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HomeMy WebLinkAbout2019-02-07-AC-min 02/07/2019 AC Minutes DRAFT Minutes Town of Lexington Appropriation Committee(AC) February 7, 2019 Place and Time: Parker Room, Town Office Building, 7:30 p.m. Members Present: Glenn Parker, Chair; Sanjay Padaki, Vice-Chair; Alan Levine, Secretary; John Bartenstein; Eric Michelson; Nick Nichols; Carolyn Kosnoff, Assistant Town Manager, Finance(non-voting, ex officio) Members)Absent: Ellen Basch; Richard Neumeier; Lily Manhua Yan Other Attendees: None The meeting was called to order at 7:35 p.m. Announcements and Liaison Reports Based on comments at the February 4, 2019 Board of Selectmen's meeting and input from those present, the following was discussed: • Crematorium at Westview Cemetery: It is unclear whether the unanswered questions can be resolved in time for it to be included in the 2019 ATM. Mr. Padaki noted that it is unlikely the Ad hoc Crematory Committee would recommend a separate building for a crematory; if a facility is to be built, it is preferred that it be located adjacent to the new cemetery building that is being proposed. He also noted that State regulations require a crematory to be located on cemetery property, the use must be coordinated through a funeral director, and the building would need a gas line, electricity and a sewer connection. In addition to the capital expenses there will be annual operational costs. Ms. Kosnoff noted that the Crematory Committee has collected a large amount of data related to the business and function of crematoriums. • The Town's Sustainability Policy: The BoS discussed efforts to update the policy. Jim Malloy, Town Manager, is working to combine two versions. It was generally agreed by this Committee that the policy should avoid specific guidelines. • Bonds and Bond Anticipation Notes (BANS): Ms. Kosnoff reported that the Town received 11 bids on bonds issued for $57.4 million. Factoring in a $3.4 million premium, the low bid offered a net effective interest rate of 3.21%. The Town's financial modeling had used 4.0%. The borrowing for excluded debt was for 30 years; the other bonds were for five to ten years. The interest rate for the $8.37 million in BANs was 1.77%,which is for one year. Town Website Support for Open Meeting Law Compliance Mr. Parker reported that he and Mr. Padaki now have accounts on the Town's official website that grant them access to publish documents under the web page for this Committee. There is a new link labeled"Committee Draft Documents" in the sidebar menu on the Committee page that leads to a page where documents are to be shared. In response to requirements in the Open Meeting Law, the Committee intends to use this facility to share documents with fellow Committee members and the public in advance of public meetings. Committee members are asked to send documents to Mr. Parker and Mr. Padaki, who will upload the documents and notify the Committee once they are available online. To avoid unintended deliberation outside a public meeting, comments, corrections and edits to those documents should only be shared during Committee meetings. 1 02/07/2019 AC Minutes Introduction for the Report to the 2019 ATM Mr. Parker reported that he is developing a skeleton of the report. The introduction will review trends, the demand for capital projects, and the need for balance,prioritization, and timing recommendations. Proposed Warrant Articles for the 2019 ATM Warrant articles were reviewed, as follows: • Article 4: Reduce Community Preservation Act(CPA) Surtax Rate from 3% to 1%Pursuant to G.L. c. 44B, § 16 (Citizen Article): It appears that the petition for a citizens' warrant article signed by residents, as written,has issues with implementation. Town Counsel has suggested alternative wording that would allow some flexibility, but the petition has already been signed and submitted. • Article 14: Appropriate the FY2020 Community Preservation Committee (CPC) Operating Budget and CPA Projects (Multiple Categories): Ms. Basch was previously assigned to cover these. • Articles 7, 8, and 9, respectively: Appropriate Funds for The Creation of a Lexington Economic Development Strategy(Citizen Article); Funding for Sustainability Actions (Citizen Article); and Sustainability Director(Citizen Article): Mr.Neumeier previously agreed to prepare material in response to these citizens' articles. Ms. Kosnoff noted that the BoS supports sustainability but may decide to present a resolution to Town Meeting. She also said that a revolving fund, as requested by the proponents, would not work legally; a stabilization fund might be possible,but this allows little flexibility; options are being explored. • Article 16: Appropriate for Municipal Capital Projects and Equipment—Automatic Meter Reading: Ms. Kosnoff reported that a report on the meter reading proposal is to be presented to the BoS on February 25. Funding sources would include $500,000 from the water enterprise fund, $500,000 from the sewer enterprise fund, and $2.0 million from a Massachusetts Water Resources Authority interest-free loan taken by the enterprise funds. • Article 22: Establish, Dissolve and Appropriate to and from Specified Stabilization Funds: Ms. Kosnoff plans to prepare the relevant information in the next few weeks. • Article 27: Appropriate for Authorized Capital Improvements: Ms. Kosnoff reported that the two possible items are for athletic field lighting and the Munroe School windows, but this article may be indefinitely postponed. • Article 25: Prior Year's Unpaid Bills: Ms. Kosnoff reported that there may be one small bill to be paid. • Article 42: 186 Bedford Street Rezoning: Ms. Kosnoff reported that the BoS support the new design for this building. Mr. Parker reminded Committee members that if they are Town Meeting members, they may vote differently, based on their personal interest, as Town Meeting members than they do when voting in the Town's best interest as Committee members. Questions for the Town Manager on February 12 The following issues were identified for discussion with Mr. Malloy, who is planning to attend this Committee's February 12 meeting: • Tax rate policy in regard to the Personal Property Tax • Funding plans for the new or renovated Lexington High School 2 02/07/2019 AC Minutes • Policy to draw down the use of Free Cash to fund the operating budget • The amount to be appropriated to the PEIL Fund for other post-employment benefits. • The School Department budget; in particular the additional $380,000 requested by the School Committee. • Inter-Municipal Agreement with Minuteman Technical HS • The $700,000 tax levy for cash capital and how that is to be used. • The use of the Capital Stabilization Fund for within-levy debt • Re-evaluating the "5% rule" governing annual debt growth • General financial policy development: Although this was identified, Ms. Kosnoff suggested that staff needs to address this first. Additional suggestions should be forwarded to Mr. Parker by Monday. Guests to Speak to this Committee Regarding Warrant Articles Suggestions of people to invite to a meeting of this committee included the following" • Ricki Pappo, as a proponent of the sustainability articles. • David Kanter, Vice-Chair and Clerk of the Capital Expenditures Committee (CEC), to discuss CEC positions. • Marilyn Fenollosa, Chair of the CPC, to discuss projects requesting CPA funding. It was agreed that if Lexington and Minuteman Technical High School(Minuteman Tech) negotiate an Inter-Municipal Agreement to share expenses and use of athletic fields to be built for the new Minuteman Tech facility, it would be advisable to discuss the financial impacts with a representative of the school and/or the Town's proponents of the agreement. Minutes It was noted that Mr. Michelson is preparing minutes for the January 30, 2019, meeting. The January 17, 2019, minutes were approved at that meeting; Ms. Arnold agreed to distribute and archive those approved minutes. The meeting adjourned at 9:32 p.m. Respectfully submitted, Sara Arnold Approved: February 21, 2019 Exhibits • Agenda,posted by Mr. Parker, Chair 3