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HomeMy WebLinkAbout2026-01-26 SB Packet - ReleasedSELECT BOARD MEETING Monday, January 26, 2026 *Conducted by Remote Participation 6:30 PM AGENDA PUBLIC COMMENTS Public comments are allowed for up to 10 minutes at the beginning of each meeting. Each speaker is limited to 2 minutes for comment. Members of the Board will neither comment nor respond, other than to ask questions of clarification. Speakers are encouraged to notify the Select Board's Office at 781-698- 4580 if they wish to speak during public comment to assist the Chair in managing meeting times. SELECT BOARD MEMBER CONCERNS AND LIAISON REPORTS 1.Select Board Member Announcements and Liaison Reports 2.Lexington High School Project Update to Select Board TOWN MANAGER REPORT 1.Town Manager Weekly Update CONSENT AGENDA 1.Approve: One-Day Liquor License - Off Beat Tap Company, 1403 Massachusetts Avenue Seasonal Suites Tap Performance - Sunday, February 1, 2026 2.Approve: Battle Green Use Request(s) - Lexington Minute Men 18th Century Military Drill - Saturday March 28, 2026 Rehearsal of Reenactment of the Civilian Evacuation & the Battle of Lexington - Saturday, April 4, 2026 (Rain Date: Saturday, April 11. 2026) Annual Civilian Evacuation, Parker's Revenge and Battle of Lexington Reenactment - Saturday, April 18, 2026 3.Approve: Battle Green Use Request(s) - William Diamond Junior Fife and Drum Corps Lexington Tattoo - Friday, May 1, 2026 Lexington Muster Parade - Saturday, May 2, 2026 4.Approve: Select Board Meeting Minutes November 10, 2025 Select Board November 17, 2025 Summit November 20, 2025 Select Board December 3, 2025 Department Budget Presentations December 4, 2025 Department Budget Presentations December 8, 2025 Select Board December 9, 2025 Department Budget Presentations December 15, 2025 Select Board 5.Approve: Water and Sewer Commitments and Adjustments 6.Approve: Eagle Scout Commendation Letter - Trevor Stevens ITEMS FOR INDIVIDUAL CONSIDERATION 1.Review & Approve: FY2027 Fee Schedule for Recreation & Community Programs 6:45pm 2.Discussion: FY27 Town Manager's Preliminary Budget & Financial Planning 6:55pm 3.Update: Massachusetts Water Resource Authority (MWRA) on Combined Sewer Outflows (CSO) Control Efforts 7:15pm 4.Presentation: 2026 Annual Town Meeting Article 7:35pm Speed Humps on Walnut Street - Citizen's Petition 5.Review: 2026 Annual Town Meeting DRAFT Warrant 7:55pm 6.Review & Approve: Town Manager Goals 8:05pm ADJOURN 1.Anticipated Adjournment 8:15pm 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/86343561893? pwd=oXKQDdIdatm6cK4k5pbTMMCVODdQYa.1 Meeting ID: 863 4356 1893 Passcode: 436053 An Act Relative to Extending Certain State of Emergency Accommodations: https://www.mass.gov/the-open-meeting-law A meeting of the Select Board will be held on Monday, February 2, 2026 at 6:30pm 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: Select Board Member Announcements and Liaison Reports PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: LR.1 SUMMARY: Under this item, Select Board Members can provide verbal updates, make announcements, as well as comment on any additional points or concerns. Resources for Immigrant Rights, Travel and Protection SUGGESTED MOTION: FOLLOW-UP: DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 ATTACHMENTS: Description Type Statement on Welcoming Inclusive Communities Cover Memo 1625 MASSACHUSETTS AVENUE • LEXINGTON, MA • 02420 Town of Lexington T own Manager’s Office Steve Bartha, Town Manager Kelly Axtell, Deputy Town Manager Tel: (781) 698-4540 Fax: (781) 861-2921 November 4, 2025 The Town of Lexington and the Lexington Police Department remain committed to making Lexington a truly “Welcoming, Inclusive, and Safe Community,” as reflected in the resolution of the same name originally adopted by Town Meeting in 2018, and reaffirmed by the Lexington Select Board on October 6, 2025. This reaffirmation aligns with the mission of our public safety departments and the Town overall. In a recent letter to the Select Board, the Human Rights Committee Chairperson Christina Lin said: “Reaffirming the resolution is an important opportunity to communicate that the Town of Lexington prioritizes and is dedicated to ensuring that local policing and emergency first responders are centered on the safety of those who live and work in, and visit our Town.” We couldn’t agree more. As outlined in our May 2025 statement, the Lexington Police Department does not enforce federal immigration laws and does not inquire into the immigration status of any individual. Federal law prohibits local police from interfering with federal immigration enforcement operations and any actions that deliberately impede federal officers could expose officers and departments to legal liability. We continue to strongly advise individuals to refrain from physically interfering with ICE arrests, which have included instances of assaults on local police and federal agents, and instead to seek legal avenues of recourse. Physical interference jeopardizes the safety of everyone in the area and, in addition to being illegal, is extremely dangerous. The Lexington Police Department prioritizes its mission of providing, “high-quality, accountable police services, reflecting the values of the community in a manner that affirms the fair and equitable treatment of all, where each individual matters and their rights are recognized and protected” to ensure the Town “is a safe and welcoming place to live, work, and visit.” The Town and Police Department will work to continue to preserve these values every day. Any questions or clarifications regarding this statement should be directed to Chief Michael McLean at mmclean@lexingtonma.gov. Steve Bartha Michael A. McLean Town Manager Chief of Police AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Lexington High School Project Update to Select Board PRESENTER: Joe Pato, Select Board/School Building Committee Member ITEM NUMBER: LR.2 SUMMARY: Under this standing item, the Select Board will share general updates on the Lexington High School Project, including progress reports, key milestones, and upcoming actions. This item is intended to provide regular updates to the community on the project’s status and next steps. Public comment will not be taken on this item. For additional information and live updates, visit the project website: www.lhsproject.lexingtonma.org SUGGESTED MOTION: FOLLOW-UP: DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Town Manager Weekly Update PRESENTER: Steve Bartha, Town Manager ITEM NUMBER: TM.1 SUMMARY: Under this item, the Town Manager can provide verbal updates, make announcements, as well as comment on any additional points or concerns. SUGGESTED MOTION: FOLLOW-UP: DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 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 Sunday, February 1, 2026 1:30 PM - 4:00 PM at the Munroe 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 Sunday, February 1, 2026 1:30 PM - 4:00 PM at the Munroe Center for the Arts, 1403 Massachusetts Avenue. Move to approve the consent. FOLLOW-UP: Select Board Office. DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 ATTACHMENTS: Description Type Munroe 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: Battle Green Use Request(s) - Lexington Minute Men PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.1 SUMMARY: Category: Decision-Making The Lexington Minute Men are requesting approval to use the Battle Green for the following training, rehearsal, and commemorative events in 2026: 18th Century Military Drill Saturday, March 28, 2026 from 9am - 12pm. Rehearsal of the Civilian Evacuation and Battle of Lexington Reenactment Saturday, April 4, 2026 from 10:00am - 5:00pm. Rain Date: Saturday, April 11, 2026 Annual Civilian Evacuation, Parker's Revenge and Battle of Lexington Reenactment Saturday, April 18, 2026 from 1:00am-12:00pm. Schedule as follows: 3:00 - 4:30 am – 4 to 6 men patrol the Common and Buckman Tavern grounds. 5:05 am – Small company of minutemen drill on the Common. No firing. 5:15 am – Civilian Evacuation – Civilians to be staged at the Lexington Visitors Center and near the Common and will exit across Harrington Road. 5:30 am – Capt. Parker sends Thaddeus Bowman (on horseback) down Mass Ave to scout for British Regulars. 5:55 am – Thaddeus Bowman returns to warn of the British Regulars approach. 6:00 am – British Regulars arrive and the battle commences. 9:00 am – 9:45am – The Lexington Minute Men gather on the Green to listen to Reverend Clarke and prepare to march off to Parker’s Revenge. The P olice Department, Department of Public Works, and Fire Department have reviewed these requests and have no objections. SUGGESTED MOTION: To approve the Lexington Minute Men requests for use of the Battle Green for the following events: 18th Century Military Drill on March 28, 2026. Rehearsal of the Civilian Evacuation and Battle of Lexington Reenactment on April 4, 2026, with a rain date of April 11, 2026 Annual Civilian Evacuation, Parker's Revenge and Battle of Lexington Reenactment on April 18, 2026 Move to approve the consent. FOLLOW-UP: Select Board Office. DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 ATTACHMENTS: Description Type LMM - Patriots Day Request Letter & Schedule Backup Material The Lexington Minute Men, Inc. POST OFFICE BOX 1775 LEXINGTON, MASSACHUSETTS 02420 CAPTAIN COMMANDING Stephen D. Cole, Jr. November 7, 2025 Board of Selectmen 1625 Mass. Ave. Lexington, Mass. 02420 Re: LMM Spring 2026 Use of Battle Green To the Honorable Board: The Lexington Minute Men Company respectfully request the use of the Battle Green on Saturday April 18,2026 from 1am - 1pm for the Annual Reenactment of the Battle of Lexington and the Annual Reenactment of the Lexington Minute Men regrouping on the Battle Green before heading to Parker’s Revenge. These Battle Reenactment has been held nearly every year since 1971, the Reenactment includes musket firing on the Green during the Battle, after a single shot from Buckman Tavern initiates the action. For the Reenactment of the Lexington Minute Men regrouping on the Battle Green before heading to Parker’s Revenge, there will be no musket firing on the Green. The men are simply gathering and preparing to march off to Parker’s Revenge. Proceedings on the Green last approximately 30 minutes, followed by a short march up Mass Ave to St. Brigid’s Church where we will meet the busses that will transport us to the Minute Man National Historical Park for the Parker’s Revenge Event. The Company wishes to register its continuing thanks for this annual service by the Lexington Police Department. 5,000+ participants and spectators expected. See below for timeline. 3:00-4:30am – 4-6 men patrol the Common and Buckman Tavern grounds. 5:05-5:15am – Small company of minutemen drill on the Common. No firing. 5:15-5:30am – Civilian Evacuation – Civilians to be staged at the Lexington Visitors Center and near the Common and will exit across Harrington Road. 5:30am – Capt. Parker sends Thaddeus Bowman (on horseback) down Mass Ave to scout for British Regulars. 5:55am – Thaddeus Bowman returns to warn of the British Regulars approach. 6:00am – British Regulars arrive and the battle commences. 9:00am – 9:45am – The Lexington Minute Men gather on the Green to listen to Reverand Clarke and prepare to march off to Parker’s Revenge Saturday, April 26, 1am - 1pm. We are grateful for the strong support always offered by the Selectmen and hope that this request will be granted. It is always an honor and a pleasure to be of service, continuing to keep alive the traditions of Lexington and the memory of the town’s first casualties in the War for Independence. On behalf of CPT Stephen D. Cole Jr., our unit’s 78th and present commander, I do remain Yours in Liberty, 2LT Bruce J. Leader, Adjutant Lexington Minute Men AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: Battle Green Use Request(s) - William Diamond Junior Fife and Drum Corps PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.2 SUMMARY: Category: Decision-Making Annual Lexington Tattoo & Parade on Massachusetts Avenue: The William Diamond Junior Fife and Drum Corps is requesting permission to hold the annual Lexington Fife and Drum Tattoo on the Battle Green on Friday, May 1, 2026, from 6:00pm to 8:30pm. The event itself will begin at 7:00pm and will include the Lexington Minute Men presenting Colors, the National Anthem by the William Diamond Junior Fife and Drum Corps and musical performance by four Fife and Drum Corps members as part of the Lexington Muster weekend. Lexington Muster Line Up & Parade on Massachusetts Avenue: The William Diamond Junior Fife and Drum Corps is requesting permission to use the Battle Green on Saturday, May 2, 2026 from 10:30am to 1:00pm for the purpose of Corps Members lining up for the Lexington Muster Parade. Parade participants will gather on the Battle Green at the corner of Harrington Road and Massachusetts Avenue prior to parading down Massachusetts Avenue towards Hastings Park, where the Lexington Muster will be taking place. The first group will step off of the Battle Green to begin the parade at 12:00pm. Please see the attached map for the parade route. The Police Department, Department of Public Works, Fire Department and the Town Manager's Office have no objections to this request. SUGGESTED MOTION: To approve the request of the William Diamond Junior Fife and Drum Corps to use the Battle Green on Friday, May 1, 2026, from 6:00pm to 8:30pm for the annual Lexington Fife and Drum Tattoo as part of the Lexington Muster weekend, and to further approve the Parade Corps to march down Massachusetts Avenue towards the Battle Green for the annual Lexington Fife and Drum Tattoo starting at 7:00pm. To approve the request of the William Diamond Junior Fife and Drum Corps to use the Battle Green on Saturday, May 2, 2026 from approximately 11:00am to 12:30pm for the purpose of lining up for the Lexington Muster Parade, and to further approve Corps Members parading down Massachusetts Avenue towards Hasting Park for the Lexington Muster starting at 12:00pm. Move to approve the consent. FOLLOW-UP: Select Board Office. DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 ATTACHMENTS: Description Type 2026 Muster Parade Route Map Backup Material AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: Select Board Meeting Minutes PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.4 SUMMARY: Category: Decision Making The Select Board is being asked to approve the following set of minutes: November 10, 2025 Select Board November 17, 2025 Summit November 20, 2025 Select Board December 3, 2025 Department Budget Presentations December 4, 2025 Department Budget Presentations December 8, 2025 Select Board December 9, 2025 Department Budget Presentations December 15, 2025 Select Board SUGGESTED MOTION: To approve and release the following minutes: November 10, 2025 Select Board November 17, 2025 Summit November 20, 2025 Select Board December 3, 2025 Department Budget Presentations December 4, 2025 Department Budget Presentations December 8, 2025 Select Board December 9, 2025 Department Budget Presentations December 15, 2025 Select Board Move to approve the consent agenda FOLLOW-UP: Select Board Office. DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 ATTACHMENTS: Description Type DRAFT 11102025 Select Board minutes Backup Material DRAFT 11172025 Select Board minutes Backup Material DRAFT 11202025 Finance Summit minutes Backup Material DRAFT 12032025_Dept Budget Presentations Backup Material DRAFT 12042025_Dept Budget Presentations Backup Material DRAFT 12082025 Select Board Minutes Backup Material DRAFT 12092025 Dept Budget Presentations Backup Material DRAFT 12092025 Dept Budget Presentations Backup Material SELECT BOARD MEETING Monday, November 10, 2025 A meeting of the Lexington Select Board was called to order at 6:30p.m. on Monday, November 10, 2025, via a hybrid meeting platform. Ms. Hair, Chair; Mr. Lucente, Mr. Pato, Ms. Kumar, and Mr. Sandeen were present, as well as Mr. Bartha, Town Manager; and Executive Clerk, Kim Katzenback. PUBLIC COMMENTS Patrick Mehr, 31 Woodcliffe Road, stated that, as evident from the Board’s tax classification package, the values of commercial properties are going down while the values of residential properties are going up. This will result in a shift of taxes away from commercial properties, raising resident taxes by more than what has previously been seen. This should be modeled moving forward. Also, regarding the percentage that rental apartment complexes pay in taxes, it appears that individual apartment units currently pay only 36% per square foot of what a single-family dwelling pays. In contemplating the large number of MBTA dwellings upcoming in Town, of which 88% will be rental units, it may be important to reconsider the 36% per square foot. SELECT BOARD MEMBER CONCERNS AND LIAISON REPORTS 1. Select Board Member Announcements and Liaison Reports Mr. Lucente stated that there will be a Veterans Day celebration tomorrow. This also marks the 50th anniversary of the Vietnam War. There will be a celebration tomorrow at 6 Miriam Street at the Church of Our Redeemer from 11am-1pm. He announced his intention to run as a candidate for reelection to the Select Board. Mr. Sandeen noted that he will also be running for reelection to the Select Board. 2. Lexington High School Project Update to Select Board Mr. Pato stated that the consulting team and staff have addressed some of the comments and questions raised at Town Meeting and that were circulated on social media in the aftermath of the meeting. The slide presentation was attached to the Board’s packet, and two video segments will be loaded to the project website. Mr. Lucente stated that there were some social media postings regarding the Lexington High School costs compared to the Burlington High School costs. The post mentioned that the cost per square foot for the Burlington project is about $911 and Lexington’s cost from the last presentation was $1,293. Given that both projects are on similar timelines, it would be good to understand the policy decisions at play with this comparable community. DOCUMENTS: Responses to TM Questions TOWN MANAGER REPORT 1. Town Manager Weekly Update Mr. Bartha stated that he and the Deputy Town Manager had the privilege and joy of attending the ICMA Conference in Tampa with two of Lexington’s young professionals, the Budget Director and Management Analyst, who were both attending their first conference. CONSENT AGENDA 1. Approve: One-Day Liquor Licenses - Spectacle Management, Inc., 1605 Massachusetts Avenue Friday, November 14, 2025 - V octave Saturday, November 15, 2025 - Jim Brickman Saturday, November 29, 2025 - Preservation Hall Jazz Sunday, December 14, 2025 - Eilleen Ivers Thursday, December 18, 2025 - Canadian Brass Sunday, December 21, 2025 - Irish Christmas To approve six One-Day Liquor Licenses for Spectacle Management, Inc. to serve beer and wine at Cary Hall, 1605 Massachusetts Avenue, for their Concert Series on November 14, 15, 29 & December 14, 18, 21, 2025. DOCUMENTS: Spectacle Event Diagram 2. Approve: One-Day Liquor Licenses - St Brigid Parish, 1989 Massachusetts Avenue Taste of Italy Fundraiser - Saturday, November 15, 2025 To approve a One-Day Liquor License for St. Brigid Parish, 1989 Massachusetts Avenue, to serve beer and wine at its “Taste of Italy” event on November 22, 2025, from 6:00 PM to 10:00 PM, in accordance with all applicable regulations. 3. Approve: Select Board Minutes To approve and release the following minutes: September 8, 2025 Select Board September 15, 2025 Select Board September 29, 2025 Select Board October 6, 2025 Select Board DOCUMENTS: DRAFT 09082025 Select Board Minutes; DRAFT 09152025 Select Board Minutes; DRAFT 09292025 Select Board Minutes; DRAFT 10062025 Select Board Minutes 4. Accept: Select Board Committee Resignation Housing Partnership Board: Sarah Morrison To accept the resignation of Sarah Morrison from the Housing Partnership Board effective immediately. DOCUMENTS: 2025.11.03 Sarah Morrison - Housing Partnership Board_Redacted 5. Approve: Select Board Committee Appointment Housing Partnership Board: Russell P. Tanner To appoint Russell P. Tanner to the Housing Partnership Board to fill a term ending on September 30, 2028, effective immediately. DOCUMENTS: Housing Partnership Board - Russell P . Tanner - Application & Resume 6. Approve: Proclamation Employee Recognition Day To approve and sign a proclamation for Employee Recognition Day to honor all Town employees and to recognize those employees with 10, 15, 20, 25, 30 and 40 years of service. DOCUMENTS: 2025 Employee Recognition Day VOTE: Upon motion duly made and seconded, the Select Board voted 5-0 to approve the Consent Agenda, as presented. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Public Hearing: FY2026 Tax Classification Presentation Ms. Hai explained that this is the first meeting in the process of setting the FY2026 tax rates. The Board of Assessors and the Assistant Town Manager for Finance presented the FY2026 tax classification options and preliminary tax rates for the Select Board's consideration. The Fiscal Year 2026 Tax Classification Packet includes a summary of these options and supporting exhibits. This agenda item also serves the purpose of a tax classification hearing for the Board to take public comments on the tax classification options. She announced that the hearing will remain open until Monday, November 17, 2025, to allow for any additional public comments to be submitted to the Select Board prior to the Board voting the Tax Classification at their November 17th meeting. Ms. Hai opened the public hearing at 6:49pm. Ms. Kosnoff reviewed how the tax rate is calculated, which is the Town's total tax levy divided by its total assessed value. The total tax levy for FY26 is approximately $265M and the total assessed values are over $19B. Per the calculation, a flat tax rate would equate to $13.82 per $1,000 of value. This compares to $13.87 cents in FY25. The town of Lexington has had a historic practice of taxing to the levy limit. The total maximum allowable levy limit for FY26 is 3.49% or $265.3M over last year. Ms. Kosnoff explained that there are four options that the Board has available for setting the tax rate. The first is to select a shift between the commercial and CIP classes from 1% up to 1.75%. The second is whether or not to adopt an open space discount. This is not applicable in Lexington, because the Town does not have any property that is classified as open space. The third option is a residential exemption, If the Board decides to adopt one, it could be up to 35%. The fourth is regarding a small commercial property exemption, which could be adopted at up to 10%. She reviewed each of the potential options. Mr. Lucente asked about the resident’s question regarding the rental apartment complex tax rate percentage. Ms. Kosnoff explained that there are different methodologies of valuing property compared to the residential rate. Residential properties are generally valued using a market sales approach. For a property such as a large apartment building, the income approach is generally used. These methodologies are not different from what is used by other municipalities. These methodologies are as prescribed by the Department of Revenue. Mr. Lucente asked how the Town compares to other communities in the region regarding the commercial lack of growth that has been seen over the last couple of years. Ms. Kosnoff stated that Lexington is not an outlier at this point and may be faring a bit better than some. A main impact for FY26 is that 440 Bedford Street is fully constructed but not built out from the interior and is vacant. This changes the Town's overall percentage. Mr. Pato stated that, regarding the rental apartment complex tax rate percentage, constructing an arbitrary formula to make comparisons in the absence of how properties are actually assessed and used will create confusion. Shailesh Chandra, 10 Childs Road, asked about the proposal for the tax rate for residential homes and new apartments/condos for next year. Ms. Kosnoff explained that the tax rate between a residential, single-family home and an apartment would be exactly the same, as they are both within the residential class. All property classified as residential would have the same rate, proposed to be $12.31 if staying at the max shift, compared to $12.23 last year. Patrick Mehr, 31 Woodcliffe Road, stated that he believes Lexington should raise the rental apartment complex tax rate percentage because may have thousands of these units coming in which will make it impossible to balance the budgets in ten years. Olga Guttag, Precinct 6 Town Meeting Member, stated that today's presentation convinced her that the tax calculator on the project website for the Lexington High School is quite misleading. She asked that this be updated to include the annual tax increase that residents can expect from today's presentation. Jay Luker, 26 Rindge Ave, asked if other towns that implement the residential exemption ever experience any impacts on real estate demand. He asked if this potentially increases the price pressure on those towns and dampens the market for higher end homes. Putting increased price pressure on lower end homes could further make it so that young families with children are priced out of Lexington. holding off until those rates start to go up. Assuming the high school debt exclusion gets passed, he recommended starting the residential exemptions at smaller than 20% and determining some strategies to expand smaller rental opportunities. Dawn McKenna, 9 Hancock Street, stated that the tax rate has not always been so dramatically split. She also expressed concern about the valuations around apartments. She asked the Board to consider that it appears people at the lower end of the market may possibly benefit from some of a shift and also a residential exemption. Mr. Sandeen explained that he spoke with someone in Marlborough, which does not have a property tax exemption, but used to. Marlborough started phasing out the property tax exemption in 2005 and finally got rid of it in 2010. They determine that many long-term residents who had bought homes decades earlier were now over the median value of the home and actually being hurt by this. Marlborough determined that, as this was not age tested or means tested, many homeowners with high incomes or good liquid assets were having their property taxes lowered. Mr. Pato noted that Concord recently adopted the residential exemption and are reevaluating to consider whether or not this is a value to them. One of the recommendations from the committee was for the Town to pursue a means-tested senior residential exemption. It could be time for the Town to consider a Home Rule Petition for this, as Concord did. There was agreement on the Board to consider this further. DOCUMENTS: FY 2026 Tax Classification Presentation; FY 2026 Tax Classification Packet 2. Review: Amended Housing Partnership Board Committee Charge Ms. Hai explained that the Housing Partnership Board (HPB) is recommending updates to its committee charge and seeks Select Board approval. She stated that the HPB’s current charge provides for 13 voting members, including designated representatives from the Planning Board, Council on Aging (COA), Lexington Housing Authority (LHA), and Lexington Housing Assistance Board (LexHAB). The HPB proposes adjustments to reflect current participation and strengthen coordination among housing entities. Wendy Manz, Housing Partnership Board Chair, explained that the proposal is to change from four to six liaisons, for a total of 13 voting members. The request is also to convert the LHA seat from a voting member to a liaison position, as the Authority has been unable to appoint a voting representative for over a year. The request is to establish a formal liaison seat for the AHT, recognizing the value of their ongoing informal participation and alignment of housing policy efforts. Finally, to convert the COA seat from a voting member to a liaison position, formalizing the current arrangement with a COA representative who participates regularly but cannot serve as a voting member. Mr. Lucente asked about potentially lowering the total number of voting members from 13 to 11, for example. Ms. Manz stated that this would not be an opportune time to do so. Working groups were recently established to review a number of goals and the full membership is being utilized. VOTE: Upon motion duly made and seconded, the Select Board voted 5-0 to approve the amended Housing Partnership Board Committee Charge as proposed. DOCUMENTS: Memo - HPB Request to Update Charge, 2025.11.10 Proposed Amended Housing Partnership Board Charge, 2025.11.10 Proposed Amended Housing Partnership Board Charge - Redline 3. Update: Vision for Lexington Report on Local Election Voter Participation Analysis Jeri Zeder, of the Vision for Lexington Subcommittee, presented the group’s findings from its study on local election voter participation, in which causes of low voter turnout in Lexington’s municipal elections were examined. VFL also presented recommendations to increase civic engagement and voter participation at the local level. Key Recommendations for consideration from the Vision for Lexington Subcommittee include: 1. Establishing a Voter Turnout Task Force 2. Changing the timing of local elections 3. Promote Voting in Local Elections 4. Reducing logistical barriers to voting 5. Supporting the Town Clerk’s office in streamlining election administration and developing new voter engagement tools. 6. Advocating for legislative action on home-rule petitions related to ranked-choice voting and local voting rights for lawful permanent residents. 7. Improving access to data to better study and understand voter participation patterns. 8. Studying How to Foster Informed Citizenry. Mr. Lucente stated that there was previously a registration campaign for teens turning 16-17 in Town, hoping to encourage them to vote once able to do so. He asked about the results of that. Ms. Zeder stated that there was no data from that campaign. There needs to be additional education for people as they become voters. Ms. Kumar asked about comparing Lexington to other municipalities in terms of voter turnout. Ms. Zeder stated that election turnout is very low in all local elections, everywhere. Mr. Sandeen asked about engaging with the legislature to determine why there has been no action on ranked choice voting and voting rights for local elections for non-citizens. Ms. Zeder stated that this was not examined. Mr. Sandeen suggested getting the word out to people that voting for a Select Board member can have a long impact on what happens in State government as well. There is more impact to be had on voting at a local level. Mr. Pato stated that he would like the Town to continue pursuing increased voting, while also considering multiple ways of outreach and other ways of determining how to engage community members so that they value their community through engagement. Ms. Hai stated that she would like to move forward with the creation of a task force to study voter participation in Lexington for local elections. There was agreement on the Board. Mr. Lucente noted that a group in Town is working to establish a Lex Youth Civics group. There is interest in trying to put together a one-day seminar for high school students regarding how government works. Olga Guttag stated that she would like the Town to encourage canvassers speaking about registering and voting to people by going door-to-door. Secondly, if a resident requests a stack of paper forms from the Town Clerk's office to help people register or vote by mail, she asked that the Clerk honor this request. Dawn McKenna stated that her personal observation is that the amount of opportunities that youth have to be involved in elections, for example, that they are no longer allowed to elect their own school committee student representative, has changed people's attitudes regarding elections. This would be a good partnership to pursue. VOTE: Upon motion duly made and seconded, the Select Board voted 5-0 to accept the Vision for Lexington Subcommittee report dated August 22, 2025, regarding their study on Local Election Voter Participation and place the report on file with the Town Clerk. DOCUMENTS: Lex.Voter.Turnout.Presentation, Report - VFL.Local.Election.Voter.Turnout. ADJOURN VOTE: Upon a motion duly made and seconded, by roll call, the Select Board voted 5-0 to adjourn at 8:37p.m. A true record; Attest: Kristan Patenaude Recording Secretary SELECT BOARD MEETING Monday, November 17, 2025 A meeting of the Lexington Select Board was called to order at 6:30p.m. on Monday, November 17, 2025, via a hybrid meeting platform. Ms. Hair, Chair, Mr. Lucente, Mr. Pato, and Mr. Sandeen were present, as well as Mr. Bartha, Town Manager; Ms. Axtell, Deputy Town Manager; and Kim Katzenback, Executive Clerk. EXECUTIVE SESSION 1. Exemption 6: To Consider the Purchase, Lease, Value of Real Property – Silk Fields Upon motion duly made and by roll call, the Select Board voted 4-0 to enter into Executive Session at 6:32pm. Under Exemption 6: To Consider the Purchase, Lease, Exchange, Value of Real Property - Silk Fields. Further, it was declared that an open meeting may have a detrimental effect regarding negotiating position of the Town. Board returned to open session at 7:15pm PUBLIC COMMENTS None at this time. SELECT BOARD MEMBER CONCERNS AND LIAISON REPORTS 1. Select Board Member Announcements and Liaison Reports Mr. Pato stated that the Ad Hoc Crematory Study Committee has met five times. He does not expect that there will be a recommendation forthcoming for action at this annual Town Meeting, but he does expect a progress report. DOCUMENTS: Liaison Reports-Joe Pato-2025-11-17 2. Lexington High School Project Update to Select Board Mr. Pato explained that the School Building Committee met earlier today and heard updates from the project team. The community asked questions about rough comparisons with the proposed high school project in Burlington and the project in Watertown. The technical team stressed that all comparisons are difficult because there are many unique elements for each project. Burlington had a debt exclusion vote on Saturday, and it failed for this project. The project that was proposed was a combination of renovation and new construction. When comparing only the new construction portion of the Burlington project, the costs without scope adjustment are very similar to Lexington’s costs, as $1,263 per square foot for Burlington and $1,293 per square foot for Lexington. When adjusted for project scope, the Burlington project is more expensive than Lexington’s. For the Watertown project, the adjusted project cost is $1,232 per square foot, again, close to Lexington’s projection. Also discussed today was a proposed reconfiguration of the playing fields in rotating by 90 degrees the football practice and cricket overlay fields. This would move the concession stand and the grandstands from being parallel to abutters, to being perpendicular to abutters and not creating as much of a visual impact. Also discussed was the total value design. This process has identified over $500,000 worth of cost reductions through improved site work and structural elements. This process differs from simple value engineering in that it seeks to find more efficient or improved implementation techniques that span multiple disciplines, rather than just scope reductions often associated with value engineering. Mr. Sandeen stated that the Permanent Building Committee is reviewing the proposals for total value design and recommending them to the School Building Committee. Also, the Zoning Board of Appeals met to review the 591 Lowell project. The hearing was held open and will resume on December 11th. Ms. Hai stated that she will be testifying for the third time tomorrow in support of the Municipal Empowerment Act. Also, she attended an event yesterday sponsored by the Lexington United Against Anti Semitism group regarding collaborative work across the community. TOWN MANAGER REPORT 1. Town Manager Weekly Update Mr. Bartha stated that Town has filled both of the Equity Officer positions with a December 1, 2025 start date for both people. The intention is to build out a cross-departmental IDEA team, which stands for Inclusion, Diversity, Equity and Access. This will bring staff from across all departments to serve as an internal resource for both of the positions. CONSENT AGENDA 1. Approve: Battle Green Use Request - TCGT Entertainment B-Roll Filming - Saturday, November 22, 2025 To approve the Battle Green Use Request submitted by TCGT Entertainment for filming related to an augmented reality project commemorating the 250th anniversary, on Saturday, November 22, 2025, from 9:00 AM to 11:00 AM, in accordance with all applicable Town regulations. DOCUMENTS: Filming Locations for Permit 2. Approve: Select Board Appointment to State Special Commission for Celebration of the 250th Anniversary of the American Revolution Semiquincentennial Commission, Chair - Monami D. Roy To appoint Mona Roy as the Town of Lexington’s representative to the Massachusetts Special Commission on the 250th Anniversary of the American Revolution 3. Application: Limousine License - Sirius Limo Services Sirius Limo Services - 7222 Lexington Ridge Drive, 1 Vehicle To approve the application and issue one (1) Limousine License to Sirius Limo Services, operated by Sirius Financial Services, Inc. DOCUMENTS: Sirius Limo Services - Application 4. Approve: Water and Sewer Adjustments To approve the consent DOCUMENTS: SB Meeting W/S Adjustments VOTE: Upon motion duly made and seconded, the Select Board voted 4-0 to approve the Consent Agenda, as presented. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Approve: FY2026 Tax Classification Options Continued Public Hearing Approval FY2026 Tax Classification Options Ms. Hai reopened the hearing at 7:33pm. She explained that this is the second meeting of the Select Board to establish the fiscal year 2026 tax rate. The FY2026 Tax Classification memo was posted to the Town webpage on November 7th and advertised to the public via legal notice, website and Constant Contact. On November 10, 2025, the Assistant Town Manager for Finance and the Board of Assessors presented FY2026 property valuations, budget and classification options that will determine the Fiscal Year 2026 tax rate. On that date the Board also held the tax classification hearing to take public comment on the classification options. Carolyn Kosnoff, Assistant Town Manager for Finance, explained that this is for the Board to vote on the four options that will determine the FY2026 tax rate. The four votes are to: Establish a shift factor between 1.00 and 1.75 (see Exhibit A of the classification packet); Determine whether to adopt the Open Space Discount (the Town has no property classified as Open Space); Determine whether to adopt the Residential Exemption and, if so, the percentage (up to 35 percent); Determine whether to adopt the Small Commercial Exemption, and if so, the percentage (up to 10 percent) Mr. Pato stated that, if the Board ever chooses to reconsider the residential exemption and/or the small commercial exemption, it should begin the discussion while setting the budget for next year, not during the time of these votes. Ms. Kosnoff agreed that staff would likely need at least a year to prepare to implement a residential exemption. This would also likely require additional staff, at least temporarily, in the Assessor’s Office. The Board agreed to have a more robust discussion regarding this item at an upcoming work session. Howard Cloth, 19 Sherman Street, stated that he was a member of the 2018 Ad Hoc Residential Exemption Policy Study Committee. The Committee did not recommend this for the Town to use for a number of reasons, mostly because it was considered to be a blunt instrument. However, in the past seven years, things have changed, and he would personally recommend taking advantage of the ability to shift the tax burden from residents who own property assessed less than the median, to residents who own property assessed more than the median. Lin Jensen, Precinct 8 Town Meeting Member, asked if the assessment value of apartment rentals of more than eight units is evaluated based on income and cost. She believes that they are paying less for a similar sized unit because of the lower assessment value. Rob Lent, Assessor, asked that this be discussed directly with his office. Ms. Jensen also suggested a Home Rule Petition to consider a commercial rate for large apartments, which gives complexes with affordable housing units an exemption. Ms. Hai closed the hearing at 7:48pm. VOTE: Upon motion duly made and seconded, the Select Board voted 4-0 to establish a residential factor of .891 (plus additional decimals or rounding as needed) to result in a tax shift of 1.75 (see Exhibit A of the classification packet); to not adopt the Open Space Discount; to not adopt the Residential Exemption; and to not adopt the Small Commercial Exemption. DOCUMENTS: FY2026 Tax Classification Presentation; FY2026 Tax Classification Packet 2. Review & Approve: 6th Edition of Tree Management Manual Nancy Soften, Tree Committee, explained that, on October 9, 2025, the Tree Committee voted unanimously to approve the attached recommended changes to the Tree Management Manual. A summary of changes is: Stronger wording on the signage required on tree protection fencing, recognizing that the specific wording of the signage is not commercially available, and so are in discussion with the DPW about having signs printed that can be distributed to builders. Hand-lettered signs are frequently posted and are acceptable. A better figure 13 showing tree protections and signage A two-part arborist attestation, to include part B affirming that tree protections are in place Addition of Freeman Maple to the Large Shade Tree List for extra mitigation credit The Tree Committee respectfully requests Select Board approval of these recommended changes to the Tree Management Manual. VOTE: Upon motion duly made and seconded, the Select Board voted 4-0 to approve the Tree Committee recommended changes to the Tree Management Manual as presented. DOCUMENTS: Pages with Proposed Updates for the Lexington Tree Management Manual; DRAFT - Town of Lexington Tree Management Manual 6th edition (Proposed edits incorporated); Document as FYI - Lexington Tree Bylaw Rules and Regulations Quick Start Exhibit Guide 3. Discussion: Select Board and Town Manager Goals for FY2026 Ms. Hai explained that, following the June 2025 Select Board retreat, facilitator Jon Wortmann culminated draft FY2026-27 goal areas and statements based on the Board’s input. Board members later provided additional feedback to refine and define measurable objectives. With the Boards feedback and further discussion with the Town Manager, a draft set of the FY2026-2027 Select Board Goals is being presented for Board discussion and potential adoption. Ms. Hai explained that the Board agreed to five goals and is working to get three subgoals under each. The subgoals are meant to suggest actions and directions for staff. The five goals are: 1. Complete the Lexington High School Project 2. Clean, Healthy, Resilient Lexington 3. Economic and Community Vibrancy 4. Fiscal Stability 5. Livable Community There was discussion regarding the subgoals under each of these items. Board members agreed to draft language for potential subgoals under the Fiscal Stability goal for further discussion at a future meeting. There was agreement to table a vote on the goals until all Board members were present. Dawn McKenna, 9 Hancock Street, stated that, under the Livable Community goal, she would like the goal to reflect that there has not yet been a community consensus on what the right amount of affordable housing is. She would like to see a subgoal for the staff to help facilitate community consensus on what a reasonable, affordable housing goal is that balances providing affordability of housing and existing residents. Regarding the Fiscal Stability goal, she has been frustrated for many years regarding a lack of clear direction to the staff in terms of new fiscal opportunities. She suggested a subgoal for staff to continue to invest in the tourism-based economy to maximize revenue opportunities. DOCUMENTS: For Discussion/Potential adoption - Proposed FY 26-27 Select Board Goals - suggested edits incorporated; Redlined Version of Proposed FY 26-27 Select Board Goals showing the suggested changes; Original Draft from J. Wortmann - June 2025 4. Establish 2026 Annual Town Meeting and Annual Election Dates Ms. Axtell reviewed the proposed 2026 Annual Town Meeting and annual election dates. VOTE: Upon a motion duly made and seconded, the Select Board voted 4-0 to open the 2026 Annual Town Meeting Warrant for submission of Citizen Petitions through Friday December 19, 2025, at 12:30pm; to establish Monday, March 2, 2026, as the date for Annual Town Election; and to establish Monday, March 30, 2026, as the date for the opening session of the 2026 Annual Town Meeting. 5. Review: Proposed 2026 Select Board Meeting Dates The Board reviewed its proposed 2026 meeting dates and accepted them as amended. DOCUMENTS: Proposed 2026 Select Board Meeting Dates ADJOURN VOTE: Upon a motion duly made and seconded the Select Board voted 4-0 to adjourn at 8:47p.m. A true record; Attest: Kristan Patenaude Recording Secretary Finance Summit I Select Board, School Committee, Appropriation Committee, Capital Expenditures Committee November 20, 2025 7:00 PM Estabrook Hall, Cary Memorial Building Financial Summit I was called to order by Select Board Chair Jill Hai at 7:00p.m. on Thursday, November 20, 2025, via a hybrid meeting platform in Estabrook Hall, Cary Memorial Building, 1605 Massachusetts Avenue. Present for the Select Board (SB): Ms. Hai, Chair; Mr. Pato; Mr. Lucente; and Mr. Sandeen, as well as Mr. Bartha, Town Manager; Ms. Axtell, Deputy Town Manager; Ms. Kosnoff, Deputy Town Manager for Finance; and Ms. Katzenback, Executive Clerk Present for the School Committee (SC): Ms. Jay, Chair; Ms. Cuthbertson; Ms. Lenihan; Ms. Carter (7:05pm arrival); as well as Dr. Hackett, Superintendent of Schools; Dr. Scully, Assistant Superintendent for Finance and Operations Present for the Appropriation Committee (AC): Mr. Parker, Chair; Mr. Bartenstein; Mr. Levine; Mr. Michelson; Mr. Padaki; and Mr. Osborne (7:05pm arrival) Present for the Capital Expenditures Committee (CEC): Mr. Lamb, Chair; Ms. Beebee; Mr. Cole; Ms. Rhodes; and Mr. Rubenstein All boards and committee called their groups to order with a roll call of attendance. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Overview of FY2027 Revenue Projections, Budget Drivers, Current-Year Challenges, Policy Considerations, and Proposed Approaches to Closing the Budget Gap Carolyn Kosnoff, Assistant Town Manager for Finance, reviewed the revenue projections. The revenue came in at a surplus of approximately $8.1M. The operating expenses for FY25 are broken down into three categories: education, shared expenses, and the municipal budget.The School Department turned back approximately $84,000. Shared services turned back a total of approximately $2.9M. The municipal side turned back approximately $1.4M. The total turn backs were approximately $4.4M, which is slightly less than what was turned back in prior years.The Town ended last year with just over $24M worth of free cash. Approximately $5M of that was left unallocated last year and this rolled forward into the current fiscal year’s estimated amount of $20M. Free cash is pending certification from DOR. Mr. Bartenstein (AC) asked why $5M was left unallocated at the end of last year. Ms. Kosnoff explained that the Town typically leaves $1M of unallocated revenue in the event of an emergency. Last year, $2.7M was left instead. On top of that, at the time there was discussion regarding the Harrington Field project and how it would be funded. There was consideration to build the fields with synthetic turf, which would not have fully qualified for CPA funds. An additional $2M was carried forward in the event that it was needed for this purpose, but ultimately, the decision was to move forward with grass fields. This amount will thus return to free cash. She noted that last year's free cash allocation was significantly higher than in prior years for a variety of reasons. Ms. Kosnoff reviewed the FY27 budget. She explained that the largest source of revenue is the property tax levy. The projections show this going up by 3.7%. In addition, $3M of new growth has been built into the budget. There is very little commercial growth in the pipeline at this time. State aid shows a 3.1% increase. This includes both Chapter 70 and the unrestricted Local Government Aid. Overall, the total general fund operating revenues are going up 2.3%. This is the total revenue available. Revenues have been strong. The Town is seeing a bit of headwind in the new growth and commercial growth categories, and it will be important to be cautious regarding how to apply interest income. Mr. Lamb (CEC) asked if the State Aid number is solid or could it go down. Ms. Kosnoff stated that this number is not guaranteed. There was discussion regarding how extra revenue from permits for Hartwell Avenue could increase the amount of free cash available at the end of this fiscal year. Ms. Kosnoff explained that the total amount of revenue projected for the year is approximately $320,164,000. Based on the revenue allocation model of 2.4%, there is approximately $4.6M of new revenue available to cover the FY27 increases, level service budget, and other new items. For the municipal departments, this is an extra $1.2M worth of revenue and for the schools, it is approximately $3.5M. In terms of the initial budget requests, the school department requested a 4.6% increase, and the municipal departments have requested a 5.1% increase. This leads to a shortfall of approximately $4.7M in total. Ms. Kosnoff explained that, overall, the shared expenses are going up 9.45%, which is a very large increase. In total, shared expenses are approximately 26%-29% of the total budget. Health insurance, in particular, is challenging. Last year, there was an 11% increase in health insurance costs. The Town was told to expect a 15% increase in premiums for this year. It was also noted that the Town should not expect health insurance to level off next year, and that this increase trend may continue. Mr. Lucente (SB) asked when the health insurance increase will be solidified. Ms. Kosnoff explained that this is usually in late January. This is also around when the State Aid number will be released. There was discussion regarding how to close the budget gap. Ms. Kosnoff explained that there is currently a $4.7M budget gap projected. The gap could be closed by estimating more revenues or decreasing expenses.Historically, the annual revenue allocation percentages have been somewhere in the range of 3.6%-4.2%. Oftentimes, the initial budget requests are over that range, and things are done to scale back into that range. Given that the current allocation percentage is 2.4%, it does not seem that the budget gap will be able to be closed. The Town will likely have to dip into some of its one-time revenues in order to help close the gap for this year. Revenues will likely need to be adjusted in a range of between $2M-$3M in order to bring the allocation between 3.4%-3.9%. If the Town uses $2M of free cash or other one-time revenues this year, it will start the budget development next year at a $2M deficit. Other potential revenue adjustment items were reviewed. Mr. Bartha explained that there is a $4.7M gap between what the departments have put forward as level service budget and what is available revenue. In terms of health insurance, there are some items that can considered per Chapter 32B of Mass General Law. The Town last went out for a competitive bid process for health insurance approximately 15 years ago. Options include an RFP process, plan design, and employer contribution. The challenge with using free cash is that Lexington, like many towns, relies heavily on certified free cash this year in order to fund its capital and reserves the following year. Mr. Lucente asked about the option to potentially defer capital projects. Ms. Kosnoff explained that one of the most important things in terms of future capital planning is maintaining the Town’s existing assets versus creating new ones. Ms. Kosnoff explained that the new pension valuation was completed on January 1, 2025, and the Town continues to make progress on its target. The estimates and projections for this could be volatile though. There should be further discussion during midterm planning regarding where the Town wants to get with its pension fund. The groups discussed an interim summit meeting in early January. Mr. Levine (AC) suggested a menu of choices for review. Dr. Hackett presented on the school information. She explained that there is a request for 4.6% increase for the school budget. This does not include a $750,000 curricular adoption, which is on the path to being mandated by the Senate. Dr. Scully, Assistant Superintendent for Finance and Operations, explained that one item being budgeted for this year is an increased use of circuit breaker funds. Special education reimbursement funds from the State, commonly called circuit breaker funds, are certain special education fund expenses that are reimbursed each year. This year, the District is using funds that are being received at a higher percentage than in past years. Also last year, the District had a significant reduction in FTE, largely based on enrollment and other efficiencies. He reviewed other proposed reductions. Dr. Hackett noted that a report on the recently completed special education analysis will be released shortly. Mr. Michelson (AC) asked about which factors have been used to account for the opening of the new high school in terms of the operating budget in the five-year projection. It was explained that the tech capital budget has been reviewed for when the school comes online. Classroom sizes and enrollment numbers are being reviewed. Mr. Levine (AC) asked about the reductions made. Dr. Hackett explained that the schools had to balance the budget by reducing 12 full-time equivalents, for approximately $1M. The schools also identified through attrition a number of additional positions, for a total of 26 reductions. DOCUMENTS: FY 2027 Budget Summit 1 – Presentation; FY 27 LPS Budget Summit Presentation_November 2025; Revenue Report - FY 2027; FY 2027 Summit I Indicators_11.20.2025 ADJOURN Upon a motion duly made and seconded, the Select Board voted 4-0 by roll call to adjourn the meeting at 9:10p.m. The Appropriation Committee, Capital Expenditures Committee and School Committee followed suit. A true record; Attest: Kristan Patenaude Recording Secretary SELECT BOARD MEETING Wednesday, December 3, 2025 Select Board Meeting Room, 1625 Massachusetts Avenue, Lexington, MA 02420 - Hybrid Participation* 9:00 AM A meeting of the Lexington Select Board was called to order at 9:00 a.m. on Wednesday, December 3, 2025, via a hybrid meeting platform. Ms. Hair, Chair; Mr. Lucente, Mr. Pato, and Mr. Sandeen were present, as well as Mr. Bartha, Town Manager; Deputy Town Manager, Ms. Axtell; and Executive Clerk, Kim Katzenback. Chair Hai called the work session to order at 9:00 a.m. