actuals FY2022 Actuals FY2023 Actuals FY2025 Final Budget FY2025 Actuals FY2026 TM Budget FY2026 Revised Budget*$ Change % Change Compensation $ 834,114 $ 823,447 $ 769,073 $ 971,418 $ 923,588 $ 1,074,990 $ 1,074,990 $ 103,572 10.7 % Expenses Contractual Services $ 171,836 $ 247,482 $ 237,690 $ 392,200 $ 280,748 $ 428,200 $ 428,200 $ 36,000 9.2 % Utilities $ 14,104 $ 21,415 $ 17,023 $ 18,000 $ 13,946 $ 20,500 $ 20,500 $ 2,500 13.9 % Supplies $ 133,964 $ 89,781 $ 84,131 $ 134,200 $ 98,050 $ 191,400 $ 191,400 $ 57,200 7.3 % Small Equipment $ 77,198 $ 19,471 $ 6,560 $ 70,000 $ 68,083 $ 35,000 $ 35,000 $ (35,000) (50.0) % Cash Capital $ 200,000 $ 400,000 $ 600,000 $ 1,000,000 $ 1,000,000 $ 1,200,000 $ 1,200,000 $ 200,000 20.0 % Debt $ 1,192,910 $ 1,097,696 $ 1,195,180 $ 1,368,116 $ 1,368,116 $ 1,438,006 $ 1,344,517 $ (23,599) (1.7) % MWRA $ 8,006,399 $ 8,743,912 $ 8,493,467 $ 8,432,204 $ 8,432,204 $ 8,650,822 $ 8,650,822 $ 218,618 2.6 % OPEB $ — $ 2,761 $ 2,761 $ 3,045 $ 3,045 $ 3,045 $ 3,045 $ — Total Direct Costs $ 10,630,525 $ 11,445,965 $ 11,405,884 $ 12,389,183 $ 12,187,780 $ 13,041,963 $ 12,948,474 $ 559,291 4.5 % Indirect Costs Equipment Maintenance and Depreciation $ 38,616 $ 36,369 $ 31,024 $ 33,701 $ 33,701 $ 33,701 $ 33,701 $ — — % Auto Insurance $ 8,673 $ 6,114 $ 6,644 $ 6,236 $ 6,236 $ 6,236 $ 6,236 $ — — % Indirect Departmental Expenses $ 314,776 $ 296,339 $ 308,018 $ 334,356 $ 334,356 $ 359,707 $ 359,707 $ 25,351 7.6 % Workers' Compensation $ 15,914 $ 18,038 $ 16,406 $ 18,823 $ 18,823 $ 20,498 $ 20,498 $ 1,675 8.9 % Employee Benefits $ 201,181 $ 208,331 $ 225,513 $ 201,648 $ 201,648 $ 191,479 $ 191,479 $ (10,169) (5.0) % Retirement Costs $ 179,301 $ 174,971 $ 200,990 $ 204,544 $ 204,544 $ 211,798 $ 211,798 $ 7,254 3.5 % Indirect Town Expenses $ 167,154 $ 173,468 $ 183,671 $ 164,960 $ 164,960 $ 174,364 $ 174,364 $ 9,404 5.7 % General Insurance $ 4,386 $ 4,615 $ 4,827 $ 4,033 $ 4,033 $ 4,461 $ 4,461 $ 428 10.6 % Total Indirect Costs $ 930,001 $ 918,245 $ 977,093 $ 968,301 $ 968,301 $ 1,002,244 $ 1,002,244 $ 33,943 3.5 % Water Enterprise Total Expenses $ 11,560,526 $ 12,364,210 $ 12,382,977 $ 13,357,484 $ 13,156,081 $ 14,044,207 $ 13,950,718 $ 593,234 4.4 % *Revised FY2026 Budget reflects a proposed decrease FY2026 debt service compared to projected amounts voted at the 2025 Annual Town Meeting. This adjustment will be proposed for the Fall 2025-2 Special Town Meeting. 12 Wastewater Enterprise Fund - Town of Lexington Budget and Spending History: FY2020 to FY2024 Direct Costs FY2022 Actuals FY2023 Actuals FY2024 Actuals FY2025 Final Budget FY2025 Actuals FY2026 TM Budget FY2026 Revised Budget*$ Change % Change Compensation $ 279,417 $ 348,279 $ 356,647 $ 464,858 $ 423,941 $ 497,353 $ 497,353 $ 32,495 7.0 % Expenses Contractual Services $ 119,436 $ 139,233 $ 115,945 $ 308,400 $ 275,668 $ 366,400 $ 366,400 $ 58,000 18.8 % Utilities $ 145,003 $ 103,503 $ 166,976 $ 132,500 $ 108,099 $ 142,500 $ 142,500 $ 9,300 7.9 % Supplies $ 28,811 $ 14,842 $ 43,007 $ 55,000 $ 22,686 $ 87,200 $ 87,200 $ 32,200 58.5 % Small