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HomeMy WebLinkAbout2017-10-05 BOS Packet - Released October 5, 2017 Fiscal Years 2000-2017Fiscal Years 2019-2021 Financial Summit I Subset of Indicator Analysis: Town of Lexington Revenue and Expenditure Projections: Fiscal Years 2000-2017 Financial Summit I Subset of Indicator Analysis: Town of Lexington 1 the credit rating organizations. nt of operating revenues is Indicator I.11: Debt Service Debt Service exceeding 20 perceconsidered a warning indicator by reet reconstruction tal projects –multiple projects, but that effect on by Town Meeting, detailed of the 9 schools, including new oln Park, an ongoing st ents were set to increase with the approval extensively in new capi The increase in net exempt debt service to Lexington citizens. Net within-levy debt Building have been funded through the successful approval of debt service mitigati Bridge/Bowman and Estabrook school ly throughout the last five years, dependent upon the shorter ects with investments at most Town of Lexington Summit I –October 5, 2017 Over the last 20 years, Lexington has invested school reconstruction projschools for Fiske, Harrington and Estabrook, Lincproject, and a $26 million Public Services passage of debt exclusion votes by residents.(Row C) has resulted in increases in taxes (Row F) has fluctuated slightterm capital needs of the community. Debt paymof the Debt Exclusion for the was reduced as a result of the above.(Rows B and E) 2 ngs construction, Police and Fire Proposed Projects include Hasti Indicator I.11(a): Projected Exempt Debt Service outstanding as of June 30, 2017. debt service, and ty. Issued debt reflects debt e and the Residential share. Like in 2017. The graph on the left shows l class debt burden is isolated from the (noted in green) based on modeling done story of exempt breaks out separately Commercial/ is Residential share that is used to determine the Children's Place construction. on Lexington households. Town of Lexington Summit I –October 5, 2017 This indicator shows Lexington’s hiprojects its growth into Fiscal 2020 by the Finance Department in Octobertotal Net Exempt Debt Service, butIndustrial/Personal Property (CIP) sharthe previous Indicator, the ResidentiaCIP classes, and it is theffect of Exempt Debt Notes: “C/I/P” stands for Commercial/Industrial/Personal properstation renovations and Lexington 3 tor by bond rating agencies. Indicator I.12: Long-Term Debt Overall debt exceeding 10 percent of assessed valuation is considered a warning indica ion of the ojects as well rating organizations ed the renovat FY2012 to FY2013 is the ures, Lexington has a strong as well as its level of effort in onstruction of the Estabrook formation from Bond Prospectus & Operating Statements Diamond expansion pr ed by the credit om FY2016 to FY2017 reflects voter- Bridge, Bowman and Fiske. exempt debt which financ facilities. On both meas substantial increase from Town of Lexington Summit I –October 5, 2017 Sources: Outstanding Long-term Debt & Assessed value in These financial indicators are evaluatas measures of a community's debt burdeninvesting in its capital profile. Note that the result of voter-approved Bridge and Bowman schools, and the recschool. Similarly, the increase frapproved exempt debt for Clarke and as modular classrooms at 4 Indicator I.13: Reserves and Fund Balance (See Indicator I.2) Declining reserves as a percent of operating revenues is a warning indicator. The Government Finance Officers Association (GFOA) recommends an undesignated fund balance between 5-15 % of operating revenues. hened its reserve position by augmenting and Town of Lexington Summit I –October 5, 2017 The Town of Lexington has several types of reserves. Historically, the Town had relied upon Free Cash as its primary source of reserves. The Selectmen's Ad Hoc Financial Policy Committee recommended a number of actions to further strengthen the Town's fiscal position and create a series of targeted reserves for specific purposes. In recent years, the Town has strengttransferring money into the Stabilization Funds. This adds financial