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Introduction Carolyn Kosnoff, Assistant Town Manager for Finance, explained that the total amount of revenues projected for FY27 is $320,164,000. Both the municipal and school budgets are allowed to start with the level funding from last year and then staff works to take some set asides off the top for shared services and other items, which are funded primarily from free cash. New revenue can be allocated to both the school and municipal departments for FY27. The total new revenue is $4.72M. This is split between the municipal and school departments using the same percentage of the budget from last year. $4.7M of new revenue equates to a 2.4% increase over last year. In terms of initial budget requests, the school has requested a 4.6% increase for FY27, and the municipal department has requested a 4.7% increase. There is a gap for each that will need to be closed, and this was discussed at the Fiscal Summit.The proposal is to adjust revenues upwards, likely necessitating using some one-time revenues, which is not typical for the normal budget process. Staff is targeting between a 3.5%-3.6% increase in revenues. This still means that both the school and municipal initial budget requests will have to be reduced. DOCUMENTS: FY 27 Intro 2. FY2027 Proposed Budget - Police Department Presentation Mike McLean, Chief of Police, explained that the FY2027 Police Department level-service request of $9,790,022 reflects a net increase of $145,721 or 1.51% (compensation increases of $17,953 or 0.21% and expenses increase of $127,768 or 9.97%) from the FY2026 budget. The FY2027 requested police budget provides for the continuation of level service that in FY2025 met 15,940 calls for service and 1,467 crimes investigated. The current Police Department staff includes 66 full-time and 26 part-time employees with personnel representing 85.6% of the budget. The remaining 14.4% for expenses cover necessary supplies, contracts and equipment. Our efforts are coordinated through seven police programs: Police Administration, Patrol & Enforcement, Traffic Bureau, Investigations & Prevention, Dispatch, Animal Control and School Crossing Guards. The Police Department regularly seeks grants and other methods of alternative funding. In FY2025, we were awarded the State 911 Support & Incentive Grant in the amount of $109,744 to defray the costs of salaries for enhanced 911 Dispatch personnel. The Police Department is currently funded for 50 Police Officers and 10 Dispatchers including a Dispatch Supervisor. Department Initiatives: 1.The staffing of the Lexington Police Department has not changed in over 50 years. It is imperative to continue to review and evaluate current programs and positions within the department. This process most likely will result in a request for staffing increases to ensure the department is meeting the demands of the Massachusetts POST Commission, the Massachusetts Police Accreditation Commission, changes in call volume due to residential growth and high expectations of the community. 2.Recruitment and retention of new officers and staff continues to be a local and nationwide concern. We will be looking for innovative ways to attract and retain the best candidates for these positions. Collaboration with other town departments is imperative to ensure we are reaching candidates that will enable the department to be made up of people who reflect the community we serve. 3.The Lexington Police Department is dedicated to building trust and legitimacy in the community. Over the past few years, the department's Community Engagement Programs have made a concerted effort to be involved in the community on multiple levels and with all segments of the community. The department will continue its commitment to meet with cultural and affinity groups to get their input on policing in the community. We will continue to attend community events and celebrations. We will continue to evaluate our programs and look to improve efforts on connecting with the community as we have with our two community resource dogs which have been outstanding tools in removing barriers in connecting with the youth, school population and victims in the community. Program Improvement Requests: Overtime Funds – Community Engagement Ms. Hai asked if, under the Contract Services Expenses, once the training and de-escalation room is complete, if there will be additional software costs needed in this line item, or if the current line item is adequate to cover this. Chief McLean stated that there will be an additional yearly contract service which will be an additional line item. Mr. Bartha stated that staff is still considering whether there will be a capital purchase of the equipment versus leasing of the equipment. This item continues to be a priority. Mr. Lucente noted that there is a 7% increase in the budget for costs associated with the hybrid/electric vehicles. He asked if there have been any positive or negative issues with the hybrid/ electric vehicles or if there are any savings being realized. Chief McLean noted that the Department is using less gas through these vehicles. No issues have been seen. In terms of the contract services budget, Mr. Sandeen noted that there are some increases in contract services, but that some of the contract services were associated with the parking implementation. The parking revenue is also proposed to increase, and he asked if these would be offsetting items. Ms. Hai suggested a future agenda item regarding the reevaluation of parking fees. Lieutenant Dunbar explained that the Police Department is requesting a Program Improvement Request of $25,000 towards overtime funding to cover the Community Engagement Program. Captain Mazerall presented a Capital Improvement Request, which is also listed under the DPW budget for $67,458 which proposes grading and asphalt paving of the existing outdoor Lexington Police Range facility located 60 Hartwell Avenue. Mr. Pato stated that he sees this as a maintenance issue as opposed to a substantive improvement but there will be more discussion during the DPW’s presentation. Mr. Lucente asked about chronic understaffing of the Department. He noted that there has been a steady growth in calls for service over the years, but there has not been any growth in the number of officers. A staffing study is pending. The overtime spending of the Department also needs to be taken into account. There was agreement that were would be continued discussion on this item. DOCUMENTS: FY 27 Police Department Budget Request 3. FY2027 Proposed Budget - Fire Department Presentation Derek Sencabaugh, Fire Chief, explained that the FY2027 budget for the Lexington Fire Department is $9,600,791 which is a $219,492 or 2.34% increase from the FY2026 budget. Compensation is increasing by $230,877, or 2.75%, which reflects contractually obligated step increases. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. Expenses are decreasing by $(11,385), or (1.16)%, which is primarily due to significant decreases in vehicle costs. Department Initiatives: 1.Continue to develop and implement online inventory tracking. 2.Continue to refine and expand the fire permitting process. 3.Develop an improved employee recruitment process to address diversity and retention. Program Improvement Requests: None FY2027-31 Capital Requests: Ladder Truck Ambulance Replacement Turnout Gear Replacement Off Road Fire Engine Medic 1 Ambulance Replacement Mr. Sandeen asked about the availability schedule for the recently ordered pumper truck. Chief Sencabaugh explained that the lead time for an ambulance is currently 24-27 months and for an engine approximately 24-30 months. The lead time for ladder trucks is approximately four years. Mr. Sandeen asked about the ambulance revenue line. Ms. Kosnoff explained that ambulance revenues continue to increase but the estimates are proposed to be as conservative as possible. DOCUMENTS: FY 27 Fire Department Budget Request 4. FY2027 Proposed Budget - Public Health Department Presentation Alicia McCartin, Director of Public Health, explained that the FY2027 All Funds Health budget request reflects an increase of $25,220 or 3.17% from FY2026. The General Fund increase is $10,220 or 1.82%, which includes an increase in compensation of $9,720 or 2.05% due to recent contract settlements and cost of living adjustments, offset by staff turnover. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. Expenses increased by $500 or 0.57% from FY2026, which is predominantly driven by an increase in the cost of attending conferences and trainings, offset by a reduction in continuing education obligations. In FY2024, the Health Department became a separate town department, no longer a division of the Land Use, Housing and Development Department. The Health Department staff is comprised of the Health Director, Assistant Health Director, Health Agent, Public Health Nurse, and Office Manager. In FY2025, the Town undertook a Class & Compensation Study covering the Lexington Municipal Employees Association, the Lexington Municipal Management Association, and non- union personnel. The FY2027 budget incorporates the results of that study. Department Initiatives: 1.Continue to develop and grow the Clinical Public Health programs by increasing access to adult and pediatric vaccines and expanding Senior Wellness Clinics. Collaborate with Human Services to enhance support for seniors and collaborate with other clinical partners in the community. Explore grant opportunities to support the growth of future programs and services. 2.Continue to review all the Board of Health regulations, and update as necessary, to coincide with current state and federal regulations, standards and best practices. Research and develop new regulations as necessary. 3.Work with other Town departments and community partners to address hoarding in the community through a multi-disciplined approach. 4.Continue to respond to all inquires, complaints, and concerns from the public and staff in a timely fashion. Perform routine inspections to ensure compliance with state and local regulations. 5.Continue to work with Region 4AB to improve regional collaboration for Preparedness and with Region 4A to strengthen the Central Middlesex Medical Reserve Corps (CMMRC). Offer preparedness trainings and classes for the community such as Narcan training, Stop the Bleed, CPR and Preparing for natural and weather related events (i.e. heat, cold, hurricanes). 6.Evaluate and expand the environmental focus of the Health Department, with an emphasis on climate change and the effects on our community and the environment. Continue to offer or sponsor trainings, certifications or education, on such topics as food safety and ServSafe training for food establishments, septic/cesspool maintenance, well water testing, mosquito/tick safety, air quality, pest control, and hazardous/medical waste. 7.Research grants and other financial opportunities to enhance and expand functions of the Health Department such as the FDA Voluntary Retail Food Grant, Public Health Excellence Grants, or other opportunities offered by the Office of Local and Regional Health of the Massachusetts Department of Public Health. Program Improvement Requests: None Ms. Hai asked about the increase in mileage for the Department. Ms.McCartin stated that many of the conferences being attended are now in-person instead of remote. The conferences are also held throughout the State. DOCUMENTS: FY 27 Health Department Budget Request 5. FY2027 Proposed Budget - Finance Department Presentation Carolyn Kosnoff, Assistant Town Manager for Finance, explained that the requested FY2027 Finance Department budget reflects a $137,158 or 6.22% increase from the FY2026 budget. This includes a $116,633 or 6.92% increase in compensation, which reflects contractually obligated increases. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. Finance expenses are increasing $20,525 or 3.94% primarily due to increasing costs for professional services and postage costs. In FY2025, the Town undertook a Class & Compensation Study covering the Lexington Municipal Employees Association, the Lexington Municipal Management Association, and non- union personnel. The FY2027 budget incorporates the results of that study. Department Initiatives: 1.Finance is undertaking a Water and Sewer rate study during FY2026 to establish a new utility rate structure that will allow for a migration to quarterly utility billing (current billing is semi-annual). Funding for this initiative was approved in the FY2026 budget. 2.The department continues to explore additional functionality in Munis ERP including integration with time and attendance systems and automation of employee accrual tracking. The department continues to support the implementation of Employee Self Service (ESS) and automated benefits enrollment and Employee Action Forms that will help move Finance and Human Resources closer to paperless processing. 3.Continue reviewing new fiscal policies, specifically updating strategies for funding the Town's Pension and OPEB Liabilities. 4.Maintain GFOA best practices for budgeting and accounting; comply with latest GASB and GAAP accounting standards. Program Improvement Requests: Tyler ERP Cashiering Module Treasury Municipal Clerk Financial Analyst There was discussion regarding some of the PIR requests. Ms. Kosnoff explained that the Finance Department could use a bit of additional manpower. The volume in Finance continues to increase and is expected to continue to increase with new residents coming in from the MBTA Zoning. There is a lot of efficiency that would be gained by implementing the Tyler Cashiering Customer Self Service and Employee Self Service portals. These items have been requested for multiple years but not yet been funded. The Department is trying to be creative with a potential way to fund the Cashiering model this year, including absorbing the cost of implementation potentially with one time funds, and then absorbing the ongoing costs through the IT Department. DOCUMENTS: FY 27 Finance Department Budget Request 6.FY2027 Proposed Budget - Recreation & Community Programs Presentation Melissa Battite, Director of Recreation & Community Programs, explained that the Department of Recreation and Community Programs consists of five divisions: Administrative, Recreation, Pine Meadows Golf Course, Therapeutic Recreation and the Community Center. The requested FY2027 operating budget is $3,885,624. • Personal Services is increasing by 8.14% due to several factors including the hiring of additional seasonal part-time staff, increased rates for the retention of returning seasonal employees, as well as contractual obligations associated with the recently completed class and compensation study. • Expenses are decreasing by (4.66)% which is primarily due to the continued financial restructuring of the contracted services that are offered in the summer combined with enhanced efficiencies throughout the Department, and a one-time Program Improvement Request of $80,000 funded by retained earnings in FY2026 to address drainage issues on the course. • For FY2027, the Indirect contribution to the General Fund to cover the cost of employee benefits and indirect services provided by other departments is $327,808, an increase of 3.00%, and overall tax levy support for three Community Center staff and other department operations totals $267,810. The Department operates as an Enterprise Fund whereby all operating expenses are supported through revenues generated from program, services and facilities fees. The operating budget may increase or decrease annually as community needs, industry trends and cost of living fluctuates. The Director of Recreation and Community Programs, through the Recreation Committee, will continue to set fees with the approval of the Select Board. The revenues subsidize the overhead to operate, including salaries and benefits for 17 permanent full time staff and part time staff as well as hundreds of seasonal staff. Revenue generated through the Enterprise Fund partially funds the Recreation Committee Capital Improvement Projects. In FY2025, the Department provided a total of $45,765 in financial aid through funding sources including grants from Fund for Lexington and the Dana Home Foundation as well as private donations made to the Recreation Gift Fund. In FY2025, the Town engaged in a Class & Compensation Study including the Lexington Municipal Employees Association, the Lexington Municipal Management Association, and non- union personnel. The FY2027 budget reflects the impacts of the study. Department Initiatives: 1.Continue to implement the recommendations of the 2017 ADA Compliance Study, the 2020 Community Needs Assessment, the 2021-2022 Comprehensive Study of Athletic & Outdoor Recreation Facilities, the 2023-2024 Lincoln Park Master Plan, and the 2024 Open Space and Recreation Plan in the development of the operational and capital improvement planning for the future needs of the community. 2.Actively engage in the planning and preparation process related to the 5-year community impact resulting from the temporary and permanent loss of outdoor recreation facilities at the Center Recreation Complex. Provide ongoing input and coordination in discussions for the LHS Building Project to address both short-term and long-term effects on recreational access and facility use at the Complex. 3.Maintain and sustain the financial stability of the Recreation Enterprise Fund. 4.Continue the growth and implementation of the department's therapeutic, adaptive and inclusive recreation programming. 5.Support Townwide initiatives such as cultural, historical and DEI priorities. Program Improvement Requests: Technical Support Technician Community Center Maintenance Expenses Strategic Plan FY2027-31 Capital Requests: Pine Meadows Improvements Pine Meadows Equipment Lincoln Park Parking Lot Pine Meadows Master Plan Center Recreation Complex – Track & Athletic Field Resurfacing Park Improvements – Athletic Fields Park and Playground Improvements Park Improvements – Hard Court Surfaces Lincoln Park Boardwalks Aquatics Improvements Park Improvements – ADA Enhancements In terms of the Program Improvement Requests, it was explained that the first PIR is for a Technical Support Technician at $78,516. This will allow for the establishment of a new full-time benefited position from the General Fund to address increasing reliance from user groups on technology within the Lexington Community Center. The second PIR is for Community Center Maintenance, requesting $20,000 for ongoing maintenance and replacement of common area amenities that are nearing end of life, ensuring continued safety and accessibility. This will supplement a previous PIT of $60,000 within the DPF budget. The third PIR is for $100,000 from the Recreation Enterprise Retained Earnings Fund to update the Department’s 2014 Strategic Plan. The plan is currently ten years old. The updated plan will guide the Department for the next 5-10 years. The Recreation Committee has submitted three annual capital improvement project requests for FY27, two of which are for the Pine Meadows Golf Club. The first is for Pine Meadows Improvements, which is to reshape the second green and bunker, extend the third fairway and install irrigation in that area, and complete an as-built irrigation and drainage plan. The second request is for Pine Meadows equipment, which is to purchase a new sprayer and a new fairway aerator for the course. The third request is for Park Improvements - Athletic Fields, which is for supplemental funding needed to complete construction of the Maple Street Athletic Complex, which will be located next to the Harrington School. The anticipated loss of fields at the Center Recreation Complex during the LHS building project will have a significant community impact. The Department will continue to work with user groups to plan contingencies proactively. Mr. Sandeen asked about the Harrington project. Ms. Battite explained that the work is well underway for schematic design through the supplemental funding approved last year by the CPC. The project is now moving into full design and preparation for construction documents. There have been 3-4 coordination meetings with DPF to make sure that the work associated with the demolition of the central office building is in line with the needs and/or wants for the future athletic complex. The final community meetings for that particular project should begin soon. Mr. Sandeen asked about the Community Center IT request. Mr. Bartha explained that there is more technology in the buildings than in previous years and more groups/committees using that technology. There is a finite amount of time and resources that can be applied to support that work. This is a discussion regarding where that staffing belongs and if the policies as written need to be reviewed. This request would be for the entire Community Center. There was discussion regarding the Strategic Plan proposal. Ms. Kosnoff explained that this item would likely be recommended if the Recreation Committee feels it is a priority for use of the retained earnings, as it does not compete with the General Fund requests. In terms of the new field at Lincoln Park, Ms. Battite explained that the plan is to use the same infill as was used for other recent field projects. The Town Meeting appropriation was for that particular product, and the technology has not changed significantly for alternative infills. The product has received significant negative feedback, and the Department continues to work with the provider on these concerns. DOCUMENTS: FY 27 Recreation Enterprise Department Budget Request ADJOURN Upon a motion duly made and seconded, the Select Board voted 4-0 to adjourn the meeting at 11:35 a.m. A true record; Attest: Kristan Patenaude Recording Secretary SELECT BOARD MEETING Thursday, December 4, 2025 Select Board Meeting Room, 1625 Massachusetts Avenue, Lexington, MA 02420 - Hybrid Participation* 1:00 PM A meeting of the Lexington Select Board was called to order at 1:00 p.m. on Thursday, December 4, 2025, via a hybrid meeting platform. Ms. Hair, Chair; Mr. Lucente, Mr. Pato, and Mr. Sandeen were present, as well as Mr. Bartha, Town Manager; Deputy Town Manager, Ms. Axtell; and Executive Clerk, Ms. Katzenback. ITEMS FOR INDIVIDUAL CONSIDERATION 1. FY2027 Proposed Budget - Department of Public Works; Water/Sewer Presentations Dave Pinsonneault, Director of Public Works presented the Department of Public Works FY2027 All Funds budget of $16,368,809 which is comprised of four subprograms (DPW Administration/Engineering, Highway Maintenance, Public Grounds, Environmental Services). The FY2027 request represents an overall increase of $976,965 or 6.35%. The All-Funds budget is inclusive of the Compost, Minuteman Household Hazardous Product (MHHP), Burial Containers and Tree revolving funds. Less these revolving funds, the General Fund budget request is $14,868,030 which is a $1,001,069 or a 7.22% increase from the FY2026 budget. Personal Services are increasing $329,489 or 5.64% in the All-Funds budget, and $303,469 or 5.59% in the General Fund budget. The personal service budgets in both the General Fund and Non-General Funds include contractually obligated increases. Departmental Expenses are increasing $598,000 or 6.45% in the All-Funds budget, and by $697,600 or 8.27% in the General Fund budget. Department Initiatives: 1.Coordinate Administrative and Operations functions to maintain a functionally efficient organization. 2.Continue to research, test and implement new technologies to improve efficiencies. 3.Ensure staff accessibility and participation for training and advancement opportunities. Program Improvement Requests: Event Barricades There was discussion regarding the EV charging stations and the maintenance costs for these items. Mr. Pinsonneault stated that the columbarium is currently in the midst of design work. This has been pushed out a year in the Capital Budget but is still being pursued. The Board discussed the recycling budget. Mr. Pato stated that he would bring this to the DPW Policy Committee for further discussion. The goal is to achieve effective recycling while spending funds wisely. There was discussion regarding the Compost Operations Revolving Fund increases for the full-time positions that work at the Hartwell facility. In terms of the PIR, Ms. Kosnoff explained that the barricades were requested to manage the larger crowds associated with Patriots Day for safety and security. It was indicated that these would be helpful moving forward as well. Staff considered whether this request could fall under the Lex 250 remaining funds available from last year or if they should be put into the budget going forward. If needed for this year, these items would be a one-time lease and then placed into the budget for purchase going forward. It is more expensive to lease these items than to buy them. The Board encouraged the Lex 250th Commission to purchase these barricades this year using remaining funding available. Dave Pinsonneault, Director of Public Works presented the FY2027 budget request for the Water Enterprise Fund of $15,234,446. This is an increase of $1,190,239 or 8.47% more than FY2026. Compensation is increasing $16,156 or 1.50% from FY2026, due to contractually obligated increases and cost of living adjustments. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2025. The expense request of $694,600 is $19,500 or 2.89% more than FY2026. Cash capital was added to the operating budget beginning in FY2021 and is scheduled to increase by $200,000 per year for a minimum of 10 years. This will result in reduced debt service costs over time, providing better value-to-rate payers. A preliminary FY2027 MWRA assessment will be issued in February by the MWRA Board of Directors to be followed by the final assessment in June 2026. For now, a 10% increase over the FY2025 final assessment has been projected. Indirect payments to the General Fund are preliminarily, shown with an 8.93% increase driven by indirect departmental and town expenses resulting from the recently completed Class & Compensation Study and property insurance rates, with final numbers pending the completion of an Indirect Cost Study by the Finance Department. OPEB and Debt service numbers are preliminary as well. Division Initiatives: 1.Continue with the Hydrant Maintenance Program. 2.Continue working on a valve/hydrant maintenance and/or backflow/cross connection program. 3.Continue replacing all iron water services until 100% completion. FY2027-31 Capital Requests: Equipment Replacement Sidewalk Improvements Townwide Signalization Improvements Stormwater Management Program Street Improvements Hydrant Replacement Program DPW Building Improvements – Vehicle Floor Repairs New Sidewalk Installation – Burlington & North New Sidewalk Installation – Lowell Street Adams Street Intersection Improvements (@East; @Hancock) Hartwell Training Facility Paving Bedford St. and Heartwell Ave. Long-range Transportation Improvements Cemetery Columbarium Construction Public Parking Lot Improvement Design Hartwell Ave. Compose Site Improvements Mr. Sandeen asked if the Board is interested in supporting the reduction of sewage going into the Charles River, or, as the MWRA has proposed, to allow for sewage to be dumped into the Charles. There was agreement that this could be further discussed with additional materials at a future meeting. There was discussion regarding the Hartwell Training Facility Paving request. Mr. Pinsonneault explained that the Police Department brought this request forward and the DPW will help to manage and facilitate the project. There may also be a request for solar at the site, which would bring other departments into the project. The project will be coordinated well, but the one item that may impact the timeline for the project is potential permits required. The Board expressed some concern with including solar at the same time as the paving project. Mr. Pinsonneault noted that the two projects do not need to move forward simultaneously. Mr. Sandeen asked about the proposed Bedford St. and Heartwell Ave. Long-range Transportation Improvements project. Mr. Pinsonneault stated that he believes this project will likely move forward. The Town recently received a $1M grant from Mass Works to be put toward the project. The $1.95M will bring the project through to 100% completion. Mr. Sandeen asked about the implications of moving the timelines for the proposed new sidewalk projects and the Adams Street intersection improvement project. Mr. Bartha noted that moving the project timelines would cause them to compete with projects in future years. Building a new sidewalk on Burlington and North will enhance mobility for residents in that area, whereas the Adams Street project is due to a safety issue in terms of sight lines and pedestrian safety. There was discussion regarding the Adams Street intersection project and the potential land acquisition needed. A smaller footprint and alternative roundabout shapes will be considered, though the design is still being considered. In terms of the DPW Building Improvements – Vehicle Floor Repairs request, Ms. Hai asked that it be made clear that this is specifically for 201 Bedford Street, and to specify which items are in the FY28 reconstruction of driveway parking lots. The Board asked about the composting pilot. Mr. Pinsonneault explained that the Town is currently working to finalize a contract with the vendor to hopefully begin the pilot program in the spring. This will not have a cost to the Town. DOCUMENTS: FY27 DPW Budget Request 2. FY2027 Proposed Budget - Town Manager's Office, Human Resources Presentations It was explained that the FY2027 budget reflects an overall increase of $105,458 or 6.55% from FY2026. This is comprised of an increase of $58,772 or 4.84% in compensation, which reflects contractually obligated step increases. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. Expenses increased overall by $46,686 or 11.83% from the previous year primarily due to Human Resources commissioning two assessment centers in FY2027. Department Initiatives: 1.Continue to support the Racial Diversity, Inclusion, and Equity Transformation plan and other social equity initiatives in coordination with the Select Board. 2.Work to support the organization's high-performance culture by providing directed team building to the Middle and Senior Management Team. 3.Develop new revenue sources to support the budget, particularly the capital budget, by developing long-term debt management strategies to mitigate the impact of large project debt service. 4.Continue the initiative to develop organizational sustainability by passing on institutional knowledge, engaging mid-level managers in organization decision-making and selecting and training qualified individuals. Program Improvement Requests: Women’s Institute Development FY2027-31 Capital Requests: Sustainable Capital Initiatives The PIR is proposed to provide a professional development opportunity known as the Women's Institute for Learning and Leadership. This program was brought forth by Deputy Town Manager Axtell as an opportunity for staff members seeking personal or professional growth. It operates largely without funding. However, some support is received through the Jacqueline R. Smith Fund. If funded, this PIR will strengthen Lexington’s municipal workforce by providing targeted leadership development for staff pursuing career and personal growth. If the funding is not obtained, the program will rely on securing additional funds from outside sources, which may be inaccessible in any given year. Maggie Peard explained that the Capital Request for the Town Manager's Office is through the Sustainable Capital Initiatives Program that was started last year. This sets aside funding for needs that arise, such as EV chargers or solar assessments. This year’s larger request is to allow for EV chargers at the Police Station. Mr. Pato noted that these chargers were aways planned for but were not included in the Police Station project itself. Ms. Hai noted that in the original FAQs for the building, it was stated that the building will be built solar ready, meaning that solar and battery backup systems could be added when a project is approved. It was stated that the facility design would include a number of items, and she asked if this project would duplicate any of the items. Ms. Peard explained that there are some transformers and concrete pads for the equipment to be placed on. There is also a transformer that is equipped for 20 chargers outside, and some connected to the building power directly. The transformers needed to connect to the generator were not previously installed and are needed. The Town Committees Budget is expected to level-funded overall by $0 or 0.00%.This reflects a $0 increase for the Town Celebrations Committee. The Financial Committees' appropriation includes funds for a part-time recording secretary. This person is responsible for taking minutes for the Appropriation and Capital Expenditures Committees. Program Improvement Requests: None The Board expressed support for the Arts Council and its requested funding, if available. DOCUMENTS: FY 27 TMO & HR Budget Request, FY 27 Town Committees Budget Request The Board took a five-minute recess. 3. FY2027 Proposed Budget - Employee Benefits/Property & Liability Insurance Presentation Ms. Kosnoff explained that the FY2027 recommended All Funds Employee Benefits and Insurance budget is $59,613,301. This is a $6,138,808 or 11.48% increase from the FY2026 budget. The recommended budget includes the benefits costs (health, dental, life, Medicare, and workers’ compensation) for all municipal and school staff and retirees as of November 1, 2025. Changes Include: 1.A $778,538, or 6.76% increase in Contributory Retirement based on the approved funding schedule from the January 1, 2025 actuarial valuation of the Lexington Retirement System, plus an amount of dedicated tax levy new growth. In FY2023, $1,060,000 of new levy growth from Takeda personal property taxes was dedicated to the Pension Fund. This amount, plus an increase of 2.5% per year will continue to be set-aside to the Pension Fund in future years. The dedicated tax levy plus growth for FY2027 is $12,300,042. For FY2027, $400,000 is funded from Free Cash, which is the same level of Free Cash funding as in FY2026. The Retirement system’s unfunded liability is expected to be funded by 2030, given the current actuarial assumptions. 2.A $121,014 or 5.00% increase in the Town’s contribution for the Medicare Tax based on FY2025 actual costs, projected FY2026 and FY2027 salaries and wages and historical rates of increase in this item. 3.A $5,047,072 or 13.49% increase in health insurance costs (General Fund). The FY2027 budget is based on a projected increase of 15% in health insurance premiums across all plans at November 2025 enrollment levels, and the projected addition of eighty (80) subscribers (new enrollees to health coverage, either from new retirees, active employees electing to begin or resume coverage, and active employees switching from individual to family plans). 4.A $104,915 or 8.07% increase in dental insurance costs (General Fund) based on an 8% increase in premium rates for FY2027 as compared to budgeted FY2026 rates, further updated to reflect November 2025 enrollment levels. 5.No increase in life insurance is proposed as the current level of funding is adequate based on projected enrollments and historical costs. 6.Level-funding of unemployment insurance is level funded at $200,000, which is reflective of recent averages in claim activity. 7.A level funding of workers’ compensation costs to a total of $500,000. As of June 30, 2025, this continuing appropriation account had a total balance of $2,956,373. Mr. Lucente asked what will be done differently with the budgeting if the health insurance increase comes in lower than expected. Anne Kostos explained that the GIC will not vote on the rates until February 26th. This tends to make the timeline for budgeting difficult. Mr. Bartha stated that if there was a large difference in the actual budget numbers for health insurance, he believes staff would likely take the gas pedal off some revenue assumptions made in the budget, as opposed to creating capacity elsewhere. Mr. Pato noted that this will be a continuing challenge in future years and so he would not want the policy strategy to change. Ms. Axtell reviewed the Property and Liability Insurance portion of the budget. This is overall increasing 11.9% which includes the projection of 13.76% of the premium increases. In general, the trend of premiums for municipalities is constantly increasing. DOCUMENTS: FY 27 Employee Benefits & Property Insurance Budget Request 4. FY2027 Proposed Budget - Human Services Department Presentation Dana Bickelman, Director of Human Services, explained that the Human Services Department is requesting a level-service budget. The requested FY2027 All Funds budget is $2,322,889 which reflects an increase of $143,005, or 6.56%, from FY2026. Compensation will increase by $131,200, or 14.17%, and expenses increase by $11,805 or 0.94%. The All-Funds budget includes funding from a Massachusetts Executive Office of Aging & Independence (EOAI) grant (formerly EOEA), the MBTA Suburban Transportation grant, and the Senior Services Revolving Fund (formerly known as the Council on Aging Programs Revolving Fund). The General Fund budget request (All Funds less the revolving fund and grant-supported spending) is $1,910,088 and reflects a $206,491 or 12.12% increase, with a $97,820, or 12.99% increase in compensation and a $108,671, or 11.44%, increase in expenses. Department Initiatives: 1.Strengthen language access and improve residents’ ability to navigate Town services by expanding translated materials, increasing access to interpretation across programs, and enhancing community outreach in culturally responsive ways. This department-wide initiative aims to ensure all residents can understand, access, and benefit from the full scope of Human Services resources. 2.Introduce residents to the department’s expanded roles, including newly established external- facing positions focused on advancing Diversity, Equity, and Inclusion across all divisions and community programs. 3.In collaboration with the Town Manager’s Office and Finance Department, provide enhanced community education and outreach around Lexington’s Property Tax Relief Programs to ensure residents are aware of available supports. 4.Expand education and community programming focused on Alzheimer’s disease and related dementias, supporting individuals and caregivers while working toward the designation of Lexington as a Dementia-Friendly Community. 5.Continue to expand and improve accessible, sustainable, and inclusive transportation options for Lexington residents. This includes increasing Lexpress ridership, enhancing service quality, promoting safe walking, biking, and rolling to school among youth, and broadening community awareness of all available transit options. 6.Enhance outreach, benefits assistance, and community connections for Lexington’s veterans and their families. Expand awareness of available state and federal benefits, increase participation in local recognition events, and foster partnerships that promote health, housing stability, and well- being. Program Improvement Requests: Housing Case Coordinator Penny Tsiounis, Youth and Family Services Manager, reviewed the CASA program and explained that it is currently limited to a certain number of referrals per year. The program is currently limited by the cost of the contract, and a larger capacity contract could be purchased. The PIR is a request for funding for a full-time Housing Case Coordinator position that has become essential to meet the growing housing needs of Lexington residents. The projected cost is $63,208. The biggest driver behind the increased demand being seen is that Avalon, specifically, has been issuing eviction summons to residents, both market-rate and affordable. Mr. Lucente noted that he would like the Board to have a larger discussion around housing support in general in the future. DOCUMENTS: FY 27 Human Services Budget Request 5. FY2027 Proposed Budget - Innovation & Technology Department Presentation Tim Goncalves, Director of Innovation & Technology, explained that the FY2027 budget request for Innovation & Technology reflects a decrease of $(90,407) or (2.68)% from the revised FY2026 budget. Compensation increases $88,602 or 10.21%, which is attributed to contractually obligated step increases and cost of living adjustments, as well as a newly bargained stipend for on-call emergency coverage. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. In FY2025, the Town undertook a Class & Compensation Study covering the Lexington Municipal Employees Association, the Lexington Municipal Management Association, and non- union personnel. The FY2027 budget incorporates the results of that study. Expenses decrease $(179,009) or (7.14)%. The primary factors driving the decrease in the expense budget is the migration to Microsoft 365 and becoming more "Microsoft-centric". This allows us to eliminate several supporting applications for the current on-premises email system resulting in a large cost-savings. Department Initiatives: 1. Continue to invest in the Town's IT infrastructure and security posture a. Implement recommendations from network assessments b. Implement recommendations from cybersecurity assessments c. Investigate additional cybersecurity measures and services d. Provide cybersecurity training to all staff 2. Maximize the value of current systems a. Laserfiche e. JotForm Enterprise b. OpenGov f. Public Safety System c. Enterprise ERP g. Microsoft 365 d. Vision 3. Increase Customer Service Quality and Responsiveness a. Emphasis on a customer-centric approach to working with the departments and staff 4. Focus on future visioning for IT a. Security trends and compliance b. Microsoft 365 c. Electronic Workflows d. Enhanced Communications e. Hybrid work/meeting spaces f. Disaster Recovery (DR) planning and expansion of capabilities g. Network redundancy planning and implementation Program Improvement Requests: None FY2027-31 Capital Requests: Application Implementation Network Core Equipment Replacement Municipal Technology Improvement Program Network Redundancy & Improvements Program Phone Systems & Unified Communications Network Technology Improvements There was discussion regarding the Town-wide Wi-Fi. Mr. Goncalves explained that this program will be announced more heavily in the spring. The project covers the entirety of Town Center. There was discussion regarding the website refresh and update. DOCUMENTS: FY 27 IT Budget Request ADJOURN Upon a motion duly made and seconded, the Select Board voted 4-0 to adjourn the meeting at 4:25 p.m. A true record; Attest: Kristan Patenaude Recording Secretary SELECT BOARD MEETING Monday, December 8, 2025 A meeting of the Lexington Select Board was called to order at 6:30p.m. on Monday, December 8, 2025, via a hybrid meeting platform. Ms. Hair, Chair; Mr. Lucente, Mr. Pato, and Mr. Sandeen were present, as well as Mr. Bartha, Town Manager; Deputy Town Manager, Ms. Axtell; and Executive Clerk, Ms. Katzenback. PUBLIC COMMENTS Dawn McKenna, 9 Hancock Street, stated that there was a scary accident at the rotary in front of her house about two weeks ago. Cars started going backwards around the rotary prior to the police arriving. She asked for an evaluation of the rotary. She noted that there is technology underground the rotary that tracks things traveling above it and she was never informed of this. SELECT BOARD MEMBER CONCERNS AND LIAISON REPORTS 1. Select Board Member Announcements and Liaison Reports Mr. Lucente requested a future agenda item regarding the vote today. DOCUMENTS: 12082025_Select Board Announcements and Liaison Reports 2. Lexington High School Project Update to Select Board Nothing additional to report at this time. TOWN MANAGER REPORT 1. Town Manager Weekly Update Nothing additional to report at this time. CONSENT AGENDA 1. Approve: Battle Green Use Request - Lexington History Museums Historical Reenactment of Lexington Tea Party - Saturday, December 13, 2025 To approve the request of the Lexington History Museums, in collaboration with Lexington Minute Men, to use the Battle Green on Saturday, December 13, 2025 from 12:00pm to 1:30pm for the Lexington Minute Men to perform a musket drill, as well as perform marching and other demonstrations on the Common. DOCUMENTS: Tea Burning Diagram 2. Accept: Select Board Committee Resignation Housing Partnership Board - Charles Hornig Transportation Advisory Committee - Nisahnth Veeragandham Vision for Lexington - Daniel Joyner To accept the resignation of Charles Hornig from the Hanscom Area Town Committee & the Housing Partnership Board, effective immediately. To accept the resignation of Nisahnth Veeragandham from the Transportation Advisory Committee & Daniel Joyner from the Vision for Lexington Committee, effective immediately. DOCUMENTS: 2025.11.21 Charles Hornig - Hanscom Area Towns Committee; 2025.11.21 Charles Hornig - Housing Partnership Board; 2025.12.02 Daniel Joyner - Vision for Lexington; 2025.11.13 Nisahnth Veeragandham - Transportation Advisory Committee 3. Approve: Select Board Committee Appointments Housing Partnership Board - Sandra Hackman Housing Partnership Board - Michael Schanbacher To appoint Sandra Hackman to the Housing Partnership Board to fill a term ending on September 30, 2028, effective immediately. To appoint Michael Schanbacher to the Housing Partnership Board to fill the term ending on September 30, 2027, effective immediately. DOCUMENTS: HPB Feedback – Hackman; COA Nomination – Hackman; Planning Board Recommendation - M. Schanbacher 4. Approve: Town Manager Committee Appointment Conservation Commission - Thomas Oliver To confirm the Town Manager's appointment of Thomas Oliver to the Conservation Commission with a term set to expire March 31, 2028. DOCUMENTS: T. Oliver 5. Approve: 2026 Common Victualler License Renewals To approve the 2026 Annual Common Victualler License Renewals for the following businesses: Akame Nigiri and Sake - 1707 Massachusetts Avenue #2 Alexander's Pizza - 180 Bedford Street Aloft Hotel - 727 Marrett Road Beijing Chinese Dining - 1709 Massachusetts Ave Bruegger's Bagels - 413 Waltham Street Clay Oven Indian Restaurant - 1666 Massachusetts Avenue Coco Fresh Tea and Juice - 1764 Massachusetts Avenue Craft Food Hall - 10 Maguire Road Dunkin Donuts -10 Woburn Street Dunkin Donuts - 141 Massachusetts Avenue Dunkin Donuts - 277 Bedford Street Element Hotel - 727 Marrett Road Fiorella's Trattoria - 25 Waltham Street il Casale - 1727 Massachusetts Avenue Inn at Hastings Park - 2013-2027 Massachusetts Avenue Inspire Bowl n Tea - 1686 Massachusetts Avenue Fruitee Yogurt - 1707 Massachusetts Avenue Lexington Golf Club - 55 Hill Street Love at First Bite Thai Kitchen - 1710 Massachusetts Avenue Mario's Italian Restaurant - 1733 Massachusetts Avenue McDonald's - 690 Marrett Road Pine Meadows Golf Club - 255 Cedar Street Post 1917 - 27 Waltham Street Qdoba Mexican Eats - 46 Bedford Street Rancatore's Ice Cream and Yogurt - 1752 Massachusetts Avenue Revival Café + Kitchen - 1729 Massachusetts Avenue Revolution Hall - 3 Maguire Road Royal India Bistro - 7 Meriam Street Starbucks #7553 - 60 Bedford Street Taipei Gourmet - 211 Massachusetts Avenue Tatte Bakery & Cake - 1777 Massachusetts Avenue The Hangar (Chef Louie's) - 103 Hartwell Ave The Upper Crust - 41 Waltham Street The Vintage Tea and Cake Company - 21 Muzzey Street Wicked Bagel - 171 Massachusetts Avenue 6. Approve: 2026 Entertainment License Renewals To approve the 2026 Annual Entertainment License Renewals for the following businesses: Aloft Hotel - 727 Marrett Road Beijing Chinese Dining - 1709 Massachusetts Avenue Clay Oven Indian Restaurant - 1666 Massachusetts Avenue Element Hotel - 727 Marrett Road Il Casale - 1727 Massachusetts Avenue Inn at Hastings Park - 2013-2027 Massachusetts Avenue Love at First Bite Thai Kitchen - 1710 Massachusetts Avenue Post 1917 - 27 Waltham Street Revolution Hall - 3 Maguire Road Spirit of India - 321 Marrett Road Starbucks #7553 - 60 Bedford Street Thai Room - 182 Bedford Street The Upper Crust - 41 Waltham Street 7. Approve: 2026 Class I/II/III License Renewals To approve the 2026 Annual Class I/II/III License Renewals for the following businesses: Class I: Lexington Toyota - 409 Massachusetts Avenue Class II: A to Z Auto Wholesale - 20 Vine Street Auto and Diesel Sales - 75 Westview Street Auto Engineering - 436 Marrett Road Lexington Auto Center, Inc. - 1095 Massachusetts Avenue Lexington Auto Service, Inc. - 39 Bedford Street Mabuchi Motorcars - 401 Lowell Street Minutemen Auto Haus - 6 Fulton Road Class III: John P. Carroll Company Inc. - 700 Waltham Street 8. Approve: 2026 Common Carrier License Renewal Boston Hidden Gems, Inc - 21 Cawfield Street, Boston MA To approve the 2026 Annual Common Carrier License Renewals for Boston Hidden Gems, Inc to provide bus tours through Lexington. 