Equipment $ — $ 360 $ 12,964 $ 40,500 $ 52,988 $ 21,000 $ 21,000 $ (19,500) (48.1) % Cash Capital $ 300,000 $ 400,000 $ 500,000 $ 500,000 $ 600,000 $ 600,000 $ 100,000 20.0 % Debt $ 1,352,192 $ 1,561,467 $ 1,406,381 $ 1,569,746 $ 1,569,746 $ 1,672,086 $ 1,530,176 $ (39,570) (2.5) % MWRA $ 8,177,213 $ 8,432,789 $ 8,861,891 $ 9,153,352 $ 9,153,352 $ 9,359,196 $ 9,333,555 $ 180,203 2.0 % OPEB $ 3,004 $ 3,004 $ 3,004 $ 609 $ 609 $ 609 $ 609 $ — Total Direct Costs $ 10,305,077 $ 10,903,476 $ 11,366,815 $ 12,224,965 $ 12,107,087 $ 12,746,344 $ 12,578,793 $ 353,828 2.9 % Indirect Costs Equipment Maintenance and Depreciation $ 27,231 $ 24,459 $ 23,076 $ 27,598 $ 27,598 $ 27,598 $ 27,598 $ — — % Auto Insurance $ 4,058 $ 3,853 $ 3,467 $ 3,467 $ 3,467 $ 3,467 $ 3,467 $ — — % Indirect Departmental Expenses $ 243,416 $ 245,603 $ 258,971 $ 276,303 $ 276,303 $ 293,445 $ 293,445 $ 17,142 6.2 % Workers' Compensation $ 6,388 $ 6,028 $ 6,249 $ 6,866 $ 6,866 $ 7,651 $ 7,651 $ 785 11.4 % Employee Benefits $ 36,297 $ 50,323 $ 72,940 $ 66,046 $ 66,046 $ 56,021 $ 56,021 $ (10,025) (15.2) % Retirement Costs $ 51,756 $ 60,219 $ 66,086 $ 72,384 $ 72,384 $ 75,806 $ 75,806 $ 3,422 4.7 % Indirect Town Expenses $ 134,714 $ 141,053 $ 145,840 $ 131,359 $ 131,359 $ 137,936 $ 137,936 $ 6,577 5.0 % General Insurance $ 10,251 $ 10,878 $ 11,411 $ 12,502 $ 12,502 $ 12,760 $ 12,760 $ 258 2.1 % Total Indirect Costs $ 514,111 $ 542,416 $ 588,040 $ 596,525 $ 596,525 $ 614,684 $ 614,684 $ 18,159 3.0 % Wastewater Enterprise Total Expenses $ 10,819,188 $ 11,445,892 $ 11,954,855 $ 12,821,490 $ 12,703,612 $ 13,361,028 $ 13,193,477 $ 371,987 2.9 % *Revised FY2026 Budget reflects a proposed decrease to reflect MWRA's final FY2026 assessment, and a decrease to reflect actual FY2026 debt service compared to projected amounts voted at the 2025 Annual Town Meeting. These adjustments will be proposed for the Fall 2025-2 Special Town Meeting. 13 FY26 Budget FY25 Budget FY24 Budget FY23 Budget FY22 Budget FY21 Budget FY20 Budget FY19 Budget Water Budget $12,750,718 $12,357,484 $13,692,643 $12,077,671 $12,224,466 $11,522,329 $10,881,995 $10,749,241Investment in Capital/ Infrastructure*$1,200,000 $1,000,000 $—$600,000 $400,000 $200,000 Less: Estimated Non-Rate Revenue $(372,000)$(372,000)$(327,000)$(310,000)$(308,000)$(308,000)$(292,500)$(272,920) Less: Use of Retained Earnings $—$—$(500,000)$—$—$—$—$(61,000) Net Revenue to be Raised from Water Charges $13,578,718 $12,985,484 $12,865,643 $12,367,671 $12,316,466 $11,414,329 $10,589,495 $10,415,321 a b c d e f Final FY2025 RATES Tier Tier Range (HCF)Tier as % of Subtotal Estimated Consumption (HCF)Rate/ HCF Residential/ Commercial/ Industrial Tier 1 0-40 70.0%642,000 $ 5.06 Residential/ Commercial/ Industrial Tier 2 41-80 9.5%87,000 $ 7.59 Residential/ Commercial/ Industrial Tier 3 80+20.5%188,000 $ 10.02 Subtotal 917,000 Irrigation All @ Tier 3 Rate 360,000 $ 10.02 Municipal Flat Rate 30,000 $ 3.92 Hanscom/ Lincoln Labs Flat Rate 205,000 $ 7.46 VA Hospital Flat Rate 10,000 $ 8.92 Bedford Water Agreement Flat Rate 700,000 $ 