flexibility to the Town's operations and provides a buffer against economic downturns. Fiscal Years 2019-2021 Financial Summit I Town of Lexington Revenue and Expenditure Projections: 5 FY2019 ÏFY2021 Executive Summary-Projections Town of Lexington Summit I –October 5, 2017 6 FY2019 ÏFY2021 Revenue and Expenditure Projections adjustments anticipated for STM 2017-3. Town of Lexington Summit I –October 5, 2017 *FY2018 Projected figures reflect budget 7 FY2019 ÏFY2021 Revenue and Expenditure Projections adjustments anticipated for STM 2017-3. Town of Lexington Summit I –October 5, 2017 *FY2018 Projected figures reflect budget 8 FY2019 ÏFY2021 Revenue and Expenditure Projections adjustments anticipated for STM 2017-3. Town of Lexington Summit I –October 5, 2017 *FY2018 Projected figures reflect budget 9 FY2019 Policy Issues t/Diversity Advisory Task Force (Goal 18) k Betterment Evaluation (BOS Goal 7, 10) ents (Limiting Program Improvement Requests) School and Municipal Capital Projects n Outreach Activities (BOS Goal 9) th Programs (BOS Goal 13) Intersections and School Properties. Sidewal Town of Lexington Summit I –October 5, 2017 •Financing Plan for Increasing School Enrollm•Financing Plan/Property Tax Impact for •Plan for Use of Capital Stabilization Fund•Community Interest in Addressing Pedestrian, Bicycle and Vehicle Safety on Town Roads, •Financing Options for Stormwater Management Mandates•Implementation of 20/20 Subcommittee Repor•Community Center Expansion Options (BOS Goal 7)•Staffing for Public Information/Citize•Community Mental Heal Continuing Policy Issues:New Policy Issues 10 FY2019 Budget Process Town of Lexington Summit I –October 5, 2017 Αΐ 4§±¤¤ 9¤ ± ȃ ! Pdupcfs!6-!3128 "´£¦¤³ 0±®©¤¢³¨®­² ,¤·¨­¦³®­ 0´¡«¨¢ 3¢§®®«² &9ΑΏΐΘ ! Lexington Public Schools serve to inspire 2 Njttjpo!0!Wjtjpo!Tubufnfou The and empower every student to become a lifelong learner prepared to be an active and resilient citizen who will lead a healthy and productive life. Educators, staff, parents, guardians and community members will honor diversity and work together to provide all students with an education that ensures academic excellence in a culture of caring and respectful relationships. ! Lfz!Tdippm!Qpmjdz!Jttvft Based Learning - Enrollment GrowthBuilding Capacity/Multiple School ProjectsLHS Building Project VisioningMaximizing Existing Space/Capacity/Flexible AssignmentPreserving and Maintaining ProgramsSocial/Emotional InitiativesCollaboration with Town & School (Diversity & Mental Health)School SchedulesProjectSchool Start TimesGraduation RequirementsFinancial Implications of above 3 21 - 21 - $1,000,000) for staff - 3 « ±¨¤² lj 7 ¦¤² - service budget and does not include program improvements - Illustrates a levelIncludes 2.5% increase on base budget for step increases; (turnover savings each yearAssumes anticipated funding for unsettled contracts in FY19Includes additional staffing due to projected enrollment increases in FY19based on preliminary Enrollment Advisory Group (EAG) projectionsIncludes additional staffing for new Hastings Elementary School (Facilities) and Recurring additional staff related costs are inclusive of benefits, workers comp, Medicare 4 !²²´¬¯³¨®­² 21) - Expenses District Tuition and Transportation Lines projected based - - of - 88% ($900k to $1.15 million of $1.1 to $1.3 million; depending on fiscal - Approximately 82year) of total expense line increases each year are driven by these budget lines (FY19 Program budget per pupil rates adjusted by 1.7% Consumer Price Index (CPI) each year and applied against projected enrollment levels based on preliminary Enrollment Advisory Group (EAG) projectionsSpecial Education Outon program trendsAll other expense lines adjusted by 1.7% Consumer Price Index (CPI)Includes additional expenses for new Hastings Elementary School (Facilities) and 5 !²²´¬¯³¨®­² "´£¦¤³ 0±®©¤¢³¨®­ 6 3 Tvnnju!$2€Pdupcfs!6-!3128 3127.3129!Dbqjubm!Qmbo;!Bqqspwfe!boe!Qpufoujbm!Fyfnqu!Efcu!Qspkfdut 4 Tvnnju!$2€Pdupcfs!6-!3128 5 Tvnnju!$2€Pdupcfs!6-!3128 6 Tvnnju!$2€Pdupcfs!6-!3128 7 CPT€Tfqufncfs!36-!3128 8 Tvnnju!$2€Pdupcfs!6-!3128