9. Approve: 2026 Innholder License Renewals To approve the 2025 Annual Innholder License Renewals for the following businesses: Aloft Lexington - 727 Marrett Road A Element Lexington - 727 Marrett Road B Inn at Hastings Park - 2013-2027 Massachusetts Avenue 10. Approve: 2026 Liquor License Renewals To approve 2026 Liquor License Renewals for the following: All Alcohol Restaurants Beijing Cuisine - 1709 Massachusetts Avenue Clay Oven - 1666 Massachusetts Avenue Il Casale - 1727 Massachusetts Avenue Ixtapa Cantina - 177 Massachusetts Avenue Love at First Bite - 1710 Massachusetts Avenue Post 1917 - 27 Waltham Street Revolution Hall - 3 Maguire Road Royal India - 7 Meriam Street All Alcohol Innholder Aloft Hotel - 727 Marrett Road – A Element Hotel - 727 Marrett Road – B Inn at Hastings Park - 2013-2027 Massachusetts Avenue Wine/Malt Restaurants Akame Nigiri & Sake - 1707 Mass Ave Unit 2 Daikanyama - 43 Waltham Street Fiorellas - 25 Waltham Street Marios 1733 Mass Ave Taipei Gourmet - 211 Mass Ave Upper Crust - 41 Waltham Street The Vintage Tea and Cake Company - 21 Muzzey Street Package Stores Berman’s - 55 Massachusetts Ave Lexington Wine & Spirits - 186 Bedford Street, unit Liberty Wine and Spirits - 335 Woburn Street Vinebrook Bottle - 131 Massachusetts Ave Neillio's - 55 Bedford Street Clubs Lexington Golf Club - 55 Hill Street Lexington Elks - 959 Waltham Street Knights of Columbus - 177 Bedford Street 11. Approve: Tax Bill Insert - Senior Tax Deferral Program To approve the attached Senior Tax Deferral information slip and add to the FY2026 third quarter tax bill mailing. DOCUMENTS: FY 2026 Tax Deferral Insert VOTE: Upon motion duly made and seconded, the Select Board voted 4-0 to approve the Consent Agenda, as presented. The Board recognized Ms. Kowalski. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Presentation: Nexus Study Non-Residential Development Surcharge for Affordable Housing Ms. Hai explained that on December 30, 2024, the State legislature enacted the Town's petition to impose a surcharge on commercial development activities over 30,000 s.f. for the purpose of funding community housing. This is pursuant to Article 36 of the 2021 Annual Town Meeting vote. As part of that a Nexus Study was required within 12 months of passage, in order to set the surcharge fee. Karl Seidman, Seidman Consulting, made a presentation on the Nexus Study. He explained that Lexington has approximately 2.3 million s.f. of office space, about 14% of which is vacant. This has declined over the last decade or so. There is an inventory of lab space in Town of approximately 2.8 million s.f., and this has increased by over 1.2 million s.f. in the last decade. There is a large amount of available space, approximately 638,000 s.f. A big part of that is due to the new economic growth development on Bedford Street. The projected development for the next ten years is approximately 486,000 s.f. of new space. This assumes that the market picks up and the existing space gets absorbed. The study reviewed how much demand for affordable housing the employment growth would generate. The demand was calculated to 131 new units of housing. For 131 units, the total development costs were estimated at $652,855. Given current market conditions and the difficult development environment, Lexington is unlikely to see new non-residential development and revenue from a new housing contribution for some time. Consequently, it should consider deferring implementation of a housing contribution, either by approving the fee and deferring its application or taking no action and reconsidering establishing a fee when market conditions improve. If and when Lexington establishes a housing contribution, a rate between $4.50 and $9.50 is recommended, which is unlikely to deter new non-residential development. Other policies and administrative recommendations for a housing contribution are: Set the project size threshold at 30,000 SF; Apply the housing contribution to all non-residential uses without an exemption; Establish a uniform fee across uses and for all areas within Lexington; Require payment of the one-time fee collected in two installments with the first (50%) payment at the time of the certificate of occupancy and the balance paid at its one-year anniversary; Adjust the fee annually based on either the Boston CPI or a construction cost index; and Review and reset the fee every 5 to 7 years based on changes in market conditions and the expected level and type of non-residential development. There is interest on the Board in hearing from the Housing Partnership Board, the Affordable Housing Trust, and other stakeholders on this study before making any decisions. Mr. Sandeen stated that he would recommend going on the higher end of the range and considering an effective date of about a year from now. Mr. Pato stated that he would recommend the maximum amount for now, noting that the intention is to set a charge in the future. Mr. Lucente stated that he is not comfortable making a decision on this item this evening. He asked about the cost and funding mechanism to conduct this study process each time it is needed, every five years. It was noted that the cost was approximately $54,000. Ms. Hai suggested setting a rate this evening. She stated that additional decisions will need to be made and she would like to set a deadline to hear input from partner agencies. The rate could then be reset, if needed. Sandya Iyer, Economic Development Director, agreed that having as much clarity as possible is helpful. Elaine Tung, Affordable Housing Trust Chair, stated that the Trust is always seeking new sources of funding. The primary funding source for Massachusetts affordable housing trusts are Community Preservation or CPA funds. Aside from Town appropriations, other sources of funding would be developer negotiated fees, payments in lieu, grants, real estate transfer fees,and linkage fees. The Trust worked very hard to advocate for the passage of these particular linkage fees. The Trust has not had an opportunity to review and discuss this report. Matt Daggett, Precinct 2 Town Meeting Member, noted that there was a list of the other communities that have commercial linkage fees in the presentation. Everett established their rate in 2021 but received their home rule authority in 2016 and put off setting a rate for years and years, potentially missing out on significant amounts of housing mitigation. Bridger McGaw, Precinct 6 Town Meeting Member, stated that he helped develop and manage 850,000 s.f. of commercial and retail space in Watertown for a decade. The challenges associated with much of the budgeting and coordination with the Town are around consistency and transparency. It is helpful to set rates that are knowable sooner and knowable for a longer period of time. He suggested setting the rate to go into effect with the Town’s fiscal year. Jay Luker, Precinct 1 Town Meeting Member, stated that one thing he does not like about the Nexus Studies and commercial linkage fees, is that they treat the shortage of affordable housing as a natural phenomenon that is out of anyone’s control, instead of something that is the result of housing policies. Linkage studies are a solution to a problem that is caused by the roadblocks which are put in front of housing production. There was agreement to hold a vote on this item until January 5, 2026, in order to hear input from partnering organizations. DOCUMENTS: Nexus Study Presentation; Nexus Study Report 2. Application: Liquor License Change of Manager Amendment - Fiorella's Lexington LLC Ms. Hai stated that Fiorella’s Lexington LLC d/b/a Fiorella’s has submitted all the necessary paperwork needed to request a change of manager to be Donald Johnson on their Wine and Malt Common Victualler Liquor License. The proposed manager, Donald Johnson, has submitted a current Alcohol Awareness Training Certificate and the required CORI check has been completed. VOTE: Upon a motion duly made and seconded, by roll call, the Select Board voted 4-0 approve the application from Fiorella’s Lexington LLC d/b/a Fiorella’s for a Change of Manager and, once approved by the ABCC, issue an updated Wine and Malt Common Victualler Liquor License to Fiorella’s Lexington LLC d/b/a Fiorella’s for a Change of Manager, with Donald Johnson named as Manager. DOCUMENTS: Fiorellas Change of Manager Application 3. Status: Article 97 Filing for Lexington High School Project Mr. Bartha stated that, on November 3rd, prior to STM 2025-2, the Select Board voted 5-0 in favor of Article 9 (home rule legislation for Article 97), which then passed with over 90% support from Town Meeting. Although it is arguable that the November 3rd Select Board vote to authorize home rule legislation already satisfies the requirements laid out in Article 97 guidance issued by the Executive Office of Environmental Affairs (EOEA) in 1998, counsel is recommending that the November 3rd vote be reaffirmed tonight to make clear the town's intent as the process moves forward. Mr. Lucente stated that this is an important vote and one Board member is missing this evening. Ms. Hai stated that she spoke with Board Member Kumar today who voiced her acceptance with the Board affirming the vote this evening. The Board agreed to add this to the agenda for the next meeting. Dawn McKenna thanked the Board for pausing on this vote. She urged the Board to remember that the community will react to whatever vote the Board takes. Some in the community believe they have not been listened to on this project. Ms. Hai noted that the only item that will be voted on is the confirmation of a unanimous vote taken at the November 3rd Town Meeting. DOCUMENTS: Memo on Status of Article 97; Select Board Statement at STM on Article 97 ADJOURN VOTE: Upon a motion duly made and seconded, by roll call, the Select Board voted 4-0 to adjourn at 8:08p.m. A true record; Attest: Kristan Patenaude Recording Secretary SELECT BOARD MEETING Tuesday, December 9, 2025 Select Board Meeting Room, 1625 Massachusetts Avenue, Lexington, MA 02420 - Hybrid Participation* 4:00 PM A meeting of the Lexington Select Board was called to order at 4:00 p.m. on Tuesday, December 9, 2025, via a hybrid meeting platform. Ms. Hair, Chair; Mr. Lucente, Mr. Pato, and Mr. Sandeen were present, as well as Mr. Bartha, Town Manager; Deputy Town Manager, Ms. Axtell; and Executive Clerk, Ms. Katzenback. ITEMS FOR INDIVIDUAL CONSIDERATION 1. FY2027 Proposed Budget Land Use, Housing and Development Presentation Carol Kowalski, Assistant Town Manager for Development, stated that the total All Funds Land Use, Housing and Development FY2027 budget of $3,280,507 is a $176,190 or 5.68% increase from FY2026. Personal Services are increasing $178,106, or 7.83% and expenses are increasing $3,415, or 0.42%. The General Fund budget of $2,603,740 is a $138,504, or 5.62% increase from FY2026, with Compensation increasing $137,004 or 6.73%, and Expenses increasing $1,500 or 0.35%. Jim Kelly, Building Commissioner, stated that the Building & Zoning budget has a PIR this year for a 6.5% increase in funding, or approximately $42,000 to help with staffing. The part-time Building Inspector position will help cover the time necessary to do the job and continue with quality service. The Mechanical Inspector PIR is to add hours for the existing position. Mr. Lucente noted that the building permits projected and estimated seem to be much lower than the multiyear, three year average. He asked about considering the PIR in terms of anticipating a higher volume of inspections, leading to a higher number of permitted projects. This could lead to increased revenue to help offset the PIR. Mr. Bartha stated that it is important to balance the needs of one department that has statutory fees associated with it, with another department that does not. The needs of the overall organization need to be considered in terms of providing service, not just the Building Department. Mr. Pato stated that he would like to make sure the Town has adequate resources to meet the need it knows is coming. Kiruthika Ramakrishnan explained that the administration budget shows a 9.45% increase for compensation, and a 2.42% increase in expenses. Karen Mullins, Conservation Director, stated that the conservation budget increase is expected at 2% associated with wages. The expense budget will remain level funded. Abby McCabe, Planning Director, stated that the only increase in the Planning budget is a 7% increase in the salaries consistent with the compensation study that was recently completed. Otherwise, the proposed operating expenses are the same as the current budget. There is a capital request for a Transportation Safety group response to traffic inquiries at $80,000 which is consistent with what has been spent over the last couple of years. There is another request for $180,000 in FY27 to study a connection from the bikeway to the high school. Also, a request for $100,000 in FY27 to also study a multi-use path along Worthen Road to the high school, with implementation in later years. Jay Abdella, Senior Economic Development Coordinator, explained that the economic development budget includes a 3.66% increase, due to salary increases. Otherwise, the expense line will be level funded this year with no changes whatsoever. In terms of the PIR, the request is for a one-time funding of $50,000 to consider how to improve Lexington’s tourism model. This is proposed to be funded through the General Fund instead of the Revolving Fund. Ms. Kosnoff explained that the funding mechanism is up for discussion. The Revolving Fund’s balance is approximately $344,000. Department Initiatives: 1.Improve online permitting system, speeding up permits and inspections for contractors and residents. 2.Support the Planning Staff and Planning Board by amending the zoning bylaw to reflect the State's accessory dwelling unit requirements. 3.Permit, inspect, monitor, and ensure code compliance for over 1,000 new residential housing units. 4.Focus Department resources to support the increased volume of the Planning Division’s construction, monitoring and development permitting. 5.Continue the education and enforcement of the Town's Fossil Fuel Free Bylaw, adopted in the spring of 2024 and amended again in 2025, that prohibits/limits the use of natural gas and propane in new and existing homes and most commercial buildings. 6.Assist the Planning staff and Select Board to continue with their efforts to implement a stormwater permitting system for all new homes built and the next step to include all new home lots so stormwater will not adversely affect neighbors and Town roads. 7.Mobilize the Department to advance the Select Board's goals. 8.Conduct the design public hearing for the Bedford Street/Hartwell Complete Streets project. 9.Assist the design consultant in preparing the 75% highway design submission and complete the wetlands permitting process. 10.Select a design consultant and contract with Mass DOT for the design of safety improvements at the I-95 and Route 4/225 interchange. 11.Staff will provide quarterly updates to MPO staff during design to help identification future TIP funding. 12.Review and adjust Conservation Commission fees to offset cost of services. 13.Obtain local approvals from State in order to execute several conservation restrictions on CPA conservation land acquisitions. 14.With recreation and community programs, implement a 10 year action plan and apply for eligible State grant opportunities as applicable. 15.Complete the Conservation Land Management and stewardship prioritized projects, including annual boardwalk surveys and repairs, invasive species management, and in progress CPA funded projects. 16.Plan/acquire open space parcels as prioritized by the Conservation Commission. 17.Work with applicants of new developments to incorporate various community goals. 18.Monitor new development projects for compliance with Planning Board approvals. 19.Seek designation as a Housing Choice Community to have priority for State grants. 20.Implement recommendations of the Bicycle and Pedestrian Plan, including a bicycle and pedestrian route from the bikeway to the high school and a multi-use path on Worthen Rd. 21.Focus on Lexington's public art program and support community events to increase foot traffic and commercial activity. 22.Continue to support opportunities to streamline Lexington zoning bylaw to attract new business. 23.Work with landowners to fill prominent vacancies in Lexington Center, Hartwell Ave. and East Lexington. 24.Evaluate operational models for tourism operations, including destination, marketing, organization. Program Improvement Requests: Building Inspector Part-Time Mechanical Inspector – Additional Hours Tourism Model Evaluation FY2027-31 Capital Requests: Transportation mitigation Bike-Ped Implementation: MMBW to LHS Townwide Bicycle and Pedestrian Plan Implementation Wright Farm Barn Preservation and Rehabilitation (Step 3) Cotton Farm/Community Center Connector Land Acquisition Cary Memorial Library Presentation Koren Stembridge, Library Director, stated that the Library's FY2027 level-service budget request is $3,806,957 to be supported from Town funds, an increase of $115,496 or 3.13% from FY2026. Compensation is increasing by $87,346 or 2.96%, which reflects contractually obligated cost of living and step increases. Operating expenses are increasing by $28,150 or 3.80%. FY2025 was an exciting and challenging year for the library. The building closed for a few weeks in July 2024 to move spaces and collections and prepare for the renovation of the Lower Level. The renovation project received a $4M capital appropriation at the Spring 2024 Annual Town Meeting and the library provided an additional $1.5M in private funding. She noted that this is the fourth year of the PIR request for a Teen Services Librarian. Department Initiatives: Books, information, and so much more We continue our 150-year-long tradition of providing books and other materials that reflect the needs and interests of Lexington residents. Though much has changed since our doors first opened in 1869, our essential function remains the same - to bring the world of information and ideas to you. At the intersection of learning, making, and play In recent years, educational research has increasingly shown that we learn best through experience - by making mistakes and trying again. In furthering this effort, we are expanding these types of learning opportunities, giving you more chances to build, create, and play. A place that works for everyone We value the rich diversity of our community and our commitment to equitable service for all is unwavering. Efforts to identify and remove barriers to access are ongoing - we are a work in progress. With opportunities for human connection In a world where technology is ever-present, we are committed to fostering human interactions. Sometimes that is as simple as providing comfortable chairs for a serendipitous meeting between old friends. Other times it takes the shape of an elaborate event with community partners and hundreds of guests. Large and small, these moments, shared among neighbors, strengthen the social fabric of Lexington. And a future as bright as our past With more than half a million visitors each year, Cary Library is a cherished community asset and a source of civic pride. Stewardship of this resource includes multiple aspects – from preservation to transformation. Program Improvement Requests: Full-time Teen Services Librarian Ms. Hai asked about the Library’s existing leases. Ms. Stembridge stated that these include copy, printing, and scanning machines, but mostly the self-checkout machines. The Board took a brief recess. Town Clerk's Office Presentation Mary de Alderete, Town Clerk, stated that the FY2027 requested budget for the Town Clerk's Office is $682,998, representing a decrease of $(9,481) or (1.37)% from the FY2026 appropriation. Compensation decreases by $(9,756) or (1.74)% due to fewer election staffing needs in FY2027. Expenses increase by $275 or 0.21%, as funding to print the town meeting warrant is moving from the Town Clerk Elections budget to the Select Board budget, offsetting an increase in funding for election machinery contract services and election police details. She explained that the PIR request is to fund ongoing contract subscription services to transcribe handwritten historical documents. The CPC has stated that this project is not eligible for CPA funds. Mr. Lucente asked about a scope completion date for the capital request for document conservation. Ms. de Alderete stated that explained that the bulk of the documents have been completed. Department Initiatives: 1.Administration - Continue to provide important administrative services, including vital records, Public Records Requests, voter registration, outreach to all board and committee members, public meeting postings, Open Meeting Law and Ethics requirements as mandated by law, business licensing, and recording and archiving of decisions from the Board of Appeals, Planning Board and Historic District Commission. 2.Elections Administration - Administer Town/State/Federal elections in compliance with statutory requirements and regulation changes. Automatic Voter Registration continues to be a time- consuming initiative, increasing staff time in processing voter registrations. Mail-in early voting is expected to increase during the 2026 election cycle. 3.Vitals - Continue effective use of Commonwealth of Massachusetts Electronic Vital Records System for births and deaths. 4.Records and Archives - Continue migration of historic documents to Town's Laserfiche repository for public access. Continue to expand use of Laserfiche for administrative use and for public access Program Improvement Requests: Transcription Services FY2027-31 Capital Requests: Document Conservation Department of Public Facilities Presentation Mike Cronin, Director of Public Works, stated that the Department of Public Facilities (DPF) FY2027 budget consists of three divisions: Educational Facilities, Municipal Facilities and Shared Facilities. The DPF FY2027 level-service All Funds budget is increasing by $492,735 or 3.11%. The General Fund budget is increasing by $455,970 or 3.00%. The primary driver of this increase is affected by the typical contractual obligations and utility pricing increases. All union contracts are current. Compensation is increasing by $292,314 or 4.07% due to contractually obligated increases. The primary drivers for utility consumption changes are driven by the conversion of 173 Bedford Street to all electric and the capital project to convert Harrington's HVAC to all electric. In addition, we have added air conditioning to a series of classrooms on the third floor of Clarke. Overall Utility costs are increasing slightly by 0.7%. The utility budget is broken into two slices: the consumption side (the gas or electricity we use) and the delivery charges (the infrastructure equipment). Gas supply rates increased from $0.57 to the new contractual rate of $0.813 per therm. Additionally, electricity rates have increased from $0.1229 to $0.142 cents per KWh plus a 7% increase in the delivery charge. With the anticipation of 146 Maple St (Central Office) going offline and 173 Bedford Street being converted to all electric, gas consumption is going down, and electricity budgets are proportionally going up. The electricity contract expires November of 2026 and will need to be rebid. We are using figures supplied by our consultant for this budget. He explained that the PIR is to place all garage doors for Town buildings under the same maintenance plan. Department Initiatives: Support the day to day operations of all town buildings, support the School Department especially the LHS project, review and refine the 20-year capital plan information and incorporate into a detailed 5-year capital plan, and implement other capital and priority projects. Program Improvement Requests: Garage Door Maintenance FY2027-31 Capital Requests: Public Facilities Bid Documents Public Facilities Interior Finishes Public Facilities Mechanical/Electrical/Plumbing Replacements Municipal Building Envelopes and Associated Systems School Building Envelopes and Associated Systems School Paving and Sidewalks LHS Equipment Emergency Needs East Lexington Fire Station Clarke HVAC Replacement and Electrification, Roof, Windows, Flooring, Security Cary Memorial Library Upper Floors HVAC Renovation LHS Building Systems Replacement Playground Infrastructure Upgrades Ms. Hai asked about the utility summary, with the school usage for electricity going up, and the Town usage going down. Meanwhile, for natural gas, the school usage is going down, but by a much smaller percentage and on a much larger base numberthan the Town usage. Mr. Cronin explained that there was formula issue last year that impacted the numbers which has been corrected. Mr. Sandeen congratulated the DPF staff for their success in completing the Old Reservoir renovation project under tight financial constraints. He asked if the DPF could schedule a conversation with the Select Board at a later time to present lessons learned from his team’s success in lowering costs, that might be applied to future projects. In response to a question from Mr. Sandeen about the Clarke Middle School roofing project, Mr. Cronin suggested that it might make sense to replace the existing solar energy system with a newer larger solar energy system, at the same time as the Clarke roof is replaced. Mr. Sandeen expressed concern that the proposed capital budget for the East Lexington Fire Station looks quite high on a square foot basis compared to other recent projects. In answer to a question from Mr. Sandeen, Mr. Cronin stated that the proposed capital for the East Lexington Fire station does not include land acquisition costs. In response to a question from Ms. Hai, Mr. Cronin explained that the ConnectedSolutions revenue source is a State run program that compensates the Town for power being generated from the battery that is sent to the electrical grid on very warm days. In terms of the capital requests, Mr. Lucente noted that the Cary Memorial Library upper floor project is estimated at a $21M project. He asked about how much of the project is HVAC versus other items. Mr. Cronin stated that one aspect of the project is electric. In taking the building off the fossil fuel system and bringing in more electric, this will require some additional power to the building. He will consider renaming the request. Ms. Hai asked about how to make sure significant items are not uncovered during the course of major construction projects. Mr. Cronin noted that the level of attention from OPMs and the Department is much higher now. Mr. Lucente asked about warranties. Mr. Cronin stated that contractually, the industry standard is one year from the time the contractors complete their work. As soon as they turn on the HVAC system, there is a one year warranty. None of the systems come with extended warranties. Select Board Presentation Kim Katzenback, Executive Clerk, explained that the Select Board's operating budget, inclusive of the Select Board's Office, the Legal budget, Town Report and the PEG Special Revenue Fund, is increasing by $134,024, or 9.31%. Compensation is increasing $10,573 or 6.82% due to contractually obligated step increases, and expenses are increasing $123,451 or 9.61%, which is due to increasing costs for LexMedia and movement of town warrant printing from the Town Clerk's budget to the Select Board budget. Program Improvement Requests: None DOCUMENTS: LUHD Presentation; FY27 LUHD Budget Request; FY27 Cary Library Budget Request; FY27 Town Clerk Budget Request; FY27 DPF Budget Request; FY27 Select Board Budget Request; FY2027 PIR Summary ADJOURN Upon a motion duly made and seconded, the Select Board voted 4-0 to adjourn the meeting at 6:55 p.m. A true record; Attest: Kristan Patenaude Recording Secretary Commented [MS1]: This really is all one word – a rather unfortunate Utility name for this program. SELECT BOARD MEETING Monday, December 15, 2025 A meeting of the Lexington Select Board was called to order at 6:30p.m. on Monday, December 15, 2025, via a hybrid meeting platform. Ms. Hair, Chair; Mr. Lucente, Mr. Pato, Ms. Kumar, and Mr. Sandeen were present, as well as Mr. Bartha, Town Manager; Deputy Town Manager, Ms. Axtell; and Executive Clerk, Ms. Katzenback. CONSENT AGENDA 1.Approve: 2026 Common Victualler License Renewals To approve the 2026 Annual Common Victualler License Renewals for the following businesses: Avenue Deli - 1806 Massachusetts Avenue Daikanyama Japanese Cuisine - 43 Waltham Street Galaray House - 1720 Massachusetts Avenue Ixtapa Cantina - 177 Massachusetts Avenue Knights of Columbus Members Association Inc - 177 Bedford Street Lexington Elks Club #2204 - 959 Waltham Street Lexington House of Pizza - 399 Lowell Street Mike & Patty’s Breakfast & Sandwiches - 317 Woburn Street Nick's Restaurant of Lexington Inc. - 197 Massachusetts Avenue Peet's Coffee & Tea - 1749 Massachusetts A venue Spirit of India - 321 Marrett Road 2.Approve: 2026 Automatic Amusement Devise License Renewals To approve the 2026 Annual Automatic Amusement Device License Renewals for the following businesses: Lexington- Lodge #2204 (Golden Tee Golf) - 959 Waltham Street Lexington- Lodge #2204 (Jukebox) - 959 Waltham Street 3. Approve: 2026 Class II License Renewal To approve the 2026 Annual Class II License Renewal for the following business: Lexington Auto Sales - 542 Massachusetts Avenue 4. Approve: 2026 Liquor License Renewal Package Store To approve 2026 Liquor License Renewal for the following: Nick's Wine and Spirits - 1666 Massachusetts Avenue, Unit H 5. Approve: Town Manager Committee Appointment Conservation Commission Associate Member - Thomas Olivier To confirm the Town Manager's appointment of Thomas Olivier as an Associate Member to the Conservation Commission with a term set to expire March 31, 2028. DOCUMENTS: Application 6. Approve: Water & Sewer Commitments To approve the consent. DOCUMENTS: SB Meeting WS items 7. Approve: Select Board and Town Manager Goals for FY2026-27 To confirm the Select Board FY2026 - FY2027 Goals and publish to the Select Board webpage. DOCUMENTS: FY 2026-2027 Goals 8. Approve Application: Liquor License Change of Manager Amendment – Beijing Cuisine To approve the application from Gl Gourmet Group Inc d/b/a Beijing Cuisine for a Change of Manager and, once approved by the ABCC, issue an updated All Alcohol Common Victualler Liquor License to Gl Gourmet Group Inc d/b/a Beijing Cuisine for a Change of Manager, with Xiaofeng Cheng named as Manager. DOCUMENTS: Application - Beijing Change of Manager VOTE: Upon motion duly made and seconded, the Select Board voted by roll call 5-0 to approve the Consent Agenda, as presented. ITEMS FOR INDIVIDUAL CONSIDERATION 1. Civic Academy Graduation Abe Fofanah, Management Fellow reviewed the Lexington Civic Academy, now in its 16th session. At Lexington Civic Academy, residents met for 12 weeks to learn about local government, specifically, the role each department plays in serving the public. The goal of the program is citizen engagement, and the program is designed to connect residents with the Select Board and Town staff, as well as encouraging participation on Town committees/boards and as Town Meeting Members. Sinan Bruce spoke on behalf of the Civic Academy graduates. 1. Kseniya Ausiaikova 2. Jim Baldwin 3. Sinan Bruce 4. Sophia De Freitas 5. Sandra Galejs 6. Anagha Kelkar 7. Meghana Khanolkar 8. Dya Levitt 9. Rositza Rachev 10. Kala Ramachandra 11. Stephanie Repaci 12. Eileen Schneider 13. Seth Werfel 14. Catherine Yan DOCUMENTS: Civic Academy December 2025 Participant List 2. Presentations: Proposed 2026 Annual Town Meeting Articles Commission on Disabilities - Universal Design Resolution Victoria Buckley, Commission on Disabilities, presented the Universal Design Resolution for the Board's consideration for inclusion on the 2026 Annual Town Meeting warrant. She explained that Universal Design is an inclusive design philosophy aiming to create products, services and environments accessible and usable by as many people as possible, regardless of their age, ability or status in life. This approach seeks to create solutions that meet the needs of people with diverse abilities, and it advocates for the inclusions of these considerations in the earliest stages of design. Mr. Sandeen asked about next steps if this Resolution were to pass. Ms. Buckley explained that the group has been discussing with the Building Commissioner ideas to encourage builders to come in and get more points by including a Universal Design. This will be particularly important for aging in place. The Board was supportive of moving this item to the Warrant. Vision for Lexington Funding for RFP for Town - Wide Survey Sara del Nido Budish and Tom Lin, Vision for Lexington, presented their Town-wide survey Article for the Board's consideration for inclusion on the 2026 Annual Town Meeting warrant. Mr. Lucente asked about the scope changes in this survey from the last iteration. Ms. del Nido Budish stated that consistency in some of the questions is valued. There will likely be some modifications made to some recent changes in Town. Suggested scope changes are welcome. Mr. Lucente asked about the resources for this item. Mr. Bartha stated that this could be worked into the financing plan. The Board was supportive of moving this item to the Warrant. DOCUMENTS: Universal Design ATM, Town -wide survey. Vision for Lexington article, Vision for Lexington slidedeck, 2022 Town Wide Survey Report 3. Discussion: Town Manager Performance Evaluation The Select Board conducted its annual review of the Town Manager Steve Bartha's performance. Individual Board member evaluations have been collected and consolidated into a summarized report for discussion. The Board reviewed the consolidated evaluation, discussed key performance themes, and considered areas for refinement or clarification. It was noted that Ms. Kumar’s comments would be added to the review for approval during the Consent Agenda of January 5th. DOCUMENTS: Draft Town Manager Performance Evaluation 4. Discussion: Generate List of Decision Points for Non-Residential Development Surcharge for Affordable Housing Ms. Hai stated that, at its December 8, 2025 meeting, the Select Board received a presentation on the Non-Residential Development Nexus Study for affordable housing. Following the presentation, the Board agreed that it would be useful to compile a list of decision points that will be required. The Board will now identify, refine, and expand the full set of decision points that will guide future consideration of whether and how to implement a non-residential development surcharge to support affordable housing. Mr. Lucente stated that he would like to discuss when the surcharge begins to apply and what happens with projects that are already in the pipeline. Also,the calculation for excess gross floor area is somewhat discretionary. Some type of an appeal process may need to be considered further. He suggested indicating the funding mechanism for the reporting of this item. An additional item would be a guidepost on the frequency of revisiting this item. Mr. Pato requested timelines for when the rate will be reset. Also, a statement of intent should be contained within the policy and regulation. Mr. Sandeen noted that it is important for all of the draft bullet points to be aligned with the legislation. Mr. Bartha stated that staff would work to draft something based on the comments heard this evening. 5. Vote: Article 97 Filing for High School Project Ms. Hail stated that, on November 3rd, prior to STM 2025-2, the Select Board voted 5-0 in favor of Article 9 (home rule legislation for Article 97), which then passed with over 90% support from Town Meeting. On December 8, Lexingtonians then voted in favor of the LHS debt exclusion with 62% support. Although it is arguable that the November 3rd Select Board vote to authorize home rule legislation already satisfies the requirements laid out in Article 97 guidance issued by the Executive Office of Environmental Affairs (EOEA) in 1998, Town Counsel is recommending that the November 3rd vote be reaffirmed tonight as a standalone item not connected to a Town Meeting article in order to make clear the Town's intent as the process moves forward. VOTE: Upon motion duly made and seconded, the Select Board voted by roll call 5-0 that the Board affirm its desire, as expressed at the November 3, 2025, Special Town Meeting, to petition the General Court to enact special legislation pursuant to Article 97 of the Massachusetts Constitution, in substantially the form authorized by Town Meeting, to authorize the transfer of the Center Athletic Field Parcels currently under the care, custody, management and control of the Select Board to the School Committee for school purposes and to authorize the Legislature to make changes to the text of such legislation as is consistent, subject to approval of such changes by the Town Manager. DOCUMENTS: Select Board Statement from STM on Art. 97, Memo on Status of Article 97 (from 12.8 LSB Mtg) 6. Approve: Reversal of Liquor License and Adjust Liquor License Renewal – Whiskey and Wine, 55 Bedford Street Ms. Hai explained that the previously submitted application to transfer the All-Alcohol Package Store License at 55 Bedford Street, can no longer proceed. The parties to the Purchase and Sale (P&S) Agreement have not completed the transaction, requiring the seller to retain the existing license and request withdrawal of the pending transfer application. As required by the ABCC, a letter signed by both the seller and buyer, has been submitted stating that the P&S agreement has been terminated and both parties request that the transfer application be withdrawn and the license be reverted to the original owner. VOTE: Upon motion duly made and seconded, the Select Board voted by roll call 5-0 to 1. Authorize withdrawal of the transfer application with the ABCC 2. Revert the All-Alcohol Package Store License at 55 Bedford Street to the original owner, d/b/a Whiskey and Wine, due to the non-completion of the P&S agreement and 3. Approve the 2026 liquor license renewal in the original owner's name, d/b/a Whiskey and Wine, as part of this reversion DOCUMENTS: Signed Letter of request for reversal of Liquor License 55 Bedford Street, Internal Memo to Board - Situation Overview Mr. Pato reflected on the recent passing of Narain Bhatia, a very dedicated pillar of the community and a staunch advocate for the Indian American community in Lexington. There will be a community celebration of life on Saturday the 20th from 1pm-3pm at First Parish Church. There is an open invitation to all who feel the opportunity to come and recognize his wonderful contributions. ADJOURN VOTE: Upon a motion duly made and seconded, by roll call, the Select Board voted by roll call 5-0 to adjourn at 7:39 p.m. A true record; Attest: Kristan Patenaude Recording Secretary AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: Water and Sewer Commitments and Adjustments PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.6 SUMMARY: Water and Sewer Cycle 9 Billing $ 320,314.83 Water and Sewer Finals $ 5,827.50 Water and Sewer Adjustments WSAB 12/18/25 ($ 39,291.59) SUGGESTED MOTION: to approve: Water and Sewer Cycle 9 Billing $ 320,314.83 Water and Sewer Finals $ 5,827.50 Water and Sewer Adjustments WSAB 12/18/25 ($ 39,291.59) Move to approve the Consent FOLLOW-UP: Treasurer / Collector DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 ATTACHMENTS: Description Type Cy 9 and finals Cover Memo WSAB 1-26-26 Backup Material AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Approve: Eagle Scout Commendation Letter - Trevor Stevens PRESENTER: Jill Hai, Select Board Chair ITEM NUMBER: C.6 SUMMARY: Category: Decision-Making The Select Board is being asked to sign a letter of commendation congratulating Trevor Stevens of Boy Scout Troop 119 for attaining the highest rank of Eagle in Scouting. SUGGESTED MOTION: To approve and sign a letter of commendation congratulating Trevor Stevens of Boy Scout Troop 119 for attaining the highest rank of Eagle in scouting. Move to approve the consent. FOLLOW-UP: Select Board Office. DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 ATTACHMENTS: Description Type Eagle Scout Letter - Stevens Backup Material Town of Lexington, Massachusetts SELECT BOARD OFFICE JILL I. HAI, CHAIR JOSEPH N. PATO DOUGLAS M. LUCENTE MARK D. SANDEEN TEL: (781) 698-4580 VINEETA A. KUMAR FAX: (781) 863-9468 1625 MASSACHUSETTS AVENUE, LEXINGTON, MASSACHUSETTS 02420 Email: selectboard@lexingtonma.gov January 26, 2026 Trevor Stevens 1373 Massachusetts Avenue Lexington, MA 02420 Dear Trevor, Congratulations on attaining the highest rank in Scouting. We know the trail to Eagle Scout has not always been an easy one and we recognize that you have had to work hard to get this far. Your time in positions of leadership within Troop 119, and the successful completion of your Eagle project, speaks to your dedication. Being an Eagle is so much more than just another rank. It is a recognition of what you have achieved so far, but of more importance is the implied promise you have made to maintain the ideals of Scouting into your adult life. We know that your family and fellow Scouts are proud of you and will look to you to be a leader as you continue your journey beyond Eagle. Again, congratulations and good luck in all your future endeavors. Sincerely, Jill I. Hai, Chair Joseph N. Pato Doug M. Lucente Mark D. Sandeen Vineeta A. Kumar AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Review & Approve: FY2027 Fee Schedule for Recreation & Community Programs PRESENTER: Melissa Battite, Director of Recreation and Community Programs ITEM NUMBER: I.1 SUMMARY: Category: Decision-Making This is an annual request that comes before the Select Board to review and approve fees set for programs and services managed and operated by the Recreation and Community Programs Department. SUGGESTED MOTION: Move to approve/disapprove the FY27 Recreation and Community Program fee schedule as presented. FOLLOW-UP: Recreation Department DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 6:45pm ATTACHMENTS: Description Type Recreation Fee Backup Material AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Discussion: FY27 Town Manager's Preliminary Budget & Financial Planning PRESENTER: Carolyn Kosnoff, Assistant Town Manager for Finance ITEM NUMBER: I.2 SUMMARY: Category: Informational Staff will provide a brief overview of the Town Manager's FY2027 Preliminary Budget & Financing Plan (White Book). SUGGESTED MOTION: N/A FOLLOW-UP: DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 6:55pm ATTACHMENTS: Description Type FY2027 Preliminary Budget Presentation Presentation FY2027 Preliminary Budget & Financing Plan Backup Material Town of Lexington FY2027 Preliminary Budget & Financing Plan Select Board Overview January 26, 2026 2 Town of Lexington FY2027 Preliminary Budget (in thousands)Summit I Summit III 1 Total Revenues $ 320,164 $ 321,403 2 Less: FY2026 School Budget $ 146,033 74.0%$ 146,033 3 Less: FY2026 Municipal Budget (inc.Community Center)$ 51,264 26.0%$ 51,264 4 Less: Shared Expenses $ 88,489 $ 86,479 5 Less: Set-Asides $ 29,693 $ 29,932 6 Total Base Budget $ 315,479 $ 313,708 $ Change 7 Total New Revenue to be Allocated $ 4,685 $ 7,695 $ 3,010 8 School Alloc./ FY2027 Total $ 3,467 74.0%$ 5,696 74.0% 9 Muni Alloc. / FY2027 Total $ 1,217 26.0%$ 1,999 26.0% Summit I Initial Revenue Allocation %Inc vs PY Initial Budget Request %Inc vs PY Surplus/ (Shortfall) 10 FY2027 School budget $ 149,501 2.4%$ 152,810 4.6%$ (3,309) 11 FY2027 Municipal budget $ 52,481 2.4%$ 53,871 5.1%$ (1,390) Summit III Revised Revenue Allocation %Inc vs PY Updated Budget Request %Inc vs PY Surplus/ (Shortfall) 12 FY2027 School budget $ 151,729 3.9%$ 151,729 3.9%$ — 13 FY2027 Municipal budget $ 53,263 3.9%$ 53,263 3.9%$ — FY2027 Revenue Allocation Summary 3 Town of Lexington FY2027 Preliminary Budget Original Revised Variance Description $ 320,163,931 $ 321,403,140 $ 1,239,209 Updated Investment Income Projection (from $1.5M to $2.5M); add unused bond proceeds $239,209 $ 1,239,209 Total Revenue Increase/ (Decrease) $ 3,926,430 $ 4,149,188 $ 222,758 Updated Minuteman assessment, per preliminary budget $ 46,420,190 $ 44,371,638 $ (2,048,552) Updated Health Benefits assuming 9% premium increase (vs 15%) $ 15,645,142 $ 15,530,142 $ (115,000) Revisions to Facilities shared service budget (including PIR) $ 70,000 $ — $ (70,000) Facilities PIR -initial request $ (2,010,794) Shared Expenses Increase/ (Decrease) $ 1,000,000 $ 2,152,935 $ 1,152,935 Set-Aside for as yet to be identified FY2027 needs (Free Cash) $ 16,743,229 $ 15,054,503 $ (1,688,726) Cash Capital - Free Cash and Other Available Funds $ — $ 700,000 $ 700,000 Set-aside for one-time School Curriculum Purchase (Free Cash) $ — $ 75,000 $ 75,000 Set Aside for Vision Survey (Free Cash) $ 239,209 Set-Aside One-Time Funds Increase/ (Decrease) $ 3,010,794 Net Positive/ (Negative) Impact on Revenue Allocation 74%$ 2,227,987 Additional School Allocation 26%$ 782,806 Additional Municipal Allocation Summary of Revenue Allocation Changes from Summit I 4 Town of Lexington FY2027 Preliminary Budget Revenues Set-Aside for Designated Expenses - FY2027 Tax Levy Free Cash Other Total 1 Set-Aside for Unanticipated Current Fiscal Year Needs $ — $ 250,000 $ — $ 250,000 2 Unallocated $ — $ 2,152,935 $ — $ 2,152,935 3 Special Education Reserve Fund $ — $ — $ — $ — 4 Other Post-Employment Benefits (OPEB)$ — $ 2,129,721 $ — $ 2,129,721 5 Cash Capital $ — $ 14,792,344 $ 262,159 $ 15,054,503 6 Set-Aside for School Literacy Curriculum $ — $ 700,000 $ — $ — 7 Appropriate into Capital Stabilization Fund $ 6,580,908 $ — $ — $ 6,580,908 8 Street Improvement Program $ 2,746,777 $ — $ — $ 2,746,777 9 Municipal Building Envelope and Systems $ 242,332 $ — $ — $ 242,332 10 Warrant Articles $ — $ 75,000 $ — $ 75,000 11 Subtotal $ 9,570,016 $ 20,100,000 $ 262,159 $ 29,932,175 12 Subtotal $ 9,570,016 $ 20,100,000 $ 262,159 $ 29,932,175 13 Free Cash to Support Operating Budget $ — $ — $ — $ — 14 Contribution to Pension Fund $ — $ 400,000 $ — $ 400,000 15 Grand Total $ 9,570,016 $ 20,500,000 $ 262,159 $ 30,332,175 5 Town of Lexington FY2027 Preliminary Budget The FY2027 budgets proposed by the Town Manager and Superintendent of Schools provide for a Balanced Town Budget Revenue Summary FY2026 Recap FY2027 Projected $ Change % Change Tax Levy $ 249,047,036 $ 258,361,669 $ 9,314,632 3.7% State Aid $ 21,532,602 $ 22,181,496 $ 648,894 3.0% Local Receipts $ 17,198,317 $ 18,821,440 $ 1,623,122 9.4% Available Funds*$ 25,611,684 $ 22,352,051 $ (3,259,633) (12.7)% Revenue Offsets $ (2,175,841) $ (2,360,640) $ (184,799) 8.5% Enterprise Funds (Indirect)$ 1,935,189 $ 2,047,125 $ 111,936 5.8% Total General Fund $ 313,148,989 $ 321,403,140 $ 8,254,153 2.6% Expenditure Summary FY2026 Appropriated FY2027 Recommended Budget $ Change % Change Lexington Public Schools $ 146,033,333 $ 151,729,248 $ 5,695,915 3.9% Minuteman High School $ 3,569,482 $ 4,149,188 $ 579,706 16.2% Shared Expenses $ 77,370,757 $ 82,329,423 $ 4,958,666 6.4% Municipal Departments $ 50,995,276 $ 52,995,295 $ 2,000,020 3.9% Cash Capital-Tax Levy and Available Funds $ 19,524,216 $ 18,158,612 $ (1,365,604) (7.0)% Other**$ 15,655,924 $ 12,041,374 $ (3,614,550) (23.1)% Total - General Fund Only $ 313,148,988 $ 321,403,140 $ 8,254,152 2.6% * Available Funds reflects one-time revenue sources, primarily Free Cash. ** Other expenses are primarily set-asides into reserves including the Capital Stabilization Fund, OPEB Trust, and SPED Reserve. 6 Town of Lexington FY2027 Preliminary Budget Municipal Budget Update Municipal Allocation Deficit from Initial Requested Budget $ (1,390,226) Additional Revenue Allocation $ 782,806 Municipal Budget Reductions $ 599,544 Refinement of Salary Projections $ 7,876 Remaining Deficit $ — *Total reductions includes net reductions in Facilities Department ($115,000) Reduction Classification Reduction Amount Notes Adds Financial Risk $ (410,498) Purchase Deferrals; Reduce Professional & Contract Services Discretionary $ (19,000) Internship programs Hiring Freeze $ (58,946) 1 FTE DPW Internal Reduction $ (71,200) Travel, Conferences, Professional Development Supply/Maintenance Reduction $ (189,900) Supplies or Ongoing Maintenance Garage Door Maintenance PIR $ 35,000 Add Program Improvement Total Reductions*$ (714,544) 7 Town of Lexington FY2027 Preliminary Budget Balancing the FY2027 Municipal Budget Municipal Budgets FY2027 Initial Request FY2027 Delete FY2027 Add FY2027 Recommended Budget Public Facilities*$ 15,645,142 $ (150,000) $ 35,000 $ 15,530,142 Municipal Departments: Public Works $ 14,868,709 $ (128,070) $ 14,740,639 Police $ 9,821,573 $ (120,100) $ 9,701,473 Fire $ 9,600,822 $ (119,000) $ 9,481,822 Library $ 3,790,583 $ (28,300) $ 3,762,283 Human Services $ 1,846,200 $ (17,350) $ 1,828,850 Health $ 565,006 $ (5,000) $ 560,006 Land Use Department $ 2,598,453 $ (55,824) $ 2,542,629 Select Board $ 1,573,553 $ (20,000) $ 1,553,553 Town Manager $ 1,704,736 $ (30,000) $ 1,674,736 Salary Adjustment Account $ 840,000 $ (40,000) $ 800,000 Town Committees $ 73,120 $ 73,120 Finance $ 2,339,660 $ (23,900) $ 2,315,760 Town Clerk $ 682,998 $ (2,000) $ 680,998 Innovation & Technology $ 3,289,426 $ (10,000) $ 3,279,426 Total Municipal Departments $ 53,594,839 $ (599,544) $ — $ 52,995,295 *Public Facilities is a shared service. Initial request does not include PIR of $70K. Total does not include $109K Shared Exp.for Refuse & Recycling Collection for School & Muni. Buildings 8 Town of Lexington FY2027 Preliminary Budget FY2027 Municipal Department Budget Summary Municipal Budgets FY2026 Appropriated FY2027 Recommended Budget $ Change % Change Public Facilities*$ 15,189,172 $ 15,530,142 $ 340,970 2.2% Municipal Departments: Public Works $ 13,971,800 $ 14,740,639 $ 768,839 5.5% Police $ 9,745,978 $ 9,701,473 $ (44,505) (0.5)% Fire $ 9,458,988 $ 9,481,822 $ 22,834 0.2% Library $ 3,691,461 $ 3,762,283 $ 70,822 1.9% Human Services $ 1,703,597 $ 1,828,850 $ 125,253 7.4% Health $ 561,024 $ 560,006 $ (1,018) (0.2)% Land Use Department $ 2,465,236 $ 2,542,629 $ 77,393 3.1% Select Board $ 1,439,529 $ 1,553,553 $ 114,024 7.9% Town Manager $ 1,609,722 $ 1,674,736 $ 65,014 4.0% Salary Adjustment Account $ — $ 800,000 $ 800,000 —% Town Committees $ 73,120 $ 73,120 $ — —% Finance $ 2,206,218 $ 2,315,760 $ 109,542 5.0% Town Clerk $ 692,479 $ 680,998 $ (11,481) (1.7)% Innovation & Technology $ 3,376,124 $ 3,279,426 $ (96,698) (2.9)% Total Municipal Departments $ 50,995,276 $ 52,995,295 $ 2,000,019 3.9% *Public Facilities is a shared service Total does not include $109K Shared Exp.for Refuse & Recycling Collection for School & Muni. Buildings 9 Town of Lexington FY2027 Preliminary Budget FY2027 Program Improvement Requests Program Department Requests Recommended Not Recommended Total General Fund Requests $749,461 $150,000 $596,961 Non-General Fund Recreation Enterprise $100,000 $100,000 $— Total Non-General Fund $100,000 $100,000 $— Combined Requests Total $849,461 $374,000 $596,961 General Fund Recommended PIRs include: •$35,000 for Garage Door Maintenance (offset by targeted reductions) •$115,000 for Cashiering Module (to be funded with Free Cash in Innovation & Technology capital budget) Non General Fund Recommended PIRs include: •$100,000 for Recreation Strategic Plan (recommended to be funded by Recreation Retained Earnings) 10 Town of Lexington FY2027 Preliminary Budget Requested Capital Budget - FY2027 Capital Requests Summary Free Cash/ Tax Levy CPA* Other Funding Sources Debt Total Other** General Fund $ 17,896,453 $ — $ — $ 2,500,000 $ 20,396,453 $ — Excluded Debt Projects $ — $ — $ — $ — $ — $ — Other Funding & Chapter 90 $ — $ — $ 262,159 $ — $ 262,159 $ 1,768,022 Water Enterprise $ — $ — $ 2,606,639 $ — $ 2,606,639 $ — Sewer Enterprise $ — $ — $ 900,000 $ 404,080 $ 1,304,080 $ — Recreation Enterprise $ — $ — $ 190,000 $ — $ 190,000 $ — Community Preservation Act*$ — $ 8,345,355 $ — $ — $ 8,345,355 $ — Total (all Funds)$ 17,896,453 $ 8,345,355 $ 3,958,798 $ 3,054,080 $ 33,104,686 $ 1,768,022 *Includes Town and non-town CPA funded projects. **Other represents Chapter 90 Aid for street improvements. This item does not require a Town Meeting appropriation. 