3.77 Subtotal 1,305,000 Total 2,222,000 PROPOSED FY2026 RATES Tier as % of Subtotal Estimated Consumption (HCF)Rate/ HCF Revenue % Rate Increase Residential/ Commercial/ Industrial Tier 1 0-40 70.2%642,000 $5.23 $ 3,357,660 3.3 % Residential/ Commercial/ Industrial Tier 2 41-80 9.3%85,000 $7.84 $ 666,400 3.3 % Residential/ Commercial/ Industrial Tier 3 80+20.5%188,000 $10.35 $ 1,945,800 3.3 % Subtotal 915,000 $ 5,969,860 Irrigation All @ Tier 3 Rate 360,000 $10.35 $ 3,726,000 3.3 % Municipal Flat Rate 30,000 $3.93 $ 117,900 0.3 % Hanscom/ Lincoln Labs Flat Rate 205,000 $7.71 $ 1,580,550 3.3 % VA Hospital Flat Rate 12,000 $9.21 $ 110,520 3.3 % Bedford Water Agreement Flat Rate 700,000 $3.78 $ 2,646,000 0.3 % Subtotal 1,307,000 $ 8,180,970 Total 2,222,000 $14,150,830 Estimated Gross Water Charges $ 14,150,830 Collection Rate 96 % Estimated Net Revenue $ 13,584,797 Revenue Target $ 13,578,718 Surplus/ (Deficit) $ 6,079 PRELIMINARY FY2026 WATER RATES 14 PRELIMINARY FY2026 WASTEWATER RATES FY26 Budget FY25 Budget FY24 Budget FY23 Budget FY22 Budget FY21 Budget FY20 Budget FY19 Budget Wastewater Budget $12,593,477 $12,321,490 $11,798,638 $11,397,930 $11,003,270 $10,663,319 $10,453,931 $10,057,978 Investment in Capital/ Infrastructure $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Estimated Non-Rate Revenue $(350,000)$(360,000)$(382,000)$(370,000)$(362,000)$(362,000)$(362,000)$(365,000) Use of Retained Earnings $—$—$—$—$—$—$—$— Net Revenue to be Raised from Wastewater Charges $12,843,477 $12,461,490 $11,816,638 $11,327,930 $10,841,270 $10,401,319 $10,091,931 $9,692,978 a b c d e f FINAL FY2025 RATES Tier Tier Range (HCF)Tier as % of Subtotal Estimated Consumption (HCF)Rate/ HCF Residential/ Commercial/ Industrial Tier 1 0-40 67.3%636,000 $ 10.27 Residential/ Commercial/ Industrial Tier 2 41-80 10.3%86,000 $ 16.78 Residential/ Commercial/ Industrial Tier 3 80+22.4%186,000 $ 26.69 Municipal Flat Rate 12,000 $ 3.68 Total 920,000 PROPOSED FY2026 RATES Tier as % of Subtotal Estimated Consumption (HCF)Rate/ HCF Revenue % Rate Increase Residential/ Commercial/ Industrial Tier 1 0-40 70.2%636,000 $10.62 $ 6,754,320 3.4 % Residential/ Commercial/ Industrial Tier 2 41-80 9.3%84,000 $17.35 $ 1,457,400 3.4 % Residential/ Commercial/ Industrial Tier 3 80+20.5%186,000 $27.60 $ 5,133,600 3.4 % Municipal Flat Rate 12,000 $3.68 $ 44,160 0.0 % Total 918,000 $13,389,480 Estimated Gross Wastewater Charges $ 13,389,480 Collection Rate 96 % Estimated Net Revenue $ 12,853,901 Revenue Target $ 12,843,477 Surplus/ (Deficit)$ 10,424 15 Water Purchased from the MWRA by Month and Fiscal Year: 2006 to 2025 MG Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total FY2006 219.9 224.4 196.1 143.3 119.1 121.0 122.1 109.3 123.2 129.4 148.6 157.3 1,813.7 FY2007 201.3 203.9 159.5 135.3 109.7 109.0 117.0 107.8 115.5 111.7 158.9 208.7 1,738.3 FY2008 216.9 225.2 202.7 141.5 102.1 107.9 111.5 103.8 121.3 122.2 149.6 185.2 1,789.9 FY2009 190.0 167.6 162.5 131.0 115.3 125.0 135.4 118.3 129.4 130.3 160.6 163.6 1,729.0 FY2010 160.5 189.3 171.5 122.0 106.7 115.4 120.9 106.1 116.9 113.3 157.3 181.4 1,661.3 FY2011 241.7 231.1 192.6 139.2 112.5 115.8 117.6 108.3 125.6 117.8 142.2 180.1 1,824.5 FY2012 231.1 186.1 154.0 129.2 99.9 104.8 106.7 104.3 107.7 123.4 147.9 165.1 1,660.2 FY2013 236.3 239.1 176.8 135.6 118.0 113.6 120.9 109.7 124.1 112.8 148.6 179.0 1,814.5 FY2014 227.4 235.8 203.6 163.2 121.9 115.9 123.5 104.1 107.5 119.8 151.1 207.9 1,881.7 FY2015 229.1 231.6 215.6 177.7 125.1 126.5 131.5 122.8 129.3 154.4 245.5 239.6 2,128.7 FY2016 237.0 246.7 226.1 156.1 115.8 112.1 115.3 108.8 116.1 118.5 173.5 243.1 1,969.1 FY2017 283.0 270.8 212.1 153.8 118.9 117.0 118.1 103.4 116.2 116.2 146.9 184.6 1,941.0 FY2018 194.8 223.8 190.1 164.8 123.0 116.9 136.5 103.8 116.1 111.8 158.5 205.2 1,845.3 FY2019 246.1 217.9 192.1 149.5 114.9 116.9 116.8 105.2 128.0 123.7 148.7 181.1 1,840.9 FY2020 223.2 222.8 196.9 156.3 129.2 136.5 129.4 115.1 126.0 121.3 173.4 242.9 1,973.0 FY2021 225.1 233.9 215.7 174.1 124.9 118.0 119.1 113.2 120.7 125.5 181.6 229.7 1,981.5 FY2022 179.3 211.9 175.9 148.2 117.1 113.0 120.9 106.6 117.7 117.4 179.6 220.6 1,808.2 FY2023 256.6 255.2 197.4 146.8 115.4 113.0 111.0 103.9 116.5 121.1 181.5 175.0 1,893.4 FY2024 183.8 182.4 162.7 138.8 112.0 100.7 110.1 97.3 102.9 125.3 184.8 196.1 1,696.9 FY2025 209.6 187.1 187.5 136.6 100.3 92.8 106.3 101.4 112.3 110.1 133.8 181.6 1,696.9 FY2026 231.9 231.7 Average FY06-FY25 219.6 219.3 189.6 147.2 115.1 114.6 119.5 107.7 118.7 121.3 163.6 196.4 1834.4 10 Year Average FY16-FY25 223.9 225.3 195.7 152.5 117.2 113.7 118.4 105.9 117.3 119.1 166.2 206.0 1864.6 5 Year Average FY21-FY25 210.9 214.1 187.8 148.9 113.9 107.5 113.5 104.5 114.0 119.9 172.3 200.6 1815.4 Summer 2023 722.7 Summer 2024 777.6 Summer 2025 779.0 16 Combined Water/Wastewater Bill for Low, Average & High Users: Impact of Proposed Rate Changes 50 HCF (low user) FY2025 FY2026 Proposed Water $ 253.00 $ 261.50 Wastewater $ 513.50 $ 531.00 Combined $ 766.50 $ 792.50 $ Change from FY25 $ 26.00 % Change from FY25 3.4 % 70 HCF (Average Lexington Single Family Home) FY2025 FY2026 Proposed Water $ 354.20 $ 366.10 Wastewater $ 718.90 $ 743.40 Combined $ 1,073.10 $ 1,109.50 $ Change from FY25 $ 36.40 % Change from FY25 3.4 % 120 HCF (average user) FY2025 FY2026 Proposed Water $ 708.40 $ 732.00 Wastewater $ 1,492.80 $ 1,543.60 Combined $ 2,201.20 $ 2,275.60 $ Change from FY25 $ 74.40 % Change from FY25 3.4 % 240 HCF (high user) FY2025 FY2026 Proposed Water $ 1,813.60 $ 1,873.60 Wastewater $ 4,299.20 $ 4,445.60 Combined $ 6,112.80 $ 6,319.20 $ Change from FY25 $ 206.40 % Change from FY25 3.4 % 1000 HCF FY2025 FY2026 Proposed Water $ 9,428.80 $ 9,739.60 Wastewater $ 24,583.60 $ 25,421.60 Combined $ 34,012.40 $ 35,161.20 $ Change from FY25 $ 1,148.80 % Change from FY25 3.4 % 17 Rates for Communities Receiving Water and Sewer Services from MWRA* Community Water Sewer Combined Waltham $ 407.28 $ 733.32 $ 1,140.60 Everett $ 340.80 $ 924.00 $ 1,264.80 Malden $ 847.92 $ 926.88 $ 1,774.80 Boston $ 780.66 $ 1,043.53 $ 1,824.19 Chelsea $ 727.20 $ 1,212.00 $ 1,939.20 Norwood $ 889.44 $ 1,174.32 $ 2,063.76 Brookline $ 771.68 $ 1,314.32 $ 2,086.00 Lexington $ 708.40 $ 1,492.80 $ 2,201.20 Revere $ 552.00 $ 1,665.60 $ 2,217.60 Watertown $ 781.48 $ 1,481.68 $ 2,263.16 Stoneham $ 834.00 $ 1,470.00 $ 2,304.00 Framingham $ 1,044.60 $ 1,316.52 $ 2,361.12 Medford $ 953.52 $ 1,421.28 $ 2,374.80 Arlington $ 1,118.08 $ 1,298.68 $ 2,416.76 Quincy $ 1,038.00 $ 1,428.00 $ 2,466.00 Newton $ 1,061.80 $ 1,642.60 $ 2,704.40 Melrose $ 1,192.85 $ 1,517.56 $ 2,710.41 Milton $ 973.44 $ 1,794.24 $ 2,767.68 Reading $ 1,423.40 $ 1,346.20 $ 2,769.60 Belmont $ 939.60 $ 1,884.24 $ 2,823.84 Somerville $ 1,034.16 $ 1,839.30 $ 2,873.46 Winthrop $ 1,576.20 $ 1,576.20 $ 3,152.40 *Data from MWRA Advisory Board's 2024 Annual Rate Survey, based on average annual household use of 120 HCF (FY2024 or most recently published). 18 19 AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Special Town Meeting 2025-2 - Article Discussions and Select Board Positions PRESENTER: Board Discussion ITEM NUMBER: I.2 SUMMARY: Category: Informing The Board may take up discussion on the Special Town Meeting 2025-2 Articles and/or Select Board article positions. Town Website - Annual Special Town Meeting 2025. https://lexingtonma.gov/2442/2025-2-Special-Town-Meeting SUGGESTED MOTION: FOLLOW-UP: DATE AND APPROXIMATE TIME ON AGENDA: 11/3/2025 6:45pm ATTACHMENTS: Description Type Art 2 unpaid bills. IP Backup Material Art 4 amend budgets motion Backup Material Art 5 cap improvements IP Backup Material Art 8 LHS motion Backup Material Art 9 home rule motion Backup Material Art 3. stabilization motion Backup Material STM 2025-2 Select Board Positions Working Document Backup Material Moderator's STM 2025-2 Proposed order of Articles Backup Material Art 10 revised 11.2 motion Backup Material ARTICLE 2 APPROPRIATE FOR PRIOR YEARS’ UNPAID BILLS MOTION: That this article is indefinitely postponed. (10/20/2025) ARTICLE 4 AMEND FY2026 OPERATING, ENTERPRISE AND CPA BUDGETS MOTION: (a) That the following adjustment be made to the following line items for the FY2026 Operating budget as approved under Article 4 of the 2025 Annual Town Meeting: Line Item Program From To 1200 Minuteman Regional High School $3,606,312 $3,569,482 (b) That the following adjustment be made to the following line item for the FY2026 budget to operate the Water Division of the Department of Public Works as approved under Article 5(a) of the 2025 Annual Town Meeting: Program From To Debt Service $1,438,006 $1,344,817 (c) That the following adjustment be made to the following line item for the FY2026 budget to operate the Wastewater Division of the Department of Public Works as approved under Article 5(b) of the 2025 Annual Town Meeting: Program From To Debt Service $1,672,086 $1,530,176 MWRA Wastewater Assessment $9,359,196 $9,333,555 (10/23/2025) ARTICLE 5 APPROPRIATE FOR AUTHORIZED CAPITAL IMPROVEMENTS MOTION: That this article be indefinitely postponed. (10/20/2025) ARTICLE 8 APPROPRIATE FOR LEXINGTON HIGH SCHOOL MOTION: That the Town appropriate the amount of six hundred forty seven