11 Town of Lexington FY2027 Preliminary Budget FY2027 Capital Highlights •LHS Emergency Funds - $400,000 to fund emergency equipment repairs at the current LHS building until the new high school is operational. •Ladder Truck - $2,500,000 (Debt Financed) to replace the fire department's 2017 ladder truck. •Infrastructure Design Funds - $250,000 for North/Burlington sidewalk design and $100,000 for intersection design on Adams Street at East & Hancock. These may lead to construction projects of $5.2M and $5.5M respectively. •Totes for Automated Trash Collection - $1,204,000 for purchase of refuse & recycling carts for transition to automated collection in future cycles. •Police Station EV Chargers - $463,000 to install EV chargers at the police station to enable electric charging of the police department fleet. •146 Maple St. Athletic Fields Construction - $2,630,000 from the Town's Community Preservation Act (CPA) funds to construct new athletic fields after the demolition of the Central Administration Building. •Affordable Housing Trust (AHT) Funding - $3,200,000 from the Town's Community Preservation Act (CPA) funds to fund AHT initiatives. •Facilities Mechanical/Electric/Plumbing - $4,565,000 for Energy Recovery Units and partial gas to electric HVAC conversion at Fiske Elementary School. 12 Town of Lexington FY2027 Preliminary Budget 13 Town of Lexington FY2027 Preliminary Budget Outstanding Items (as of 1/23/2026) •State Aid - Cherry Sheet Estimates will be available when the Governor's budget is released at the end of January. Current Ch70 Aid is estimated at $100/student. •Health Insurance Premiums - Final increases in Health Insurance premiums are expected in late February. Further guidance from the Group Insurance Commission may be factored into the final recommended budget. •Final Minuteman Assessment - Final assessment for Minuteman HS is expected in early February when Minuteman's FY2027 Budget is finalized. •FY2027 Debt Service - Current amount is a placeholder that may be impacted by the February 2026 debt issuance. •Citizen's Petitions - Citizen's petitions have been submitted for the 2026 Annual Town Meeting, and are not included in the draft budget. These items may require staffing or investment in technology. •Free Cash - Current FY2027 estimate of $20,500,000 has not been certified by the Department of Revenue. Adjustments will be reflected in cash capital/debt service. •Collective Bargaining Agreements - both Municipal and School departments are in contract negotiations that will impact salary projections. Salary reserves are set- aside for this purpose. 14 Town of Lexington FY2027 Preliminary Budget Next Steps & Anticipated Dates •January 28, 2026 (Wed) - White Book Summit Meeting •January 29, 2026- February 9, 2026 - Municipal and School staff to respond to questions on operating and capital budgets; ongoing budget deliberations •February 9, 2026 (Mon) - Select Board to vote FY2027 Recommended Budget & Financing Plan •February 27, 2026 (Fri)- The final recommended budget will be distributed electronically to the Select Board, Appropriation Committee, Capital Expenditures Committee and Town Meeting Members •March 30, 2026 - Town Meeting Begins; financial articles may be considered Town of Lexington, Massachusetts Fiscal Year 2027 Preliminary Budget & Financing Plan January 23, 2026 Town of Lexington Organizational Chart Table of Contents The budget document outlines the Town’s financial plan as recommended by the Select Board. Both the operating and capital budgets are contained in this document. The effective period of this budget is from July 1, 2026 to June 30, 2027. Budget-In-Brief Report of the Town Manager The Budget Message is a letter to the Select Board from the Town Manager in support of the enclosed budget recommendations. The letter provides an overview of the operating and capital budget, identifies significant budget issues, and explains the Town Manager's rationale for budget recommendations. Section I: Budget Overview The Budget Overview contains several summary tables, which display the schedule of the FY2027 budget process, expenditure and revenue history, and a detailed summary of proposed appropriations for the coming fiscal year. Budget Process Summary of Revenues and Expenditures I-1 Program Summary I-2 Section II: Revenues The Revenue section contains a narrative description of revenue sources followed by a series of tables that displays a detailed summary of actual and projected revenues. Description of Revenues II-3 Detailed Budget Information Section III: Program 1000: Education 1000 Education Program III-1 1100 Lexington Public Schools III-2 1200 Minuteman Regional High School III-18 Section IV: Program 2000: Shared Expenses 2000 Shared Expenses IV-1 2100 Employee Benefits IV-3 2200 Property & Liability Insurance IV-8 2300 Solar Producer Payments IV-10 2400 Debt Service IV-12 2500 Reserve Fund IV-14 2600 Public Facilities IV-17 FY2027 Preliminary Budget & Financing Plan January 23, 2026 1 Section V: Program 3000: Public Works 3000 Public Works V-1 3000 - 3500 DPW Summary V-2 3100 DPW Administration and Engineering V-7 3200 Highway V-12 3300 Public Grounds V-16 3400 Environmental Services V-21 3600 Water Enterprise V-26 3700 Sewer Enterprise V-30 Section VI: Program 4000: Public Safety 4000 Public Safety VI-1 4100 Law Enforcement VI-3 4200 Fire & Rescue VI-10 Section VII: Program 5000: Culture and Recreation 5000 Culture and Recreation VII-1 5100 Cary Memorial Library VII-3 5200 Recreation and Community Programs VII-9 Section VIII: Program 6000: Human Services and Health 6000 Human Services and Health VIII-1 6100 - 6200 Human Services Administration, Veterans Services, Youth and Family Services, Senior Services and Community Programs, and Transportation Services VIII-2 6500 Health VIII-8 Section IX: Program 7000: Land Use, Housing and Development Department 7000 Land Use, Housing and Development Department IX-1 7100 - 7400 Summary IX-3 7110 Building and Zoning IX-10 7120 Administration IX-14 7130 Conservation IX-17 7200 Planning IX-21 7300 Economic Development IX-25 FY2027 Preliminary Budget & Financing Plan January 23, 2026 2 Section X: Program 8000: General Government 8000 General Government X-1 8100 Select Board X-1 8200 Town Manager X-6 8300 Town Committees X-11 8400 Finance X-13 8500 Town Clerk X-18 8600 Innovation & Technology X-22 FY2027 Capital Improvement Budget & Financing Plan Section XI: Capital Investment FY2027 Capital Improvement Budget & Financing Plan XI-1 Acknowledgments Preparing a budget document with this level of detail is a significant undertaking. I would like to express my appreciation to Superintendent of Schools Julie Hackett, Assistant Superintendent for Finance and Administration Chris Scully, the Senior Management Team, and board and committee members who contributed to the development of this budget. I would like to specifically acknowledge Town Accountant Krista Murphy, Director of Assessing Robert Lent, Management Fellow Abraham Fofanah, Human Resources Director Anne Kostos, and Deputy Town Manager Kelly Axtell for their work in preparing the many facets of this document. Finally, the completion of the Preliminary Budget and Financing Plan is due directly to the extraordinary efforts of Assistant Town Manager for Finance/ Comptroller Carolyn Kosnoff and Budget Director Rosalyn Impink. Steve Bartha, Town Manager FY2027 Preliminary Budget & Financing Plan January 23, 2026 3 Town of Lexington Town Manager's Office Steve Bartha, Town Manager Tel: (781) 698-4540 Kelly E. Axtell, Deputy Town Manager January 23, 2026 The Honorable Select Board, Appropriation Committee and Capital Expenditures Committee: I am hereby submitting the FY2027 Town Manager’s Preliminary Budget and Financing Plan for your review. Our primary goal has been to develop a budget and financing plan that maintains a high level of municipal and school services while remaining sustainable for the community in the long term. We strive to articulate this plan in a transparent manner through the leadership actions, behaviors and visions of the Select Board and various policy and advisory committees. Simply put, the baseline expectation of local government is efficiency, equity, and stewardship. This budget meets and exceeds that baseline expectation – a credit to those tasked with guidance, preparation, and implementation. A Sustainable Budget: Budgets are about priorities and should be strategic in explaining what we do, why we do it, when we do it, and how we propose to invest limited taxpayer resources to achieve the results our community desires. While focusing on long-term priorities sometimes takes a back seat to the immediate demands placed on Town officials, it is important to strike a balance among competing demands. The Town will face familiar and new fiscal challenges throughout FY2027 due to economic stressors, including stagnation in the commercial real estate market, pressure on salaries and wages, historically high health insurance premiums for the second consecutive year, continued pressures on salaries and wages, and the increasing cost of supplies and contractual services. In developing this budget, municipal and school departments have implemented targeted reductions in certain expense areas to meet our goal of a balanced budget within our levy limit. Despite these reductions, our conservative budgeting practices and strong fiscal management budget will allow us to meet contractual obligations, mostly maintaining current levels of service and overall sound financial position. This Preliminary Budget is balanced and based on a 3.9% increase in revenue as projected in the Town's Revenue Allocation Model, which has been used by the Town for the past two decades to ensure a fair distribution of new revenues to the School and Municipal divisions of Town government. This projected revenue is up from the 2.4% increase that was presented at Summit I in November 2025, and from 3.6% presented at Summit II in early January. The updated allocation of revenue accounts for revised estimates for interest income, and a reduction in insurance premiums which are projected to increase 9% for FY2027 compared to the 15% increase originally projected by the Group Insurance Commission. This final allocation provides funding for the School Department at $151,729,248, an increase of $5,695,915 over the FY2026 budget. The Municipal budget is $53,263,106, an increase of $1,999,497 over the FY2026 budget. i A Transparent Budget: The operating and capital budget the Board recommends to Town Meeting is the single most important policy document considered each year, as the budget is the one-year spending plan based on the Board’s strategic priorities. In preparing this Preliminary Budget, Town and School department staff collaborated to create a document that presents the budget in a manner that meets the requirements and expectations of our boards, committees, Town Meeting members and residents. It reflects many competing interests, but in the end is, and will continue to be, a reflection on what is best for the Town as a whole. This FY2027 Preliminary Budget proposes $321 million in General Fund spending, $33 million in Enterprise Fund spending, and $4 million in Revolving Fund spending. The FY2027 capital budget is proposed at $33 million. As always, the Senior Management Team remains committed to working with the Select Board, School Department and financial committees to strike a balance between available resources for municipal services, educational programs and capital improvements to ensure that we continue to meet the needs and expectations of Lexington's residents in a sustainable manner. We believe this document is comprehensive enough so that readers understand where Town revenues come from and what they are spent on, yet succinct enough that the details are not overwhelming. Staff endeavors to continually improve this document and the budget process, and we welcome comments and suggestions in order to provide an even better budget in the future. I want to acknowledge and thank the work and effort that Carolyn Kosnoff, Assistant Town Manager for Finance and Rosalyn Impink, Budget Director have contributed to this document and the entire budget process, along with the entire Senior Management Team and other staff of the Town. Sincerely, Steve Bartha Town Manager ii Preliminary Budget & Financing Plan - In Summary This Preliminary Budget & Financing Plan, as submitted, is balanced given the projected revenue shown in Section II of this document. FY2027 revenue was presented in detail at Financial Summit I and was subsequently updated to reflect increases in certain line items as staff refined projections. Sections III to XI of this document include General Fund operating budgets, the Capital budget, Enterprise Fund budgets and proposed Community Preservation Act funded projects. The amounts shown in this Preliminary Budget & Financing Plan represent the Town Manager’s recommended FY2027 budget for municipal operations and Superintendent of School’s recommended FY2027 budget. The Superintendent’s budget is pending review and adoption by the School Committee. All budgets are pending review and adoption by the Select Board. Budget Highlights A comparison of the FY2026 appropriated budget to the FY2027 recommended General Fund operating budget is shown below. Table 1 FY2026 Appropriated FY2027 Recommended Budget $ Change % Change Lexington Public Schools $ 146,033,333 $ 151,729,248 $ 5,695,915 3.9 % Minuteman High School $ 3,569,482 $ 4,149,188 $ 579,706 16.2 % Shared Expenses $ 77,370,757 $ 82,329,423 $ 4,958,666 6.4 % Municipal Departments $ 50,995,276 $ 52,995,295 $ 2,000,020 3.9 % Cash Capital-Tax Levy and Available Funds $ 19,524,216 $ 18,158,612 $ (1,365,604) (7.0) % Other*$ 15,655,924 $ 12,041,374 $ (3,614,550) (23.1) % Total - General Fund Only $ 313,148,988 $ 321,403,140 $ 8,254,152 2.6 % *Other captures Unallocated revenue, contributions to the Capital Stabilization and OPEB Trust Funds, and various other expenses. Town Manager’s Overall Recommendations Level Service Budget: The Town strives to provide an annual level service budget. For FY2027 the total general fund, level-service budget is proposed at $321 million, reflecting operational increases for school and municipal departments of 3.9%. In FY2027 compensation and certain contractual agreements for existing services have increased or been renewed, resulting in higher than normal expense increases, particularly in shared services. In order to cover contractual costs, targeted reductions have been implemented across all municipal department expense lines in FY2027. Despite these reductions, management expects to provide a level of municipal service through FY2027 similar to that currently enjoyed by Lexington's residents. Select Board Goals: In FY2026 the Select Board adopted a set of goals that will continue through FY2027. This level service budget continues several key programs and invests in new projects that support these goals: 1.Complete the Lexington High School Project: In Fall 2025 Town Meeting appropriated funding to construct a new Lexington High School, and a townwide referendum subsequently iii approved excluding the debt service for this project from the limits of Proposition 2 1/2, allowing the project to move forward. The project has been accepted into the Massachusetts School Building Authority's (MSBA) grant program with a total approved budget of $659 million that includes feasibility study, design and construction. The MSBA will oversee all phases of the project and is expected to contribute approximately $121 million in grant funding, with the remainder to be financed with municipal bonds. The construction and financing of the project will begin in the summer of 2026. The FY2027 budget continues to follow the fiscal guideline adopted in 2022 to dedicate new and ongoing tax levy growth from specific properties into a Capital Stabilization Fund (CSF) to mitigate the cost of future capital projects, primarily the new Lexington High School. In the FY2027 budget, $6,580,908 is recommended to be set aside for this purpose. This budget also recommends to appropriate $800,000 from the CSF in FY2027 to partly offset the increase in property taxes related to the debt service for the bonds. Management and policy makers will continue to explore all options to further mitigate the impact of this project on Lexington's taxpayers. Detailed information about the Lexington High School construction timing, location, design, cost estimates, public engagement, committee meetings and frequently asked questions are all available on the School Building Project website at: www.lhsproject.lexingtonma.org. 2.Clean, Healthy, Resilient Lexington: The Select Board has adopted multiple policies to support the goal of a clean, healthy and resilient Lexington, including the Solar Canopy Integration Policy, High-Performance Building Policy, Fleet Electrification Policy and the Zero Waste Plan. The following programs and purchases are budgeted to support these goals: •Townwide Composting Program: The Select Board has expressed a desire to continue the Town's household food waste collection and composting program. This budget will maintain this program for 4,000 households in FY2027, which is fully funded in the General Fund. This plan may be expanded in future fiscal years. •Automated Refuse and Recycling Program: Plans are underway to migrate from the Town's current manual refuse and recycling collection program to an automated system beginning in FY2028. To support this transition, the FY2027 capital plan includes $1.2 million for the purchase of trash and recycling carts. The transition to a new collection system may include new guidelines for disposing of white goods, large or bulky items, and incentives to reduce weekly disposal. •Phase-Out of Fossil Fuels: This budget includes costs for the planned replacement of fossil fuel municipal vehicles with electric or hybrid models in the operating budget, the installation of electric charging stations for the Police Fleet in the current year capital budget, and other building improvements to replace fossil fuel systems in the 5-year capital plan. 3.Economic and Community Vibrancy: Several adopted goals in this category challenge staff to work with stakeholders to generate strategies and options to revitalize the Center and various business districts, and create a welcoming community for all. Of note, one of the adopted goals is to integrate equity practices into the fabric of the community. In FY2026 the open Chief Equity Officer position in the Town Manager's budget was split into two separate roles - an internal Assistant HR Director position in the Human Resources Department to focus on internal practices, procedures and staff training, and a new External Equity Officer position added in the Human Services Department to focus on community support and initiatives. The iv reclass of compensation and expenses related to this reorganization is reflected in the respective departmental budgets. 4.Fiscal Stability: To support the fiscal stability goal, this recommended budget is balanced without the need for an operating override, and continues to follow fiscal policies and guidelines that have been agreed to by the Town's boards and committees. This includes minimal use of one-time revenues for ongoing expenses, prioritizing capital projects with cash to reduce debt and interest expenses, recommended appropriations to address long-term Pension and Other Post Employment Benefits (OPEB), and set-asides into fiscal reserves and stabilization funds, including the CSF noted above. In FY2026 and FY2027 management will look to reaffirm or adjust current fiscal policies and guidelines, and to identify options for revenue diversification. Updates to these fiscal policies and guidelines will be incorporated into future budget cycles. 5.Livable Community: Incorporates goals related to affordable housing, transportation, bicycle and pedestrian safety and proposes strategies to address health, safety and systemic barriers. The following budget initiatives support these goals. •Affordable Housing: The recommended Community Preservation Act (CPA) Budget recommends $3.2 million in funding be allocated to the Affordable Housing Trust (AHT). This funding may be used for the preservation and creation of affordable housing in the Town, for the benefit of low- and moderate-income households, and for the funding of community housing. •Bicycle-Pedestrian Implementation: $280,000 in funding is proposed for bicycle and pedestrian improvements, including designated bicycle and pedestrian access between the Minuteman Bikeway and Lexington High School. •Maintain Public Transportation: This budget maintains the current level of Lexpress Bus Service, which started a new 5-year contract beginning in FY2026 and includes replacement of the bus fleet. The Town has received varying levels of grant funding to support this service in past fiscal years, however this supplemental funding is not guaranteed. This budget assumes a modest level of grant funding, with the remainder covered in the General Fund budget. •Maintain Public Access Television: As local subscriptions to cable television continue to decline, Public Access Television will no longer be possible without General Fund support. This budget allocates $200,000 of tax levy support to maintain current levels of service, which is equal to the subsidy in FY2026. This amount of General Fund support is expected to increase in future budget cycles. In addition to the continuation of existing services and new programs noted above this budget will fund the following one-time expenses: •School Curriculum Purchase: Due to recent state legislation, the School Department is mandated to implement a new literacy curriculum in FY2027 from a state approved list of high-quality instructional materials. This $700,000 purchase is recommended as a one-time purchase with Free Cash. •Town Visioning Survey: The Vision for Lexington Committee, through the Select Board, has recommended conducting an updated town-wide survey in 2027. The purpose of the survey is to engage the Lexington community and identify opportunities and challenges that may shape the future of the Town. This budget recommends $75,000 to complete the survey and subsequent assessment report which will advise the Select Board and other town boards in future decision making. v General Fund FY2027 Operating Budget To facilitate review of this document, some of the salient aspects of this budget are highlighted below. 1.FY2027 Projected Revenues •Revenue Projections (Section II) - Total General Fund operating revenues are projected to increase by $8,254,153 or 2.6% over FY2026 estimated revenues. Total General Fund revenues include income from all sources, including ongoing revenues from Tax Levy, State Aid, and Local Receipts, and one-time revenues such as Free Cash and transfers from other funds. For an in-depth review of revenue projections, visit www.lexingtonma.gov/2417/ FY2027-Budget and Section II of this document. Lexington’s projected and actual total revenue growth for prior years is shown below: Projected Actual Projected Actual FY2027 2.6%FY2021 3.6%2.5% FY2026 6.0%FY2020 3.5%3.4% FY2025 3.9%4.5%FY2019 3.6%3.6% FY2024 4.7%5.5%FY2018 4.6%6.6% FY2023 3.9%7.8%FY2017 2.8%3.3% FY2022 7.0%7.2%FY2016 4.2%6.8% •Net General Fund Revenues - Each year management estimates the amount of one-time revenues included in projections. One-time revenues and other designated amounts are set- asides for one-time expenses and reserves. The remaining amount of ongoing revenue is allocated to the operating budget through the Revenue Allocation Model. •Revenue Allocation Model - Each year, the Town Manager recommends the allocation of projected revenues that can be applied to fund the operating budget in the next fiscal year. This model was developed in 2006 by the Town Manager, Assistant Town Manager for Finance, and Superintendent of Schools, and is reviewed annually. The FY2027 revenue allocation model was reviewed by the Select Board, financial committees and School Committee at Financial Summit I, and initially projected a 2.4% increase in new revenue for FY2027, considerably lower than prior years. In early January, the Town adjusted revenues and shared expenses to bring the Revenue allocation up to 3.6%, as presented at Summit II on January 7, 2026. The final revenue allocation presented in this preliminary budget has been further increased due to updated guidance from our health insurance provider indicating premium increases (estimated at 9%) would be lower than originally projected (15%). The final allocation is $7.70 million in net new revenue to be allocated between the Town and School, a 3.9% increase compared to budgeted amounts from the prior year. The Town Manager's recommended budget fully expends the revenue allocation for municipal services and the Superintendent of Schools' recommended budget fully expends the revenue allocation for the school department. vi 2.Departmental Budget Summary a.The Town Manager's Preliminary Recommended budget includes compensation and expense budgets for the School Department, Shared operations and Municipal Department operations. Compensation in all departments reflects contractual salaries for settled collective bargaining agreements. The following table present the status of the town's bargaining units: Title of Union Contract Department Contract Expiration Date (1) Lexington Municipal Management Association Town Staff 6/30/2028 Lexington Municipal Employees Association Town Staff 6/30/2028 SEIU - School Crossing Guards Police Police 6/30/2028 AFSCME (Public Works)Public Works 6/30/2027 Library Staff Association Library 6/30/2026 Lexington Police Association Patrol Officers 6/30/2026 AFSCME (Dispatch)Public Safety 6/30/2026 IAFF (Fire)Fire 6/30/2025 IBPO Police Superiors Police (Superiors)6/30/2025 AFSCME (Building Maintenance)Facilities 6/30/2027 Local 888 SEIU (Custodians & Tradesmen)Facilities 6/30/2028 Association of Lexington Administrators Schools 6/30/2026 Lexington Education Association (Unit A)Schools 8/31/2026 Lexington Educational Association (Unit C)Schools 8/31/2026 Lexington Educational Association (Unit D)Schools 6/30/2026 Lexington Education Association Technology Unit Schools 6/30/2027 (1) Expired contracts are currently in negotiations. b.Education: Section III of this document reflects the School Department operating budget proposed by the Superintendent of Schools summarized in the table shown below: Lexington Public Schools FY2026 Appropriation FY2027 Superintendent's Recommended Budget $ Change % Change Compensation/Expenses $ 146,033,333 $ 151,729,248 $ 5,695,915 3.9% The Superintendent’s proposed budget, presented to the School Committee on January 13, 2026, can be found on the School Department Website at www.lexingtonma.org/ lps-finance-and-operations. vii c.Shared Expenses: Section IV of this document includes all Shared Expenses. Overall, Shared Expenses are increasing by $4,958,666 or 6.4%. A summary table of Shared Expenses is shown below: Shared Expenses FY2026 Appropriated FY2027 Recommended Budget $ Change % Change Contributory Retirement $ 11,521,504 $ 12,300,042 $ 778,538 6.8 % Employee Benefits $ 41,147,189 $ 44,371,638 $ 3,224,449 7.8 % Unemployment $ 200,000 $ 200,000 $ — — % Workers Compensation $ 500,000 $ 500,000 $ — — % Property & Liability Insurance $ 1,277,696 $ 1,453,542 $ 175,846 13.8 % Uninsured Losses $ 200,000 $ 200,000 $ — — % Solar Producer Payments $ 390,000 $ 390,000 $ — — % Within-Levy Debt Service*$ 5,983,068 $ 6,274,815 $ 291,747 4.9 % Reserve Fund $ 850,000 $ 1,000,000 $ 150,000 17.6 % Facilities Department $ 15,189,172 $ 15,530,142 $ 340,970 2.2 % Refuse & Recycle (School & Muni)$ 112,128 $ 109,244 $ (2,884) (2.6) % Total $ 77,370,757 $ 82,329,423 $ 4,958,666 6.4 % *This is gross within-levy debt service, excluding any use of the Capital Stabilization Fund and other reserve accounts. d.Municipal Department Budgets: Sections V to X include level-service budget requests for all Municipal departments. A level-service budget is defined as the funds necessary to replicate the current service levels and to meet all legal requirements, including collective bargaining agreements and state or federal mandates. Any increases proposed beyond level- service are shown in each departmental budget as Program Improvement Requests (PIRs) submitted by the department manager for evaluation by the Town Manager. Municipal Department Budgets FY2026 Appropriation FY2027 Recommended Budget $ Change % Change Compensation $ 33,071,483 $ 34,737,469 $ 1,665,986 5.0% Expenses $ 17,923,793 $ 18,257,826 $ 334,033 1.9% Total Municipal Expenses $ 50,995,276 $ 52,995,295 $ 2,000,019 3.9% In FY2025, the Town conducted a Class and Compensation Study for the Lexington Municipal Employee Association (LMEA), Lexington Municipal Managers Association (LMMA), the Senior Management Team and all other non-represented employees. The purpose of this study was to evaluate salary ranges for jobs with comparable responsibilities, and in comparison to peer communities, to ensure Lexington's compensation structure is equitable and competitive. A compensation philosophy of being near the 75th percentile for total compensation was established through this process and has been reflected in contract negotiations with unions since then. Adjustments to job classes, steps and corresponding compensation ranges have been incorporated into the municipal department budgets, and have varying impacts within each department. For FY2027 management recommends appropriating $800,000 into the Salary Reserve Account to cover unsettled collective bargaining contracts for FY2027. Given pressures on salaries and benefits, Municipal department managers made targeted reductions to expense viii lines in order to balance the municipal budget. The following table provides a summary of the FY2026 to FY2027 municipal department budget requests, as adjusted and recommended by the Town Manager. Municipal Budgets FY2026 Appropriated FY2027 Recommended Budget $ Change % Change Public Works $ 13,971,800 $ 14,740,639 $ 768,839 5.5% Police $ 9,745,978 $ 9,701,473 $ (44,505) (0.5)% Fire $ 9,458,988 $ 9,481,822 $ 22,834 0.2% Library $ 3,691,461 $ 3,762,283 $ 70,822 1.9% Human Services $ 1,703,597 $ 1,828,850 $ 125,253 7.4% Health $ 561,024 $ 560,006 $ (1,018) (0.2)% Land Use Department $ 2,465,236 $ 2,542,629 $ 77,393 3.1% Select Board $ 1,439,529 $ 1,553,553 $ 114,024 7.9% Town Manager $ 1,609,722 $ 1,674,736 $ 65,014 4.0% Salary Adjustment Account $ — $ 800,000 $ 800,000 —% Town Committees $ 73,120 $ 73,120 $ — —% Finance $ 2,206,218 $ 2,315,760 $ 109,542 5.0% Town Clerk $ 692,479 $ 680,998 $ (11,481) (1.7)% Innovation & Technology $ 3,376,124 $ 3,279,426 $ (96,698) (2.9)% Total $ 50,995,276 $ 52,995,295 $ 2,000,020 3.9% Municipal Program Improvement Requests (PIRs) - In addition to a level service budget, department managers will submit requests for Program Improvements during each annual budget cycle and the Town Manager will recommend approval of programs based on priority and available funding. While FY2027 revenues are expected to increase modestly, the increase in compensation and costs for existing programs has resulted in little to no funding for discretionary program improvements in FY2027. The following list highlights key program improvements for the FY2027 budget as recommended by the Town Manager: 1.Ongoing funding for Public Facilities Garage Door Maintenance ($35,000); this increase is offset by targeted reductions in the Public Facilities budget. 2.One-time funding for the purchase and implementation of the Tyler Cashiering Software Module Software ($115,000) as requested by the Finance Department. This requested is recommended to be funded in the Innovation & Technology Application Implementation Capital budget. See Section X: 8400 Finance and Section XI: Capital Plan for additional information on this request. 3.One-time funding to update the Recreation Department Strategic Plan ($100,000). Funding is recommended from Recreation Enterprise Retained Earnings. A full list of FY2027 Program Improvements Requests is available in Appendix A. ix This Page Intentionally Left Blank. Proposed Appropriations Into Reserves/Trust Funds The Town maintains a variety of reserve funds. This includes stabilization funds that can be used to balance the budget in times of economic downturn or volatility (General Stabilization Fund, Special Education (SPED) Stabilization Fund); Specialized Stabilization funds that can be used for specific purposes (Capital Stabilization Fund); and reserves or Trust funds to cover future liabilities (Other Post Employment Benefits (OPEB) and Contributory Retirement Fund). The Town also appropriates to an annual operating Reserve Fund ($1,000,000 for FY2027) which is set aside in the operating budget for extraordinary and unforeseen expenses within the fiscal year and can be allocated at the recommendation of the Appropriation Committee. As in prior years, the proposed budget includes recommendations to increase certain reserves/trusts that are for targeted purposes. The table below presents the current balance of the Town's primary reserve funds: Reserve Funds:General Stabilization Special Education Stabilization Special Education Reserve Fund Other Post Employment Benefits (OPEB)Capital Stabilization Balance as of December 31, 2025 $10,999,609 $1,307,968 $750,000 $45,025,791 $50,526,388 Special Education (SPED) Reserve Fund - In FY2024 Town Meeting created a new Special Education Reserve Fund (in addition to the existing SPED Stabilization Fund) and set aside $750,000 for unexpected expenses related to special education, out-of-district tuition or transportation. This funding can be allocated at the recommendation of the School Committee and the Select Board at any point during the fiscal year. Unspent funds will carry forward into future fiscal years. To date this reserve has not been utilized, however the School Department continues to experience increasing special education needs. The SPED Stabilization Fund may also be used to balance the operating budget during periods of extraordinary expenses. A two-thirds vote of Town Meeting is required to allocate stabilization funds. Given the current fund balances, there is no recommended appropriation into the SPED Reserve Fund or SPED Stabilization Fund in FY2027. OPEB Trust Fund - The purpose of this Trust fund is to continue to fund the Town’s Retiree Health Insurance Liability. The Town’s most recent actuarial valuation as of June 30, 2024 calculated the net OPEB liability to be approximately $231 million, or 13% funded. This budget recommends $2,137,029 be appropriated into the OPEB Trust for FY2027. Recent Appropriations into the Other Post Employment Benefits (OPEB) Trust Fund FY2021 Appropriated FY2022 Appropriated FY2023 Appropriated FY2024 Appropriated FY2025 Appropriated FY2026 Appropriated FY2027 Recommended $750,000 $1,885,486 $1,935,486 $1,985,486 $2,033,375 $2,083,375 $2,137,029 Capital Stabilization Fund (CSF) - Over the last ten years the Town completed a significant number of large capital projects, including two middle school additions/renovations and elementary school modular classrooms, a new Hastings Elementary School, a new facility for the Lexington Children’s Place (LCP), a new Fire Station Headquarters, a new Visitors Center, new Cemetery building, new Police Station and the Center Streetscape and Battle Green Streetscape projects. A key aspect for funding these projects has been to set aside one-time revenues to build the Capital Stabilization Fund (CSF) and then use a portion of the CSF in future budgets to materially reduce the property tax impact of these projects on taxpayers. In 2021, policy makers endorsed a new fiscal framework to dedicate to the CSF the new tax levy growth generated from projects approved at Town Meeting for a Preliminary Site Development and Use Plan (PSDUP), as well as for many of the new projects approved under the revised zoning on Hartwell Avenue. For FY2027 a recommended set aside of $6,580,908 can be found in Table 1A of the Revenue section. In addition, one-time revenues may be dedicated to the CSF, as available during the annual budget process, though no additional funds are recommended for FY2027. The CSF allows for flexibility in capital planning, and the accumulated fund balance is available to mitigate annual increases in debt service, or to fund projects with cash. In Fall 2025 Town Meeting appropriated, and a subsequent townwide referendum approved, the construction of a new Lexington High School. Beginning in FY2027, the Town plans to draw down funds annually to reduce the tax rate and the corresponding impact to taxpayers anticipated from the High School project. An appropriation of $800,000 from the CSF is recommended in FY2027 to mitigate debt service payments for the high school. Below is a history use of the Capital Stabilization Fund to mitigate the property tax impact of the projects noted above. Capital Stabilization Fund (CSF)FY2023 Actual FY2024 Actual FY2025 Actual FY2026 Appropriated FY2027 Recommended Allocation Prior Year Balance $ 21,730,961 $ 27,330,886 $ 32,769,537 $ 42,670,751 $ 50,526,388 Appropriated One-Time Sources for CSF $ 3,784,689 $ 396,145 $ 1,836,122 $ 916,924 $ — Dedicated Tax Levy Growth for CSF $ 1,733,137 $ 4,036,373 $ 6,563,050 $ 6,580,908 $ 6,580,908 Investment Income*$ 882,099 $ 1,506,133 $1,502,042 $357,806 TBD Subtotal - Available for Appropriation $ 28,130,886 $ 33,269,537 $ 42,670,751 $ 50,526,388 $ 57,107,296 Appropriation From Stabilization Fund: Excluded Debt Service Tax Relief $ 800,000 $ 500,000 $ — $ — $ 800,000 Within Levy Debt Service $ — $ — $ — $ — $ — Subtotal $ 800,000 $ 500,000 $ — $ — $ 800,000 Ending Fund Balance $ 27,330,886 $ 32,769,537 $ 42,670,751 $ 50,526,388 $ 56,307,296 *FY2026 Investment Income reflects 12/31/2025 Balance Capital Budget (Section XI) The proposed capital budget continues to make important progress in addressing the Town’s list of planned capital projects. The capital budget recommendations include $33 million for a variety of capital projects for FY2027. Capital Requests Summary Free Cash/ Tax Levy Other Funding Sources Debt Total Other** General Fund $ 17,896,453 $ — $ 2,500,000 $ 20,396,453 $ — Excluded Debt Projects $ — $ — $ — $ — $ — Other Funding & Chapter 90 $ — $ 262,159 $ — $ 262,159 $ 1,768,022 Water Enterprise $ — $ 2,606,639 $ — $ 2,606,639 $ — Sewer Enterprise $ — $ 900,000 $ 404,080 $ 1,304,080 $ — Recreation Enterprise $ — $ 190,000 $ — $ 190,000 $ — Community Preservation Act*$ — $ 8,345,355 $ — $ 8,345,355 $ — Total (all Funds)$ 17,896,453 $ 12,304,153 $ 2,904,080 $ 33,104,686 $ 1,768,022 *Includes both Town and non-Town CPA funded projects. **Other represents Chapter 90 Aid for street improvements. This item does not require a Town Meeting appropriation. Notable projects included in the FY2027 Capital Budget are highlighted below. •LHS Emergency Funds - $400,000 to fund emergency equipment repairs, as needed, at the current LHS building until the new high school is operational. •Ladder Truck - $2,500,000 to replace the fire department's 2017 ladder truck. This purchase is recommended for debt financing due to long ordering and delivery lead times. •Infrastructure Design Funds - $250,000 for North/Burlington sidewalk design and $100,000 for intersection design on Adams Street at East & Hancock. These may lead to construction projects of $5.4M and $5.5M, respectively. •Automated Trash Collection Carts - $1,204,000 for purchase of refuse & recycling carts for transition to automated collection in future cycles. •Police Station EV Chargers - $463,000 to install EV chargers at the police station to enable electric charging of the police department fleet. •146 Maple St. Athletic Fields Construction - $2,630,000 from the Town's Community Preservation Act (CPA) funds to construct new athletic fields after the demolition of the Central Administration Building. •Affordable Housing Trust (AHT) Funding - $3,200,000 from the Town's Community Preservation Act (CPA) funds to fund AHT initiatives. •Facilities Mechanical/Electric/Plumbing - $4,565,000 for Energy Recovery Units and partial gas-to-electric HVAC conversion at Fiske Elementary School. The Town's full FY2027 Capital Plan and additional information on these projects may be found in Section XI: Capital Investment of this Preliminary Budget. Fiscal Guidelines and Long-Term Planning The Town has set aggressive guidelines for addressing our long-term capital needs and funding of the Town's long-term liabilities. The following policy items are incorporated into this FY2027 Preliminary Budget, consistent with prior years: •Dedicate New Tax Levy Growth to the Capital Stabilization Fund (CSF) - The FY2027 recommended transfer into the CSF is $6,580,908. This dedicated revenue is anticipated to be applied in future budgets to offset the debt service from the new Lexington High School. •Use of Cash Capital - (Free Cash and Tax Levy) - For FY2027, a total of $14,907,344 in Free Cash is recommended to fund capital items with cash rather than by issuing debt, thereby reducing future debt service expenses. For FY2027 all capital projects (with the exception of the Fire Department ladder truck) are recommended with cash financing. •Deferred Capital Projects - Deferring projects may allow the Town to avoid increases in debt, increase unallocated cash that may be held for unanticipated needs, or fund capital programs in future years. In FY2027 no projects were deferred due to lack of available funding. The 5-year capital plan can be found in Section XI: Capital Investment of this Preliminary Budget. •Appropriate into the Other Post-Employment Benefits (OPEB) Trust Fund - This budget recommends the appropriation of $2,133,375 into the OPEB Trust Fund. The most recent actuarial valuation calculated Town's net OPEB liability to be approximately $231 million. Continuing to fund this liability will help ensure the Town is able to meet its future financial obligations related to post-employment health insurance. •Unallocated Revenues for Contingencies - This budget recommends setting aside $2,037,935 of revenues from Free Cash (a one-time revenue source) which may be allocated if needed for three primary purposes: 1. To balance the budget if State Aid is less than projected. The Legislature is not expected to approve the FY2027 State budget until after the conclusion of Town Meeting; 2. To fund high-priority programs, services, capital projects or reserves not currently proposed in this Preliminary Budget; and/or 3. To balance the budget if the GIC health insurance premiums are greater than estimated. The Town’s actual health insurance rates, as established by the Group Insurance Commission (GIC), will not be known until early March. •Reduce/Eliminate the Use of Free Cash to Balance the General Fund Operating Budget - The Government Finance Officers Association (GFOA) recommends against using non-recurring revenues to balance the operating budget. The Town used Free Cash to support operations for many years, and in FY2019 management began a phase-out of this practice over a 5-year period, which was subsequently completed in FY2023. As currently proposed, the FY2027 budget includes no funding from free cash to support ongoing operations. •Appropriate from the Capital Stabilization Fund - As of December 31, 2025 the Capital Stabilization Fund had an approximate balance of $51 million which has been set-aside to mitigate the impact of excluded debt projects on the taxpayer. For FY2027 $800,000 is recommended to be drawn-down from the CSF to offset the impact of Lexington High School debt service. Additional information about LHS Debt Service can be found in Section XI: Capital Plan of this Recommended Budget. Future Budget Considerations This recommended level service budget adheres to guidelines and past practices in terms of revenue sources and estimates, allocation of revenue, set-asides for reserves, and funding of capital projects and programs. In 2026, the Town will conduct a review of long-term financial goals, identify potential new revenue sources, and reassess guidelines for reserves and investment in new capital assets. The following items have also been identified as considerations in upcoming budget cycles. ◦The Town has experienced multiple consecutive years of historically high increases in Health Insurance premiums. A review of Health Insurance providers or plans, and premium contributions may be necessary to stabilize long-term budget increases and avoid operating overrides. ◦The Town conducted a semi-annual actuarial valuation of its Contributory Retirement Fund as of January 1, 2025. This valuation advised that the Retirement Fund continues to remain on schedule to reach full funding in FY2030. Once the actuarial liability is fully funded, the Town may reduce the annual general fund contribution from the Tax Levy into the Contributory Retirement Fund. A plan to reallocate this available funding will be part of ongoing policy discussions and incorporated into future recommended budgets. A primary point of consideration will be to redeploy funding to the Town's Other Post Employment Benefit (OPEB) liability fund, or a variety of other purposes. ◦Over the last decade, the Town has made a significant investment in new Capital Assets. As operating budgets become more constrained management expects a lower level of surplus revenue and turn-back of unused operating and capital funds (Free Cash) in future years. Lower levels of Free Cash may necessitate a reduction in the Town's capital investment, and consideration should be given to maintenance of existing assets versus creation or purchase of new capital assets. ◦In FY2025 the Town began participation in the Federal Elective Pay tax incentive program through the Inflation Reduction Act of 2022. This program allows the Town to partly recoup the cost of our investment in renewable energy projects. The availability of rebates in future years is contingent on the Federal Administration maintaining the program, which is currently authorized through FY2031. The new Lexington High School design incorporates geothermal wells, solar electricity generation and battery storage that may qualify for Elective Pay or other energy credits. Guidelines for the use of energy rebate funds will be developed and implemented for future budget cycles. ◦The 2023 Annual Town Meeting approved new zoning amendments to comply with the Commonwealth of Massachusetts' MBTA Communities Act. In 2025 Town Management conducted a study to advise the Town of the impact residential development may have on municipal and school services, including school enrollment, public safety needs, traffic and infrastructure, health and human services, etc. This study considered new revenue generated by these residential developments as well as the marginal operating and capital costs that may be generated by the increase in housing and/or population. The results of the study may be found at: www.lexingtonma.gov/1496/MBTA-Communities-Zoning. This zoning change and associated development are not expected to have a material impact on the FY2027 budget, but new development and the pace at which it occurs may have an impact on revenue and expenditures in future fiscal years. ◦In 2023, the Town Manager recommended, and Town Meeting voted, to create a Refuse Collection Revolving Fund, intended to generate a fee for collection and disposal of bulky items and white goods. After further discussion and consideration, the Select Board chose not to implement a fee for this service in fiscal years 2024-2026. Beginning in FY2028 the Town is planning a new model for automated collection of refuse and recycling and as part of the new model may reconsider a disposal fee large bulky items, white goods, or other surplus waste. Additional information about the Town's Refuse Collection and Recycling programs can be found in Section V: Program 3400 - Environmental Services. ◦Over the last several years Town management has explored creating a Stormwater Enterprise Fund to be funded by a Stormwater Management Fee. Stormwater management is an important local, state and national concern, and stormwater enterprises allow municipalities to better assign the cost to maintain such systems (e.g. culvert repair or environmental protection) to the parties most responsible for stressing such systems (e.g. buildings and/or campuses with considerable impervious surface or stormwater generation/ discharge). The Town is expending approximately $3.5 million annually as part of the capital and operating budgets to improve and maintain drainage townwide, to comply with Environmental Protection Agency (EPA)'s stormwater regulations including the National Pollution Discharge Elimination system (NPDES) Municipal Separated Storm Sewer System (MS4) permit. The establishment of the new Enterprise fund has been put on hold as the EPA's regulations evolve and until they issue the next round of regulations. A draft permit was issued in November 2024 and was open for comment through February 2025. The EPA continues to evaluate and respond to all comments and a final permit is expected to be issued; however the date of issuance remains uncertain at this time. Once issued, staff will assess requirements of the permit and whether or not Stormwater capital requirements can be managed within the existing budget. If the new permit requirements result in an expansion of the Town's Stormwater management program, costs may increase rapidly and the Town may reconsider the proposal for a Stormwater Enterprise Fund. Budget Schedule This is a comprehensive budget, including both the Town Manager’s recommendations and the Superintendent of School’s proposed budget. In keeping with the schedule established by the Select Board, the remaining FY2027 budget dates are proposed to be the following: •January 28, 2026 - Summit III to review this Preliminary budget; •February 16, 2026 - Select Board to vote recommended FY2027 budget as outlined in the Program Summary; •On or before February 27, 2026 - The recommended budget will be forwarded, electronically, to the Appropriation Committee, Capital Expenditures Committee and Town Meeting Members (printed copies to follow); •March 30, 2026 - Town Meeting begins and may consider financial articles. This Page Intentionally Left Blank. This Page Intentionally Left Blank. Summary of Revenues and Expenditures The summary below shows revenues & expenditures for the Town of Lexington for FY2024-FY2027. It reflects actual results of FY2024 and FY2025, FY2026 estimated revenues and budgeted expenditures submitted to the Department of Revenue for the certification of the FY2026 tax rate, and the budget recommendations of the Town Manager and School Superintendent for FY2027 budget and projected revenues to support those recommendations. FY2024 FY2025 FY2026 FY2027 Revenue Summary Actual Actual Recap Projected Tax Levy $ 228,436,092 $ 239,713,640 $ 249,047,036 $ 258,361,669 State Aid $ 19,695,534 $ 20,579,658 $ 21,532,602 $ 22,181,496 Local Receipts $ 25,615,431 $ 25,740,345 $ 17,198,317 $ 18,821,440 Available Funds $ 17,328,584 $ 17,250,345 $ 25,611,684 $ 22,352,051 Revenue Offsets $ (1,813,993) $ (1,953,708) $ (2,175,841) $ (2,360,640) Enterprise Funds (Indirect)$ 1,894,067 $ 1,873,817 $ 1,935,189 $ 2,047,125 Total General Fund $ 291,155,715 $ 303,204,097 $ 313,148,989 $ 321,403,140 General Fund Expenditure Summary Education Lexington Public Schools $ 134,202,347 $ 141,345,313 $ 146,033,333 $ 151,729,248 Minuteman Regional School $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 Subtotal Education $ 137,704,324 $ 144,751,708 $ 149,602,815 $ 155,878,436 Municipal Departments $ 45,441,924 $ 48,409,799 $ 50,995,276 $ 52,995,295 Shared Expenses Benefits & Insurance $ 42,879,870 $ 47,332,786 $ 53,368,693 $ 57,371,680 Property Insurance & Solar $ 1,568,348 $ 1,747,408 $ 1,867,696 $ 2,043,542 Debt (within-levy)$ 6,557,717 $ 5,529,455 $ 5,983,068 $ 6,274,815 Reserve Fund $ — $ — $ 850,000 $ 1,000,000 Facilities $ 14,006,504 $ 14,054,457 $ 15,189,172 $ 15,530,142 Refuse & Recycle (School & Muni)$ — $ 104,839 $ 112,128 $ 109,244 Subtotal Shared Expenses $ 65,012,438 $ 68,768,945 $ 77,370,757 $ 82,329,423 Capital Cash Capital (designated)$ 16,348,090 $ 16,875,899 $ 19,524,216 $ 18,158,612 Subtotal Capital $ 16,348,090 $ 16,875,899 $ 19,524,216 $ 18,158,612 Other Other (allocated)$ 8,106,841 $ 11,216,591 $ 12,955,766 $ 10,003,439 Other (unallocated)$ — $ — $ 2,700,158 $ 2,037,935 Subtotal Other $ 8,106,841 $ 11,216,591 $ 15,655,924 $ 12,041,374 Total General Fund $ 272,613,617 $ 290,022,943 $ 313,148,988 $ 321,403,140 General Fund Surplus/(Deficit) $ 18,542,098 $ 13,181,154 $ — $ — Section I Budget Overview Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 I-1 Operating Budget - General Fund Expenses Program 1000: Education 1100 Lexington Public Schools $ 134,202,347 $ 141,345,313 $ 146,033,333 $ 151,729,248 $ 151,729,248 $ 5,695,915 3.90 % 1200 Regional High School $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24 % Total Education $ 137,704,324 $ 144,751,708 $ 149,602,815 $ 155,878,436 $ — $ 155,878,436 $ 6,275,621 4.19 % Program 2000: Shared Expenses 2110 Contributory Retirement $ 9,984,800 $ 10,743,076 $ 11,521,504 $ 12,300,042 $ — $ 12,300,042 $ 778,538 6.76 % 2130 Employee Benefits (Health/Dental/Life/Medicare)$ 32,345,834 $ 36,043,142 $ 41,147,189 $ 44,371,638 $ — $ 44,371,638 $ 3,224,449 7.84 % 2140 Unemployment $ 49,236 $ 46,568 $ 200,000 $ 200,000 $ — $ 200,000 $ — — % 2150 Workers' Comp.