million, nine hundred twenty one thousand, eight hundred thirty four ($647,921,834) dollars, in addition to the eleven million eight hundred twenty five thousand ($11,825,000) dollars that have previously been appropriated for a feasibility study, for the purpose of paying the costs to partially demolish the existing Lexington High School, renovate the remaining portion of the structure, construct an addition thereto, and, originally equip and furnish a new Lexington High School to be located at 251 Waltham Street, in Lexington, including athletic fields, parking areas and other accessory facilities, as well as the renovation of the existing field house, if the overall appropriation so allows, including the payment of all costs incidental or related thereto (the “Project”), which school facility shall have an anticipated useful life as an educational facility for the instruction of school children for at least 50 years and for which the Town may be eligible for a grant from the Massachusetts School Building Authority (“MSBA”), said amount to be expended under the direction of the Permanent Building Committee and that to meet this appropriation the Select Board is authorized to borrow said amount under M.G.L. Chapter 44, or pursuant to any other enabling authority. The Town acknowledges that the MSBA’s grant program is a non-entitlement, discretionary program based on need, as determined by the MSBA, and any project costs the Town incurs in excess of any grant approved by and received from the MSBA shall be the sole responsibility of the Town; provided further that any grant that the Town may receive from the MSBA for the Project shall not exceed the lesser of (1) 36.95% of eligible, approved project costs, as determined by the MSBA, or (2) the total maximum grant amount determined by the MSBA; and provided that any appropriation hereunder shall be subject to and contingent upon an affirmative vote of the Town to exempt the amounts required for the payment of interest and principal on said borrowing from the limitations on taxes imposed by M.G.L. 59, Section 21C (Proposition 2½); and that the amount of borrowing authorized pursuant to this vote shall be reduced by any grant amount set forth in the Project Funding Agreement that may be executed between the Town and the MSBA. (10/22/2025) ARTICLE 9 HOME RULE LEGISLATION FOR NEW LEXINGTON HIGH SCHOOL Move that the Town: 1. transfer from the Select Board to the School Committee the care, custody, management and control of parcels of land currently containing the Lexington High School Athletic Fields as shown on a sketch plan entitled “Figure G” dated October 3, 2025 on file with the Town Clerk (the “Athletic Field Parcels”), held by the Select Board and currently used for recreation purposes to the School Committee for school purposes; and further 2.transfer from the School Committee to the Select Board the care, custody, management and control of parcels of land currently containing the Lexington High School buildings as shown on a sketch plan entitled “Figure G” dated October 3, 2025 on file with the Town Clerk used as the site of the existing Lexington High School and adjoining parking areas from the School Committee to the Select Board; such transfers being undertaken as mitigation for the proposed transfer of the Athletic Field Parcels, which are subject to the protections of Article 97 of the Amendments of the Massachusetts Constitution to the School Committee for the siting of the new Lexington High School building, parking areas and other School Facilities; and further 3.Authorize, the Select Board to petition the General Court consistent with the requirements of Article 97 of the Amendments to the Massachusetts Constitution and G.L. c. 3, 5A to enact special legislation in substantially the form below to authorize the transfer of the Athletic Field Parcels currently under the care, custody, management and control of the Select Board to the School Committee for school purposes pursuant to Chapter 114 of the Acts of 1961 and to authorize the Legislature to make changes to the text of such legislation as is consistent with the purposes of this motion, subject to the approval of the Lexington Select Board: AN ACT PROVIDING FOR THE EXCHANGE OF CERTAIN PARK LAND IN THE TOWN OF LEXINGTON SECTION 1. Notwithstanding any general or special law to the contrary, the select board of the town of Lexington may, pursuant to a vote of the Lexington special town meeting on November 3, 2025 and the requirements of section 15A of chapter 40 of the General Laws, section 5A of chapter 3 of the General Laws, and Chapter 114 of the Acts of 1961, transfer the care, custody and control of certain parcels of land currently under the care and control of the select board of the town of Lexington for athletic fields to the school committee of the town of Lexington for school purposes. The parcels of land that may be transferred under this section comprise approximately eight acres, and are more particularly described in whole or in part in two deeds recorded with the Middlesex south registry of deeds as Book 3953, Page 561 and Book 3981, Page 109 1 SECTION 2. As a condition of any disposition of land pursuant to section 1, and to ensure no net loss of land subject to Article 97 of the amendments to the constitution of the Commonwealth and said section 5A of chapter 3 of the General Laws, the town of Lexington shall transfer the care, custody, management and control of parcels of land currently containing the Lexington High School buildings as shown entitled “Figure G” dated October 3, 2025 presented to the Lexington Town Meeting on November 3, 2025 from the school committee of the town of Lexington to the select board of the town of Lexington for the siting of the new Lexington High School athletic field, public park, open space and recreational purposes. SECTION 3. This act shall take effect upon its passage. (10/22/2025) 2 ARTICLE 3 ESTABLISH, AMEND, DISSOLVE AND APPROPRIATE TO AND FROM SPECIFIED STABILIZATION FUNDS MOTION: a)That $934,782 be appropriated into the Capital Stabilization Fund, and that