* (MGL Ch.40:13A&13C, Ch.41:111F)$ 500,000 $ 500,000 $ 500,000 $ 500,000 $ — $ 500,000 $ — — % Subtotal 2100 Benefits $ 42,879,870 $ 47,332,786 $ 53,368,693 $ 57,371,680 $ — $ 57,371,680 $ 4,002,987 7.50 % 2210 Property & Liability Insurance $ 1,016,845 $ 1,183,127 $ 1,277,696 $ 1,453,542 $ — $ 1,453,542 $ 175,846 13.76 % 2220 Uninsured Losses* (MGL Ch. 40, Sec. 13)$ 200,000 $ 200,000 $ 200,000 $ 200,000 $ — $ 200,000 $ — — % Subtotal 2200 Property & Liability Insurance $ 1,216,845 $ 1,383,127 $ 1,477,696 $ 1,653,542 $ — $ 1,653,542 $ 175,846 11.90 % 2310 Solar Producer Payments $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Subtotal 2300 Solar Producer Payments $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % 2410 Principal on Long Term Debt $ 4,806,800 $ 4,290,400 $ 3,895,500 $ 4,162,300 $ — $ 4,162,300 $ 266,800 6.85 % 2420 Interest on Long Term Debt $ 1,160,782 $ 1,202,976 $ 1,288,057 $ 1,372,462 $ — $ 1,372,462 $ 84,405 6.55 % 2430 Principal & Interest on Temporary Debt $ 590,135 $ 36,080 $ 799,511 $ 740,053 $ — $ 740,053 $ (59,458) (7.44) % Subtotal 2400 Debt Services $ 6,557,717 $ 5,529,455 $ 5,983,068 $ 6,274,815 $ — $ 6,274,815 $ 291,747 4.88 % 2510 Reserve Fund $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Subtotal 2500 Reserve Fund $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % 2600 Facilities $ 14,006,504 $ 14,054,457 $ 15,189,172 $ 15,645,142 $ (115,000) $ 15,530,142 $ 340,970 2.24 % 3450 Refuse & Recycle Collection for Municipal & School Buildings $ — $ 104,839 $ 112,128 $ 109,244 $ — $ 109,244 $ (2,884) (2.57) % Total Shared Expenses $ 65,012,438 $ 68,768,945 $ 77,370,757 $ 82,444,423 $ (115,000) $ 82,329,423 $ 4,958,666 6.41 % Program Summary A B C X Y D E(D-C)F(E/C) FY2024 FY2025 FY2026 FY2027 FY2027 FY2027 Change $Change %Element Description Actual Actual Restated Request Add/Delete Recommended Section I Budget Overview Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 I-2 Program 3000: Public Works 3100-3500 DPW Personal Services $ 4,883,018 $ 5,288,647 $ 5,428,165 $ 5,732,313 $ (62,946) $ 5,669,367 $ 241,202 4.44 % 3100-3500 DPW Expenses $ 6,677,403 $ 7,894,729 $ 8,543,635 $ 9,136,396 $ (65,124) $ 9,071,272 $ 527,637 6.18 % Total Public Works $ 11,560,421 $ 13,183,377 $ 13,971,800 $ 14,868,709 $ (128,070) $ 14,740,639 $ 768,839 5.50 % Program 4000: Public Safety 4100 Law Enforcement Personal Services $ 7,878,682 $ 8,515,030 $ 8,464,958 $ 8,412,785 $ — $ 8,412,785 $ (52,173) (0.62) % 4100 Law Enforcement Expenses $ 1,110,086 $ 1,211,117 $ 1,281,020 $ 1,408,788 $ (120,100) $ 1,288,688 $ 7,668 0.60 % Subtotal 4100 Law Enforcement $ 8,988,768 $ 9,726,146 $ 9,745,978 $ 9,821,573 $ (120,100) $ 9,701,473 $ (44,505) (0.46) % 4200 Fire Personal Services $ 8,313,040 $ 8,384,150 $ 8,480,645 $ 8,633,864 $ — $ 8,633,864 $ 153,219 1.81 % 4200 Fire Expenses $ 655,984 $ 920,935 $ 978,343 $ 966,958 $ (119,000) $ 847,958 $ (130,385) (13.33) % Subtotal 4200 EMS/Fire $ 8,969,024 $ 9,305,085 $ 9,458,988 $ 9,600,822 $ (119,000) $ 9,481,822 $ 22,834 0.24 % Total Public Safety $ 17,957,792 $ 19,031,231 $ 19,204,966 $ 19,422,395 $ (239,100) $ 19,183,295 $ (21,671) (0.11) % Program 5000: Culture & Recreation 5100 Library Personal Services $ 2,720,515 $ 2,830,030 $ 2,950,596 $ 3,021,568 $ — $ 3,021,568 $ 70,972 2.41 % 5100 Library Expenses $ 660,036 $ 631,274 $ 740,865 $ 769,015 $ (28,300) $ 740,715 $ (150) (0.02) % Total Culture & Recreation $ 3,380,551 $ 3,461,304 $ 3,691,461 $ 3,790,583 $ (28,300) $ 3,762,283 $ 70,822 1.92 % Program 6000: Human Services and Health 6100-6200 Human Services Personal Services $ 688,752 $ 724,594 $ 753,284 $ 837,216 $ — $ 837,216 $ 83,932 11.14 % 6100-6200 Human Services Expenses $ 850,437 $ 651,760 $ 950,313 $ 1,008,984 $ (17,350) $ 991,634 $ 41,321 4.35 % Subtotal 6100-6200 Human Services $ 1,539,190 $ 1,376,354 $ 1,703,597 $ 1,846,200 $ (17,350) $ 1,828,850 $ 125,253 7.35 % 6500 Health Personal Services $ 435,477 $ 458,485 $ 473,524 $ 477,006 $ — $ 477,006 $ 3,482 0.74 % 6500 Health Expenses $ 46,988 $ 54,919 $ 87,500 $ 88,000 $ (5,000) $ 83,000 $ (4,500) (5.14) % Subtotal 6500 Health $ 482,465 $ 513,404 $ 561,024 $ 565,006 $ (5,000) $ 560,006 $ (1,018) (0.18) % Total Human Services and Health $ 2,021,655 $ 1,889,758 $ 2,264,621 $ 2,411,206 $ (22,350) $ 2,388,856 $ 124,235 5.49 % Program Summary A B C X Y D E(D-C)F(E/C) FY2024 FY2025 FY2026 FY2027 FY2027 FY2027 Change $Change %Element Description Actual Actual Restated Request Add/Delete Recommended Section I Budget Overview Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 I-3 Program 7000: Land Use, Housing and Development (LUHD) Department 7100-7400 LUHD Dept. Personal Services $ 1,872,366 $ 1,901,668 $ 2,034,845 $ 2,166,562 $ (10,874) $ 2,155,688 $ 120,843 5.94 % 7100-7400 LUHD Dept. Expenses $ 311,235 $ 294,209 $ 430,391 $ 431,891 $ (44,950) $ 386,941 $ (43,450) (10.10) % Total Land Use, Housing & Development Dept.$ 2,183,601 $ 2,195,876 $ 2,465,236 $ 2,598,453 $ (55,824) $ 2,542,629 $ 77,393 3.14 % Program 8000: General Government 8110 Select Board Personal Services $ 150,735 $ 150,342 $ 155,071 $ 165,644 $ — $ 165,644 $ 10,573 6.82 % 8110 Select Board Expenses $ 78,450 $ 130,998 $ 131,013 $ 156,513 $ (20,000) $ 136,513 $ 5,500 4.20 % 8120 Legal $ 473,669 $ 407,708 $ 375,000 $ 375,000 $ — $ 375,000 $ — — % 8130 Town Report $ 12,562 $ 12,773 $ 13,688 $ 13,688 $ — $ 13,688 $ — — % 8140 PEG Access $ 626,292 $ 705,263 $ 764,757 $ 862,708 $ — $ 862,708 $ 97,951 12.81 % Subtotal 8100 Select Board $ 1,341,708 $ 1,407,084 $ 1,439,529 $ 1,573,553 $ (20,000) $ 1,553,553 $ 114,024 7.92 % 8210-8220 Town Manager Personal Services $ 1,038,807 $ 1,123,198 $ 1,214,912 $ 1,263,376 $ — $ 1,263,376 $ 48,464 3.99 % 8210-8220 Town Manager Expenses $ 264,969 $ 332,675 $ 394,810 $ 441,360 $ (30,000) $ 411,360 $ 16,550 4.19 % 8230 Salary Transfer Account* (MGL Ch.40, Sec 13D)$ 725,300 $ 294,179 $ — $ 840,000 $ (40,000) $ 800,000 $ 800,000 — % Subtotal 8200 Town Manager $ 2,029,076 $ 1,750,053 $ 1,609,722 $ 2,544,736 $ (70,000) $ 2,474,736 $ 865,014 53.74 % 8310 Financial Committees $ 363 $ 374 $ 8,820 $ 8,820 $ — $ 8,820 $ — — % 8320 Misc. Boards and Committees $ 5,999 $ 6,000 $ 10,500 $ 10,500 $ — $ 10,500 $ — — % 8330 Town Celebrations Committee $ 45,423 $ 47,439 $ 53,800 $ 53,800 $ — $ 53,800 $ — — % Subtotal 8300 Town Committees $ 51,785 $ 53,813 $ 73,120 $ 73,120 $ — $ 73,120 $ — — % 8400 Finance Personal Services $ 1,585,167 $ 1,647,360 $ 1,685,728 $ 1,798,645 $ — $ 1,798,645 $ 112,917 6.70 % 8400 Finance Expenses $ 366,468 $ 406,950 $ 520,490 $ 541,015 $ (23,900) $ 517,115 $ (3,375) (0.65) % Subtotal 8400 Finance $ 1,951,635 $ 2,054,310 $ 2,206,218 $ 2,339,660 $ (23,900) $ 2,315,760 $ 109,542 4.97 % 8500 Town Clerk Personal Services $ 427,108 $ 501,388 $ 562,029 $ 552,273 $ — $ 552,273 $ (9,756) (1.74) % 8500 Town Clerk Expenses $ 119,349 $ 118,140 $ 130,450 $ 130,725 $ (2,000) $ 128,725 $ (1,725) (1.32) % Subtotal 8500 Town Clerk $ 546,457 $ 619,528 $ 692,479 $ 682,998 $ (2,000) $ 680,998 $ (11,481) (1.66) % 8600 IT Personal Services $ 814,311 $ 861,924 $ 867,726 $ 960,037 $ (10,000) $ 950,037 $ 82,311 9.49 % 8600 IT Expenses $ 1,602,931 $ 1,901,540 $ 2,508,398 $ 2,329,389 $ — $ 2,329,389 $ (179,009) (7.14) % Subtotal 8600 Innovation & Technology $ 2,417,243 $ 2,763,464 $ 3,376,124 $ 3,289,426 $ (10,000) $ 3,279,426 $ (96,698) (2.86) % Total General Government $ 8,337,904 $ 8,648,253 $ 9,397,192 $ 10,503,493 $ (125,900) $ 10,377,593 $ 980,401 10.43 % Total Municipal $ 45,441,924 $ 48,409,799 $ 50,995,276 $ 53,594,839 $ (599,544) $ 52,995,295 $ 2,000,020 3.92 % Program Summary A B C X Y D E(D-C)F(E/C) FY2024 FY2025 FY2026 FY2027 FY2027 FY2027 Change $Change %Element Description Actual Actual Restated Request Add/Delete Recommended Section I Budget Overview Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 I-4 Operating Department Summary Education Operating $ 137,704,324 $ 144,751,708 $ 149,602,815 $ 155,878,436 $ — $ 155,878,436 $ 6,275,621 4.19 % Shared Expenses $ 65,012,438 $ 68,768,945 $ 77,370,757 $ 82,444,423 $ (115,000) $ 82,329,423 $ 4,958,666 6.41 % Municipal Operating $ 45,441,924 $ 48,409,799 $ 50,995,276 $ 53,594,839 $ (599,544) $ 52,995,295 $ 2,000,020 3.92 % $ 248,158,686 $ 261,930,453 $ 277,968,848 $ 291,917,698 $ (714,544) $ 291,203,154 $ 13,234,306 4.76 % Capital Capital Requests (Cash-GF, Prior Bond Auth., BAN Premiums)$ 13,299,438 $ 13,769,689 $ 16,542,946 $ 14,907,344 $ — $ 14,907,344 $ (1,635,602) (9.89) % Non-General Fund Capital Requests $ 129,685 $ 168,234 $ 18,043 $ 262,159 $ — $ 262,159 $ 244,116 1,352.97 % Building Envelope & Systems Set-Aside $ 230,655 $ 230,655 $ 236,421 $ 242,332 $ — $ 242,332 $ 5,911 2.50 % Streets Set-Aside $ 2,688,312 $ 2,707,321 $ 2,726,806 $ 2,746,777 $ — $ 2,746,777 $ 19,971 0.73 % Total Capital $ 16,348,090 $ 16,875,899 $ 19,524,216 $ 18,158,612 $ — $ 18,158,612 $ (1,365,604) (6.99) % Other Unallocated $ — $ — $ 2,700,158 $ 2,037,935 $ 2,037,935 $ (662,223) (24.53) % Set-Aside for Unanticipated Current FY Needs $ — $ — $ 200,000 $ 250,000 $ — $ 250,000 $ 50,000 25.00 % Special Education Stabilization Fund $ 500,000 $ — $ — $ — $ — $ — $ — — % Special Education Reserve Fund $ 750,000 $ — $ 700,000 $ — $ — $ — $ (700,000) (100.00) % General Fund Support for Recreation & Community Programs (Transfer to Article 5, ATM)$ 256,675 $ 272,708 $ 254,213 $ 267,810 $ — $ 267,810 $ 13,597 5.35 % Tax Levy Dedicated to Capital Stabilization Fund $ 4,036,373 $ 6,563,050 $ 6,580,908 $ 6,580,908 $ — $ 6,580,908 $ — — % Allocated to Capital Stabilization Fund $ 396,145 $ 1,836,112 $ 916,924 $ — $ — $ — $ (916,924) (100.0) % Transfer to the Transportation Demand Management (TDM) Stab. Fund from Tax Levy $ — $ — $ — $ — $ — $ — $ — — % Senior Service Program $ — $ 15,000 $ — $ — $ — $ — $ — — % Set-Aside for Harrington Fields Project (Deferred Capital)$ — $ — $ 2,000,000 $ — $ — $ — $ (2,000,000) (100.00) % Municipal Tree Maintenance $ — $ — $ 200,000 $ — $ — $ — $ (200,000) (100.00) % OPEB Trust Fund***$ 1,979,721 $ 2,029,721 $ 2,079,721 $ 2,129,721 $ — $ 2,129,721 $ 50,000 2.40 % Warrant Articles $ 187,927 $ 500,000 $ 24,000 $ 75,000 $ — $ 75,000 $ 51,000 212.5 % Total Other Articles $ 8,106,841 $ 11,216,591 $ 15,655,924 $ 12,041,374 $ — $ 12,041,374 $ (3,614,550) (23.09) % General Fund Total $ 272,613,617 $ 290,022,943 $ 313,148,988 $ 322,117,684 $ (714,544) $ 321,403,140 $ 8,254,152 2.64 % *Line-Items marked with an asterisk (*) will be presented at Town Meeting as Continuing Balance accounts. **The FY2024 Actuals for Minuteman Regional High School have been adjusted to reflect the actual assessments for the years, rather than the timing of actual payments. ***Reflects the OPEB funding from General Fund sources; additional amounts will be appropriated from the Water and Wastewater Enterprise funds, as detailed in those budget sections. Program Summary A B C X Y D E(D-C)F(E/C) FY2024 FY2025 FY2026 FY2027 FY2027 FY2027 Change $Change %Element Description Actual Actual Restated Request Add/Delete Recommended Section I Budget Overview Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 I-5 This Page Intentionally Left Blank. Section II: Revenues This section includes detailed information about FY2027 Projected Revenues. It includes: •General Fund Revenue Description II-3 FY2027 Preliminary Budget & Financing Plan January 23, 2026 II-1 This Page Intentionally Left Blank. FY2027 Preliminary Budget & Financing Plan January 23, 2026 II-2 Revenue Highlights Estimation of next year's revenue is the basis for developing the operating budget every fiscal year. Staff develop projections using a variety of sources and methods which are presented to Budget Summit participants each November. A detailed projection of all the Town's revenues from Summit I can be found on the Finance Department website at www.lexingtonma.gov/2250/2027-Budget. The summary below presents Total General Fund Operating Revenues and Net General Fund Revenues. General Fund Operating Revenues include all revenues projected as available for use in FY2027. •Total General Fund Operating Revenues are from annually recurring and non-recurring sources, including the Tax Levy, State Aid, Local Receipts, Free Cash, and transfers from special revenue funds and Specialized Stabilization Funds. •Net General Fund Revenues are Total General Fund Revenues less revenues recommended to be set-aside to fund designated expenses such as capital programs and reserves. Set-asides are predominantly designated from non-recurring revenue sources such as Free Cash or one-time transfers from available funds, but may also be partly from the tax levy. In FY2027, Total General Fund Operating Revenues are projected to increase by approximately $8.25 million, or 2.6%. Net General Fund Revenues, those available to support school, municipal and shared operating budgets, are projected to increase by $13.48 million, or 4.8%. FY2024 Actual FY2025 Actual FY2026 Recap FY2027 Projected FY2026-27 Change General Fund Revenue Summary $% Property Tax Levy (Table 1)$ 227,334,427 $ 239,713,641 $ 249,047,036 $ 258,361,669 $ 9,314,632 3.74% State Aid (Table 2)$ 19,695,534 $ 20,579,658 $ 21,532,602 $ 22,181,496 $ 648,894 3.01% Local Receipts (Table 3)$ 25,615,431 $ 25,740,345 $ 17,198,317 $ 18,821,440 $ 1,623,122 9.44% Available Funds (Table 4)$ 17,328,584 $ 17,250,345 $ 25,611,684 $ 22,352,051 $ (3,259,633) (12.73)% Revenue Offsets (Table 5)$ (1,813,993) $ (1,953,708) $ (2,175,841) $ (2,360,640) $ (184,799) 8.49% Enterprise Receipts (Table 6)$ 1,894,067 $ 1,873,817 $ 1,935,189 $ 2,047,125 $ 111,936 5.78% Total General Fund Operating Revenues $ 290,054,050 $ 303,204,098 $ 313,148,987 $ 321,403,140 $ 8,254,153 2.64% Less - Tax Levy Dedicated to Capital Stabilization Fund $ 4,036,373 $ 6,563,050 $ 6,580,908 $ 6,580,908 $ — —% Less: Revenues Set-Aside for Other Designated Purposes $ 20,156,257 $ 21,256,751 $ 28,574,604 $ 23,351,268 $ (5,223,336) (18.28)% Net General Fund Revenues $ 265,861,420 $ 275,384,297 $ 277,993,476 $ 291,470,964 $ 13,477,489 4.85% Section II Revenues Town of Lexington, Massachusetts FY2027 Preliminary Budget & Financing Plan January 23, 2026 II-3 The following table presents a detailed breakout and trend of the Town's revenue sources: Revenue Summary FY2027 Projected FY2026-27 Change Table 1: Property Tax Levy FY2024 Actual FY2025 Actual FY2026 Recap $% Tax Levy $ 216,220,071 $ 227,348,851 $ 239,807,037 $ 249,133,335 $ 9,326,298 3.89% Prop. 2.5%$ 5,405,502 $ 5,683,721 $ 5,995,176 $ 6,228,333 $ 233,157 3.89% New Growth $ 6,824,943 $ 6,774,465 $ 3,331,122 $ 3,000,000 $ (331,122) (9.94)% Override/Excess Levy Capacity $ (14,424) $ (93,397) $ (86,299) NA Subtotal $ 228,436,092 $ 239,713,640 $ 249,047,036 $ 258,361,669 $ 9,314,632 3.74% Table 2: State Aid Chapter 70 $ 17,609,131 $ 18,321,635 $ 19,344,035 $ 19,999,535 $ 655,500 3.39% Charter School Reimbursement $ 87,520 $ 149,983 $ 81,758 $ 81,758 $ — —% Unrestricted General Government Aid $ 1,832,124 $ 1,887,088 $ 1,907,846 $ 1,907,846 $ — —% Veterans' Benefits & Exemptions $ 83,921 $ 130,560 $ 109,400 $ 99,659 $ (9,741) (8.90)% Offsets (Library)$ 82,838 $ 90,392 $ 89,563 $ 92,698 $ 3,135 3.50% Subtotal $ 19,695,534 $ 20,579,658 $ 21,532,602 $ 22,181,496 $ 648,894 3.01% Table 3: Local Receipts Motor Vehicle Excise Tax $ 6,143,335 $ 6,606,284 $ 5,931,444 $ 6,198,000 $ 266,556 4.49% Other Excise $ 1,982,929 $ 1,691,969 $ 1,832,000 $ 1,685,000 $ (147,000) (8.02)% Penalties & Interest $ 479,253 $ 404,807 $ 492,000 $ 430,000 $ (62,000) (12.60)% PILOTs $ 731,519 $ 817,682 $ 762,000 $ 767,000 $ 5,000 0.66% Rentals $ 479,390 $ 308,021 $ 352,623 $ 359,190 $ 6,566 1.86% Departmental-Schools $ 475,325 $ 533,446 $ 300,000 $ 299,000 $ (1,000) (0.33)% Departmental-Municipal $ 3,629,754 $ 3,820,994 $ 3,395,950 $ 3,507,950 $ 112,000 3.30% Licenses & Permits $ 3,226,256 $ 4,616,400 $ 3,016,300 $ 2,958,300 $ (58,000) (1.92)% Special Assessments $ 10,370 $ 13,550 $ — $ — $ — —% Fines & Forfeits $ 172,123 $ 111,884 $ 116,000 $ 117,000 $ 1,000 0.86% Investment Income $ 7,825,208 $ 6,279,974 $ 1,000,000 $ 2,500,000 $ 1,500,000 150.00% Miscellaneous Non-Recurring $ 459,968 $ 535,335 $ — $ — $ — —% Subtotal $ 25,615,431 $ 25,740,345 $ 17,198,317 $ 18,821,440 $ 1,623,122 9.44% Table 4: Available Funds Parking Fund $ 100,000 $ 250,000 $ 425,500 $ 425,500 $ — —% Cemetery Sale of Lots Fund $ 50,408 $ 123,000 $ 151,875 $ 147,000 $ (4,875) (3.21)% Free Cash $ 15,919,159 $ 15,838,627 $ 24,096,825 $ 20,500,000 $ (3,596,825) (14.93)% Health Claims Trust Fund $ 240,000 $ 32,270 $ — $ — $ — —% Transportation Demand Management Stab. Fund $ 171,000 $ 171,000 $ 171,000 $ 171,000 $ — —% Traffic Mitigation Stabilization Fund $ 80,000 $ — $ — $ — $ — —% Transportation Management Overlay District (TMOD) Stabilization Fund $ 42,000 $ — $ — $ — $ — —% Ambulance Stabilization Fund $ — $ 125,000 $ — $ — $ — —% PEG Access Special Revenue Fund $ 586,833 $ 646,214 $ 596,441 $ 694,392 $ 97,951 16.42% Transportation Network Company (TNC) Special Revenue Fund $ 7,684 $ 13,234 $ 18,043 $ 22,950 $ 4,907 27.20% Betterments Fund $ 11,500 $ 1,000 $ 2,000 $ 2,000 $ — —% Visitors Center Stabilization Fund $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ — — Recreation Enterprise Fund $ — $ — $ 100,000 $ 100,000 $ — —% Balances from Prior Yr. Capital Articles $ — $ — $ — $ 239,209 $ 239,209 —% Use of BAN Premiums $ 70,000 $ — $ — $ — $ — —% Subtotal $ 17,328,584 $ 17,250,345 $ 25,611,684 $ 22,352,051 $ (3,259,633) (12.73)% Table 5: Revenue Offsets Cherry Sheet Assessments $ (981,462) $ (1,112,390) $ (1,264,133) $ (1,116,126) $ 148,007 (11.71)% Cherry Sheet Offsets - Public Libraries $ (82,531) $ (91,318) $ (89,563) $ (94,514) $ (4,951) 5.53% Overlay (abatements)$ (750,000) $ (750,000) $ (750,000) $ (750,000) $ — —% Snow Deficit $ — $ — $ (72,145) $ (400,000) $ (327,855) 454.44 Subtotal $ (1,813,993) $ (1,953,708) $ (2,175,841) $ (2,360,640) $ (184,799) 8.49% Section II Revenues Town of Lexington, Massachusetts FY2027 Preliminary Budget & Financing Plan January 23, 2026 II-4 Table 6: Enterprise Receipts Water $ 1,011,340 $ 968,301 $ 1,002,244 $ 1,091,745 $ 89,501 8.93% Wastewater (Sewer)$ 588,040 $ 596,525 $ 614,684 $ 627,572 $ 12,888 2.10% Recreation & Community Programs $ 294,687 $ 308,991 $ 318,261 $ 327,808 $ 9,547 3.00% Subtotal $ 1,894,067 $ 1,873,817 $ 1,935,189 $ 2,047,125 $ 111,936 5.78% Gross General Fund Revenues $ 291,155,715 $ 303,204,097 $ 313,148,987 $ 321,403,140 $ 8,254,153 2.64% Less: Property Tax Levy Dedicated to the Capital Stabilization Fund 1050 Waltham St.$ 1,101,665 $ 2,353,956 $ 2,353,956 $ 2,353,956 $ — —% 186 Bedford St.$ 9,885 $ 87,980 $ 105,838 $ 105,838 $ — —% 55 Watertown St.$ 169,897 $ 604,804 $ 604,804 $ 604,804 $ — —% 440 Bedford St.$ 164,207 $ 2,658,727 $ 2,658,727 $ 2,658,727 $ — —% 20 Maguire Rd.$ 857,582 $ 857,582 $ 857,582 $ 857,582 $ — —% Less: Property Tax Levy Dedicated to the Capital Stabilization Fund $ 2,303,236 $ 6,563,050 $ 6,580,908 $ 6,580,908 $ — —% Less: Revenues Set Aside for Designated Expenses $ 20,156,257 $ 21,256,751 $ 28,574,604 $ 23,351,268 $ (5,223,336) (18.28)% Total Revenues Set Aside for Designated Expenses $ 22,459,493 $ 27,819,801 $ 35,155,512 $ 29,932,176 $ (5,223,336) (14.86)% Net General Fund Revenues Available for Appropriation $ 266,963,085 $ 275,384,296 $ 277,993,476 $ 291,470,964 $ 13,477,489 4.85% Revenue Projections and Assumptions Property Tax Levy: The FY2027 property tax levy is projected to increase by approximately $9.31 million, or 3.74%. The projected levy is a function of the FY2026 levy limit increased by 2.5% per Proposition 2½, plus an increment for new growth. FY2027 new growth will be a function of construction activity for the period July 1, 2025 to June 30, 2026. FY2027 new growth is estimated at $3,000,000 based on a review of historical data on new growth. This estimate is slightly lower than in prior years as commercial and industrial development in the Town has slowed significantly, and Management does not expect meaningful growth in this category over the next few fiscal years. Single family residential growth has remained consistent and the Town may see higher than expected growth from multi-family developments in future years due to zoning changes implemented to comply with the MBTA Communities Act. State Aid: The majority of the Town's State Aid is attributable to Chapter 70 School Aid, but also includes Unrestricted General Government Aid (UGGA). The amount of State Aid received by the Town will vary annually due to the amount of projected State revenues. Chapter 70 School Aid is further allocated according to a formula defined by the Massachusetts Department of Elementary and Secondary Education (DESE). For FY2027, the Town expects to receive the State's minimum per student increase in initial Chapter 70 State Aid, and level funding of UGGA. For Chapter 70, the statutory minimum per student aid is $30 per student, however Management's current estimate is $100 per student, consistent with recent years. FY2027 initial State Aid estimates project an overall increase of $648,894 or 3.01% compared to FY2026. Final State Aid figures are likely to be known in June 2026 when the Legislature adopts, and the Governor signs, the FY2027 State budget. Local Receipts: FY2027 projections for each category of receipt are based on the history of actual collections and projections of 3- and 5-year historical averages, with some adjustments due to other local trends such as increases in fees, local development activity, and current interest rates. FY2027 local receipts are estimated to increase by approximately $1,623,122 or 9.44% over FY2026 estimates. Section II Revenues Town of Lexington, Massachusetts FY2027 Preliminary Budget & Financing Plan January 23, 2026 II-5 The FY2027 increase in local receipts is attributable to projected increases in Motor Vehicle Excise of $266,556, Ambulance Fees of $100,000; and Net Metering Credit of $39,000 (both under Municipal- Departmental fees), partly offset by a decrease in Jet Fuel excise receipts of $(103,000) and Hotel/ Motel excise receipts of $(80,000) based on current trends (both under Other Excise). Available Funds: Available Funds are projected to decrease $(3,259,633), or (12.73)% primarily due to a decrease in Free Cash. Available Free Cash of $20,500,000 is an estimate as of June 30, 2025 and has not been certified by the Department of Revenue as of publication. The decrease in Free Cash from the prior year is partly due to a lower turn-back of unused operating budgets in FY2025. The available balance of the Parking Meter Fund has increased in recent years since the Town resumed enforcement of parking fees after a temporary moratorium during the pandemic and Center Streetscape projects. A transfer of $425,500 from the Parking Fund has been included in the FY2027 budget to support parking operations. The transfer from the PEG Access fund is equal to the total estimated budget for that service, less $200,000 which represents a general fund subsidy. This services was historically funded by cable franchise fees, however as residents have transitioned from cable subscriptions to streaming platforms the cable revenue has declined. The Town began to subsidize this service with General Fund revenues in FY2024, and the FY2027 budget includes $200,000 of General Fund support. The Select Board has committed to funding Public Access television and providing General Fund support for this service in future budget cycles if necessary to maintain the service. Revenue Offsets: Revenue Offsets are projected to increase by approximately $184,799 or 8.49%. Revenue Offsets represent the set-aside of a portion of projected revenues legally required for particular purposes including: (1)the component of State Aid (Public Library aid reimbursement) that is distributed as Cherry Sheet Aid, but, in fact, is a categorical grant that is not available to support General Fund operations; (2)Cherry Sheet assessments - estimated charges to be levied by the Commonwealth to cover the costs of state and regional services provided to the Town, based on updated projections issued alongside the Governor's budget; (3)the Assessor's Overlay account which covers the cost of abatements and exemptions granted to property taxpayers; and (4)potential snow and ice deficits. The FY2027 increase in total Revenue Offsets is driven by the set-aside of $400,000 in estimated FY2027 revenue to cover a potential snow and ice deficit at the end of FY2026. Enterprise Receipts: This category of revenue represents transfers from the Water, Sewer and Recreation Enterprise Funds to the General Fund to cover General Fund expenditures that support the operations of the water, sewer and recreation departments. Overall, Enterprise Receipts are increasing 5.8%, or $111,936, primarily due to changes in benefits, wages, and liability insurance costs, as supported by a detailed indirect analysis completed by the Finance department. Tax Levy Dedicated to Capital Stabilization Fund: Beginning in FY2022, new levy growth generated from specified commercial and industrial development has been dedicated to the Capital Stabilization Fund (CSF) rather than becoming general revenue for the town’s operating budget. The funds set-aside into the Capital Stabilization Fund may be drawn down in future years to mitigate Section II Revenues Town of Lexington, Massachusetts FY2027 Preliminary Budget & Financing Plan January 23, 2026 II-6 exempt debt service from large capital projects such as the new Lexington High School. A list of properties currently subject to this guideline is found in the table above. Revenues Set Aside for Other Designated Expenses: Represents components of Gross General Fund Revenues that are set aside for designated purposes. Set-asides are predominantly designated from non-recurring revenue sources, such as Free Cash, but may also include set-asides from the tax levy. The proposed set-aside purposes are shown in the table below. Free Cash as of June 30, 2025 has been not yet been certified by the Department of Revenue but is estimated at $20.5 million. Financing Sources Tax Levy Free Cash Other Total Notes 1 Set-Aside for Unanticipated Current Fiscal Year Needs $ — $ 250,000 $ — $ 250,000 Reserve for appropriation at the 2026 Annual Town Meeting to fund supplemental appropriations to the FY2026 (current year) budget. 2 Other Post-Employment Benefits (OPEB)$ — $ 2,129,721 $ — $ 2,129,721 Appropriate to OPEB Trust. 3 Unallocated $ — $ 2,037,935 $ — $ 2,037,935 Set aside for yet-to-be identified one-time needs in the FY2027 budget & reserve for future budgets 4 Cash Capital $ — $ 14,907,344 $ 262,159 $ 15,169,503 Free Cash, Tax Levy and other available funds to support capital improvements. 5 Appropriate into Capital Stabilization Fund $ 6,580,908 $ — $ — $ 6,580,908 To meet future capital/debt service needs and provide taxpayer debt mitigation for capital projects 6 Set-Aside for one-time School Curriculum Purchase $ — $ 700,000 $ — $ 700,000 One-time set aside for new school curriculum purchase 7 Street Improvement Program $ 2,746,777 $ — $ — $ 2,746,777 Tax Levy designated for long-term street maintenance plan. 8 Municipal Building Envelope and Systems $ 242,332 $ — $ — $ 242,332 Initially funded in 2006 override; increases by 2.5% per year. 9 Warrant Articles $ — $ 75,000 $ — $ 75,000 Vision for Lexington Community Survey 10 Subtotal $ 9,570,016 $ 20,100,000 $ 262,159 $ 29,932,175 11 Funding for Pension Schedule $ — $ 400,000 $ — $ 400,000 Amount of incremental increase in the updated Pension Funding schedule will continue to be supported with Free Cash in FY2027. 12 Grand Total $9,570,016 $20,500,000 $ 262,159 $30,332,175 Section II Revenues Town of Lexington, Massachusetts FY2027 Preliminary Budget & Financing Plan January 23, 2026 II-7 This Page Intentionally Left Blank. Section III: Program 1000: Education This section includes detailed information about the FY2027 Operating Budget & Financing Plan for education. It includes: •1100 Lexington Public Schools III-2 •1200 Minuteman Regional High School III-18 FY2027 Preliminary Budget & Financing Plan January 23, 2026 III-1 This Page Intentionally Left Blank. FY2027 Superintendent's Recommended Budget BUDGET OVERVIEW Superintendent's Budget Message...............................................................................2 Strategic Plan............................................................................................................4 Core Values...................................................................................................4 Vision Statement..................................................................................................4 Strategic Goals.....................................................................................................4 Budget Development Process.....................................................................................8 Budget Timeline...................................................................................................8 Superintendent's Recommended Budget......................................................................9 Revenue Allocation Model...........................................................................................10 Summary of Salaries and Wages.................................................................................12 Negotiated Salary Increases..................................................................................12 FY2027 Personnel Overview..................................................................................14 FY2027 Expense Overview by School/Department...................................................15 Student Enrollment Summary.....................................................................................16 State Benchmark Comparisons...................................................................................17 *The FY2027 Superintendent's Recommended Budget appears as presented to the School Committee on January 13, 2026. The final allocation amount as reflected in the Program Summary will be updated in the Brown Book. FY2027 Preliminary Budget & Financing Plan January 23, 2026 III-3 Superintendent’s Budget Message 9 January 2026 Dear Lexington Community, I am pleased to present the Lexington Public Schools FY2027 Recommended Budget of $151,729,248, representing a 3.9% increase over the current fiscal year. Our initial level-service request was 4.6%, making this among the smallest increases to the base budget that Lexington Public Schools has received in the past ten years. This comes as we continue to face significant challenges, including contract negotiations for four of our five collective bargaining units this year. Despite fiscal challenges ahead, this budget upholds our commitment to educational excellence and fiscal responsibility. A Period of Transformation and Stabilization On December 8, 2025, over 62% of voters supported the "Bloom" design in a pivotal Town-wide referendum. In September 2029, our students will learn in a new high school built with their needs in mind. We are profoundly grateful for the community's support and recognize that for many, it comes with sacrifice. It is our responsibility to honor that investment by doing everything possible to avoid an operational override. The past few years have brought unprecedented challenges and transformation to Lexington Public Schools. We have confronted substantial budgetary pressures while continuing to welcome new students with diverse needs—families experiencing homelessness, immigrant students, and learners with no formal schooling. Throughout this time, our focus has remained steadfast: to embrace every student, surround them with support, and provide the high-quality education they deserve. In FY25, we served over 100 additional students in temporary housing while managing unanticipated high-needs enrollments. Through disciplined financial management—including a necessary spending freeze and strategic use of available resources—we closed the year with a small surplus without tapping our Special Education Reserve or Stabilization Funds. The FY26 budget required difficult decisions: significant consolidation of elementary and middle school classrooms, administrative restructuring, and reductions totaling more than 26 FTE positions. Increased reliance on Circuit Breaker and revolving account funds, coupled with assuming more risk, helped us balance the budget. We implemented these measures thoughtfully, always keeping student learning at the center. Strengthening Our Financial Foundation Our Finance Team has worked diligently to stabilize our fiscal position. Key accomplishments include reviewing all open purchase orders dating back to FY22, reducing Special Revenue Account deficits by more than $2.5 million, and implementing consistent processes for salary accruals and line-item budget Lexington Public Schools FY2027 Budget Page 2 monitoring. Our Circuit Breaker filing yielded over $7.9 million in reimbursements—the highest in our district's history. We have also strengthened our partnership with the Town Finance Department to enhance collaboration and efficiency. While these efforts have positioned us on stronger footing, significant challenges remain. Ongoing Challenges and the Path Forward I want to be transparent about challenges that remain. We continue to rely on in-year Circuit Breaker funds, which creates budgetary risk. We have reduced projected spending on high-needs tuitions for the third consecutive year and are proposing modest increases in user fees for Athletics and Transportation to ensure program sustainability. Additionally, four of our five union contracts are up for negotiation this year, putting added pressure on the budget. Several initiatives will help us navigate future challenges: an ongoing Special Education audit, five-year budget projections being developed with CLA Andover consultants, enhanced budget monitoring systems, and continued partnership with Town leadership. Despite these pressures, our commitment to Lexington's students remains absolute. This budget preserves core educational programs, maintains small class sizes where possible, and provides necessary resources for teaching and learning. These decisions reflect our responsibility to operate within our means while preserving the educational excellence that defines Lexington Public Schools. I am grateful to our dedicated staff, School Committee, Town partners, and community for your continued support as we work together to ensure every Lexington student receives the education they deserve. Respectfully submitted, Julie Hackett, Ed. D. Superintendent of Schools Lexington Public Schools FY2027 Budget Page 3 Organizational Strategic Plan The Strategic Plan of the Lexington Public Schools, 2019–2029, identifies the following mission statement, core values, vision statement, and strategic goals for the district: Mission Statement Joy in learning; curiosity in life; and compassion in all we do. Our Core Values ● We all Belong ● Use Your Mind ● Be Curious & Have Fun ● Care for Yourself & Others ● Do Your Part ● Be Courageous ● Embrace Your Revolutionary Spirit ● You are Enough Vision Statement ● Diversity, Equity, Inclusion ● Redefining Success ● Students as Active Agents ● Authentic Learning Experiences ● Community Partnership Strategic Goals ● Goal 1: Address and Narrow Equity Gaps—Identify, address, and narrow equity gaps in student opportunities, experiences, and achievement, ensuring the meaningful inclusion and integration of every member of our school community. ● Goal 2: Redefine Success—Transform our practices, systems, and structures to reflect a broader definition of success for our students, staff, and schools, including new measures of student achievement that extend beyond academics to include the knowledge, skills, and attributes students need to be prepared for the future and content in life. ● Goal 3: Cultivate Student Agency—Cultivate student agency and a sense of self-efficacy by ensuring that all our PreK–12 students’ educational experiences place them at the center of their learning; consistently revisit our curriculum, instruction, assessment, and professional learning practices to (1) ensure relevancy and student voice; (2) to teach students to set their own meaningful goals; (3) to value productive struggle as they work toward them; and (4) to reflect and monitor their progress toward attaining those goals. ● Goal 4: Innovate for Sustainable Change—Refine and improve our school- and districtwide practices, systems, and structures related to managing innovation and promoting lasting change. We will develop clear decision-making structures and communication methods to prevent initiative overload and enable us to more consistently scale up promising practices. Lexington Public Schools FY2027 Budget Page 4 Budget Development Process Annually, the administration develops its capital and operating budgets for the period beginning July 1 and ending June 30. This highly collaborative and public process engages the School Committee, the Select Board, the Appropriation Committee, the Capital Expenditures Committee, municipal and school staff, and citizens. The employees of the Finance Office are responsible for coordinating, developing, and monitoring the budget process. Each year, the School Committee develops annual goals, budget guidelines, and a budget calendar. These provide the administration with the roadmap to develop the recommended annual budget. The Superintendent is tasked with developing a budget that advances the district in accordance with the outlined policy objectives. The School Committee is responsible for reviewing and approving the budget for incorporation within the complete Town budget. Budget Timeline Summer: School Committee and Superintendent establish Collaborative Goals. Early Fall: School Committee approves annual Budget Guidelines and Calendar. Fall: Staff develop budget recommendations. Late Fall/Early Winter: All departments meet with the Assistant Superintendent for Finance and Operations and the Director of Finance to review existing staffing levels, budget priorities, and anticipated budget requests. During this time, a series of working Summit Meetings, including the School Committee, the Select Board, the Appropriation Committee, and the Capital Expenditures Committee, are conducted to discuss the current financial health of the Town, along with any budgetary issues. This process provides policy guidance to the municipal and school staff in finalizing budget recommendations. The Superintendent, in consultation with the Assistant Superintendent for Finance and Operations and the School Department's Administrative Council, reviews budget requests and makes recommendations for all school programs to the School Committee. After public hearings on the Superintendent’s Budget Recommendations, the School Committee makes final budget decisions consistent with their Budget Guidelines and Strategic Priorities. Early Spring: Before Town Meeting members discuss financial articles, the approved budget of the School Committee is distributed to Town Meeting Members and the various finance committees. The document is available to citizens at the School Department’s Central Office, the Town Library, and the Town Manager's Office. In addition, budget documents are publicly available on the Lexington Public Schools website. Spring: The Annual Town Meeting begins in March with meetings held on weekday evenings. Town Meeting debates and adopts the School Department budget as part of the comprehensive Town budget. Town Meeting has authority over the total appropriation of school department funds, but line-item authority and spending priorities are the purview of the School Committee. View the full Lexington Public Schools FY2027 Budget Guidelines and Budget Calendar. Lexington Public Schools FY2027 Budget Page 8 Financial Superintendent’s Recommended Budget Funding Sources FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adj. Budget FY 2027 Request $ Increase % Increase Tax Levy $128,009,947 $134,644,617 $139,974,921 $145,679,333 $151,369,748 $5,690,415 3.9% Fees & Charges $244,500 $297,500 $533,446 $354,000 $359,500 $5,500 1.6% Total Allocation LPS $128,254,447 $134,942,117 $140,508,367 $146,033,333 $151,729,248 $5,695,915 3.9% Appropriation Summary FY 2023 Actual FY 2024 Actual FY 2025 Actual FY 2026 Adj. Budget FY 2027 Request $ Increase % Increase Salary and Wages $106,160,982 $114,299,404 $123,343,214 $127,183,816 $131,524,406 $4,340,590 3.4% Expenses $19,007,077 $19,902,943 $17,080,952 $18,849,517 $20,204,842 $1,355,325 7.2% Total 1100 LPS $125,168,059 $134,202,347 $140,424,166 $146,033,333 $151,729,248 $5,695,915 3.9% * Amounts shown are general fund/operating budget only Total Recommended $151,729,248 $5,695,915 3.9% In the Annual Town Financial Summit Allocation Model, the School Department received a revenue increase of $5,695,915 for FY2027, representing a 3.9% increase over the FY2026 Approved Budget. To meet this target, the Superintendent’s Recommended Budget for FY2027 is $151,729,248, reflecting the full $5,695,915 increase over the FY2026 base budget of $146,033,333. Notably, this recommendation reflects a net staffing decrease of approximately 42 FTE compared to FY2026 approved staffing levels. Salaries and wages continue to comprise the majority of the School Department’s budget, accounting for approximately 86.6% of the total budget, slightly lower than last year’s 87.1%. (Note that this ratio may change pending the outcome of current contract negotiations.) For FY2027, the salaries and wages line is increasing by $4,340,590 (3.4%) to fund existing positions and contractual obligations. The expense line is recommended to increase by $1,355,325 (7.2%) from the FY2026 appropriation. This increase over last year’s funding level reflects increased costs for transportation services and out-of-district tuitions, and represents only a modest increase of $301,899 (1.5%) from FY2024’s actual spend of $19,902,943. Tightened expense budgets continue to pose challenges as we work to achieve a balanced budget while prioritizing the district’s core educational mission. To address the financial pressures within this budget cycle, we have made strategic reductions across both salary and expense line items. Additionally, we have continued an increased reliance on departmental offset accounts, such as the Circuit Breaker and Transportation Revolving accounts, to mitigate the impact of these reductions. While these offsets provide temporary relief, they are not a sustainable long-term solution and warrant careful consideration in future planning. We recognize the challenges these budget decisions present to our staff and community. The continued reductions in expense accounts and reliance on offsets underscore the importance of thoughtful fiscal management and strategic planning. We remain committed to providing high-quality educational services while navigating these fiscal constraints. Lexington Public Schools FY2027 Budget Page 9 Revenue Allocation Model The Town of Lexington follows a revenue sharing model that provides for the prior year appropriation, adjusted for new revenue growth under an allocation model of 74% (School Department) and 26% (Municipal). The town follows a collaborative budget development process that is conducted through a series of Budget Summit meetings including the School Committee, the Select Board, the Appropriation Committee, and the Capital Expenditures Committee. Topics covered typically include: Summit I: Financial Indicators; 5-Year Forecast; Initial Revenue Projection Summit II: FY2027 Revenue Allocation Model Summit III: FY2027 White Book Preview Summit IV: FY2027 Brown Book Preview Below is the projected FY2027 Revenue Allocation Model, as of January 1, 2026: FY2027 Revenue Allocation Model $321,164 Projected FY2027 Revenue (in $1,000’s) Shared Municipal School (1) $ (146,033) $ - $ - $ (146,033) FY2026 School Budget (2) $ (51,264) $ - $ (51,264) $ - FY2026 Municipal Budget + Community Center Support (3) $ (4,149) $ (4,149) $ - $ - FY2027 Minuteman (4) $ (12,300) $ (12,300) $ - $ - FY2027 Contributory Retirement (5) $ (45,220) $ (45,220) $ - $ - FY2027 Benefits (6) $ (200) $ (200) $ - $ - FY2027 Unemployment (7) $ (500) $ (500) $ - $ - FY2027 Workers' Comp (8) $ (1,454) $ (1,454) $ - $ - FY2027 Property and Liability Insurance (9) $ (200) $ (200) $ - $ - FY2027 Uninsured Losses (10) $ (390) $ (390) $ - $ - FY2027 Solar Production Payment (11) $ (6,275) $ (6,275) $ - $ - FY2027 Debt Service (12) $ (1,000) $ (1,000) $ - $ - FY2027 Reserve Fund (13) $ (109) $ (109) $ - $ - FY2027 Refuse and Recycle Collection for Muni + School (14) $ (15,545) $ (15,545) $ - $ - FY2027 Facilities Department Budget (15) ($ 35) $ (35) $ - $ - Facilities PIRs (16) $ (28,795) $ (900) $ - $ - Set-Aside for as yet to be identified FY2026 needs $ (200) $ - $ - Unanticipated Current Fiscal Year Needs FY2025 $ - $ - $ - Special Education Reserve/Stabilization Fund $ (700) $ - $ - Set-aside for one-time School Curriculum Purchase $ (6,581) $ - $ - Tax Levy Dedicated to Capital Stabilization Fund $ (15,221) $ - $ - Cash Capital - Free Cash and Other Available Funds $ - $ - $ - Cash Capital - Tax Levy $ (2,130) $ - $ - OPEB (Free Cash) $ (2,747) $ - $ - Street Improvement Program (Tax Levy) $ (242) $ - $ - Building Envelope Program (Tax Levy) $ (75) $ - $ - Vision Survey (Free Cash) $ - $ - $ - Senior Tax Work-Off Program (Free Cash) (17) $ (313,469) $ (115,271) $ (51,264) $ (146,033) Base Budget - Used for Allocation 26.0% 74.0% Percentage - Municipal and School Only (18) $ 7,695 $ 1,999 $ 5,696 Incremental Revenue 3.9% 3.9% Percent of Current Budget Lexington Public Schools FY2027 Budget Page 10 Revenue Allocation History & Trends Below is the growth factor or the increase in funding available for the school operating budgets approved during the last ten budget cycles, along with this year’s proposed increase: Each year, the creation of the Lexington Public Schools' operating budget is driven by a commitment to maintaining "level services" and fostering ongoing strategic program improvement. This process involves a consideration of dynamic elements such as evolving state mandates, inflationary pressures, the multi-year commitments embedded in contracted services, and the impact of collective bargaining agreements with our dedicated staff. To continue to realize our commitment to excellence, the annual increase initially sought has ranged in recent years from 4.20% to 4.98% on the base budget. This increase was not possible with this year's revenue allocation model. This increment is essential to provide the necessary resources required to sustain the high standard of services and facilitate continuous improvement in our educational programs. By proactively addressing these factors, we can ensure that our budget aligns with the evolving needs of our educational community and positions us for ongoing success. Lexington Public Schools FY2027 Budget Page 11 Summary of Salary and Wages Negotiated Salary Increases The FY2027 budget includes funding for estimated wage increases for all collective bargaining units and non-union positions, including step increases and Cost-of-Living Adjustment (COLA), including full salary table modifications. The current status of collective bargaining agreements, corresponding expiration dates, and negotiated adjustments are listed below. Note that all units other than the Tech unit are working under contracts that expire at the end of this fiscal year. Bargaining Unit Contract Term Negotiated Increases LEA: Unit A 09/01/2023 – 08/31/2026 Effective Sept. 1, 2023: 2.5% Effective Sept. 1, 2024: 2.5% Effective Sept. 1, 2025: 2.75% LEA: Unit C 09/01/2025 – 08/31/2026 Effective Sept. 1, 2025: 3.25% LEA: Unit D 07/01/2023 – 06/30/2026 Effective July 1, 2023: 3% Effective July 1, 2024: 3% Effective July 1, 2025: 3% LEA: Tech 07/01/2024 – 06/30/2027 Effective July 1, 2024: 1.75% Effective July 1, 2025: 2.75% Effective July 1, 2026: 2.75% ALA: Administrators 07/01/2023 – 06/30/2026 Effective Sept. 1, 2023: 2.5% Effective Sept. 1, 2024: 2.5% Effective Sept. 1, 2025: 2.75% Lexington Public Schools FY2027 Budget Page 12 Proposed Adjustments to Staffing Levels During the annual budget development process, district leaders, building principals, and department heads propose and review adjustments to staffing levels as part of the budget planning process. In December, the proposed adjustments are reviewed with the Superintendent. The proposed adjustments below represent four broad categories: changes to base staffing levels; legally mandated changes; changes due to enrollment; and changes intended to improve programming. Please note that the table below does not list out the 27.5 FTE which were identified for reduction during the spring and summer of 2025, after the FY2026 budget was approved. These positions were approved in the FY2026 budget but left unfilled on the recommendation of administration. The following table in this section reflects the full FTE difference between the FY2027 budget request and the approved FY2026 budget. Request Category Program Location Position Description FTE Requested FTE Granted BASE SPEC ED BRIDGE SPEC INST ASST - TLP (4.00) (4.00) ESTABROOK INST ASST - RES (.80) (.80) FISKE INST ASST (.80) (.80) HASTINGS SPEC INST ASST - ILP (1.67) (1.67) DIAMOND SOCIAL WORKER (.50) (.50) CLARKE INST ASST (1.80) (1.80) CLARKE SPEC INST ASST (.90) (.90) BRIDGE BRIDGE SCHOOL SUPP PERSON (.49) (.49) BOWMAN BOWMAN SCHOOL SUPP PERSON (.52) (.52) ESTABROOK ESTABROOK SCHOOL SUPP PERSON (1.19) (1.19) FISKE FISKE SCHOOL SUPP PERSON (1.20) (1.20) HARRINGTON HARRINGTON SCHOOL SUPP PERSON (.95) (.95) HASTINGS HASTINGS SCHOOL SUPP PERSON (1.68) (1.68) ENROLLMENT SYS WIDE SYS WIDE TEACHER 12.0 0 MANDATE SPEC ED DIAMOND RESOURCE TEACHER 2.00 2.00 PROG. IMPR. COUNSELING LHS ADMIN ASST .49 0 PERFORM ARTS SYS WIDE (Middle) MUSIC TEACHER .25 0 PERFORM ARTS SYS WIDE TECH DIRECTOR .50 0 PERFORM ARTS SYS WIDE (Elem) STRINGS TEACHER .60 0 K-5 MATH SYS WIDE MATH INTERVENTION SPECIALIST 1.00 0 K-5 SCIENCE SYS WIDE BIG BACKYARD COOR .13 0 LCP LCP SCHOOL SUPP PERSON .11 0 Grand Total .58 (14.50) Lexington Public Schools FY2027 Budget Page 13 Salary and Wages Budget Recommendation Below is a summary of LPS staffing broken down by line, showing both recent levels and the proposed staffing level for FY2027. This recommendation reflects a net decrease of 42 Full-Time Equivalents (FTEs) from the FY2026 approved budget across various programs and levels. Line Group/BU Description FY26 FTE Budget FY26 Budget FY27 FTE FY27 Request FTE Request Diff $ Change % Change 1 Unit A - LEA 830.55 $93,962,811 816.88 $96,793,046 (13.67) $2,830,235 3.01% 2 Unit A - Stipends - $1,037,651 - $1,038,186 - $536 0.05% 3 Unit A - Coaches - $914,484 - $991,008 - $76,524 8.37% 4 Unit D - LEA 97.34 $6,335,048 90.37 $6,130,572 (6.97) ($204,476) -3.23% 5 Non-Union Dis. Supp./Mgrs. 19.55 $1,996,405 17.75 $1,864,470 (1.80) ($131,935) -6.61% 7 Unit C - Inst Asst/SSI/SIA 220.84 $10,852,399 208.88 $11,586,988 (11.96) $734,589 6.77% 7.1 Non-Union Hourly & ESY 2.00 $692,982 2.00 929,348 - $236,366 34.11% 8 ABA/BCBA Instructors 7.00 $0 - $0 (7.00) $0 0.00% 13 Technology Unit 12.60 $1,075,669 12.00 $1,051,485 (0.60) ($24,184) -2.25% 14 Central Administrators 9.00 $1,738,164 8.00 $1,632,653 (1.00) ($105,511) -6.07% 15 Principals 9.50 $1,730,961 9.50 $1,787,067 - $56,106 3.24% 16 ALA- Asst Prin/Supervisors 47.50 $6,956,248 48.50 $7,431,129 1.00 $474,881 6.83% 17 Substitutes (Per-Diem) - $825,044 - $972,503 $147,459 17.87% 17.1 Substitutes (Nurses) - $15,644 - $15,644 $0 0.00% 18 Substitutes (Para) - $73,620 - $73,620 $0 0.00% 18.2 Substitutes (Sec) - $76,688 - $76,688 $0 0.00% 19 Salary Differential ($1,100,000) ($850,000) $250,000 -22.73% Grand Total 1,255.88 $127,183,816 1,213.88 $131,524,406 (42.00) $4,340,589 3.41% Lexington Public Schools FY2027 Budget Page 14 Summary of Expenses FY2027 Expense Overview by Budget Center Line Program FY25 Budgeted FY26 Budgeted FY27 Request FY27 vs FY26 % Change 1 Bowman $65,152 $59,364 $60,900 1,536 2.59% 2 Bridge $56,861 $49,598 $51,529 1,931 3.89% 3 Estabrook $76,179 $62,739 $62,946 207 0.33% 4 Fiske $47,679 $39,515 $40,725 1,210 3.06% 5 Harrington $53,892 $47,896 $47,450 (446) -0.93% 6 Hastings $87,123 $71,861 $71,350 (511) -0.71% 7 Clarke $45,329 $41,804 $59,950 18,146 43.41% 8 Diamond $56,234 $49,863 $66,999 17,136 34.37% 9 Lexington High School $219,596 $201,774 $209,000 7,226 3.58% 10 K-5 Literacy $186,386 $158,738 $177,316 18,578 11.70% 11 K-5 Math $144,544 $123,103 $114,000 (9,103) -7.39% 12 K-5 Science $49,312 $41,998 $54,900 12,902 30.72% 13 K-5 Social Studies $36,848 $31,382 $34,678 3,296 10.50% 14 6-8 English/Lang Arts $45,221 $41,029 $52,382 11,353 27.67% 16 6-8 World Language $56,077 $50,879 $54,774 3,895 7.66% 17 6-8 Math $66,214 $60,077 $60,692 615 1.02% 18 6-8 Science $129,427 $117,059 $100,984 (16,075) -13.73% 19 6-8 Social Studies $35,231 $31,964 $33,569 1,605 5.02% 21 9-12 English $42,403 $38,962 $40,750 1,788 4.59% 22 9-12 World Language $51,695 $47,499 $48,643 1,144 2.41% 23 9-12 Math $50,397 $46,307 $49,525 3,218 6.95% 23.1 9-12 Math Team $6,797 $6,245 $6,700 455 7.29% 24 9-12 Science $126,544 $116,274 $119,500 3,226 2.77% 25 9-12 Social Studies $51,719 $47,521 $48,517 996 2.10% 25.1 Debate & Competitive Speech $91,963 $84,499 $87,000 2,501 2.96% 29 K-12 Curriculum $477,053 $377,053 $231,732 (145,321) -38.54% 30 K-12 Library Media Program $233,113 $208,402 $214,654 6,252 3.00% 31 K-12 Technology $708,000 $637,200 $647,200 10,000 1.57% 32 K-12 English Learner Education $69,394 $62,455 $55,456 (6,999) -11.21% 33 K-12 PE/Wellness $89,834 $80,312 $79,432 (880) -1.10% 34 K-12 Visual Arts $99,143 $88,634 $86,498 (2,136) -2.41% 35 K-12 Performing Arts $140,501 $125,608 $125,654 46 0.04% 36 K-12 Athletics $222,496 $198,911 $246,454 47,543 23.90% 37 Early Childhood Education $53,876 $48,488 $50,400 1,912 3.94% 38 Health Services $119,682 $107,714 $106,318 (1,396) -1.30% 39.4 K-12 Counseling $114,125 $102,713 $104,513 1,800 1.75% 40.1 K-5 Special Education $75,853 $68,268 $67,948 (320) -0.47% 40.2 6-8 Special Education $40,304 $36,274 $38,316 2,042 5.63% 40.3 9-12 Special Education $40,520 $36,468 $32,000 (4,468) -12.25% 40.4 PreK-22 Special Education $257,023 $231,321 $206,321 (25,000) -10.81% 41 Tuition $7,507,088 $7,216,610 $8,051,180 834,570 11.56% 42 Transportation: Special Education $2,492,882 $2,830,499 $3,113,548 283,049 10.00% 42.1 Transportation: Homeless $75,000 $140,000 $150,000 10,000 7.14% 43 Special Educ. Consultants $726,016 $653,414 $645,000 (8,414) -1.29% 44 Transportation: Regular Education $2,703,056 $2,596,548 $2,674,444 77,896 3.00% 45 Print Center $330,111 $297,100 $304,800 7,700 2.59% 46 Legal Services $125,000 $112,500 $115,000 2,500 2.22% 46.1 School Committee $21,125 $21,125 $27,150 6,025 28.52% 48.2 Central Office Administration $226,142 $164,436 $154,200 (10,236) -6.22% 48.2 Strategic Planning Initiatives $39,000 $82,150 $81,500 (650) -0.79% 48.3 Finance and Operations $147,782 $110,837 $112,500 1,663 1.50% 48.4 Human Resources $362,874 $308,443 $513,845 205,402 66.59% 56 Telephone $77,612 $69,840 $54,000 (15,840) -22.68% 60 Emergency Planning & Training $77,000 $89,500 $50,000 (39,500) -44.13% 61 Facility Improvements $125,000 $78,744 $110,000 31,256 39.69% Total Expenses $19,655,428 $18,849,517 $20,204,842 $1,355,325 7.19% Lexington Public Schools FY2027 Budget Page 15 Informational Student Enrollment Detail Table 1 summarizes enrollment counts by school and grade as of October 1, 2025 (FY2026). This table also features enrollment totals by school and district for FY2023, FY2024, and FY2025. Total October enrollment (PreK–12) for FY2026 was 6,524, down 224 students compared to the previous year. Total K–5 elementary enrollment was 2,416, ranging across schools from 279 (Fiske) to 538 (Hastings). At the secondary level, Diamond continues to be the larger of the two middle schools, with an enrollment of 907 (compared to 785 at Clarke). Total enrollment at the secondary level was 1,692 for the middle school grades and 2,348 at the high school level. FY26 By Grade FY23 FY24 FY25 FY26 PK K 1 2 3 4 5 6 7 8 9 10 11 12 District Total 6845 6805 6748 6524 68 305 347 416 408 476 464 538 583 571 552 594 603 599 Lex Children's Place 75 76 70 68 68 Bowman 451 428 429 421 53 65 81 69 80 73 Bridge 374 365 345 348 44 53 60 64 55 72 Estabrook 542 537 490 467 57 54 71 82 98 105 Fiske 341 335 324 279 35 43 36 47 58 60 Harrington 396 378 374 363 46 58 71 63 68 57 Hastings 598 631 579 538 70 74 97 83 117 97 Clarke Middle 823 810 796 785 244 269 272 Diamond Middle 942 927 936 907 294 314 299 Lexington High 2303 2318 2405 2348 552 594 603 599 (Source: LPS SIMS) While total (PK - 12) enrollment (at 6,524 as of October 1, 2025) is down for the 4th year in row, there are important variations by grade span to be noted and accounted for in our planning. This variation in enrollment, as well as variation in staffing models, student schedules, programs, facilities and other operational details, must be taken into account while planning and can be more critical than changes in overall enrollment. More information about enrollment can be found at the end of this document. Lexington Public Schools FY2027 Budget Page 16 State Benchmark Comparisons Sources: LPS SIMS & MA DESE Public Profiles Student Demographics % LPS FY2025 % State FY2025 African American/Black 4.6 10.2 Asian 46.3 7.5 Hispanic 6.1 25.9 Native American 0.0 0.2 White 34.7 51.5 Nat. Hawaiian, Pac. Islander 0.0 0.1 Multi-Race, Non-Hispanic 8.2 4.6 % LPS FY2025 % State FY2025 First Language not English 34.0 27.2 English Language Learner 7.6 13.9 Low-Income 9.8 42.1 Spec. Education (In- & Out-of-District) 14.7 20.6 Student/Teacher Ratio Lexington Public Schools FY2027 Budget Page 17 10.4 to 1 11.9 to 1 Lexington Massachusetts Per Pupil Expenditures The tables below, based on the most recent available data from the Massachusetts Department of Elementary and Secondary Education (DESE), indicate Lexington’s per pupil expenditures in comparison to other local districts. While districts vary in service delivery and programs, DESE collects comparable data, enabling a relative apples-to-apples analysis. Generally, enrollment growth correlates with expenditure increases due to inflation and evolving educational needs. However, this relationship is not always linear, as efficiencies and innovative methods can affect spending. Community Total Per Pupil Expenditures 2023 Arlington $19,471.21 Brookline $26,528.27 Cambridge $38,932.89 Lexington $25,166.66 Needham $23,407.01 Newton $25,275.96 Wellesley $27,590.86 Winchester $19,014.96 This chart shows Lexington's enrollment growth places it 4th among 8 comparable districts, while its per-pupil expenditure growth ranks 7th. Newton, with significantly lower enrollment growth, has similar expenditure growth, while Brookline, with similar enrollment growth, has higher expenditure growth. This suggests Lexington is being more efficient in its per-pupil spending. Lexington Public Schools FY2027 Budget Page 18 MCAS Results Massachusetts Comprehensive Assessment System (MCAS) is an online assessment, linked to state learning standards, administered each year. A graph of select 2025 MCAS results for Lexington and comparison districts is below. Lexington Public Schools FY2027 Budget Page 19 This Page Intentionally Left Blank. Budget Overview: The Regional High School subprogram budget is for the assessment levied by the Minuteman Regional Vocational Technical School District (Minuteman) to support the operations of the School. Minuteman is a regional high school, located in Lexington and Lincoln, and provides technical and academic education for students in grades 9-12 from the Minuteman district, which includes 9 towns as of July 1, 2025, as well as out-of-district students. Minuteman’s programs include courses in Biotechnology, Environmental Science, Multi-Media Engineering, Design and Visual Communication, Engineering and Robotics Automation, Cosmetology, Early Education and Teaching, Carpentry, Culinary Arts and Hospitality, Plumbing, Electrical, Health Occupations, Horticulture, Programming and Web Development, Automotive Technology, Welding and Metal Fabrication, Advanced Manufacturing, and Veterinary Science, as well as four-year academic and college preparatory programs. In addition, adult students can pursue a variety of continuing education programs at Minuteman. Lexington’s historical enrollment at Minuteman is shown in the table below as of October 1st of each year, the date that enrollments from school districts throughout the Commonwealth are reported to the Massachusetts Department of Elementary and Secondary Education. 10/1/2020 10/1/2021 10/1/2022 10/1/2023 10/1/2024 10/1/2025 High School Students 71 68 77 82 86 102 Total 71 68 77 82 86 102 Appropriated/Authorized Staffing: No Town staff are charged to this budget. Budget Recommendations The FY2027 projected budget for the Minuteman assessment is $4,149,188, an increase of $579,706 or 16.24% from the FY2026 budget, primarily due to Lexington's increasing share of total enrollment in comparison to other member communities, as well as the annual increase in Minuteman's operating budget. The preliminary breakout of the annual assessment for FY2027 is below: Category FY2024 FY2025 FY2026 FY2027 $ Change % Change Minimum Required Contribution $ 1,310,022 $ 1,395,070 $ 1,539,304 $ 1,881,187 $ 341,883 22.2% Transportation Assessment $ 79,620 $ 85,012 $ 101,000 $ 74,338 $ (26,662) (26.4)% Remaining Operating Assessment $ 1,182,765 $ 968,913 $ 1,019,947 $ 1,243,786 $ 223,839 21.9% Capital/Debt Service $ 929,570 $ 957,399 $ 909,231 $ 949,877 $ 40,646 4.5% Total Assessment $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ 579,705 16.2% *Numbers may not add due to rounding. Additional information about Minuteman's FY2027 budget, including the recommended budget and presentation of the Superintendent, can be found on the Finance page of Minuteman's website: www.minuteman.org/departments/business-office/finance 1200 Minuteman Regional High School Program: Education Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 III-18 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActual*Actual Estimate Projected Add/Del Projected Tax Levy $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24% Total 1200 Minuteman $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24% Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActual*Actual Appropriation Request Add/Del Recommended Compensation $ — $ — $ — $ — $ — $ — $ — —% Expenses $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24% Total 1200 Minuteman $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24% Level-Service Requests FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActual*Actual Appropriation Request Add/Del Recommended Total 1200 Minuteman $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24 % Total 1200 Minuteman $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActual*Actual Appropriation Request Add/Del Recommended Salaries & Wages $ — $ — $ — $ — $ — $ — $ — —% Overtime $ — $ — $ — $ — $ — $ — $ — —% Compensation $ — $ — $ — $ — $ — $ — $ — —% Contractual Services $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24% Utilities $ — $ — $ — $ — $ — $ — $ — —% Supplies $ — $ — $ — $ — $ — $ — $ — —% Small Capital $ — $ — $ — $ — $ — $ — $ — —% Expenses $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24 % Total 1200 Minuteman $ 3,501,977 $ 3,406,395 $ 3,569,482 $ 4,149,188 $ — $ 4,149,188 $ 579,706 16.24% *The FY2024 amount has been adjusted to reflect the actual assessments for FY23-24, rather than the timing of actual payments. 1200 Minuteman Regional High School Program: Education Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 III-19 This Page Intentionally Left Blank. This section includes detailed information about the FY2027 Operating Budget & Financing Plan for shared expenses. It includes: •2100 Employee Benefits IV-3 •2200 Property & Liability Insurance IV-8 •2300 Solar Producer Payments IV-10 •2400 Debt Service IV-12 •2500 Reserve Fund IV-14 •2600 Public Facilities IV-17 •3450 Refuse & Recycling Collections for Municipal & School Buildings*V-21 *For FY2027 the Town Manager and Superintendent of Schools have agreed to share the cost of the Town's contracted Refuse and Recycling collection and disposal costs for Municipal and School buildings. For additional information on this Shared Expense see Section V-3400: Environmental Services of this Recommended Budget. Section IV: Program 2000: Shared Expenses FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-1 This Page Intentionally Left Blank. Mission: To provide and manage a comprehensive benefits program for Town and School employees and retirees. Budget Overview: Included in the Employee Benefits and Insurance program are costs for the Town’s pension assessment; workers’ compensation; unemployment insurance; health, dental and life insurance benefits; and the Medicare tax. Employee Benefits is comprised of the following: •Contributory Retirement Assessment: The assessment of the Lexington Contributory Retirement System levied to the Town to finance a portion of retirement benefits of Town and non-teaching School employees. This assessment is issued pursuant to Massachusetts General Laws (MGL) Chapter 32 and is based on an actuarial valuation of the funding obligations of the Lexington Contributory Retirement System. In addition to this assessment, employee contributions - ranging from 5% to 11% depending on date of hire - provide the majority of pension system funding. •Employee/Retiree Benefits: The Town’s annual contribution for health, dental and life insurance for active Municipal and School Department employees and retirees, and the Town’s 1.45% share of Medicare tax for all employees hired after 1986. •Unemployment Compensation: The cost of unemployment payments for eligible employees separated from Municipal or School Department employment. The Town self-insures for this expense. •Workers’ Compensation: The medical costs incurred by Municipal and School employees injured on the job, and medical costs of former public safety employees who retired on accidental disability. The Town largely self-insures for this expense, but purchases “stop loss” insurance for extraordinary work-related medical claims. The premiums for that insurance are captured in the Workers’ Compensation budget. Authorized/Appropriated Staffing: Staff support is provided through the Town Manager’s Office, Human Resources and the Finance Department. Portions of the salaries of six employees are charged to the General Fund health insurance budget. 2100 Employee Benefits & Insurance Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-3 Budget Recommendations: The FY2027 recommended All Funds Employee Benefits and Insurance budget is $57,564,749. This is a $4,090,256 or 7.65% increase from the FY2026 budget. The recommended budget includes the benefits costs (health, dental, life, Medicare, and workers’ compensation) for all municipal and school staff and retirees as of November 1, 2025. Changes Include: 1.A $778,538, or 6.76% increase in Contributory Retirement based on the approved funding schedule from the January 1, 2025 actuarial valuation of the Lexington Retirement System, plus an amount of dedicated tax levy new growth. In FY2023, $1,060,000 of new levy growth from Takeda personal property taxes was dedicated to the Pension Fund. This amount, plus an increase of 2.5% per year will continue to be set-aside to the Pension Fund in future years. The dedicated tax levy plus growth for FY2027 is $12,300,042. For FY2027, $400,000 is funded from Free Cash, which is the same level of Free Cash funding as in FY2026. The Retirement system’s unfunded liability is expected to be funded by 2030, given the current actuarial assumptions. 2.A $121,014 or 5.00% increase in the Town’s contribution for the Medicare Tax based on FY2025 actual costs, projected FY2026 and FY2027 salaries and wages and historical rates of increase in this item. 3.A $2,998,520 or 8.02% increase in health insurance costs (General Fund). The FY2027 budget is based on a projected increase of 9% in health insurance premiums across all plans at November 2025 enrollment levels, and the projected addition of eighty (80) subscribers (new enrollees to health coverage, either from new retirees, active employees electing to begin or resume coverage, and active employees switching from individual to family plans). 4.A $104,915 or 8.07% increase in dental insurance costs (General Fund) based on an 8% increase in premium rates for FY2027 as compared to budgeted FY2026 rates, further updated to reflect November 2025 enrollment levels. 5.No increase in life insurance is proposed as the current level of funding is adequate based on projected enrollments and historical costs. 6.Level-funding of unemployment insurance is level funded at $200,000, which is reflective of recent averages in claim activity. 7.A level funding of workers’ compensation costs to a total of $500,000. As of June 30, 2025, this continuing appropriation account had a total balance of $2,956,373. 2100 Employee Benefits & Insurance Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-4 Budget Summary - General Fund Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 41,862,520 $ 46,122,352 $ 52,100,446 $ 56,076,735 $ — $ 56,076,735 $ 3,976,289 7.63 % Transfers from Enterprise Funds to General Fund (Indirects)$ 611,775 $ 805,256 $ 863,256 $ 888,722 $ — $ 888,722 $ 25,466 2.95 % Free Cash for Updated Pension Schedule $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ — $ 400,000 $ — — % PEG Access Special Revenue Fund $ 5,575 $ 5,178 $ 4,991 $ 6,223 $ — $ 6,223 $ 1,232 24.68 % Total 2100 Employee Benefits $ 42,879,870 $ 47,332,786 $ 53,368,693 $ 57,371,680 $ — $ 57,371,680 $ 4,002,987 7.50 % Appropriation Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Compensation $ 163,757 $ 181,098 $ 179,264 $ 205,335 $ — $ 205,335 $ 26,071 14.54 % Expenses $ 42,716,112 $ 47,151,688 $ 53,189,429 $ 57,166,345 $ — $ 57,166,345 $ 3,976,916 7.48 % Total 2100 Employee Benefits $ 42,879,870 $ 47,332,786 $ 53,368,693 $ 57,371,680 $ — $ 57,371,680 $ 4,002,987 7.50 % Level-Service Requests (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Total 2110 Contributory Retirement $ 9,984,800 $ 10,743,076 $ 11,521,504 $ 12,300,042 $ — $ 12,300,042 $ 778,538 6.76 % Total 2130 Medicare $ 2,272,120 $ 2,387,841 $ 2,420,282 $ 2,541,296 $ — $ 2,541,296 $ 121,014 5.00 % Total 2130 Health Insurance $ 28,999,884 $ 32,466,784 $ 37,401,396 $ 40,399,916 $ — $ 40,399,916 $ 2,998,520 8.02 % Total 2130 Dental Insurance $ 1,057,196 $ 1,166,624 $ 1,300,511 $ 1,405,426 $ — $ 1,405,426 $ 104,915 8.07 % Total 2130 Life Insurance $ 16,633 $ 21,893 $ 25,000 $ 25,000 $ — $ 25,000 $ — — Subtotal - Health/Life Benefits $ 32,345,834 $ 36,043,142 $ 41,147,189 $ 44,371,638 $ — $ 44,371,638 $ 3,224,449 7.84 % Total 2140 Unemployment $ 49,236 $ 46,568 $ 200,000 $ 200,000 $ — $ 200,000 $ — — % Total 2150 Workers Compensation $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ — $ 500,000 $ — — % Subtotal - Other Employee Benefits $ 549,236 $ 546,568 $ 700,000 $ 700,000 $ — $ 700,000 $ — — % Total 2100 Employee Benefits $ 42,879,870 $ 47,332,786 $ 53,368,693 57,371,680 $ — $ 57,371,680 $ 4,002,987 7.50 % Object Code Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Salaries & Wages $ 163,757 $ 181,098 $ 179,264 $ 205,335 $ — $ 205,335 $ 26,071 14.54 % Overtime $ — $ — $ — $ — $ — $ — — Personal Services $ 163,757 $ 181,098 $ 179,264 $ 205,335 $ — $ 205,335 $ 26,071 14.54 % Contractual Services $ 42,716,112 $ 47,151,688 $ 53,189,429 $ 57,166,345 $ — $ 57,166,345 $ 3,976,916 7.48 % Utilities $ — $ — $ — $ — $ — $ — $ — — Supplies $ — $ — $ — $ — $ — $ — $ — — Small Capital $ — $ — $ — $ — $ — $ — $ — — Expenses $ 42,716,112 $ 47,151,688 $ 53,189,429 $ 57,166,345 $ — $ 57,166,345 $ 3,976,916 7.48 % Total 2100 Employee Benefits $ 42,879,870 $ 47,332,786 $ 53,368,693 $ 57,371,680 $ — $ 57,371,680 $ 4,002,987 7.50 % Budget Summary - Revolving Funds* Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Directed Funding (Revolving Funds)$ 92,131 $ 68,819 $ 105,801 $ 193,069 $ — $ 193,069 $ 87,268 82.48 % Total 2100 Employee Benefits $ 92,131 $ 68,819 $ 105,801 $ 193,069 $ — $ 193,069 $ 87,268 82.48 % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4. Level-Service Requests (Revolving Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Total 2130 Health Insurance $ 89,727 $ 66,124 $ 102,448 $ 186,498 $ — $ 186,498 $ 84,050 82.04 % Total 2130 Dental Insurance $ 2,404 $ 2,695 $ 3,353 $ 6,572 $ — $ 6,572 $ 3,219 95.98 % Total 2100 Employee Benefits $ 92,131 $ 68,819 $ 105,801 $ 193,069 $ — $ 193,069 $ 87,268 82.48 % Budget Summary - All Funds Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Compensation $ 163,757 $ 181,098 $ 179,264 $ 205,335 $ — $ 205,335 $ 26,071 14.54 % Expenses $ 42,808,243 $ 47,220,506 $ 53,295,230 $ 57,359,414 $ — $ 57,359,414 $ 4,064,185 7.63 % Total 2100 Employee Benefits $ 42,972,001 $ 47,401,605 $ 53,474,494 $ 57,564,749 $ — $ 57,564,749 $ 4,090,256 7.65 % 2100 Employee Benefits & Insurance Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-5 Focus on: Health Benefits – Line Item 2130 The cost of health insurance continues to be a concern for the Town of Lexington, as is the case with all public and private organizations in this region and across the country. Town has been successful in negotiating with the Employee Health Insurance Coalition to participate in the State’s Group Insurance Commission (GIC) health insurance program, which has helped to slow the growth of this large cost driver. The Town has an agreement with the Public Employees Committee (PEC) to remain in the GIC through June 30, 2028. The table below displays an approximate distribution of health insurance costs for Municipal and School employees and Retirees: Table 1: Health Insurance Budget: FY2022 - FY2027 FY2022 Actual FY2023 Actual FY2024 Actual FY2025 Actual FY2026 Projected FY2027 Projected Increase FY2026 to FY2027 Town (1)$ 4,148,176 $ 5,059,791 $ 5,340,948 $ 4,211,841 $ 5,697,946 $ 6,295,687 10.49% School $ 13,985,906 $ 16,244,427 $ 17,475,695 $ 14,242,734 $ 22,060,557 $ 23,635,355 7.14% Retirees $ 7,233,013 $ 8,175,329 $ 8,718,255 $ 7,496,451 $ 9,572,796 $ 10,402,529 8.67% Total $ 25,367,096 $ 29,479,547 $ 31,534,898 $ 25,951,026 $ 37,331,300 $ 40,333,571 8.04% Medicare Part B Penalty (2)$ 77,917 $ 74,935 $ 77,917 $ 66,345 $ 70,097 $ 66,345 (5.35)% Net Budget Amount $ 25,445,013 $ 29,554,482 $ 31,612,815 $ 26,017,371 $ 37,401,396 $ 40,399,916 8.02% (1) Portion of salaries attributable to health insurance administration is inclusive in these figures. (2) Medicare Part B Penalty is the penalty the Town must pay due to deferred migration of retirees from active plans to Medicare supplement plans. 2100 Employee Benefits & Insurance Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-6 The table below shows the number of employees and retirees enrolled in the Town’s health insurance program. Table 2: Health Insurance Enrollments (1) Actual Subscribers FY2026 Budget FY2027 Budget Based on Actual Subscribers, plus Additional Projected Lives shown below Subscribers Nov. 2021 (FY2022)Nov. 2022 (FY2023)Nov. 2023 (FY2024)Nov. 2024 (FY2025)Nov. 2025 (FY2026) Municipal Individual 110 105 116 113 126 Family 172 166 156 145 140 subtotal 282 271 272 258 266 School Individual 376 374 371 412 373 Family 536 520 544 571 554 subtotal 912 894 915 983 927 Retirees 1,338 1,372 1,391 1,414 1,421 subtotal 2,532 2,537 2,578 2,655 2,614 Additional projected lives for budget purposes Position Vacancies Municipal 7 7 School 19 19 subtotal 26 26 Estimated Open Enrollment / Qualifying Events (2) Individual 9 9 Family 27 27 Retirees 44 44 subtotal 80 80 total 2,532 2,537 2,578 2,761 2,720 New Positions School (3)0 0 Municipal (3)5 0 Facilities Dept.0 0 subtotal 5 0 Estimated Reduction in Subscribers Retirees (34)(34) total 2,532 2,537 2,578 2,732 2,686 (1) The subscriber counts above do not include COBRA subscribers, but include employees whose salaries and benefits are funded either fully or partially from non-General Fund sources. (2) The projection shown under open enrollment / qualifying events is based on an assumption of current employees losing coverage on their spouse's plans, and changes in marital status or dependent status. (3) Based on the budgets as recommended by the School Committee and Select Board and assumes that each full-time equivalent will subscribe to Town's insurance. The cost is estimated at a composite rate based on school and municipal personnel enrollment. 2100 Employee Benefits & Insurance Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-7 Mission: To provide and manage a comprehensive property and liability management program for all property and equipment in the Town. Budget Overview: The property and liability management program consists of the following elements: •Property and Liability Insurance: The cost of premiums for policies that: (1) protect the Town against property loss and damage; (2) insure the Town’s vehicles; and (3) cover the Town against liability claims. •Uninsured Losses: A continuing balance account for uninsured property losses, settlements and deductibles contained in various insurance policies. Authorized/Appropriated Staffing: A portion of the Deputy Town Manager’s salary is charged to this line item in recognition of the ongoing support provided. Budget Recommendations: The FY2027 overall recommendation for Property and Liability Insurance is $1,653,542, which is a 11.90% increase from the FY2026 appropriation. 1.Property and liability insurance premiums are projected to increase by $175,846 or 13.76%. 2.The budget is level funded for uninsured losses. The balance in this continuing balance account as of June 30, 2025, is $1,118,573. Staff recommend a guideline of maintaining a fund balance of approximately $1 million. 2200 Property & Liability Insurance Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-8 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 1,191,806 $ 1,352,990 $ 1,447,746 $ 1,622,708 $ — $ 1,622,708 $ 174,962 12.09 % Transfers from Enterprise Funds to General Fund (Indirects)$ 25,039 $ 30,137 $ 29,950 $ 30,834 $ — $ 30,834 $ 884 2.95 % Total 2200 Property & Liability Insurance $ 1,216,845 $ 1,383,127 $ 1,477,696 $ 1,653,542 $ — $ 1,653,542 $ 175,846 11.90 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 41,220 $ 44,233 $ 43,639 $ 48,076 $ — $ 48,076 $ 4,437 10.17 % Expenses $ 1,175,624 $ 1,338,893 $ 1,434,057 $ 1,605,466 $ — $ 1,605,466 $ 171,409 11.95 % Total 2200 Property & Liability Insurance $ 1,216,845 $ 1,383,127 $ 1,477,696 $ 1,653,542 $ — $ 1,653,542 $ 175,846 11.90 % Level-Service Requests FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Total 2210 Property & Liability Insurance $ 1,016,845 $ 1,183,127 $ 1,277,696 $ 1,453,542 $ — $ 1,453,542 $ 175,846 13.76 % Total 2220 Uninsured Losses $ 200,000 $ 200,000 $ 200,000 $ 200,000 $ — $ 200,000 $ — — Total 2200 Property & Liability Insurance $ 1,216,845 $ 1,383,127 $ 1,477,696 $ 1,653,542 $ — $ 1,653,542 $ 175,846 11.90 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 41,220 $ 44,233 $ 43,639 $ 48,076 $ — $ 48,076 $ 4,437 10.17 % Overtime $ — $ — $ — $ — $ — $ — $ — — Compensation $ 41,220 $ 44,233 $ 43,639 $ 48,076 $ — $ 48,076 $ 4,437 10.17 % Contractual Services $ 1,175,624 $ 1,338,893 $ 1,434,057 $ 1,605,466 $ — $ 1,605,466 $ 171,409 11.95 % Utilities $ — $ — $ — $ — $ — $ — $ — — Supplies $ — $ — $ — $ — $ — $ — $ — — Small Capital $ — $ — $ — $ — $ — $ — $ — — Expenses $ 1,175,624 $ 1,338,893 $ 1,434,057 $ 1,605,466 $ — $ 1,605,466 $ 171,409 11.95 % Total 2200 Property & Liability Insurance $ 1,216,845 $ 1,383,127 $ 1,477,696 $ 1,653,542 $ — $ 1,653,542 $ 175,846 11.90 % 2200 Property & Liability Insurance Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-9 Mission: To provide obligated payments for the installation and operating costs of the solar array at the Hartwell Avenue Compost Facility. Budget Overview: For the solar arrays installed at the Hartwell Avenue Compost Facility, Eversource elected to reimburse the Town for the solar power generated via monthly payments, rather than issue a credit on the Town’s electric bills. For the rooftop solar panels on Town and School buildings, that energy is credited in the monthly bill, thereby reducing utility costs at the Department of Public Facilities. As a means of separately tracking the Hartwell Avenue arrangement, this budget division reflects: •Net Metering Credits: The revenues received from Eversource in return for solar power generated at Hartwell Avenue. Any excess revenues are deposited into the General Fund. •Solar Producer Payments: The annual amount paid to Syncarpha, the current owner of the solar panels, for the cost of construction and operating costs. Authorized/Appropriated Staffing: No direct staff is charged to this line-item. Staff support is provided through the Public Facilities, Town Manager and Finance departments. Budget Recommendations: The FY2027 overall recommendation for Solar Producer Payments is $390,000, which is level-funded from the FY2026 appropriation. 2300 Solar Producer Payments Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-10 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ (471,743) $ (556,229) $ (440,000) $ (479,000) $ — $ (479,000) $ (39,000) 8.86 % Net-Metering Credits $ 823,246 $ 920,511 $ 830,000 $ 869,000 $ — $ 869,000 $ 39,000 4.70 % Total 2300 Solar Producer Payments $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Total 2300 Solar Producer Payments $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Level-Service Requests FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 2300 Solar Producer Payments $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Total 2300 Solar Producer Payments $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ — $ — $ — $ — $ — $ — $ — — % Overtime $ — $ — $ — $ — $ — $ — $ — — % Compensation $ — $ — $ — $ — $ — $ — $ — — % Contractual Services $ — $ — $ — $ — $ — $ — $ — — % Utilities $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Supplies $ — $ — $ — $ — $ — $ — $ — — % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Total 2300 Solar Producer Payments $ 351,503 $ 364,281 $ 390,000 $ 390,000 $ — $ 390,000 $ — — % Summary of Townwide Solar Credits and Expenses FY2021 Actual FY2022 Actuals FY2023 Actuals FY2024 Actuals*FY2025 Actuals*FY2026 Estimate FY2027 Estimate Rooftop Solar Bill Credits $ 308,738 $ 336,046 $ 462,635 $ 330,000 $ 330,000 $ 330,000 $ 330,000 Rooftop PILOT*$ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 Rooftop Solar Payments $ (164,249) $ (156,669) $ (161,996) $ (156,000) $ (156,000) $ (156,000) $ (156,000) Net Revenue subtotal $ 174,489 $ 209,377 $ 330,639 $ 204,000 $ 204,000 $ 204,000 $ 204,000 Hartwell Solar Revenue $ 674,298 $ 642,150 $ 841,417 $ 823,246 $ 920,511 $ 830,000 $ 830,000 Hartwell PILOT $ 55,400 $ 55,400 $ 55,400 $ 55,400 $ 55,400 $ 55,400 $ 55,400 Hartwell Annual Lease $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 Hartwell Solar Payments $ (367,694) $ (360,184) $ (340,537) $ (351,503) $ (390,000) $ (390,000) $ (390,000) Net Revenue subtotal $ 363,004 $ 338,366 $ 557,280 $ 528,143 $ 586,911 $ 496,400 $ 496,400 Total Net Revenue $ 537,493 $ 547,743 $ 887,919 $ 732,143 $ 790,911 $ 700,400 $ 700,400 *Payments in Lieu of Taxes (PILOT) are considered Personal Property taxes paid to the Town. ** FY2024-25 Expense Actuals will be finalized in the Brown Book. 2300 Solar Producer Payments Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-11 Mission: To manage the issuance of Town debt in a manner which protects assets that are required to deliver town services and yet limits large increases or decreases in annual debt service. Budget Overview: Debt service includes General Fund principal and interest payments for levy- supported (non-exempt) debt, both authorized by Town Meeting, as well as for capital projects being proposed to the 2026 Annual Town Meeting. Debt service on projects funded from the Compost Revolving Fund is shown in the DPW Budget element 3420; and debt service for Water and Sewer Enterprise projects is shown in the DPW Budget under elements 3610 and 3710, respectively. Debt Service voted to be exempt from Proposition 2½, while not appropriated by Town Meeting, is presented for informational purposes. Authorized/Appropriated Staffing: There is no direct staff charged to this line-item. Staff support for managing debt service is provided through the Finance department. Budget Recommendations: Total gross debt service is increasing by $2,591,579, or 11.68% compared to FY2026, which reflects an increase in within levy and excluded debt service. Within-Levy debt service of $6,274,815 is increasing by $291,747, or 4.88% as several mid-sized projects such as the 173 Bedford Street renovation, Pine Meadows Clubhouse, Police Station Solar Canopy and Cary Library Renovation are nearing completion. These increases are mostly offset by a decline in existing debt service as older projects are fully paid off. In recent years the Town has increased the cash capital program and accordingly reduced the authorization of new within-levy debt. Lower debt service expense reduces interest costs and creates capacity within the tax levy to fund future capital projects with cash. For FY2027, the Fire Department's ladder truck is the only capital request proposed for debt financing due to long lead times in ordering and delivery in the industry. Debt Service for the ladder truck is not projected to come due until at least FY2028, but likely later. The Town may issue new within-levy debt to meet ongoing capital needs when cash financing is not available in future years. FY2027 gross exempt debt service is projected at $18,507,288, an increase of $2,299,832, or 14.19% compared to FY2026, primarily due to the Lexington High School project. To offset this increase, $800,000 is recommended to be transferred from the Capital Stabilization Fund in FY2027. This transfer reduces the amount of debt service that will be repaid in from the tax levy. The resulting net exempt debt service is projected at $17,707,288, a 9.25% increase compared to FY2026. 2400 Debt Service Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-12 Budget Summary Funding Sources (All Funds)FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 22,757,457 $ 21,947,374 $ 21,986,649 $ 23,783,103 $ — $ 23,783,103 $ 1,796,454 8.17 % Fund Transfers Capital Stab. Fund - Exempt Debt $ 500,000 $ — $ — $ 800,000 $ — $ 800,000 $ 800,000 — % Cemetery Sale of Lots Fund $ 50,408 $ 123,000 $ 151,875 $ 147,000 $ — $ 147,000 $ (4,875) (3.21) % Betterments Fund $ 11,500 $ 1,000 $ 2,000 $ 2,000 $ — $ 2,000 $ — — % Visitors Center Stabilization Fund $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ — $ 50,000 $ — — % Total Debt Service $ 23,369,365 $ 22,121,374 $ 22,190,524 $ 24,782,103 $ — $ 24,782,103 $ 2,591,579 11.68 % Appropriation Summary (All Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 23,369,365 $ 22,121,374 $ 22,190,524 $ 24,782,103 $ — $ 24,782,103 $ 2,591,579 11.68 % Total Debt Service $ 23,369,365 $ 22,121,374 $ 22,190,524 $ 24,782,103 $ — $ 24,782,103 $ 2,591,579 11.68 % Gross Within Levy Debt Service FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 2410 Within-Levy Long-Term Principal*$ 4,806,800 $ 4,290,400 $ 3,895,500 $ 4,162,300 $ — $ 4,162,300 $ 266,800 6.85 % Total 2420 Within-Levy Long-Term Interest $ 1,160,782 $ 1,202,976 $ 1,288,057 $ 1,372,462 $ — $ 1,372,462 $ 84,405 6.55 % Total 2430 Within-Levy Short-Term Principal $ 549,644 $ — $ — $ 50,913 $ 50,913 $ 50,913 — % Total 2430 Within-Levy Short-Term Interest $ 40,491 $ 36,080 $ 799,511 $ 689,140 $ — $ 689,140 $ (110,371) (13.80) % Total Gross Within-Levy Debt Service $ 6,557,717 $ 5,529,455 $ 5,983,068 $ 6,274,815 $ — $ 6,274,815 $ 291,747 4.88 % Net Within Levy Debt Service FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 2410 Within-Levy Long-Term Principal $ 4,806,800 $ 4,290,400 $ 3,895,500 $ 4,162,300 $ — $ 4,162,300 $ 266,800 6.85 % Total 2420 Within-Levy Long-Term Interest $ 1,160,782 $ 1,202,976 $ 1,288,057 $ 1,372,462 $ — $ 1,372,462 $ 84,405 6.55 % Total 2430 Within-Levy Short-Term Borrowing $ 590,135 $ 36,080 $ 799,511 $ 740,053 $ — $ 740,053 $ (59,458) (7.44) % Funding from Cemetery Sale of Lots/Betterments/Visitors Center $ (111,908) $ (174,000) $ (203,875) $ (199,000) $ — $ (199,000) $ 4,875 (2.39) % Total Net Within-Levy Debt Service $ 6,445,809 $ 5,355,455 $ 5,779,193 $ 6,075,815 $ — $ 6,075,815 $ 296,622 5.13 % Exempt Debt Service FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total Exempt Debt Service $ 16,811,648 $ 16,591,919 $ 16,207,456 $ 18,507,288 $ — $ 18,507,288 $ 2,299,832 14.19 % Mitigation/Reduction of Exempt Debt Service using the Capital Stabilization Fund $ (500,000) $ — $ — $ (800,000) $ — $ (800,000) $ (800,000) — % Net Exempt Debt Service $ 16,311,648 $ 16,591,919 $ 16,207,456 $ 17,707,288 $ — $ 17,707,288 $ 1,499,832 9.25 % Total Gross Debt Service - All Funds $ 23,369,365 $ 22,121,374 $ 22,190,524 $ 24,782,103 $ — $ 24,782,103 $ 2,591,579 11.68 % Total Net Debt Service - All Funds $ 22,757,457 $ 21,947,374 $ 21,986,649 $ 23,783,103 $ — $ 23,783,103 $ 1,796,454 8.17 % 2400 Debt Service Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-13 Mission: To provide for extraordinary and unforeseen expenses. Budget Overview: The Reserve Fund (General Fund) is under the jurisdiction of the Appropriation Committee. Funds may be utilized for extraordinary and/or unforeseen expenses in any given fiscal year. If not utilized, the budget in this account reverts to Free Cash at the end of the fiscal year. Authorized/Appropriated Staffing: There is no direct staff charged to this line item. Staff support is provided through the Town Manager and Finance departments. Budget Recommendations: The FY2027 recommendation for the Reserve Fund is $1,000,000, which is increased by $150,000 compared to the FY2026 appropriation. Notes: In FY2021 through FY2024 budgets for the Reserve Fund were $750,000 in each year, increasing to $850,000 in FY2025 and FY2026. •In August 2024, $60,000 was transferred to the Recreation Department to address irrigation equipment issues at Pine Meadows Golf Course. An equal amount was transferred back to the Reserve Fund from the Recreation Enterprise Fund at 2025 Annual Town Meeting. •In FY2023 the full $750,000 was transferred to fund the purchase and installation of public safety communication equipment that was incompatible with the more modern technology at the temporary and new Police Station sites. Town Meeting subsequently appropriated an additional $500,000 to replenish the Reserve Fund at the Fall 2022-3 Special Town Meeting. •In FY2022, $174,000 was transferred to the Recreation Department to address a drainage issue at Pine Meadows Golf Course. An equal amount was transferred back to the Reserve Fund from the Enterprise Fund at annual Town Meeting. •In FY2021, $15,000 was transferred to the Conservation Division to allow them to respond to a Letter of Map Revision from the Town of Belmont. 2500 Reserve Fund Program: Shared Expenses Town of Lexington, Massachusetts FY2027 Preliminary Budget & Financing Plan January 23, 2026 III-14 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Total 2500 Reserve Fund $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ — $ — $ — $ — $ — $ — $ — — % Expenses $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Total 2500 Reserve Fund $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Level-Service Requests FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 2500 Reserve Fund $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Total 2500 Reserve Fund $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ — $ — $ — $ — $ — $ — $ — — % Overtime $ — $ — $ — $ — $ — $ — $ — — % Compensation $ — $ — $ — $ — $ — $ — $ — — % Contractual Services $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Utilities $ — $ — $ — $ — $ — $ — $ — — % Supplies $ — $ — $ — $ — $ — $ — $ — — % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % Total 2500 Reserve Fund $ — $ — $ 850,000 $ 1,000,000 $ — $ 1,000,000 $ 150,000 17.65 % 2500 Reserve Fund Program: Shared Expenses Town of Lexington, Massachusetts FY2027 Preliminary Budget & Financing Plan January 23, 2026 III-15 This Page Intentionally Left Blank. Mission: The mission of the Department of Public Facilities is to manage the efficient operation and maintenance of Town buildings, preserve the facility and equipment assets of the Town, and plan and implement capital improvements. This mission is accomplished by establishing appropriate services in support of building users, fostering continuous improvement in delivery of services, and establishing a five-year capital plan in collaboration with the Permanent Building Committee and other Town committees. Budget Overview: The Department of Public Facilities (DPF) is responsible for the coordination and care of all Town-owned buildings inclusive of those under the control of the Town Manager, Library Trustees, Recreation Committee, and School Committee. The primary areas of service include custodial care and cleaning, building maintenance and repair (including preventative maintenance), utilities, and landscaping and grounds (school buildings only). The DPF administrative staff develops and implements the maintenance programs that provide services for the Town buildings. In addition, the DPF Capital Budget and the Building Rental Revolving Fund are managed by DPF staff. Departmental Initiatives: 1.Working closely with the School Department, students, elected officials, committees and the citizens on the development and construction of a new Lexington High School project. 2.Support implementation of Town solar integration projects. 3.Continue to develop and refine a 10 year construction schedule 4.Incorporate the recommendations from the 20-year capital plan into the 5-year capital plan. 2600 Public Facilities Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-17 2600 Public Facilities Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-18 Authorized/Appropriated Staffing School Facilities 2610 FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Maintenance Staff 12 12 12 12 Custodian 54 54 54 54 Subtotal FTE 66 66 66 66 Municipal Facilities 2620 Custodian 12 12 12 12 Subtotal FTE 12 12 12 12 Shared Facilities 2630 Director of Public Facilities 1 1 1 1 Assistant Director of Public Facilities 1 1 1 1 Superintendent of Custodial Services 1 1 1 1 Project Manager 1 1 1 1 Facility Superintendent 1 1 1 1 Facility Engineer 1 1 1 1 Event Manager/AV Tech 1 1 1 1 LHS Facility Manager 1 1 1 1 Office Manager 1 1 1 1 Admin. Asst. - Facility Coordinator 1 1 1 1 Admin. Asst. - Clerical/Rental Administrator 1 1 1 1 Data Analyst 1 1 1 1 Subtotal FTE 12 12 12 12 Total FTE 90 90 90 90 2600 Public Facilities Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-19 Budget Recommendations: The FY2027 recommended All Funds Department of Public Facilities budget inclusive of the General Fund operating budget and the Building Rental Revolving Fund is $16,212,940. The recommended budget is a $376,725, or 2.38% increase from the FY2026 budget. The Department of Public Facilities FY2027 recommended General Fund operating budget, inclusive of the Education Facilities, Municipal Facilities and Shared Facilities divisions, is $15,530,142, which is a $340,970, or 2.24% increase from the FY2026 General Fund budget. The General Fund operating budget for Compensation is $7,472,720, and reflects a $292,314 or 4.07% increase, which provides contractually obligated and projected step increases and cost of living increases, and market adjustments that were identified during the recent Class and Compensation Study. All staff in the DPF Administration division belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The General Fund operating budget for Expenses is $8,057,422 and reflects a $48,656, or 0.61% increase. This reflects an overall increase in the cost of utilities, contract labor, cleaning materials and other supplies. For FY2027, Utilities are decreasing by $(18,424) or (0.41)% which reflects a decrease in projected natural gas costs, offsetting an increase in electricity. The Facilities Department continues to review natural gas usage in Municipal and School buildings as several have converted to be all electric in recent years. Utility Summary FY2024 Actual FY2025 Actual FY2026 Appropriation FY2027 Request Change % Electricity $ 2,588,256 $ 2,996,694 $ 3,395,114 $ 3,386,520 $ 16,406 0.5% School Usage (kwh) 7,673,992 8,753,398 8,320,240 8,930,326 610,086 7.3% Town Usage (kwh) 3,422,124 3,938,820 3,875,115 3,578,516 (296,599) (7.7)% Natural Gas $ 777,179 $ 819,980 $ 897,501 $ 909,406 $ 11,905 1.3% School Usage (thm) 460,478 485,851 549,317 446,606 (102,711) (18.7)% Town Usage (thm) 92,783 82,242 131,508 84,863 (46,645) (35.5)% Water/Sewer $ 86,648 $ 101,224 $ 110,500 $ 111,050 $ 550 0.5% The FY2027 Facilities Department recommended Building Rental Revolving Fund budget is $682,798, an increase of $35,754 or 5.53%, which is attributable to increases in wages, staff overtime and benefits charged to this account. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses)Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Garage Door Maintenance $ 35,000 $ — $ 35,000 $ 35,000 $ — $ 35,000 $ — 2600 Public Facilities Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-20 Budget Summary - General Fund Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 13,985,292 $ 14,032,172 $ 15,065,847 $ 15,519,681 $ (115,000) $ 15,404,681 $ 338,834 2.25 % Connected Solutions $ — $ 30,585 $ 100,000 $ 100,000 $ — $ 100,000 $ — — % PEG Special Revenue Fund $ 21,212 $ 22,285 $ 23,325 $ 25,461 $ — $ 25,461 $ 2,136 9.16 % Total 2600 - Gen'l Fund $ 14,006,504 $ 14,085,042 $ 15,189,172 $ 15,645,142 $ (115,000) $ 15,530,142 $ 340,970 2.24 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 6,238,598 $ 6,812,008 $ 7,180,406 $ 7,472,720 $ — $ 7,472,720 $ 292,314 4.07 % Expenses $ 7,767,906 $ 7,242,449 $ 8,008,766 $ 8,172,422 $ (115,000) $ 8,057,422 $ 48,656 0.61 % Total 2600 - Gen'l Fund $ 14,006,504 $ 14,054,457 $ 15,189,172 $ 15,645,142 $ (115,000) $ 15,530,142 $ 340,970 2.24 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase 2610 - Education Facilities $ 10,167,898 $ 9,826,242 $ 10,243,252 $ 10,897,978 $ (75,000) $ 10,822,978 $ 579,726 5.66 % 2620 - Municipal Facilities $ 2,365,501 $ 2,745,352 $ 3,372,696 $ 3,131,236 $ (15,000) $ 3,116,236 $ (256,460) (7.60) % 2630 - Shared Facilities $ 1,473,105 $ 1,482,863 $ 1,573,224 $ 1,615,928 $ (25,000) $ 1,590,928 $ 17,704 1.13 % Total 2600 - Gen'l Fund $ 14,006,504 $ 14,054,457 $ 15,189,172 $ 15,645,142 $ (115,000) $ 15,530,142 $ 340,970 2.24 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ 5,885,418 $ 6,327,288 $ 6,775,651 $ 6,988,719 $ — $ 6,988,719 $ 213,068 3.14 % Overtime $ 353,180 $ 484,721 $ 404,755 $ 484,001 $ — $ 484,001 $ 79,246 19.58 % Personal Services $ 6,238,598 $ 6,812,008 $ 7,180,406 $ 7,472,720 $ — $ 7,472,720 $ 292,314 4.07 % Contractual Services $ 2,328,448 $ 2,074,083 $ 2,094,700 $ 2,197,063 $ (65,000) $ 2,132,063 $ 37,363 1.78 % Utilities $ 3,475,846 $ 4,025,824 $ 4,542,840 $ 4,549,416 $ (25,000) $ 4,524,416 $ (18,424) (0.41) % Supplies $ 1,342,597 $ 955,841 $ 1,080,226 $ 1,125,760 $ — $ 1,125,760 $ 45,534 4.22 % Small Capital $ 621,014 $ 186,700 $ 291,000 $ 300,183 $ (25,000) $ 275,183 $ (15,817) (5.44) % Expenses $ 7,767,906 $ 7,242,449 $ 8,008,766 $ 8,172,422 $ (115,000) $ 8,057,422 $ 48,656 0.61 % Total 2600 - Gen'l Fund $ 14,006,504 $ 14,054,457 $ 15,189,172 $ 15,645,142 $ (115,000) $ 15,530,142 $ 340,970 2.24 % Budget Summary - Non-General Funds Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Building Rental Revolving Fund $ 732,969 $ 801,200 $ 647,043 $ 682,797 $ — $ 682,797 $ 35,754 5.53 % Total 2600 - Non-Gen'l Fund $ 732,969 $ 801,200 $ 647,043 $ 682,797 $ — $ 682,797 $ 35,754 5.53 % *PEG revenues are tied to spending. For overall revenue, see Select Board budget presentation. Appropriations Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Building Rental Revolving Fund $ 550,109 $ 437,803 $ 647,043 $ 682,797 $ — $ 682,798 $ 35,754 5.53 % Personal Services $ 315,988 $ 337,180 $ 427,344 $ 439,627 $ — $ 439,627 $ 12,283 2.87 % Expenses $ 217,716 $ 83,194 $ 198,000 $ 222,000 $ — $ 222,000 $ 24,000 12.12 % Benefits $ 16,406 $ 17,429 $ 21,699 $ 21,171 $ — $ 21,171 $ (528) (2.43) % Total 2600 - Non-Gen'l Fund $ 550,109 $ 437,803 $ 647,043 $ 682,797 $ — $ 682,797 $ 35,754 5.53 % Budget Summary - All Funds Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 6,554,586 $ 7,149,188 $ 7,607,750 $ 7,912,347 $ — $ 7,912,347 $ 304,597 4.00 % Expenses $ 7,985,621 $ 7,325,642 $ 8,206,766 $ 8,394,422 $ (115,000) $ 8,279,422 $ 72,656 0.89 % Benefits $ 16,406 $ 17,429 $ 21,699 $ 21,171 $ — $ 21,171 $ (528) (2.43) % Total 2600 (All Funds)$ 14,556,613 $ 14,492,260 $ 15,836,215 $ 16,327,939 $ (115,000) $ 16,212,940 $ 376,725 2.38 % 2600 Public Facilities Program: Shared Expenses Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IV-21 This Page Intentionally Left Blank. Section V: Program 3000: Public Works This section includes detailed information about the FY2027 Operating Budget & Financing Plan for the Department of Public Works (DPW). It includes: •3000-3500 DPW Summary V-2 •3100 DPW Administration & Engineering V-7 •3200 Highway V-12 •3300 Public Grounds V-16 •3400 Environmental Services V-21 •3600 Water Enterprise V-26 •3700 Sewer Enterprise V-30 FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-1 Mission: The Department of Public Works (DPW) is a professional team dedicated to enhancing the quality of life in Lexington and supporting the Town's core values. We make every effort to maximize the efficient, effective use of our resources in the support, maintenance and upkeep of the infrastructure, public lands and programs. We are committed to public safety and providing prompt, courteous, quality service to our customers and each other. Budget Overview: The Public Works program contains all ten DPW divisions. The services provided by Public Works include the maintenance, repair, and construction of the Town's infrastructure, roads, equipment, and property. The DPW is responsible for 284 lane miles of road, 154 miles of water mains, 34 miles of trunk sewer lines, 119 miles of street sewer lines, 4,700 catch basins, 160 pieces of equipment, 9 parks, 4 cemeteries, and the 5.5 mile-long Jack Eddison Memorial Bikeway. Public Works supports Town functions through the maintenance and repair of facilities such as playing fields and the bikeway. This program also includes the Town's water and sewer operations, which function as separate enterprise funds and are shown in separate enterprise budgets. Along with the day-to-day duties of DPW staff, many are also actively involved or work with Town committees. Those committees include the Permanent Building Committee, the Tree Committee, the Center Committee, the Water and Sewer Abatement Board, the Capital Expenditures Committee, the Appropriation Committee, the Transportation Safety Group, the Bicycle Advisory Committee, the Commission on Disabilities, the Monuments and Memorials Committee, Sustainable Lexington Committee, the Noise Advisory Committee and the Recreation Committee. Committee members and staff also work collaboratively on internal committees and teams. Departmental Initiatives: 1. Coordinate Administrative and Operations functions to maintain a functionally efficient organization. 