to meet this appropriation $934,782 be raised in the tax levy. (10/31/2025) Select Board Positions Working Document As of October 17, 2025 STM 2025-2 ARTICLES UPDATE AT SELECT BOARD MTG SELECT BOARD PRSNTR IP CNSNT JH JP DL MS VK 1 Reports of Town Boards, Officers and Committees N/A 2 Appropriate for Prior Years’ Unpaid Bills - IP N/A IP C 3 Establish, Dissolve and Appropriate To and From Specified Stabilization Funds JH a.Section 135 Zoning By-Law b.Traffic Mitigation c.Transportation Demand Management/Public Transportation d.Special Education e.Center Improvement District f.Transportation Management Overlay District g.Capital h.Payment in Lieu of Parking i.Visitor Center Capital Stabilization Fund j.Affordable Housing Capital Stabilization Fund k.Water System Capital Stabilization Fund l.Ambulance Stabilization Fund 4 Amend FY2026 Operating Enterprise and CPA Budgets MS 5 Appropriate for Authorized Capital Improvements - IP N/A IP C Y Y Y Y Y 6 Establish, Amend and Continue Departmental Revolving Funds DL Select Board Positions Working Document As of October 17, 2025 STM 2025-2 ARTICLES UPDATE AT SELECT BOARD MTG SELECT BOARD PRSNTR IP CNSNT JH JP DL MS VK 7 Accept General Laws, Chapter 59, Section 5, Clause 22L (Hero Act) VK Y Y Y Y Y 8 Appropriate for Lexington High School JP Y Y W Y Y 9 Home Rule Legislation for New Lexington High School JH Y Y Y Y Y 10 Amend Reference of Newspapers to Include Electronic Media C Y Y Y Y Y 11 Clarification of LexHab Reorganization C Y Y Y Y Y STM 2025-2 Information from the Moderator Proposed order of articles • Article 1: Reports of Town Boards, Officers and Committees • Consent Agenda: Articles 2, 5, 10, 11 • Article 8: Appropriate for Lexington High School • Article 9: Home Rule Legislation for New Lexington High School • Article 3: Establish, Amend, Dissolve and Appropriate To and From Specified Stabilization Funds • Article 4: Amend FY2026 Operating, Enterprise and CPA Budgets • Article 6: Establish, Amend and Continue Departmental Revolving Funds • Article 7: Accept General Laws, Chapter 59, Section 5, Clause 22L (Hero Act) ARTICLE 10 AMEND REFERENCE OF NEWSPAPERS TO INCLUDE ELECTRONIC MEDIA MOTION: That Chapter 1 of the Code of the Town of Lexington be amended by replacing Section 1-2 (C), in its entirety with the following: Chapter 1: GENERAL PROVISIONS 1-2 Rules of Construction C. Pursuant to Chapter 352 of the Acts of 2024, and notwithstanding section 13(b) of chapter 4 of the General Laws or any other general or special law to the contrary, whenever the Town of Lexington, or any committee, department, board, commission, or officer thereof is required to publish a legal notice in a newspaper or newspaper of general circulation, such requirement may be satisfied in any manner authorized: (1) by the School Committee for legal notices issued by the School Committee, the Lexington Public Schools, or a department or officer thereof; or (2) by the Select Board for legal notices issued by any other town committee, department, board, commission or officer. (Revised 11/02/2025)