2. Continue to research, test and implement new technologies to improve efficiencies. 3. Ensure staff accessibility and participation for training and advancement opportunities. 3000-3500 DPW Summary Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-2 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Department of Public Works - General Fund Director of Public Works 1 1 1 1 Manager of Operations 1 1 1 1 Management Analyst 1 1 1 1 Office Manager 1 1 1 1 Department Account Assistants*2.6 2.6 2.6 2.6 Department Assistant - Pub Grounds/Cemetery 1 1 1 1 Department Lead Assistant 1 1 1 1 Town Engineer 1 1 1 1 Assistant Town Engineer 1 1 1 1 Senior Civil Engineers 4 4 4 4 Engineering Assistants/Inspectors 2 2 2 2 Engineering Aide 0.7 0.7 0.7 0.7 Supt. of Equipment, Highways & Drains 1 1 1 1 Highway Foreman 1 1 1 1 Crew Chief 6 6 6 6 Heavy Equipment Operators 16 16 16 16 Information Coordinator 1 1 1 1 Seasonal Laborers 1.1 1.1 1.1 1.1 Equipment Foreman 1 1 1 1 Mechanic 4 4 4 4 Superintendent of Public Grounds 1 1 1 1 Asst. Supt. of Public Grounds**—1 1 1 Leadmen 7 7 7 7 Arborists 3 3 3 3 Cemetery Foreman 1 1 1 1 Department of Public Works - Compost Revolving Fund Superintendent of Environmental Services 1 1 1 1 Compost Facility Foreman 1 1 1 1 Leadman 1 1 1 1 Heavy Equipment Operator 2 2 2 2 Total FTE 65.4 66.4 66.4 66.4 Total FT/PT 62 FT/5 PT 64 FT/4 PT 64 FT/4 PT 64 FT/4 PT *One full-time Department Account Assistant is shown as 0.6 FTE from the General Fund; 0.4 FTE is charged to the Water/Sewer Enterprise Funds. **An Assistant Superintendent of Public Grounds position was created via a program improvement request in FY2025. 3000-3500 DPW Summary Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-3 Budget Recommendations: The FY2027 recommended All Funds Public Works budget inclusive of the General Fund operating budget and the Burial Containers, Compost Operations, Lexington Tree Fund and Minuteman Household Hazardous Waste revolving funds is $16,238,889. The recommended budget is a $742,206, or 4.79% increase from the FY2026 budget. The FY2027 recommended Public Works General Fund operating budget is $14,740,639, which is a $768,839, or 5.50% increase from the FY2026 General Fund budget. The General Fund operating budget for Compensation is $5,669,367, and reflects a $241,202 or 4.44% increase, which is attributable to the cost of contractually obligated step increases and cost of living adjustments. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. The General Fund operating budget for Expenses is $9,071,272 and reflects a $527,637 or 6.18% increase. The combined FY2027 recommended Revolving Fund budgets (see page V-6) are $1,498,250 which is a $(191,633) or (11.34)% decrease from the FY2026 budget. Please see the division sections on the following pages for a detailed explanation of the FY2027 budget changes. Program Improvement Requests: None requested. 3000-3500 DPW Summary Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-4 Budget Summary: Funding Sources (General Fund)FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 10,525,593 $ 11,991,755 $ 12,683,588 $ 13,744,797 $ (128,070) $ 13,616,727 $ 933,139 7.36 % Enterprise Funds (Indirects)$ 519,198 $ 614,351 $ 633,912 $ 652,612 $ — $ 652,612 $ 18,700 2.95 % Fees, Charges and Available Funds Parking Fund $ — $ — $ 39,000 $ 39,000 $ — $ 39,000 $ — — % ARPA Funds $ — $ — $ 165,000 $ — $ — $ — $ (165,000) (100.00) % Cemetery Trust $ 130,898 $ 170,662 $ 100,000 $ 100,000 $ — $ 100,000 $ — — % Cemetery Prep Fees $ 324,748 $ 354,724 $ 298,000 $ 280,000 $ — $ 280,000 $ (18,000) (6.04) % Misc. Charges for Service $ 192 $ 42 $ 200 $ 200 $ — $ 200 $ — — % Licenses & Permits $ 59,792 $ 51,842 $ 52,100 $ 52,100 $ — $ 52,100 $ — — % Total 3100-3500 DPW Gen'l Fund $ 11,560,421 $ 13,183,377 $ 13,971,800 $ 14,868,709 $ (128,070) $ 14,740,639 $ 768,839 5.50 % Appropriation Summary (General Fund)FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 4,883,018 $ 5,288,647 $ 5,428,165 $ 5,732,313 $ (62,946) $ 5,669,367 $ 241,202 4.44 % Expenses $ 6,677,403 $ 7,894,729 $ 8,543,635 $ 9,136,396 $ (65,124) $ 9,071,272 $ 527,637 6.18 % Total 3100-3500 DPW Gen'l Fund $ 11,560,421 $ 13,183,377 $ 13,971,800 $ 14,868,709 $ (128,070) $ 14,740,639 $ 768,839 5.50 % Program Summary (General Fund)FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Total 3110 Administration $ 786,714 $ 842,181 $ 881,368 $ 932,041 $ — $ 932,041 $ 50,673 5.75 % Total 3120 Town Engineering $ 1,012,880 $ 1,206,206 $ 1,220,210 $ 1,343,198 $ (4,000) $ 1,339,198 $ 118,988 9.75 % Total 3130 Street Lighting $ 167,412 $ 188,451 $ 190,000 $ 189,900 $ — $ 189,900 $ (100) (0.05) % Total 3210 Highway $ 1,513,529 $ 1,414,613 $ 1,705,224 $ 1,739,290 $ (21,000) $ 1,718,290 $ 13,066 0.77 % Total 3220 Equipment Maint.$ 930,756 $ 1,016,932 $ 1,024,781 $ 1,041,359 $ — $ 1,041,359 $ 16,578 1.62 % Total 3230 Snow Removal $ 1,122,072 $ 1,666,331 $ 1,633,977 $ 1,694,977 $ (25,000) $ 1,669,977 $ 36,000 2.20 % Total 3310 Parks $ 1,445,245 $ 1,819,611 $ 1,760,735 $ 1,860,250 $ (7,000) $ 1,853,250 $ 92,515 5.25 % Total 3320 Forestry $ 436,535 $ 456,228 $ 578,422 $ 628,427 $ (58,946) $ 569,481 $ (8,941) (1.55) % Total 3330 Cemetery $ 381,044 $ 453,210 $ 459,348 $ 481,171 $ — $ 481,171 $ 21,823 4.75 % Total 3410 Refuse Collection $ 1,390,417 $ 1,376,116 $ 1,437,563 $ 1,520,467 $ — $ 1,520,467 $ 82,904 5.77 % Total 3420 Recycling $ 1,675,580 $ 2,048,284 $ 2,300,418 $ 2,617,261 $ (2,000) $ 2,615,261 $ 314,843 13.69 % Total 3430 Refuse Disposal $ 698,237 $ 695,216 $ 779,754 $ 820,368 $ (10,124) $ 810,244 $ 30,490 3.91 % Total 3100-3500 DPW Gen'l Fund $ 11,560,421 $ 13,183,377 $ 13,971,800 $ 14,868,709 $ (128,070) $ 14,740,639 $ 768,839 5.50 % Object Code Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 4,303,511 $ 4,526,222 $ 4,929,098 $ 5,233,246 $ (62,946) $ 5,170,300 $ 241,202 4.89 % Overtime $ 579,507 $ 762,426 $ 499,067 $ 499,067 $ — $ 499,067 $ — — % Personal Services $ 4,883,018 $ 5,288,647 $ 5,428,165 $ 5,732,313 $ (62,946) $ 5,669,367 $ 241,202 4.44 % Contractual Services $ 5,212,152 $ 6,056,698 $ 6,622,735 $ 7,159,296 $ (40,124) $ 7,119,172 $ 496,437 7.50 % Utilities $ 423,989 $ 505,169 $ 493,100 $ 505,100 $ — $ 505,100 $ 12,000 2.43 % Supplies $ 965,116 $ 1,168,775 $ 1,286,900 $ 1,329,100 $ (23,000) $ 1,306,100 $ 19,200 1.49 % Small Capital $ 76,147 $ 164,088 $ 140,900 $ 142,900 $ (2,000) $ 140,900 $ — — % Expenses $ 6,677,403 $ 7,894,729 $ 8,543,635 $ 9,136,396 $ (65,124) $ 9,071,272 $ 527,637 6.18 % Total 3100-3500 DPW Gen'l Fund $ 11,560,421 $ 13,183,377 $ 13,971,800 $ 14,868,709 $ (128,070) $ 14,740,639 $ 768,839 5.50 % 3000-3500 DPW Summary Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-5 Budget Summary - Grants & Revolving Funds* Funding Sources (Non-General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Lexington Tree Fund $ 217,571 $ 38,800 $ 210,000 $ 150,000 $ — $ 150,000 $ (60,000) (28.57) % Burial Containers $ 57,323 $ 40,490 $ 60,000 $ 60,000 $ — $ 60,000 $ — — % Compost Operations $ 881,867 $ 1,098,040 $ 1,004,883 $ 1,038,250 $ — $ 1,038,250 $ 33,367 3.32 % ARPA Grant Funds - Curbside Compost $ — $ — $ 165,000 $ — $ — $ — $ — — % Minuteman Household Hazardous Waste $ 171,732 $ 259,476 $ 250,000 $ 250,000 $ — $ 250,000 $ — — % Total 3100-3500 DPW Rev. Funds $ 1,328,493 $ 1,436,806 $ 1,689,883 $ 1,498,250 $ — $ 1,498,250 $ (191,633) (11.34) % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4. Appropriation Summary (Non-General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Tree Revolving Fund (3320) Expenses $ 70,336 $ 47,179 $ 210,000 $ 150,000 $ — $ 150,000 $ (60,000) (28.57) % Burial Containers Revolving Fund (3330) Expenses $ 26,690 $ 24,021 $ 60,000 $ 60,000 $ — $ 60,000 $ — — % Compost Operations Rev. Fund (3420)$ 940,275 $ 797,463 $ 1,004,883 $ 1,038,250 $ — $ 1,038,250 $ 33,367 3.32 % Compensation $ 360,383 $ 370,630 $ 418,455 $ 444,475 $ — $ 444,475 $ 26,020 6.22 % Expenses $ 315,730 $ 242,798 $ 307,600 $ 268,000 $ — $ 268,000 $ (39,600) (12.87) % Benefits $ 75,726 $ 2,069 $ 95,362 $ 127,839 $ — $ 127,839 $ 32,477 34.06 % Debt $ 188,436 $ 181,966 $ 183,466 $ 197,936 $ — $ 197,936 $ 14,470 7.89 % Refuse & Recycling Collection Rev. Fund (3420) Expenses $ — $ — $ — $ — $ — $ — $ — — % ARPA Grant Funds - Curbside Compost (3420) Expenses $ — $ — $ 165,000 $ — $ — $ — $ — — % Minuteman Household Hazardous Waste (3420) Expenses $ 190,685 $ 206,359 $ 250,000 $ 250,000 $ — $ 250,000 $ — — % Total 3100-3500 DPW Rev. Funds $ 1,227,984 $ 1,075,023 $ 1,689,883 $ 1,498,250 $ — $ 1,498,250 $ (191,633) (11.34) % Budget Summary - All Funds Appropriation Summary (All Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 5,243,401 $ 5,659,277 $ 5,846,620 $ 6,176,788 $ (62,946) $ 6,113,842 $ 267,222 4.57 % Expenses $ 7,280,844 $ 8,415,088 $ 9,371,235 $ 9,864,396 $ (65,124) $ 9,799,272 $ 428,037 4.57 % Benefits (Revolving Funds)$ 75,726 $ 2,069 $ 95,362 $ 127,839 $ — $ 127,839 $ 32,477 34.06 % Debt Service (Revolving Fund)$ 188,436 $ 181,966 $ 183,466 $ 197,936 $ — $ 197,936 $ 14,470 7.89 % Total 3100-3500 DPW All Funds $ 12,788,405 $ 14,258,400 $ 15,496,683 $ 16,366,959 $ (128,070) $ 16,238,889 $ 742,206 4.79 % 3000-3500 DPW Summary Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-6 Mission: This element of the budget provides executive direction and leadership to all aspects of the Department of Public Works (DPW) by promoting best management practices, administering Town policies and providing engineering support to other DPW divisions and Town departments. Budget Overview: DPW Administration includes Administration, Operations, Engineering and Street Lighting. DPW Administration Management staff plan, supervise, coordinate, schedule and direct the department's activities. Staff are responsible for preparing budgets, monitoring expenditures, developing bid specifications for DPW procurements, responding to citizens' questions and concerns, evaluating work performance, performing inspections, managing projects and scheduling work assignments. Staff also support various committees including the Permanent Building Committee, the Center Committee, the Capital Expenditures Committee, the Conservation Committee, the Bicycle Advisory Committee, the Tree Committee, and Sustainable Lexington. Division Initiatives: 1.Continue use of work order system and explore other programs that ensure the efficiency of customer response and also enhance employee skills. 2.Continue to research and implement new technologies that improve efficiency and effectiveness. 3.Maintain and create a diverse and talented workforce by utilizing improved employee recruitment processes and and continuing to promote professional growth and development of staff. 4.Continue to research and implement environmental initiatives. 3100 DPW Administration & Engineering Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-7 3100 DPW Administration & Engineering Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-8 Authorized/Appropriated StaffingAuthorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Element 3110: DPW Administration Director of Public Works 1 1 1 1 Manager of Operations 1 1 1 1 Management Analyst 1 1 1 1 Office Manager 1 1 1 1 Department Lead Assistant 1 1 1 1 Department Account Assistants*2.6 2.6 2.6 2.6 Information Coordinator**——1 1 Subtotal FTE 7.6 7.6 8.6 8.6 Subtotal FT/PT 8 FT/0 PT 8 FT/0 PT 9 FT/0 PT 9 FT/0 PT Element 3120: Engineering Town Engineer 1 1 1 1 Assistant Town Engineer 1 1 1 1 Senior Civil Engineer 4 4 4 4 Engineering Assistant 2 2 2 2 Engineering Aide 0.7 0.7 0.7 0.7 Subtotal FTE 8.7 8.7 8.7 8.7 Subtotal FT/PT 8 FT/1 PT 8 FT/1 PT 8 FT/1 PT 8 FT/1 PT Total FTE 16.3 16.3 17.3 17.3 Total FT/PT 15 FT/2 PT 15 FT/1 PT 16 FT/1 PT 16 FT/1 PT *One full-time Department Account Assistant is split between the DPW Admin, Water, and Sewer divisions. **In FY2025, the Information Coordinator was moved from the Highway division to Administration. 3100 DPW Administration & Engineering Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-9 Budget Recommendations: The FY2027 recommended All Funds Administration and Engineering budget, inclusive of the General Fund operating budgets for Administration, Engineering, and Street Lighting, is $2,461,139. The recommended budget is a $169,561 or 7.40% increase from the FY2026 budget. The recommended FY2027 Administration and Engineering General Fund operating budget is $2,461,139 which is a $169,561, or 7.40% increase from FY2026. Of this amount, $1,960,339 is for Compensation and reflects a $158,761 or 8.81% increase, which is attributable to the cost of step increases, offset by a slight decrease in seasonal staffing wages, and market adjustments that were identified during the recent Class and Compensation Study. All permanent DPW Administration & Engineering employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. The recommended FY2027 Administration and Engineering General Fund operating budget for Expenses is $500,800 and reflects a $10,800, or 2.20% increase. This net increase is due to an increase in professional services in the Engineering budget, and a decrease of $(100) or (0.05)% in the Street Lighting expense budget which realizes savings from the LED Street Light conversion. Program Improvement Requests: None requested. 3100 DPW Administration & Engineering Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-10 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 1,464,058 $ 1,736,476 $ 1,770,437 $ 1,930,167 $ (4,000) $ 1,926,167 $ 155,730 8.80 % Enterprise Funds (Indirects)$ 442,964 $ 448,477 $ 468,841 $ 482,672 $ — $ 482,672 $ 13,831 2.95 % Fees & Charges Charges for Service $ 192 $ 42 $ 200 $ 200 $ — $ 200 $ — — % Licenses & Permits $ 59,792 $ 51,842 $ 52,100 $ 52,100 $ — $ 52,100 $ — — % Parking Fund $ — $ — $ — $ — $ — $ — $ — — % Total 3100 - General Fund $ 1,967,006 $ 2,236,837 $ 2,291,578 $ 2,465,139 $ (4,000) $ 2,461,139 $ 169,561 7.40 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 1,622,476 $ 1,716,370 $ 1,801,578 $ 1,964,339 $ (4,000) $ 1,960,339 $ 158,761 8.81 % Expenses $ 344,530 $ 520,467 $ 490,000 $ 500,800 $ — $ 500,800 $ 10,800 2.20 % Total 3100 - General Fund $ 1,967,006 $ 2,236,837 $ 2,291,578 $ 2,465,139 $ (4,000) $ 2,461,139 $ 169,561 7.40 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 3110 DPW Administration $ 786,714 $ 842,181 $ 881,368 $ 932,041 $ — $ 932,041 $ 50,673 5.75 % Total 3120 Engineering $ 1,012,880 $ 1,206,206 $ 1,220,210 $ 1,343,198 $ (4,000) $ 1,339,198 $ 118,988 9.75 % Total 3130 Street Lighting $ 167,412 $ 188,451 $ 190,000 $ 189,900 $ — $ 189,900 $ (100) (0.05) % Total 3100 - General Fund $ 1,967,006 $ 2,236,837 $ 2,291,578 $ 2,465,139 $ (4,000) $ 2,461,139 $ 169,561 7.40 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ 1,617,618 $ 1,710,285 $ 1,789,178 $ 1,951,939 $ (4,000) $ 1,947,939 $ 158,761 8.87 % Overtime $ 4,858 $ 6,085 $ 12,400 $ 12,400 $ — $ 12,400 $ — — % Personal Services $ 1,622,476 $ 1,716,370 $ 1,801,578 $ 1,964,339 $ (4,000) $ 1,960,339 $ 158,761 8.81 % Contractual Services $ 197,857 $ 387,574 $ 343,600 $ 352,700 $ — $ 352,700 $ 9,100 2.65 % Utilities $ 113,425 $ 111,358 $ 102,200 $ 102,200 $ — $ 102,200 $ — — % Supplies $ 33,075 $ 21,017 $ 43,300 $ 45,000 $ — $ 45,000 $ 1,700 3.93 % Small Capital $ 172 $ 518 $ 900 $ 900 $ — $ 900 $ — — % Expenses $ 344,530 $ 520,467 $ 490,000 $ 500,800 $ — $ 500,800 $ 10,800 2.20 % Total 3100 - General Fund $ 1,967,006 $ 2,236,837 $ 2,291,578 $ 2,465,139 $ (4,000) $ 2,461,139 $ 169,561 7.40 % 3100 DPW Administration & Engineering Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-11 Mission: The Highway Division maintains the town streets, sidewalks and stormwater infrastructure, providing for the safe movement of vehicular and pedestrian traffic. The Highway Division performs minor construction repairs, snow and ice operations for roadways and sidewalks, maintains all traffic signage, traffic markings and supervises contractual service providers that perform repairs, cleaning and maintenance work. In addition, the Equipment Maintenance Division ensures the Town's fleet is operational and well maintained by performing repairs, preventive maintenance and managing the fuel management program. Budget Overview: The Highway Division includes Highway Maintenance, Equipment Maintenance and Snow Removal. •Highway Maintenance is responsible for all public streets, sidewalks, town parking lots, drainage infrastructure and brooks, performing minor construction repairs, as well as maintaining all traffic signage and traffic markings. •Equipment Maintenance is responsible for the repair and preventive maintenance of 160 vehicles, rolling stock and equipment. •Snow Removal is responsible for removing snow and treating 155 miles of roads and 62 miles of sidewalks. The Highway Division staff works with and provides support to the Sidewalk and Center Committees. Division Initiatives: 1.Continue with the repair and replacement of sidewalks based on the 2020 BETA sidewalk assessment report. 2.Continue with Municipal Separate Storm Sewer System (MS4) permitting requirements including street sweeping, catch basin cleaning, culvert cleaning, brook cleaning and stormwater best management practices. 3.Take proactive measures to clean and repair catch basins townwide. 4.Provide timely and efficient response to road hazards that arise on Town roads. 3200 Highway Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-12 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Element 3210: Highway Maintenance Supt. of Equipment, Highways & Drains 1 1 1 1 Highway Foreman 1 1 1 1 Crew Chief 2 2 2 2 Leadman 2 2 2 2 Shovel Operator 1 1 1 1 Heavy Equipment Operator 5 5 5 5 Information Coordinator**1 1 —— Seasonal Laborer 0.5 0.5 0.5 0.5 Subtotal FTE 13.5 13.5 12.5 12.5 Subtotal FT/PT 13 FT/1 PT 13 FT/1 PT 12 FT/1 PT 12 FT/1 PT Element 3220: Equipment Maintenance Equipment Foreman 1 1 1 1 Mechanic 4 4 4 4 Subtotal FTE 5 5 5 5 Subtotal FT/PT 5 FT/0 PT 5 FT/0 PT 5 FT/0 PT 5 FT/0 PT Total FTE 18.5 18.5 17.5 17.5 Total FT/PT 18 FT/1 PT 18 FT/1 PT 17 FT/1 PT 17 FT/1 PT **In FY2025, the Information Coordinator was moved from the Highway division to Administration. 3200 Highway Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-13 Budget Recommendations: The FY2027 recommended Highway budget inclusive of the Highway Maintenance, Equipment Maintenance and Snow Removal divisions is $4,429,626. The recommended budget is a $65,644, or 1.50%, increase from the FY2026 budget. The budget for Compensation is $1,692,626, and reflects an increase of $59,444 or 3.64%, which is attributable to the cost of contractually obligated step increases and cost of living adjustments in the contract with Public Works staff. The budget for Expenses is $2,737,000 and reflects a $6,200 or 0.23% increase which is due to an increase in EV charger costs, vehicle parts and supplies, contract services, and plow contract costs, offset by a decrease in gasoline/diesel costs and targeted reductions in supplies and materials. Program Improvement Requests: None requested. 3200 Highway Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-14 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 3,490,123 $ 4,028,964 $ 4,259,783 $ 4,369,504 $ (46,000) $ 4,323,504 $ 63,721 1.50 % Enterprise Funds (Indirects)$ 76,234 $ 68,911 $ 65,199 $ 67,122 $ — $ 67,122 $ 1,923 2.95 % Fees & Charges Parking Fund $ — $ — $ 39,000 $ 39,000 $ — $ 39,000 $ — — % Total 3200 Highway $ 3,566,357 $ 4,097,875 $ 4,363,982 $ 4,475,626 $ (46,000) $ 4,429,626 $ 65,644 1.50 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 1,540,345 $ 1,663,427 $ 1,633,182 $ 1,692,626 $ — $ 1,692,626 $ 59,444 3.64 % Expenses $ 2,026,012 $ 2,434,448 $ 2,730,800 $ 2,783,000 $ (46,000) $ 2,737,000 $ 6,200 0.23 % Total 3200 Highway $ 3,566,357 $ 4,097,875 $ 4,363,982 $ 4,475,626 $ (46,000) $ 4,429,626 $ 65,644 1.50 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 3210 Highway Maintenance $ 1,513,529 $ 1,414,613 $ 1,705,224 $ 1,739,290 $ (21,000) $ 1,718,290 $ 13,066 0.77 % Total 3220 Equipment Maintenance $ 930,756 $ 1,016,932 $ 1,024,781 $ 1,041,359 $ — $ 1,041,359 $ 16,578 1.62 % Total 3230 Snow Removal $ 1,122,072 $ 1,666,331 $ 1,633,977 $ 1,694,977 $ (25,000) $ 1,669,977 $ 36,000 2.20 % Total 3200 Highway $ 3,566,357 $ 4,097,875 $ 4,363,982 $ 4,475,626 $ (46,000) $ 4,429,626 $ 65,644 1.50 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ 1,235,496 $ 1,222,291 $ 1,287,542 $ 1,346,986 $ — $ 1,346,986 $ 59,444 4.62 % Overtime $ 304,849 $ 441,137 $ 345,640 $ 345,640 $ — $ 345,640 $ — — % Personal Services $ 1,540,345 $ 1,663,427 $ 1,633,182 $ 1,692,626 $ — $ 1,692,626 $ 59,444 3.64 % Contractual Services $ 1,000,002 $ 1,224,013 $ 1,352,300 $ 1,375,500 $ (25,000) $ 1,350,500 $ (1,800) (0.13) % Utilities $ 229,761 $ 266,970 $ 289,100 $ 292,100 $ — $ 292,100 $ 3,000 1.04 % Supplies $ 732,233 $ 860,692 $ 982,400 $ 1,008,400 $ (21,000) $ 987,400 $ 5,000 0.51 % Small Capital $ 64,017 $ 82,772 $ 107,000 $ 107,000 $ — $ 107,000 $ — — % Expenses $ 2,026,012 $ 2,434,448 $ 2,730,800 $ 2,783,000 $ (46,000) $ 2,737,000 $ 6,200 0.23 % Total 3200 Highway $ 3,566,357 $ 4,097,875 $ 4,363,982 $ 4,475,626 $ (46,000) $ 4,429,626 $ 65,644 1.50 % 3200 Highway Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-15 Mission: The Public Grounds Division, working with other Town Departments, user groups and concerned citizens, supports various Town services and recreational opportunities that help to preserve the Town’s green character and open spaces, and promote public safety. Through the Cemetery Division, it also serves bereaved families and provides well-maintained cemetery grounds. Budget Overview: The Public Grounds Division is comprised of the Parks, Forestry, and Cemetery functions. •The Parks staff maintain 9 parks, 12 playgrounds, 28 conservation areas, 41 athletic fields, 12 school grounds, 4 tennis facilities, 3 historical sites, the pool and reservoir complexes as well as the Town’s bicycle, fitness and conservation trails totaling approximately 630 acres. Lexington's athletic fields are used by many groups, which put excessive demands on these facilities. The new turf program has continued to make a marked improvement in the safety and playability of these fields. •The Forestry staff maintain approximately 10,000 street trees, an undetermined number of trees on Park and Conservation lands and numerous shrub bed plantings on park, cemetery, school and conservation properties and along right-of-ways. •The Cemetery staff is responsible for the administration and maintenance of four cemeteries including 21.5 acres in Westview, 6.9 acres in Munroe, 1.28 acres in Colonial and 0.5 acres in Robbins. Staff support the Recreation, Tree and Bicycle Advisory Committees. Division Initiatives: 1.Continue the implementation of a proactive park maintenance program to provide safe, well- maintained, aesthetically pleasing parks, athletic fields and public ground areas. 2.Continue to improve two turf areas per year; Clarke Baseball and Garfield Baseball are targeted for FY2027. 3.Continue to plant 140 trees in the Town Right-of-Ways, parks, public grounds areas, and setback areas on private property. 4.Continue the implementation of a proactive tree maintenance program to minimize hazard trees and perform timely tree pruning to promote good tree health, safety and aesthetics. 5.Begin using the tree inventory for Town trees. 6.Continue the GPS location of graves at Westview Cemetery and begin plans for the other cemeteries. 7.Become acclimated with using the new Westview Cemetery building. 8.Continue to develop the Green Burial program. 3300 Public Grounds Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-16 3300 Public Grounds Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-17 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Element 3310: Parks Division Budget Budget Budget Request Superintendent of Public Grounds 1 1 1 1 Asst. Supt. of Public Grounds*—1 1 1 Crew Chief 3 3 3 3 Leadman 4 4 4 4 Heavy Equipment Operator 8 8 8 8 Subtotal FTE 16 17 17 17 Subtotal FT/PT 16 FT/0 PT 17 FT/0 PT 17 FT/0 PT 17 FT/0 PT Element 3320: Forestry Division Crew Chief 1 1 1 1 Arborists 3 3 3 3 Heavy Equipment Operator**1 1 1 1 Seasonal Laborer 0.3 0.3 0.3 0.3 Subtotal FTE 5.3 5.3 5.3 5.3 Subtotal FT/PT 5 FT/1 PT 5 FT/1 PT 5 FT/1 PT 5 FT/1 PT Element 3330: Cemetery Division Cemetery Foreman 1 1 1 1 Leadman 1 1 1 1 Heavy Equipment Operator 1 1 1 1 Department Assistant 1 1 1 1 Seasonal Laborer 0.3 0.3 0.3 0.3 Subtotal FTE 4.3 4.3 4.3 4.3 Subtotal FT/PT 4 FT/1 PT 4 FT/1 PT 4 FT/1 PT 4 FT/1 PT Total FTE 25.6 26.6 26.6 26.6 Total FT/PT 25 FT/2 PT 26 FT/2 PT 26 FT/2 PT 26 FT/2 PT *In FY2025, an Assistant Superintendent of Public Grounds position was created via a program improvement. **One Heavy Equipment Operator position is recommended to be held vacant and is not funded in the FY2027 budget. Funding may resume in FY2028. 3300 Public Grounds Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-18 Budget Recommendations: The FY2027 recommended All Funds Public Grounds budget inclusive of the General Fund operating budgets for the Parks, Forestry and Cemetery divisions and the Burial Containers and Lexington Tree Fund Revolving Funds is $3,113,902, which is a $45,397 or 1.48% increase over the FY2026 budget. The combined Parks, Forestry and Cemetery FY2027 recommended General Fund operating budget is $2,903,902 which is a $105,397 or 3.77% increase from the FY2026 General Fund budget. The combined Parks, Forestry and Cemetery General Fund operating budget for Compensation is $2,016,402 and reflects a $22,997 or 1.15% increase, which is attributable to the cost of contractually obligated step increases and cost of living adjustments for Public Works staff. In FY2027, one Heavy Equipment Operator position in the Forestry division is recommended to be held vacant and is not funded in this budget. Funding may resume in FY2028. The combined Parks, Forestry and Cemetery General Fund operating budget for Expenses is $887,500 and reflects a $82,400 or 10.23% increase due to contract costs, supply and material increases, and tree service expenses. The combined FY2027 revolving fund budgets are funded at $210,000, a decrease of $(60,000), attributable to the Tree Revolving Fund. The FY2026 revolving fund budget was adjusted at Special Town Meeting to allow for a one-time expense for an Urban Forest Master Plan to be completed; the FY2027 budget returns to regular levels. Program Improvement Requests: None Requested. 3300 Public Grounds Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-19 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 1,807,178 $ 2,106,699 $ 2,300,633 $ 2,487,030 $ (65,946) $ 2,421,084 $ 120,451 5.24 % Enterprise Funds (Indirects)$ — $ 96,963 $ 99,872 $ 102,818 $ — $ 102,818 $ 2,946 2.95 % Fees & Charges Cemetery Prep Fees $ 324,748 $ 354,724 $ 298,000 $ 280,000 $ — $ 280,000 $ (18,000) -6.04 % Directed Funding Cemetery Trust $ 130,898 $ 170,662 $ 100,000 $ 100,000 $ — $ 100,000 $ — — % Total 3300 - General Fund $ 2,262,824 $ 2,729,049 $ 2,798,505 $ 2,969,848 $ (65,946) $ 2,903,902 $ 105,397 3.77 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 1,720,196 $ 1,908,850 $ 1,993,405 $ 2,075,348 $ (58,946) $ 2,016,402 $ 22,997 1.15 % Expenses $ 542,627 $ 820,199 $ 805,100 $ 894,500 $ (7,000) $ 887,500 $ 82,400 10.23 % Total 3300 - General Fund $ 2,262,824 $ 2,729,049 $ 2,798,505 $ 2,969,848 $ (65,946) $ 2,903,902 $ 105,397 3.77 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 3310 Parks Division $ 1,445,245 $ 1,819,611 $ 1,760,735 $ 1,860,250 $ (7,000) $ 1,853,250 $ 92,515 5.25 % Total 3320 Forestry $ 436,535 $ 456,228 $ 578,422 $ 628,427 $ (58,946) $ 569,481 $ (8,941) -1.55 % Total 3330 Cemetery $ 381,044 $ 453,210 $ 459,348 $ 481,171 $ — $ 481,171 $ 21,823 4.75 % Total 3300 - General Fund $ 2,262,824 $ 2,729,049 $ 2,798,505 $ 2,969,848 $ (65,946) $ 2,903,902 $ 105,397 3.77 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ 1,450,397 $ 1,593,646 $ 1,852,378 $ 1,934,321 $ (58,946) $ 1,875,375 $ 22,997 1.24 % Overtime $ 269,800 $ 315,204 $ 141,027 $ 141,027 $ — $ 141,027 $ — — % Personal Services $ 1,720,196 $ 1,908,850 $ 1,993,405 $ 2,075,348 $ (58,946) $ 2,016,402 $ 22,997 1.15 % Contractual Services $ 264,887 $ 406,732 $ 449,300 $ 508,800 $ (5,000) $ 503,800 $ 54,500 12.13 % Utilities $ 80,803 $ 126,840 $ 101,800 $ 110,800 $ — $ 110,800 $ 9,000 8.84 % Supplies $ 184,980 $ 205,829 $ 221,000 $ 239,900 $ — $ 239,900 $ 18,900 8.55 % Small Capital $ 11,958 $ 80,798 $ 33,000 $ 35,000 $ (2,000) $ 33,000 $ — — % Expenses $ 542,627 $ 820,199 $ 805,100 $ 894,500 $ (7,000) $ 887,500 $ 82,400 10.23 % Total 3300 - General Fund $ 2,262,824 $ 2,729,049 $ 2,798,505 $ 2,969,848 $ (65,946) $ 2,903,902 $ 105,397 3.77 % Budget Summary - Revolving Funds* Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Lexington Tree Fund $ 217,571 $ 38,800 $ 210,000 $ 150,000 $ — $ 150,000 $ (60,000) -28.57 % Burial Containers $ 57,323 $ 40,490 $ 60,000 $ 60,000 $ — $ 60,000 $ — — % Total 3300 - Revolving Funds $ 274,894 $ 79,290 $ 270,000 $ 210,000 $ — $ 210,000 $ (60,000) -22.22 % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4. Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Lexington Tree Revolving Fund Expenses $ 70,336 $ 47,179 $ 210,000 $ 150,000 $ — $ 150,000 $ (60,000) -28.57 % Burial Container Revolving Fund Expenses $ 26,690 $ 24,021 $ 60,000 $ 60,000 $ — $ 60,000 $ — — % Total 3300 - Revolving Funds $ 97,026 $ 71,200 $ 270,000 $ 210,000 $ — $ 210,000 $ (60,000) -22.22 % Budget Summary - All Funds Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 1,720,196 $ 1,908,850 $ 1,993,405 $ 2,075,348 $ (58,946) $ 2,016,402 $ 22,997 1.15 % Expenses $ 639,653 $ 891,400 $ 1,075,100 $ 1,104,500 $ (7,000) $ 1,097,500 $ 22,400 2.08 % Total 3300 - All Funds $ 2,359,850 $ 2,800,249 $ 3,068,505 $ 3,179,848 $ (65,946) $ 3,113,902 $ 45,397 1.48 % 3300 Public Grounds Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-20 Mission: The Environmental Services Division manages the solid waste, recyclables, yard waste and household hazardous products generated by households and municipal facilities. The Division also provides educational materials on ways to reduce solid waste, increase recycling and composting, and reduce the toxicity of the waste stream. Budget Overview: The Environmental Services Division includes Refuse Collection and Disposal, Recycling, Yard Waste and Appliance/Electronic Waste. Refuse collection is the curbside collection of non-recyclable residential solid waste and the separate collection of large appliances and yard waste. Recycling is the curbside collection of recyclable products, management of yard waste operations at the Hartwell Avenue Compost Facility, operation of the Minuteman Household Hazardous Products regional facility and curbside collection of televisions, computer monitors and other electronics (CRTs) and drop-off of corrugated cardboard. The Town entered into a 5-year contract for the collection of trash and recyclables with Capitol Waste beginning July 1, 2023 running through June 30, 2028. This budget incorporates contract prices. At the 2024 Annual Town Meeting, the Town Manager recommended, and Town Meeting voted, to create a Refuse Collection Revolving Fund which was intended to generate a fee for collection and disposal of bulky items and white goods. After further discussion and consideration, the Select Board chose not to implement a fee for this service in fiscal years 2024-2026. The cost for collection and disposal of these items remains in the Town's Refuse Collection budget at no additional cost to the user. Beginning in FY2028 the Town is planning a new model for automated collection of refuse and recycling and as part of the new model may reconsider a disposal fee large bulky items, white goods, or other surplus waste. Additional information about the Town's Refuse Collection and Recycling programs can be found in Section V: Program 3400 - Environmental Services. The Town is also currently under contract with Wheelabrator in North Andover for refuse disposal through June 30, 2025. Division Initiatives: 1.Continue to monitor the Capitol Waste contract to ensure quality and timely service. 2.Continue to support programs to divert organics and other hard-to-manage items such as mattresses, food waste, and carpet from residential trash 3.Assess markets and pricing for compost, loam, leaf, bark mulch and yard waste disposal permits. Propose increase of disposal rates and product pricing reflected in the local markets. 4.Continue to support Zero Waste activities and programs, to promote waste reduction programs at public events such as Discovery Day, community fairs and other events. 5.Continue the implementation of DPW yard/compost facility operation's plan including gate installation, security and conservation improvements. 6.Develop and implement cost effective management plan to divert organics from Lexington's municipal solid waste (MSW). 7.Continue compliance as directed by Mass DEP waste bans of mattresses, carpet and organics. 8.Continue to develop a long term plan to identify waste streams and implement waste reduction and diversion programs and explore alternative disposal options available in the future. 3400 Environmental Services Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-21 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Element 3420: Recycling* (Compost Facility) Superintendent of Environmental Services 1 1 1 1 Compost Facility Foreman 1 1 1 1 Leadman 1 1 1 1 Heavy Equipment Operator 2 2 2 2 Subtotal FTE 5 5 5 5 Subtotal FT/PT 5 FT*5 FT*5 FT*5 FT* Total FTE 5 5 5 5 Total FT/PT 5 FT 5 FT 5 FT 5 FT *The positions shown in Element 3420: Recycling are paid from the DPW Compost Revolving Fund. 3400 Environmental Services Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-22 Budget Recommendations: The recommended FY2027 All Funds Environmental Services budget inclusive of the General Fund operating budgets for the Refuse Collection, Recycling and Refuse Disposal divisions and the Compost Operations and Minuteman Household Hazardous Waste Program Revolving Funds is $6,234,222, which is a net $461,604 or 8.00% increase from the FY2026 budget. There is no Compensation in the Refuse Collection, Recycling and Refuse Disposal General Fund operating budget as all staff are funded within the Compost Operations Revolving Fund budget. The combined General Fund Refuse Collection, Recycling and Refuse Disposal operating budget for Expenses is $4,945,972 and reflects a $428,237 or 9.48% increase. The Refuse Collection expense budget is recommended at $1,520,467, an increase of $82,904 or 5.77%, and the Recycling expense budget is recommended at $2,615,261 an increase of $314,843 or 13.69%, both of which reflect the Town’s contracts for refuse and recycling collections. The Refuse Disposal expense budget is recommended at $810,244, an increase of $30,490 or 3.91%, based on contractual increases. A targeted reduction was made based on prior year tonnage. In FY2025, the Town piloted an expansion of the household curbside compost collection program. In FY2026, budget maintained this program for 4,000 households at the cost of $396,000 which was partly funded by the General Fund and partly funded by ARPA funds. The full cost of this program is reflected in the General Fund in FY2027. The town is exploring a partnership with Black Earth Compost to use one acre of land at the Harwell Ave. compost facility for Black Earth operations, which may offset compost costs in the future. For FY2027 the Town Manager and Superintendent of Schools have agreed to share the cost of the Town's contracted Refuse and Recycling collection and disposal costs for Municipal and School buildings. Prior to FY2025 this cost was included in this Department of Public Works - Environmental Services expense budget. This Preliminary Budget and Financing Plan has moved the estimated cost of $109,244 to Shared Expenses and therefore it is not included in the budget request below. The FY2027 revolving fund and grant budgets are recommended at $1,288,250, a $33,367 or 2.66% net decrease due to contractually obligated step increases and health benefits, offset by a decrease in contract services. The Minuteman Household Hazardous Waste Program Revolving Fund is level at $250,000 to reflect historic activity and contractual agreements. The Compost Operations Revolving Fund is recommended at $1,038,250, a $33,367 or 3.32% increase. Program Improvement Requests: None requested. 3400 Environmental Services Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-23 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 3,764,234 $ 4,119,616 $ 4,517,735 $ 4,958,096 $ (12,124) $ 4,945,972 $ 428,237 9.48 % Total 3400 - General Fund $ 3,764,234 $ 4,119,616 $ 4,517,735 $ 4,958,096 $ (12,124) $ 4,945,972 $ 428,237 9.48 % Appropriation Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 3,764,234 $ 4,119,616 $ 4,517,735 $ 4,958,096 $ (12,124) $ 4,945,972 $ 428,236 9.48 % Total 3400 - General Fund $ 3,764,234 $ 4,119,616 $ 4,517,735 $ 4,958,096 $ (12,124) $ 4,945,972 $ 428,237 9.48 % Program Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 3410 Refuse Collection $ 1,390,417 $ 1,376,116 $ 1,437,563 $ 1,520,467 $ — $ 1,520,467 $ 82,904 5.77 % Total 3420 Recycling $ 1,675,580 $ 2,048,284 $ 2,300,418 $ 2,617,261 $ (2,000) $ 2,615,261 $ 314,843 13.69 % Total 3430 Refuse Disposal $ 698,237 $ 695,216 $ 779,754 $ 820,368 $ (10,124) $ 810,244 $ 30,490 3.91 % Total 3400 - General Fund $ 3,764,234 $ 4,119,616 $ 4,517,735 $ 4,958,096 $ (12,124) $ 4,945,972 $ 428,237 9.48 % Object Code Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ — $ — $ — $ — $ — $ — $ — — % Overtime $ — $ — $ — $ — $ — $ — $ — — % Personal Services $ — $ — $ — $ — $ — $ — $ — — % Contractual Services $ 3,749,405 $ 4,038,379 $ 4,477,535 $ 4,922,296 $ (10,124) $ 4,912,172 $ 434,637 9.71 % Utilities $ — $ — $ — $ — $ — $ — $ — — % Supplies $ 14,828 $ 81,237 $ 40,200 $ 35,800 $ (2,000) $ 33,800 $ (6,400) (15.92) % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 3,764,234 $ 4,119,616 $ 4,517,735 $ 4,958,096 $ (12,124) $ 4,945,972 $ 428,237 9.48 % Total 3400 - General Fund $ 3,764,234 $ 4,119,616 $ 4,517,735 $ 4,958,096 $ (12,124) $ 4,945,972 $ 428,237 9.48 % Budget Summary - Revolving Funds* and Grants FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Funding Sources Actual Actual Estimate Projected Add/Del Projected Increase Increase Compost Operations Rev. Fund $ 881,867 $ 1,098,040 $ 1,004,883 $ 1,038,250 $ — $ 1,038,250 $ 33,367 3.32 % Refuse & Recycling Collection Rev. Fund $ — $ — $ — $ — $ — $ — $ — — % Minuteman Haz. Waste Rev. Fund $ 171,732 $ 259,476 $ 250,000 $ 250,000 $ — $ 250,000 $ — — % ARPA Grant Funds $ — $ — $ 165,000 $ — $ — $ — $ (165,000) — % Total 3400 - Revolving Funds $ 1,053,599 $ 1,357,516 $ 1,254,883 $ 1,288,250 $ — $ 1,288,250 $ 33,367 2.66 % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4. Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compost Operations Rev. Fund $ 940,275 $ 797,463 $ 1,004,883 $ 1,038,250 $ — $ 1,038,250 $ 33,367 3.32 % Compensation $ 360,383 $ 370,630 $ 418,455 $ 444,475 $ — $ 444,475 $ 26,020 6.22 % Expenses $ 315,730 $ 242,798 $ 307,600 $ 268,000 $ — $ 268,000 $ (39,600) (12.87) % Benefits $ 75,726 $ 2,069 $ 95,362 $ 127,839 $ — $ 127,839 $ 32,477 34.06 % Debt $ 188,436 $ 181,966 $ 183,466 $ 197,936 $ — $ 197,936 $ 14,470 7.89 % Refuse & Recycling Collection Rev. Fund $ — $ — $ — $ — $ — $ — $ — — % Expenses $ — $ — $ — $ — $ — $ — $ — — % Minuteman Haz. Waste Rev. Fund $ 190,685 $ 206,359 $ 250,000 $ 250,000 $ — $ 250,000 $ — — % Expenses $ 190,685 $ 206,359 $ 250,000 $ 250,000 $ — $ 250,000 $ — — % 3400 Environmental Services Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-24 ARPA Grant Funds - Compost $ — $ — $ 165,000 $ — $ — $ — $ (165,000) (100.00) % Expenses $ — $ — $ 165,000 $ — $ — $ — $ (165,000) (100.00) % Total 3400 - Revolving Funds $ 1,130,959 $ 1,003,823 $ 1,254,883 $ 1,288,250 $ — $ 1,288,250 $ 33,367 2.66 % Budget Summary - All Funds Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 360,383 $ 370,630 $ 418,455 $ 444,475 $ — $ 444,475 $ 26,020 6.22 % Expenses $ 4,270,649 $ 4,568,774 $ 5,075,335 $ 5,476,096 $ (12,124) $ 5,463,972 $ 388,637 7.66 % Benefits (Revolving Fund)$ 75,726 $ 2,069 $ 95,362 $ 127,839 $ — $ 127,839 $ 32,477 34.06 % Debt Service (Revolving Fund)$ 188,436 $ 181,966 $ 183,466 $ 197,936 $ — $ 197,936 $ 14,470 7.89 % Total 3400 - All Funds $ 4,895,192 $ 5,123,439 $ 5,772,618 $ 6,246,346 $ (12,124) $ 6,234,222 $ 461,604 8.00 % 3400 Environmental Services Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-25 Mission: The Water/Sewer Division strives to enhance the quality of life in Lexington by providing quality drinking water, and ensuring the proper and safe discharge of our wastewater and by maintaining our commitment to improving the infrastructure. Budget Overview: The Water Division budget is comprised of Water Operations, Massachusetts Water Resources Authority (MWRA) purchases and indirect support from the General Fund. The Water Operations maintains and repairs the water system that delivers water to Lexington homes and businesses through 154 miles of water mains, 1,747 fire hydrants and two water towers that store 3.24 million gallons of water. The Town has a three-block inclining rate structure to encourage water conservation. As a customer uses more water, the water rate for the additional units increases. Customers are billed twice per year. The Town also sells water to the Town of Bedford at the MWRA wholesale rate plus an administrative fee. The MWRA provides water to Lexington and greater Boston. Indirect support from the General Fund reflects Water Enterprise Fund expenses (benefits, insurance and engineering support) that are appropriated in the General Fund. The Water Enterprise Fund, therefore, reimburses the General Fund for these expenses through an indirect cost transfer. In FY2027, the Water Enterprise Fund will contribute to the Other Post-Employment Benefits (OPEB) Trust Fund in a funding level that matches the contributions of the General Fund. Departmental Initiatives: Continue with the Hydrant Maintenance Program. 2.Continue working on a valve/hydrant maintenance and/or backflow/cross connection program. 3.Continue replacing all iron water services as until 100% completion. 3600 Water Enterprise Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-26 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Superintendent of Water & Sewer 0.5 0.5 0.5 0.5 Asst. Supt. of Water & Sewer*—0.5 0.5 0.5 Utility Billing Manager 0.5 0.5 0.5 0.5 Crew Chief 2 2 2 2 Grader-Shovel Operator 1 1 1 1 Leadman/Cross Connector Inspector**3 4 4 4 Heavy Equipment Operator**3 2 2 2 Laborer-Meter Reader 1 1 1 1 Dept. Account Assistant***0.2 0.2 0.2 0.2 Total FTE 11.2 11.7 11.7 11.7 Total FT/PT 10 FT/3 PT 10 FT/4 PT 10 FT/4 PT 10 FT/4 PT *In FY2025, an Assistant Superintendent of Water & Sewer position was created via a program improvement. This position is shared between the Water & Sewer Enterprise Funds. **In FY2025, a Heavy Equipment Operator was upgraded to a Leadman via a program improvement. ***One full-time Department Account Assistant is split between the DPW Admin, Water, and Sewer divisions. 3600 Water Enterprise Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-27 Budget Recommendations: The FY2027 recommended Water operating budget is $15,185,481, inclusive of indirect costs. The recommended budget reflects a $1,141,274 or 8.13% increase from the FY2026 budget. The budget for Compensation is $1,089,872, and reflects a $14,882 or 1.38% increase, which is attributable to the cost of contractually obligated step increases and cost of living adjustments for Public Works staff. The budget for Expenses is $694,600 which is an increase of $19,500, or 2.89% from FY2026, and is primarily due to an increase in contractual services. In FY2021, a new budget category of Cash Capital was initiated to begin to transition the ongoing water main replacement program to being funded directly by user charges instead of debt financing. This is the seventh year of an 11-year transition to move the entire $2,200,000 annual program to cash financing. In doing so, rate payers will save a considerable amount on interest costs in the long-term. The FY2027 recommendation for cash capital is $1,400,000. Debt service is recommended to be decrease by $(47,691) or (3.32)% as bonds have been issued for previously approved projects. The preliminary MWRA Assessment is $9,515,904, which is a $865,082 or 10.00% increase from FY2026. This is a placeholder as the final assessment will be issued in June 2026. In FY2027, it is recommended that the Water Enterprise Fund continue contributing to the Other Post- Employment Benefits Trust Fund, which was initiated in FY2018. Indirect payments to the General Fund for those costs borne by the General Fund in support of water operations are projected at $1,091,745, an increase of $89,501 or 8.93% due to increased benefits expenses and increased engineering support for water projects. Program Improvement Requests: None requested. Water Retained Earnings/Fund Balance FY2021 FY2022 FY2023 FY2024 FY2025 Certified Retained Earnings $ 1,737,914 $ 3,537,851 $ 769,999 $ 3,216,062 $ 2,813,094 3600 Water Enterprise Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-28 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ — $ — $ — $ — $ — $ — $ — — % Enterprise Funds Retained Earnings $ 500,000 $ — $ — $ — $ — $ — $ — — % User Charges $ 14,786,042 $ 12,983,236 $ 13,021,480 $ 14,162,754 $ — $ 14,162,754 $ 1,141,274 8.76 % Meter Charges $ 69,806 $ 53,980 $ 53,980 $ 53,980 $ — $ 53,980 $ — — % Investment Income $ 328,490 $ 619,717 $ 619,717 $ 619,717 $ — $ 619,717 $ — — % Fees & Charges $ 293,494 $ 349,030 $ 349,030 $ 349,030 $ — $ 349,030 $ — — % Total 3600 Water Enterprise $ 15,977,833 $ 14,005,963 $ 14,044,207 $ 15,185,481 $ — $ 15,185,481 $ 1,141,274 8.13 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Compensation $ 820,510 $ 923,588 $ 1,074,990 $ 1,089,872 $ — $ 1,089,872 $ 14,882 1.38 % Expenses $ 544,206 $ 460,827 $ 675,100 $ 694,600 $ — $ 694,600 $ 19,500 2.89 % Cash Capital $ 800,000 $ 1,000,000 $ 1,200,000 $ 1,400,000 $ — $ 1,400,000 $ 200,000 16.67 % Debt $ 2,375,660 $ 1,368,116 $ 1,438,006 $ 1,390,315 $ — $ 1,390,315 $ (47,691) (3.32) % MWRA $ 8,832,742 $ 8,432,204 $ 8,650,822 $ 9,515,904 $ — $ 9,515,904 $ 865,082 10.00 % OPEB $ 2,761 $ 3,045 $ 3,045 $ 3,045 $ — $ 3,045 $ — — % Indirects $ 1,011,340 $ 968,301 $ 1,002,244 $ 1,091,745 $ — $ 1,091,745 $ 89,501 8.93 % Total 3600 Water Enterprise $ 14,387,220 $ 13,156,081 $ 14,044,207 $ 15,185,481 $ — $ 15,185,481 $ 1,141,274 8.13 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase 3610 Water Operations $ 3,740,377 $ 2,752,531 $ 3,188,096 $ 3,174,787 $ — $ 3,174,787 $ (13,309) (0.42) % 3620 MWRA $ 8,832,742 $ 8,432,204 $ 8,650,822 $ 9,515,904 $ — $ 9,515,904 $ 865,082 10.00 % Cash Capital $ 800,000 $ 1,000,000 $ 1,200,000 $ 1,400,000 $ — $ 1,400,000 $ 200,000 16.67 % OPEB $ 2,761 $ 3,045 $ 3,045 $ 3,045 $ — $ 3,045 $ — — % Indirects $ 1,011,340 $ 968,301 $ 1,002,244 $ 1,091,745 $ — $ 1,091,745 $ 89,501 8.93 % Total 3600 Water Enterprise $ 14,387,220 $ 13,156,081 $ 14,044,207 $ 15,185,481 $ — $ 15,185,481 $ 1,141,274 8.13 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Salaries & Wages $ 667,122 $ 737,174 $ 881,451 $ 896,333 $ — $ 896,333 $ 14,882 1.69 % Overtime $ 153,389 $ 186,414 $ 193,539 $ 193,539 $ — $ 193,539 $ — — % Personal Services $ 820,510 $ 923,588 $ 1,074,990 $ 1,089,872 $ — $ 1,089,872 $ 14,882 1.38 % Contractual Services $ 276,843 $ 280,748 $ 428,200 $ 417,700 $ — $ 417,700 $ (10,500) (2.45) % Utilities $ 16,864 $ 13,946 $ 20,500 $ 23,500 $ — $ 23,500 $ 3,000 14.63 % Supplies $ 195,363 $ 149,947 $ 191,400 $ 213,400 $ — $ 213,400 $ 22,000 11.49 % Small Capital $ 55,137 $ 16,186 $ 35,000 $ 40,000 $ — $ 40,000 $ 5,000 14.29 % Expenses $ 544,206 $ 460,827 $ 675,100 $ 694,600 $ — $ 694,600 $ 19,500 2.89 % Cash Capital $ 800,000 $ 1,000,000 $ 1,200,000 $ 1,400,000 $ — $ 1,400,000 $ 200,000 16.67 % Debt $ 2,375,660 $ 1,368,116 $ 1,438,006 $ 1,390,315 $ — $ 1,390,315 $ (47,691) (3.32) % MWRA $ 8,832,742 $ 8,432,204 $ 8,650,822 $ 9,515,904 $ — $ 9,515,904 $ 865,082 10.00 % OPEB $ 2,761 $ 3,045 $ 3,045 $ 3,045 $ — $ 3,045 $ — — % Indirects $ 1,011,340 $ 968,301 $ 1,002,244 $ 1,091,745 $ — $ 1,091,745 $ 89,501 8.93 % Total 3600 Water Enterprise $ 14,387,220 $ 13,156,081 $ 14,044,207 $ 15,185,481 $ — $ 15,185,481 $ 1,141,274 8.13 % 3600 Water Enterprise Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-29 Mission: The Water/Sewer Division strives to enhance the quality of life in Lexington by providing quality drinking water, by ensuring the proper and safe discharge of wastewater and by maintaining our commitment to improving the infrastructure. Budget Overview: The Sewer Division budget is comprised of Wastewater Operations, Massachusetts Water Resources Authority (MWRA) purchases and indirect support from the General Fund. The Sewer Division maintains the wastewater system that serves 99 percent of Town residences and businesses through 34 miles of trunk lines, 119 miles of street lines and 10,326 service connections. There are also ten sewage-pumping stations operated by the Sewer Division. The Town has a three- block inclining rate structure to encourage conservation. Customer sewer usage is determined based on water usage over the same period, with the exception of meters dedicated to outdoor irrigation. The MWRA provides wastewater treatment to Lexington and Greater Boston at the Deer Island treatment facility. Indirect support from the General Fund reflects Sewer Enterprise Fund expenses (benefits, insurance and engineering support) that are appropriated in the General Fund. The Sewer Enterprise Fund, therefore, reimburses the General Fund for these expenses through an indirect cost transfer. In FY2027, the Sewer Enterprise Fund is recommended to contribute to the Other Post-Employment Benefits (OPEB) Trust Fund in a funding level that matches the contributions of the General Fund. Departmental Initiatives: 1.Continue the sewer main pipe flushing program and root removal in all areas. 2.Work with the Water Enterprise Division on the ongoing Automatic Meter Infrastructure System project (AMI). 3.Continue to educate the public on the costs and problems created by Inflow & Infiltration. 3700 Sewer Enterprise Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-30 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Supt. of Water & Sewer 0.5 0.5 0.5 0.5 Asst. Supt. of Water & Sewer*—0.5 0.5 0.5 Utility Billing Manager 0.5 0.5 0.5 0.5 Crew Chief 1 1 1 1 Leadman 1 1 1 1 Heavy Equipment Operator 1 1 1 1 Dept. Account Assistant**0.2 0.2 0.2 0.2 Seasonal Assistant 0.4 0.4 0.4 0.4 Seasonal Laborer 0.3 0.3 0.3 0.3 Total FTE 4.9 5.4 5.4 5.4 Total FT/PT 3 FT/5 PT 3 FT/6 PT 3 FT/6 PT 3 FT/6 PT *In FY2025, an Assistant Superintendent of Water & Sewer position was created via a program improvement. This position is shared between the Water & Sewer Enterprise Funds. **One full-time Department Account Assistant is split between the DPW Admin, Water, and Sewer divisions. 3700 Sewer Enterprise Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-31 Budget Recommendations: The FY2027 recommended Sewer operating budget, inclusive of indirect costs, is $14,377,312, a $1,016,284 or 7.61% increase over the FY2026 budget. The budget for Compensation is $502,884 and reflects a $5,531 or 1.11% increase, which is attributable to the cost of contractually obligated step increases and cost of living adjustments for Public Works staff. The budget for Expenses is $632,400, an increase of $15,300 or 2.48%, which reflects anticipated inflationary increases for electricity, supplies and materials, and software maintenance, and vehicles. In FY2021, a new budget category of Cash Capital was initiated to begin to transition the ongoing sanitary sewer main replacement program to being funded directly by user charges instead of debt financing. This is the seventh year of a 10-year transition to move the entire $1,000,000 annual program to cash financing. In doing so, rate payers will save a considerable amount on interest costs in the long-term. The FY2027 recommendation for cash capital is $700,000. Debt service is recommended to be decrease by $(53,355) or (3.19)% as bonds have been issued for previously approved projects. The preliminary MWRA Assessment is $10,295,116, which is a $935,920 or 10% increase from FY2026. This is a placeholder as the final assessment will be issued in June 2026. In FY2027, it is recommended that the Sewer Enterprise Fund continue contributing to the Other Post- Employment Benefits Trust Fund, which was initiated in FY2018. Indirect payments to the General Fund for those costs borne by the General Fund in support of sewer operations are projected at $627,572, an increase of $12,888 or 2.10%. Program Improvement Requests: None requested. Sewer Retained Earnings/Fund Balance FY2021 FY2022 FY2023 FY2024 FY2025 Certified Retained Earnings $ 1,297,665 $ 2,565,157 $ 1,807,854 $ 1,625,447 $ 1,617,019 3700 Sewer Enterprise Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-32 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ — $ — $ — $ — $ — $ — $ — — % Enterprise Funds Retained Earnings $ — $ — $ — $ — $ — $ — $ — — % User Charges $ 11,711,865 $ 11,876,188 $ 12,979,028 $ 13,995,312 $ — $ 13,995,312 $ 1,016,284 7.83 % Connection Fees $ — $ — $ — $ — $ — $ — $ — — % Investment Income $ 111,770 $ 61,612 $ 20,000 $ 20,000 $ — $ 20,000 $ — — % Fees & Charges $ 241,624 $ 625,248 $ 362,000 $ 362,000 $ — $ 362,000 $ — — % Total 3700 Sewer Enterprise $ 12,065,259 $ 12,563,047 $ 13,361,028 $ 14,377,312 $ — $ 14,377,312 $ 1,016,284 7.61 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Compensation $ 356,647 $ 423,941 $ 497,353 $ 502,884 $ — $ 502,884 $ 5,531 1.11 % Expenses $ 338,893 $ 459,440 $ 617,100 $ 632,400 $ — $ 632,400 $ 15,300 2.48 % Cash Capital $ 400,000 $ 500,000 $ 600,000 $ 700,000 $ — $ 700,000 $ 100,000 16.67 % Debt $ 1,406,381 $ 1,569,746 $ 1,672,086 $ 1,618,731 $ — $ 1,618,731 $ (53,355) (3.19) % MWRA $ 8,861,891 $ 9,153,352 $ 9,359,196 $ 10,295,116 $ — $ 10,295,116 $ 935,920 10.00 % OPEB $ 3,004 $ 609 $ 609 $ 609 $ — $ 609 $ — — % Indirects $ 588,040 $ 596,525 $ 614,684 $ 627,572 $ — $ 627,572 $ 12,888 2.10 % Total 3700 Sewer Enterprise $ 11,954,855 $ 12,703,612 $ 13,361,028 $ 14,377,312 $ — $ 14,377,312 $ 1,016,284 7.61 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase 3710 Sewer Enterprise $ 2,101,920 $ 2,453,126 $ 2,786,539 $ 2,754,015 $ — $ 2,754,015 $ (32,524) (1.17) % 3720 - MWRA $ 8,861,891 $ 9,153,352 $ 9,359,196 $ 10,295,116 $ — $ 10,295,116 $ 935,920 10.00 % Cash Capital $ 400,000 $ 500,000 $ 600,000 $ 700,000 $ — $ 700,000 $ 100,000 16.67 % OPEB $ 3,004 $ 609 $ 609 $ 609 $ — $ 609 $ — — % Indirects $ 588,040 $ 596,525 $ 614,684 $ 627,572 $ — $ 627,572 $ 12,888 2.10 % Total 3700 Sewer Enterprise $ 11,954,855 $ 12,703,612 $ 13,361,028 $ 14,377,312 $ — $ 14,377,312 $ 1,016,284 7.61 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Salaries & Wages $ 290,451 $ 356,197 $ 408,145 $ 413,676 $ — $ 413,676 $ 5,531 1.36 % Overtime $ 66,196 $ 67,744 $ 89,208 $ 89,208 $ — $ 89,208 $ — — % Personal Services $ 356,647 $ 423,941 $ 497,353 $ 502,884 $ — $ 502,884 $ 5,531 1.11 % Contractual Services $ 115,945 $ 275,668 $ 366,400 $ 357,400 $ — $ 357,400 $ (9,000) (2.46) % Utilities $ 166,976 $ 108,099 $ 142,500 $ 144,500 $ — $ 144,500 $ 2,000 1.40 % Supplies $ 43,007 $ 61,539 $ 87,200 $ 99,500 $ — $ 99,500 $ 12,300 14.11 % Small Capital $ 12,964 $ 14,134 $ 21,000 $ 31,000 $ — $ 31,000 $ 10,000 47.62 % Expenses $ 338,893 $ 459,440 $ 617,100 $ 632,400 $ — $ 632,400 $ 15,300 2.48 % Cash Capital $ 400,000 $ 500,000 $ 600,000 $ 700,000 $ — $ 700,000 $ 100,000 16.67 % Debt $ 1,406,381 $ 1,569,746 $ 1,672,086 $ 1,618,731 $ — $ 1,618,731 $ (53,355) (3.19) % MWRA $ 8,861,891 $ 9,153,352 $ 9,359,196 $ 10,295,116 $ — $ 10,295,116 $ 935,920 10.00 % OPEB $ 3,004 $ 609 $ 609 $ 609 $ — $ 609 $ — — % Indirects $ 588,040 $ 596,525 $ 614,684 $ 627,572 $ — $ 627,572 $ 12,888 2.10 % Total 3700 Sewer Enterprise $ 11,954,855 $ 12,703,612 $ 13,361,028 $ 14,377,312 $ — $ 14,377,312 $ 1,016,284 7.61 % 3700 Sewer Enterprise Program: Public Works Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 V-33 This Page Intentionally Left Blank. Section VI: Program 4000: Public Safety This section includes detailed information about the FY2027 Operating Budget & Financing Plan for public safety. It includes: •4100 Law Enforcement VI-3 •4200 Fire & Rescue VI-10 FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-1 This Page Intentionally Left Blank. Mission: The Lexington Police Department provides public safety services to enhance the quality of life in Lexington. A team of dedicated police officers, detectives, dispatchers and support staff work in a coordinated manner to effectively intervene in emergencies, promote traffic safety, suppress crime, reduce fear and deliver services to the community through a variety of prevention, problem solving and law enforcement programs. Budget Overview: The Police Department is comprised of seven divisions: Administration, Patrol and Enforcement, Traffic Bureau, Investigations, Dispatch, Animal Control and Crossing Guards. In FY2025, the Police Department responded to 15,940 calls for service with 1,467 crimes investigated. The Administration division is comprised of 11 full-time and 7 part-time employees including: the chief and two captains who oversee administrative and operational functions including budget, planning, training, personnel administration, public affairs and policy development; four lieutenants who each lead a workgroup consisting of patrol officers, dispatchers and a sergeant providing 24/7 policing services; an administrative sergeant who tends to the accreditation program as well as detail assignments and event planning; an office manager and clerk who handle records management, accounting and payroll; a code enforcement officer who enforces town bylaws; 6 cadets who provide administrative support; and a mechanic who purchases, equips and maintains the vehicle fleet and other specialized equipment. The Patrol and Enforcement division is comprised of 34 officers (29 patrol officers and five sergeants) responsible for responding to a variety of critical front-line services 24/7 including intervening in emergencies, promoting crime prevention and traffic safety as well as suppressing crime. The Traffic Bureau has one supervisor who oversees the parking enforcement officer (PEO) and one account assistant. Meter and parking enforcement in Lexington Center is done by the PEO. The Traffic Bureau supervisor also manages the school crossing guard program. The Investigations division is supervised by a detective lieutenant who is assisted by the sergeant prosecutor and oversees six detectives responsible for investigation and prevention including: two major case detectives, a family services detective, a community resource officer (CRO) and two school resource officers (SRO). The Dispatch division is comprised of ten civilian dispatchers responsible for directing the proper resources for over 15,000 service calls that require a police, fire or medical unit response. The Animal Control division entered into an agreement to share a full-time animal control officer (ACO) with the Town of Bedford in October 2015, with 70%, or 27 hours per week allocated to Lexington. The ACO is an employee of the Town of Bedford, but will continue to work collaboratively with the Lexington Board of Health regarding animal related health issues. The School Crossing guard program has 18 part-time civilian members who cover 16 school crossings during the school year. 4100 Law Enforcement Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-3 Departmental Initiatives: 1. The staffing of the Lexington Police Department has not changed in over 50 years. It is imperative to continue to review and evaluate current programs and positions within the department. This process most likely will result in a request for staffing increases to ensure the department is meeting the demands of the Massachusetts POST Commission, the Massachusetts Police Accreditation Commission, changes in call volume due to residential growth and high expectations of the community. 2. Recruitment and retention of new officers and staff continues to be a local and nationwide concern. We will be looking for innovative ways to attract and retain the best candidates for these positions. Collaboration with other town departments is imperative to ensure we are reaching candidates that will enable the department to be made up of people who reflect the community we serve. 3. The Lexington Police Department is dedicated to building trust and legitimacy in the community. Over the past few years, the department's Community Engagement Programs have made a concerted effort to be involved in the community on multiple levels and with all segments of the community. The department will continue its commitment to meet with cultural and affinity groups to get their input on policing in the community. We will continue to attend community events and celebrations. We will continue to evaluate our programs and look to improve efforts on connecting with the community as we have with our two community resource dogs which have been outstanding tools in removing barriers in connecting with the youth, school population and victims in the community. 4100 Law Enforcement Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-4 4100 Law Enforcement Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-5 Authorized/Appropriated Staffing: Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Chief 1 1 1 1 Captain of Operations 1 1 1 1 Captain of Administration 1 1 1 1 Administrative Sergeant 1 1 1 1 Patrol Lieutenants 4 4 4 4 Patrol Sergeants 5 5 5 5 Police Officers 29 29 29 29 Detective Lieutenant 1 1 1 1 Detective - Sergeant Prosecutor 1 1 1 1 Detectives - Major Cases*3 2 2 2 Detective - Family Services 1 1 1 1 Detectives - School Resource Officer*1 2 2 2 Detective - Community Resource Officer 1 1 1 1 Cadets - 6 part-time 3.06 3.06 3.06 3.06 Parking Enforcement Officer 1 1 1 1 Code Enforcement Officer**——0.22 0.22 Dispatch Supervisor 1 1 1 1 Dispatchers 9 9 9 9 Office Manager 1 1 1 1 Traffic Bureau Supervisor 1 1 1 1 Administrative Assistant 1 1 1 1 Department Account Assistant 1 1 1 1 Mechanic 1 1 1 1 Animal Control Officer***———— Crossing Guards - 18 part-time 3.91 3.91 3.91 3.91 Total FTE 72.97 72.97 73.19 73.19 50 Officers 50 Officers 50 Officers 50 Officers Total FT/PT 66FT/25PT 66FT/26PT 66FT/26PT 66FT/26PT *In FY2025, one Detective - Major Cases reassigned to School Resource Officer. **In FY2025, a part-time seasonal Code Enforcement Officer position was created via a program improvement. ***The Animal Control Officer is a shared full-time position with the Town of Bedford that is paid as a contract service and does not add to headcount. 4100 Law Enforcement Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-6 Budget Recommendations: The FY2027 recommended Police Department budget is $9,701,473 which is a $(44,505) or (0.46)% decrease from the FY2026 budget. The budget for Compensation is $8,412,785, a decrease of $(52,173) or (0.62)%, due to staff turnover. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. The budget for Expenses is $1,288,688 and reflects an increase of $7,668 or 0.60%, primarily due to equipment expenses, contract services, and memberships and dues, offset by targeted reductions in vehicle replacement, supplies and materials, and clothing. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses)Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Overtime Funds - Community Engagement $ 25,000 $ 363 $ 25,363 $ — $ — $ — $ 25,363 4100 Law Enforcement Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-7 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 8,570,441 $ 9,234,724 $ 9,131,478 $ 9,206,073 $ (120,100) $ 9,085,973 $ (45,505) (0.50) % Fees & Charges Fees $ 141,342 $ 124,814 $ 108,000 $ 108,000 $ — $ 108,000 $ — — % Fines & Forfeitures $ 172,123 $ 111,884 $ 116,000 $ 117,000 $ — $ 117,000 $ 1,000 0.86 % Licenses & Permits $ 4,863 $ 4,725 $ 4,000 $ 4,000 $ — $ 4,000 $ — — % Parking Fund*$ 100,000 $ 250,000 $ 386,500 $ 386,500 $ — $ 386,500 $ — — % Total 4100 Law Enforcement $ 8,988,768 $ 9,726,146 $ 9,745,978 $ 9,821,573 $ (120,100) $ 9,701,473 $ (44,505) (0.46) % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Compensation $ 7,878,682 $ 8,515,030 $ 8,464,958 $ 8,412,785 $ — $ 8,412,785 $ (52,173) (0.62) % Expenses $ 1,110,086 $ 1,211,117 $ 1,281,020 $ 1,408,788 $ (120,100) $ 1,288,688 $ 7,668 0.60 % Total 4100 Law Enforcement $ 8,988,768 $ 9,726,146 $ 9,745,978 $ 9,821,573 $ (120,100) $ 9,701,473 $ (44,505) (0.46) % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Total 4110 Police Administration $ 1,920,104 $ 2,039,723 $ 2,005,837 $ 2,064,136 $ (7,000) $ 2,057,136 $ 51,299 2.56 % Total 4120 Patrol & Enforcement $ 4,691,128 $ 4,918,555 $ 5,171,589 $ 5,116,928 $ (98,200) $ 5,018,728 $ (152,861) (2.96) % Total 4130 Traffic Bureau $ 430,641 $ 457,531 $ 452,147 $ 497,423 $ (1,100) $ 496,323 $ 44,176 9.77 % Total 4140 Investigations $ 890,163 $ 1,181,694 $ 1,064,160 $ 1,071,396 $ (3,100) $ 1,068,296 $ 4,136 0.39 % Total 4150 Dispatch $ 830,744 $ 893,376 $ 801,958 $ 801,171 $ (7,200) $ 793,971 $ (7,987) (1.00) % Total 4160 Animal Control $ 68,223 $ 73,181 $ 74,153 $ 88,317 $ — $ 88,317 $ 14,164 19.10 % Total 4170 Crossing Guards $ 157,765 $ 162,087 $ 176,134 $ 182,202 $ (3,500) $ 178,702 $ 2,568 1.46 % Total 4100 Law Enforcement $ 8,988,768 $ 9,726,146 $ 9,745,978 $ 9,821,573 $ (120,100) $ 9,701,473 $ (44,505) (0.46) % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Salaries & Wages $ 6,451,236 $ 6,813,158 $ 7,282,365 $ 7,230,192 $ — $ 7,230,192 $ (52,173) (0.72) % Overtime $ 1,427,447 $ 1,701,872 $ 1,182,593 $ 1,182,593 $ — $ 1,182,593 $ — — % Personal Services $ 7,878,682 $ 8,515,030 $ 8,464,958 $ 8,412,785 $ — $ 8,412,785 $ (52,173) (0.62) % Contractual Services $ 383,729 $ 451,239 $ 469,495 $ 553,953 $ (19,500) $ 534,453 $ 64,958 13.84 % Utilities $ 85,005 $ 86,604 $ 103,853 $ 100,803 $ — $ 100,803 $ (3,050) (2.94) % Supplies $ 233,929 $ 253,685 $ 234,672 $ 247,907 $ (17,100) $ 230,807 $ (3,865) (1.65) % Small Capital $ 407,422 $ 419,589 $ 473,000 $ 506,125 $ (83,500) $ 422,625 $ (50,375) (10.65) % Expenses $ 1,110,086 $ 1,211,117 $ 1,281,020 $ 1,408,788 $ (120,100) $ 1,288,688 $ 7,668 0.60 % Total 4100 Law Enforcement $ 8,988,768 $ 9,726,146 $ 9,745,978 $ 9,821,573 $ (120,100) $ 9,701,473 $ (44,505) (0.46) % *Reflects transfers from the Parking Fund to the General Fund rather than actual revenue from parking permits, Pay-by-Phone and meter revenue. The fund balance was insufficient to support a transfer to the General Fund in FY2023 due to effects from the pandemic as well as sizable capital projects in FY2022. FY2024 included a partial transfer, and since FY2025 this amount has further increased as the Town has recently started to enforce parking fees which will rebuild the balance in the Parking Fund. 4100 Law Enforcement Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-8 This Page Intentionally Left Blank. 4100 Law Enforcement Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-9 Mission: The Lexington Fire Department protects the people, homes and businesses in our community from fire, medical emergencies, hazardous material incidents and natural disasters. This is accomplished through public education, safety code management and emergency response. Budget Overview: The Fire Department is comprised of five divisions: Administration, Fire Prevention, Fire Suppression, Emergency Medical Services and Emergency Management. •Administration is responsible for developing policies and procedures, training, inventory control, financial and budgetary oversight, and managing the day-to-day operations of the Department. •Fire Prevention is responsible for fire code enforcement activities, public education, plan review, permit application and approval, flammable/combustible liquid storage approval and regulatory enforcement of blasting applications and permits. •Fire Suppression is staffed 24/7, operating out of two stations and responding to emergency calls including: fire suppression, motor vehicle accidents, medical emergencies, hazardous material responses, and other emergency incidents. •Emergency Medical Services operates in conjunction with the Fire Suppression division, staffing two ambulances 24/7 at the Advanced Life Support (ALS) level. These vehicles respond to over 3,000 calls for assistance annually. •Emergency Management is responsible for communications with the Federal Emergency Management Agency (FEMA) and the Massachusetts Emergency Management Agency (MEMA), as well as reviewing and commenting on numerous townwide emergency operation plans. The Chief serves as the Emergency Management Director and the department’s administrative staff support this division. Departmental Initiatives: 1.Continue to develop and implement online inventory tracking. 2.Continue to refine and expand the fire permitting process. 3.Develop an improved employee recruitment process to address diversity and retention. 4200 Fire & Rescue Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-10 Authorized/Appropriated Staffing Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Fire Chief 1 1 1 1 Assistant Fire Chief 2 2 2 2 Office Manager 1 1 1 1 Fire Inspectors*1 2 2 2 Fire Captains 4 4 4 4 Fire Lieutenants 12 12 12 12 Firefighters/Paramedics 44 44 44 44 Fire Prevention Assistant 0.86 0.86 0.86 0.86 Total FTE 65.86 66.86 66.86 66.86 Total FT/PT 65FT/1PT 66FT/1PT 66FT/1PT 66FT/1PT *In FY2025, a second Fire Inspector position was created via a program improvement. 4200 Fire & Rescue Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-11 Budget Recommendations: The FY2027 recommended Fire Department budget is $9,481,822. The recommended budget is a $22,834 or 0.24% increase from the FY2026 budget. The recommended budget for Compensation is $8,633,864, and reflects an increase of $153,219 or 1.81% from the FY2026 budget. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. The budget for Expenses is $847,958 and reflects a net decrease of $(130,385) or (13.33)%, which includes anticipated increases in contract services, gear and equipment, equipment repair, and EMS supplies, offset by targeted reductions in vehicle and equipment replacement, supplies and materials, and professional development. Program Improvement Requests: None. 4200 Fire & Rescue Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-12 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 6,836,496 $ 7,149,571 $ 7,568,988 $ 7,616,822 $ (119,000) $ 7,497,822 $ (71,166) (0.94) % Fees & Charges Ambulance Fees $ 2,050,103 $ 2,080,781 $ 1,800,000 $ 1,900,000 $ — $ 1,900,000 $ 100,000 5.56 % Fire Department Fees $ 31,700 $ 29,678 $ 36,000 $ 33,000 $ — $ 33,000 $ (3,000) (8.33) % Licenses & Permits $ 50,725 $ 45,055 $ 54,000 $ 51,000 $ — $ 51,000 $ (3,000) (5.56) % Total 4200 Fire & Rescue $ 8,969,024 $ 9,305,085 $ 9,458,988 $ 9,600,822 $ (119,000) $ 9,481,822 $ 22,834 0.24 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Compensation $ 8,313,040 $ 8,384,150 $ 8,480,645 $ 8,633,864 $ — $ 8,633,864 $ 153,219 1.81 % Expenses $ 655,984 $ 920,935 $ 978,343 $ 966,958 $ (119,000) $ 847,958 $ (130,385) (13.33) % Total 4200 Fire & Rescue $ 8,969,024 $ 9,305,085 $ 9,458,988 $ 9,600,822 $ (119,000) $ 9,481,822 $ 22,834 0.24 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Total 4210 Fire Administration $ 547,890 $ 747,334 $ 683,925 $ 765,195 $ (105,500) $ 659,695 $ (24,230) (3.54) % Total 4220 Fire Prevention $ 288,966 $ 327,190 $ 374,028 $ 418,932 $ (2,500) $ 416,432 $ 42,404 11.34 % Total 4320 Fire Suppression $ 7,862,332 $ 7,942,335 $ 8,042,135 $ 8,061,595 $ (10,000) $ 8,051,595 $ 9,460 0.12 % Total 4240 Emergency Medical Services $ 264,902 $ 283,298 $ 350,600 $ 347,600 $ — $ 347,600 $ (3,000) (0.86) % Total 4250 Emergency Management $ 4,934 $ 4,928 $ 8,300 $ 7,500 $ (1,000) $ 6,500 $ (1,800) (21.69) % Total 4200 Fire & Rescue $ 8,969,024 $ 9,305,085 $ 9,458,988 $ 9,600,822 $ (119,000) $ 9,481,822 $ 22,834 0.24 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Salaries & Wages $ 6,736,641 $ 6,880,284 $ 7,093,864 $ 7,212,414 $ — $ 7,212,414 $ 118,550 1.67 % Overtime $ 1,576,398 $ 1,503,866 $ 1,386,781 $ 1,421,450 $ — $ 1,421,450 $ 34,669 2.50 % Personal Services $ 8,313,040 $ 8,384,150 $ 8,480,645 $ 8,633,864 $ — $ 8,633,864 $ 153,219 1.81 % Contractual Services $ 370,367 $ 380,776 $ 402,748 $ 421,548 $ (24,000) $ 397,548 $ (5,200) (1.29) % Utilities $ 56,950 $ 73,508 $ 78,730 $ 78,730 $ — $ 78,730 $ — — % Supplies $ 202,049 $ 294,880 $ 271,865 $ 281,680 $ — $ 281,680 $ 9,815 3.61 % Small Capital $ 26,618 $ 171,771 $ 225,000 $ 185,000 $ (95,000) $ 90,000 $ (135,000) (60.00) % Expenses $ 655,984 $ 920,935 $ 978,343 $ 966,958 $ (119,000) $ 847,958 $ (130,385) (13.33) % Total 4200 Fire & Rescue $ 8,969,024 $ 9,305,085 $ 9,458,988 $ 9,600,822 $ (119,000) $ 9,481,822 $ 22,834 0.24 % 4200 Fire & Rescue Program: Public Safety Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VI-13 This Page Intentionally Left Blank. Section VII: Program 5000: Culture & Recreation This section includes detailed information about the FY2027 Operating Budget & Financing Plan for culture & recreation services. It includes: •5100 Cary Memorial Library VII-3 •5200 Recreation and Community Programs VII-9 FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-1 This Page Intentionally Left Blank. FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-2 Mission: The Cary Memorial Library's mission is to ignite curiosity, engage minds, and connect our community. Budget Overview: Cary Memorial Library is comprised of three divisions: Administration and General Services, Adult Services, and Youth Services. •Administration and General Services includes administrative staff and webmaster salaries, as well as the supply, equipment, and Minuteman Library Network membership costs. •Adult Services includes all adult library, technology, and bibliographic services staff as well as adult books and audiovisual materials. •Youth Services includes all children’s library staff and also includes library materials for children and teens. Departmental Initiatives: Our Guiding Principles 1.Books, information, and so much more: We continue our 150-year-long tradition of providing books and other materials that reflect the needs and interests of Lexington residents. Though much has changed since our doors first opened in 1869, our essential function remains the same - to bring the world of information and ideas to you. 2.At the intersection of learning, making, and play: In recent years, educational research has increasingly shown that we learn best through experience - by making mistakes and trying again. In furthering this effort, we are expanding these types of learning opportunities, giving you more chances to build, create and play. 3.A place that works for everyone: We value the rich diversity of our community, and our commitment to equitable service for all is unwavering. Efforts to identify and remove barriers to access are ongoing - we are a work in progress. 4.With opportunities for human connection: In a world where technology is ever-present, we are committed to fostering human interactions. Sometimes that is as simple as providing comfortable chairs for a serendipitous meeting between old friends. Other times it takes the shape of an elaborate event with community partners and hundreds of guests. Large and small, these moments, shared among neighbors, strengthen the social fabric of Lexington. 5.A future as vibrant as our past: With more than a half million visitors each year, Cary Library is a cherished community asset and a source of civic pride. Stewardship of this resource requires equal attention to preservation and transformation. 5100 Cary Memorial Library Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-3 5100 Cary Memorial Library Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-4 Authorized/Appropriated Staffing: FY2024 FY2025 FY2026 FY2027BudgetBudgetBudgetRequest Library Director 1 1 1 1 Deputy Library Director 1 1 1 1 Office Manager 1 1 1 1 Web & Digital Engagement Specialist 1 1 1 1 Head of Adult Services 1 1 1 1 Head of Youth Services 1 1 1 1 Head of Technology & Training 1 1 1 1 Head of Bibliographic Services 1 1 1 1 Librarian I*12 11 11 11 Librarian II/Manager 3 4 4 4 Library Associates 9 9 9 9 Library Technician I*2.6 2.6 2.6 2.6 Adult Pages 2.6 2.6 2.6 2.6 Seasonal/Sunday Substitutes As Needed As Needed As Needed As Needed Total FTE 37.3 37.3 37.3 37.3 Total FT/PT 28FT/22PT 28FT/22PT 28FT/22PT 28FT/22PT *In FY2024, the Town settled with the Library Staff Association for the years FY2024-2026. This contract reorganized several positions and eliminated the Library Technician II position. *In FY2025, one Librarian I position was regraded to Librarian II/Manager. 5100 Cary Memorial Library Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-5 Budget Recommendations: The FY2027 recommended General Fund Library budget is $3,762,283, which is a $70,822 or 1.92% increase from the FY2026 budget. The General Fund operating budget for Compensation is $3,021,568, and reflects a $70,972 or 2.41% increase, which incorporates contractually obligated step increases and market adjustments that were identified during the recent Class and Compensation Study. Staff in the Library Administration division belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. Compensation does not include any estimate of prospective cost of living increases for contracts expiring on or before June 30, 2026. Funds for prospective increases are captured in the Salary Adjustment account within the Town Manager’s budget. The General Fund operating budget for Expenses is $740,715 and reflects a $(150) or (0.02)% decrease, which reflects anticipated expenses for FY2027, offset by targeted reductions in supplies and materials. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses) Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Full-Time Teen Services Librarian $ 80,423 $ 23,423 $ 103,846 $ — $ — $ — $ 103,846 5100 Cary Memorial Library Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-6 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 3,380,551 $ 3,461,304 $ 3,691,461 $ 3,790,583 $ (28,300) $ 3,762,283 $ 70,822 1.92 % Total 5100 Library $ 3,380,551 $ 3,461,304 $ 3,691,461 $ 3,790,583 $ (28,300) $ 3,762,283 $ 70,822 1.92 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Compensation $ 2,720,515 $ 2,830,030 $ 2,950,596 $ 3,021,568 $ — $ 3,021,568 $ 70,972 2.41 % Expenses $ 660,036 $ 631,274 $ 740,865 $ 769,015 $ (28,300) $ 740,715 $ (150) (0.02) % Total 5100 Library $ 3,380,551 $ 3,461,304 $ 3,691,461 $ 3,790,583 $ (28,300) $ 3,762,283 $ 70,822 1.92 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Total 5110 Admin. & General Services $ 673,781 $ 657,760 $ 698,683 $ 749,226 $ (20,000) $ 729,226 $ 30,543 4.37 % Total 5120 Adult Services $ 1,776,170 $ 1,831,741 $ 1,966,482 $ 2,009,644 $ (5,000) $ 2,004,644 $ 38,162 1.94 % Total 5130 Youth Services $ 930,600 $ 971,803 $ 1,026,296 $ 1,031,713 $ (3,300) $ 1,028,413 $ 2,117 0.21 % Total 5100 Library $ 3,380,551 $ 3,461,304 $ 3,691,461 $ 3,790,583 $ (28,300) $ 3,762,283 $ 70,822 1.92 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Revised Request Add/Del Recommended Increase Increase Salaries & Wages $ 2,653,678 $ 2,774,167 $ 2,885,470 $ 2,956,442 $ — $ 2,956,442 $ 70,972 2.46 % Overtime (Sunday Premium)$ 66,837 $ 55,863 $ 65,126 $ 65,126 $ — $ 65,126 $ — — % Personal Services $ 2,720,515 $ 2,830,030 $ 2,950,596 $ 3,021,568 $ — $ 3,021,568 $ 70,972 2.41 % Contractual Services $ 154,362 $ 157,503 $ 168,199 $ 177,201 $ (5,000) $ 172,201 $ 4,002 2.38 % Utilities $ 371 $ 412 $ 400 $ 400 $ — $ 400 $ — — % Supplies $ 467,725 $ 467,076 $ 537,266 $ 556,414 $ (18,300) $ 538,114 $ 848 0.16 % Small Capital $ 37,579 $ 6,283 $ 35,000 $ 35,000 $ (5,000) $ 30,000 $ (5,000) (14.29) % Expenses $ 660,036 $ 631,274 $ 740,865 $ 769,015 $ (28,300) $ 740,715 $ (150) (0.02) % Total 5100 Library $ 3,380,551 $ 3,461,304 $ 3,691,461 $ 3,790,583 $ (28,300) $ 3,762,283 $ 70,822 1.92 % 5100 Cary Memorial Library Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-7 This Page Intentionally Left Blank. Mission: To provide the community opportunities to engage in quality, inclusive and accessible programs and services. To be a leader in promoting inclusion, community engagement and a healthy active lifestyle. Creating Community Through People, Parks, and Places. Budget Overview: The Department operates as an Enterprise Fund whereby program and facility fees must cover the direct cost of operations including all full- and part-time staff and program, services and facility expenses including supplies, equipment, utilities and wages/overhead. As such, the operating budget may increase or decrease year to year to meet changes in enrollment and facility use demands. The Director of Recreation and Community Programs, through the Recreation Committee, sets program fees with the approval of the Select Board. The operating budget supports staff who manage and deliver programs along with the supplies and equipment needed to operate those programs and services in addition to seven full-time staff. The Enterprise Fund is comprised of five divisions: Recreation, Pine Meadows Golf, Community Center, the Administrative Division and Therapeutic Recreation. The Therapeutic Recreation Division was created in FY2026 to centralize the services associated with inclusion and adaptive programs, activities and initiatives. In FY2027, revenues received (Recreation, Pine Meadows Golf, Community Center and Therapeutic Recreation) will continue to help support the funding of Recreation Capital Improvement Projects. The Department offers a wide variety of leisure, socialization and recreational opportunities for individuals of all ages and abilities. Staff plan, schedule and coordinate programs, activities and special events at Outdoor Recreation Facilities such as, parks, playgrounds, athletic fields, hard court surfaces, the Town Pool, Old Reservoir and Pine Meadows Golf Club. Other outdoor resources include Conservation and Open Spaces. Additionally, the indoor facilities the department utilize include the Community Center, the Public Schools, off-site and out-of-town venues. Departmental Initiatives: 1.Implement the key findings of the 2021-2022 Comprehensive Study of Athletic & Outdoor Recreation Facilities and the 2023-2024 Lincoln Park Master Plan in the development of the operational and capital improvement planning for the future needs of the community. 2.Actively participate in the planning and preparations for the 5-year impact on the community with the permanent and temporary loss of outdoor recreation facilities at the Center Recreation Complex. 3.Maintain and sustain the financial stability of the Recreation Enterprise Fund. 4.Continue the growth and implementation of the department's therapeutic, adaptive and inclusive recreation programming. 5.Support Townwide cultural and historic events and initiatives such as diversity, equity and inclusion. 5200 Recreation & Community Programs Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-9 Note: Pine Meadows staffing is provided via contractual services. Oversight is provided by the Director of Recreation and Community Programs. 5200 Recreation & Community Programs Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-10 Authorized/Appropriated Staffing Element: 5210 Administration FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Director of Recreation and Community Programs 1 1 1 1 Administrative Manager 1 1 1 1 Administrative Assistant 1.8 2 2 2 Subtotal FTE 3.8 4.0 4.0 4.0 Subtotal FT/PT 3FT/1PT 3FT/1PT 3FT/1PT 3FT/1PT Element: 5220 Recreation** FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Assistant Director 1 1 1 1 Recreation Supervisor 1 1 1 1 Recreation Coordinator*0.4 1 1 1 Seasonal (Part-time)220+/-220+/-220+/-220+/- Subtotal FTE 2.4 3.0 3.0 3.0 Subtotal FT/PT 2FT/1PT 3FT/0PT 3FT/0PT 3FT/0PT Element: 5240 Community Center FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Community Center Director 1 1 1 1 Youth & Family Coordinator 1 1 1 1 Administrative Assistant 1 1 1 1 Municipal Assistant (3, PT)1 1 1 1 Building Supervisor (2, PT)1 1 1 1 Seasonal (Part-time)50+/-50+/-50+/-50+/- Subtotal FTE 5.0 5.0 5.0 5.0 Subtotal FT/PT 3 FT/5 PT 3 FT/5 PT 3 FT/5 PT 3 FT/5 PT Element: 5250 Therapeutic Recreation** FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Certified Therapeutic Recreation Specialist 1 1 1 1 Seasonal (Part-time)25+/-25+/-25+/-25+/- Subtotal FTE 1.0 1.0 1.0 1.0 Subtotal FT/PT 1 FT 1 FT 1 FT 1 FT Total FTE 12.20 13.00 13.00 13.00 Total FT/PT 10FT/7PT + Seasonal 11FT/6PT + Seasonal 11FT/6PT + Seasonal 11FT/6PT + Seasonal *In FY2025, the Recreation Coordinator transitioned from part-time to full-time via a program improvement. **In FY2026, the Therapeutic Recreation division was created, breaking out staff formerly under the Recreation division. 5200 Recreation & Community Programs Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-11 Budget Recommendations: The FY2027 recommended budget for the Department of Recreation and Community Programs - comprised of five divisions: Pine Meadows Golf, Recreation, Community Center, Therapeutic Recreation and Administrative - is $3,988,565. The recommended budget is an increase of $182,615 or 4.80% from the FY2026 budget. It should be noted that the Recreation and Community Programs Department operating budget has historically been supported solely from program fees. In FY2016, with the opening of the Community Center, the tax levy began to contribute the equivalent of the wages and benefits for the three full-time employees who are most closely involved with managing the Community Center operations and programming. This will continue in FY2027, with $267,810 being proposed in General Fund support of Community Center wages. The Lexington Community Center is committed to providing an inclusive and equitable environment for all. We support the diversity of our community by modeling our core values of respect, trust, accountability, teamwork and open-mindedness. The Community Center provides drop-in program space and offers leisure opportunities and classes promoting social, emotional, and cognitive wellness for residents of all ages and abilities. It provides residents a wide variety of programs that are designed to be fun, educational and life-enriching. Membership is free to Lexington residents to enjoy the center with flexibility for use within a beautiful and friendly year-round multi-generational center. While the Recreation and Community Programs Department manages and operates the Community Center, a shared customer service and collaborative approach to program delivery together with the Human Services Department provides a seamless experience for community members. The recommended budget for Compensation is $1,967,722, which is a $150,868 or 8.30% increase from the FY2026 budget, and reflects step increases, cost-of-living adjustments, a rate increase for seasonal staff to remain competitive with the current market, and market adjustments that were identified during the recent Class and Compensation Study. All of the Recreation Department's permanent employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The recommended budget for Expenses is $1,693,035 and reflects a $22,200 or 1.33% increase from the FY2026 budget, primarily due to a one-time program improvement request to conduct a strategic plan development process. This PIR will be funded from Recreation retained earnings. The recommended budget for the operation of the Pine Meadows Golf Course is $652,000 and reflects a net decrease of $(67,100) or (9.33)%. The current golf management contract is awarded to New England Golf Corporation (NEGC). In September 2023, NEGC was awarded a new three-year contract, with an option for two, one-year extensions. 5200 Recreation & Community Programs Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-12 Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses) Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Technical Support Technician $ 55,455 $ 23,061 $ 78,516 $ — $ — $ — $ 78,516 Community Center Maintenance Expenses $ 40,000 $ — $ 40,000 $ — $ — $ — $ 40,000 Strategic Plan*$ 100,000 $ — $ 100,000 $ 100,000 $ — $ 100,000 $ — *Recommended to be funded by Recreation Retained Earnings Recreation Retained Earnings/Fund Balance FY2021 FY2022 FY2023 FY2024 FY2025 Certified Retained Earnings $ 224,284 $ 1,549,171 $ 2,325,698 $ 1,913,671 $ 2,201,101 5200 Recreation & Community Programs Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-13 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 256,675 $ 272,708 $ 254,213 $ 267,810 $ — $ 267,810 $ 13,597 5.35 % Enterprise Funds Retained Earnings $ 375,000 $ 375,000 $ 455,000 $ 375,000 $ 100,000 $ 475,000 $ 20,000 4.40 % Recreation User Charges $ 1,525,401 $ 1,561,041 $ 1,605,237 $ 1,605,255 $ — $ 1,605,255 $ 18 — % Therapeutic Recreation Charges $ — $ — $ 22,500 $ 10,500 $ — $ 10,500 $ (12,000) (53.33) % Community Center User Charges $ 352,045 $ 462,304 $ 369,000 $ 430,000 $ — $ 430,000 $ 61,000 16.53 % Golf User Charges $ 1,281,166 $ 1,311,647 $ 1,100,000 $ 1,200,000 $ — $ 1,200,000 $ 100,000 9.09 % Investment Income $ 119,199 $ 114,779 $ — $ — $ — $ — $ — — % Total 5200 Recreation $ 3,909,485 $ 4,097,479 $ 3,805,950 $ 3,888,565 $ 100,000 $ 3,988,565 $ 182,615 4.80 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 1,530,004 $ 1,668,961 $ 1,816,854 $ 1,967,722 $ — $ 1,967,722 $ 150,868 8.30 % Expenses $ 1,359,301 $ 1,438,519 $ 1,670,835 $ 1,593,035 $ 100,000 $ 1,693,035 $ 22,200 1.33 % Debt Service $ — $ — $ — $ — $ — $ — $ — — % Indirect Costs (Trans. to Gen. Fund)$ 294,687 $ 308,991 $ 318,261 $ 327,808 $ — $ 327,808 $ 9,547 3.00 % Total 5200 Recreation $ 3,183,992 $ 3,416,471 $ 3,805,950 $ 3,888,565 $ 100,000 $ 3,988,565 $ 182,615 4.80 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Total 5210 Administration $ 528,188 $ 540,635 $ 582,106 $ 617,073 $ 100,000 $ 717,073 $ 134,967 23.19 % Total 5220 Recreation $ 1,060,560 $ 1,142,275 $ 1,358,862 $ 1,405,308 $ — $ 1,405,308 $ 46,446 3.42 % Total 5230 Pine Meadows $ 595,761 $ 697,044 $ 719,100 $ 652,000 $ — $ 652,000 $ (67,100) (9.33) % Total 5240 Community Center $ 574,292 $ 599,364 $ 683,156 $ 705,624 $ — $ 705,624 $ 22,468 3.29 % Total 5250 Therapeutic Recreation $ 130,504 $ 128,163 $ 144,465 $ 180,752 $ — $ 180,752 $ 36,287 25.12 % Indirect Costs $ 294,687 $ 308,991 $ 318,261 $ 327,808 $ — $ 327,808 $ 9,547 3.00 % Total 5200 Recreation $ 3,183,992 $ 3,416,471 $ 3,805,950 $ 3,888,565 $ 100,000 $ 3,988,565 $ 182,615 4.80 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ 1,526,913 $ 1,652,446 $ 1,810,854 $ 1,960,222 $ — $ 1,960,222 $ 149,368 8.25 % Overtime $ 3,091 $ 16,515 $ 6,000 $ 7,500 $ — $ 7,500 $ 1,500 25.00 % Personal Services $ 1,530,004 $ 1,668,961 $ 1,816,854 $ 1,967,722 $ — $ 1,967,722 $ 150,868 8.30 % Contractual Services $ 1,148,020 $ 1,206,735 $ 1,428,500 $ 1,356,900 $ 100,000 $ 1,456,900 $ 28,400 1.99 % Utilities $ 36,869 $ 48,609 $ 59,250 $ 60,650 $ — $ 60,650 $ 1,400 2.36 % Supplies $ 120,636 $ 178,736 $ 165,585 $ 163,985 $ — $ 163,985 $ (1,600) (0.97) % Small Capital $ 53,777 $ 4,439 $ 17,500 $ 11,500 $ — $ 11,500 $ (6,000) (34.29) % Expenses $ 1,359,301 $ 1,438,519 $ 1,670,835 $ 1,593,035 $ 100,000 $ 1,693,035 $ 22,200 1.33 % Debt $ — $ — $ — $ — $ — $ — $ — — % Indirect $ 294,687 $ 308,991 $ 318,261 $ 327,808 $ — $ 327,808 $ 9,547 3.00 % Total 5200 Recreation $ 3,183,992 $ 3,416,471 $ 3,805,950 $ 3,888,565 $ 100,000 $ 3,988,565 $ 182,615 4.80 % 5200 Recreation & Community Programs Program: Culture & Recreation Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VII-14 This Page Intentionally Left Blank. This Page Intentionally Left Blank. Section VIII: Program 6000: Human Services & Health This section includes detailed information about the FY2027 Operating Budget & Financing Plan for Human Services and Health. It includes: •6100-6200 Human Services VIII-2 •6500 Health VIII-8 FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-1 This Page Intentionally Left Blank. FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-2 Mission: The Human Services Department connects Lexington residents across the lifespan to information, support and services that promote health and well-being; and is responsible for managing the Lexpress bus system, Lex-Connect taxi, and other transportation initiatives. The department seeks to identify the unmet needs of our community by providing outreach and prevention services to families, seniors, veterans and youth. Budget Overview: The Human Services Department is organized to provide services and support to residents of all ages. Department staff oversee the following divisions: Administration and Outreach, Senior Services, Youth and Family Services, Veterans Services and Transportation Services. Since moving to the Lexington Community Center in 2015, attendance, walk-in visits, phone calls and requests for information have increased significantly. Staff from Senior Services and Youth and Family Services provide senior, youth and intergenerational programming, assessments, information and referral, short-term counseling and case management, financial assistance, and consultation on life changes. Veterans services staff provide veterans in Lexington, Bedford, and Carlisle with information and connection to State and Federal benefits, as well as work with colleagues to plan Town celebrations and special events that honor Veterans. Transportation staff manage the Lexpress bus and Lex-Connect taxi, as well as provide travel consultation on other transit options. Departmental Initiatives: 1. Strengthen language access and improve residents’ ability to navigate Town services by expanding translated materials, increasing access to interpretation across programs, and enhancing community outreach in culturally responsive ways. This department-wide initiative aims to ensure all residents can understand, access, and benefit from the full scope of Human Services resources. 2. Introduce residents to the department’s expanded roles, including newly established external- facing positions focused on advancing Diversity, Equity, and Inclusion across all divisions and community programs. 3. In collaboration with the Town Manager’s Office and Finance Department, provide enhanced community education and outreach around Lexington’s Property Tax Relief Programs to ensure residents are aware of available supports. 4. Expand education and community programming focused on Alzheimer’s disease and related dementias, supporting individuals and caregivers while working toward the designation of Lexington as a Dementia-Friendly Community. 5.Continue to expand and improve accessible, sustainable, and inclusive transportation options for Lexington residents. This includes increasing Lexpress ridership, enhancing service quality, promoting safe walking, biking, and rolling to school among youth, and broadening community awareness of all available transit options.6.Enhance outreach, benefits assistance, and community connections for Lexington’s veterans and their families. Expand awareness of available state and federal benefits, increase participation in local recognition events, and foster partnerships that promote health, housing stability, and well-being. 6100-6200 Human Services Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-2 6100-6200 Human Services Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-3 Authorized/Appropriated Staffing: FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Director of Human Services 1 1 1 1 Senior Services Director 1 1 1 1 Youth & Family Services Manager 1 1 1 1 Clinical Engagement & Community Equity Officer*1 1 1 1 Community Engagement Coordinator**———0.43 Senior Services Coordinator 1 1 1 1 Health Outreach Clinician 0.57 0.57 0.57 0.57 Office Manager 1 1 1 1 Department Assistant 0.69 0.69 0.69 0.69 Veterans Services District Director***1 1 1 1 Veterans Services Officer***0.51 0.51 0.51 0.51 Transportation Services Manager 1 1 1 1 Department Transportation Assistant 0.80 0.80 0.80 0.80 Registered Dietician****PT PT PT PT Senior Services Assistant****PT PT PT PT Total FTE 10.57 10.57 10.57 11.00 Total FT/PT 8FT / 6PT 8FT / 6PT 8FT / 6PT 8FT / 7PT *In FY2026, the Town Manager reclassified the Clinical & Community Outreach Manager as the Clinical Engagement & Community Equity Officer to support town DEI services. **In FY2026, the Town Manager created the part-time non-benefited Community Engagement Coordinator position to support town DEI services. ***The Veterans Services District Director and Officer are shared positions between Lexington, Bedford, and Carlisle. ****The part-time temporary positions of Registered Dietician and Senior Services Assistant are fully funded by grants from the Executive Office of Aging & Independence (formerly the Executive Office of Elder Affairs). 6100-6200 Human Services Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-4 Budget Recommendations: The recommended FY2027 All Funds Human Services budget is $2,241,651 which is a $61,767 or 2.83% increase from the revised FY2026 budget. The All Funds budget includes funding from a Massachusetts Executive Office of Aging & Independence (EOAI) grant, the Massachusetts Bay Transportation Authority (MBTA) Suburban Transportation grant, and the Senior Services Revolving Fund. The Towns of Bedford and Carlisle fund a portion of the Veterans Services budget through an Intermunicipal Veterans District agreement. The Human Services FY2027 recommended General Fund operating budget request is $1,828,850 and reflects a $125,253 or 7.35% increase from the revised FY2026 budget. The General Fund operating budget for Compensation is $837,216, and reflects a $83,932 or 11.14% increase, which reflects the cost of contractually obligated step increases, cost of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. All of the Health Department's employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The General Fund operating budget for Expenses is $991,634 and reflects a $41,321 or 4.35% increase, primarily due to an increase in contractual services following an open bidding process for the Lexpress contract which has been extended through June 30, 2030 with the Town's current vendor and includes replacement of the current fleet. This increase is offset by anticipated grant funding. Beginning in FY2026, fuel for Lexpress will not be paid for as a contract service but will be included in the town's consortium contract for gasoline and diesel. The FY2026 budget proposes to transfer $125,000 from the Transportation Demand Management Stabilization Fund to cover transportation services, which is level from FY2025. In FY2025, the Executive Office of Elder Affairs was renamed the Executive Office of Aging & Independence by the Governor. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses)Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Housing Case Coordinator $ 63,208 $ 23,173 $ 86,381 $ — $ — $ — $ 86,381 6100-6200 Human Services Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-5 Budget Summary - General Fund Funding Sources (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 1,328,915 $ 1,200,523 $ 1,537,361 $ 1,681,964 $ (17,350) $ 1,664,614 $ 127,253 8.28 % Veteran Benefits Reimbursement $ 61,498 $ 30,109 $ 19,236 $ 19,236 $ — $ 19,236 $ — — % TDM Allocation $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ — — % Fees Lexpress Fares $ 23,777 $ 20,721 $ 22,000 $ 20,000 $ — $ 20,000 $ (2,000) (9.09) % Total 6000 - General Fund $ 1,539,190 $ 1,376,354 $ 1,703,597 $ 1,846,200 $ (17,350) $ 1,828,850 $ 125,253 7.35 % Appropriation Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended Compensation $ 688,752 $ 724,594 $ 753,284 $ 837,216 $ — $ 837,216 $ 83,932 11.14 % Expenses $ 850,437 $ 651,760 $ 950,313 $ 1,008,984 $ (17,350) $ 991,634 $ 41,321 4.35 % Total 6000 - General Fund $ 1,539,190 $ 1,376,354 $ 1,703,597 $ 1,846,200 $ (17,350) $ 1,828,850 $ 125,253 7.35 % Program Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended Total 6110 Administration $ 192,481 $ 226,617 $ 230,612 $ 256,618 $ (7,000) $ 249,618 $ 19,006 8.24 % Total 6140 Veterans Services $ 53,970 $ 56,480 $ 93,172 $ 72,173 $ — $ 72,173 $ (20,999) (22.54) % Total 6150 Youth & Family Services $ 190,033 $ 190,085 $ 216,415 $ 286,761 $ (5,650) $ 281,111 $ 64,696 29.89 % Total 6170 Senior Services & Community Programs $ 194,074 $ 196,847 $ 214,480 $ 229,401 $ (2,200) $ 227,201 $ 12,721 5.93 % Total 6210 Transportation Services $ 908,632 $ 706,324 $ 948,918 $ 1,001,247 $ (2,500) $ 998,747 $ 49,829 5.25 % Total 6000 - General Fund $ 1,539,190 $ 1,376,354 $ 1,703,597 $ 1,846,200 $ (17,350) $ 1,828,850 $ 125,253 7.35 % Object Code Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended Salaries & Wages $ 688,752 $ 724,594 $ 753,284 $ 837,216 $ — $ 837,216 $ 83,932 11.14 % Overtime $ — $ — $ — $ — $ — $ — $ — — % Personal Services $ 688,752 $ 724,594 $ 753,284 $ 837,216 $ — $ 837,216 $ 83,932 11.14 % Contractual Services $ 821,325 $ 618,945 $ 857,393 $ 902,794 $ (11,150) $ 891,644 $ 34,251 3.99 % Utilities $ 1,350 $ 625 $ 59,340 $ 66,210 $ — $ 66,210 $ 6,870 11.58 % Supplies $ 24,960 $ 29,064 $ 31,080 $ 37,480 $ (6,200) $ 31,280 $ 200 0.64 % Small Capital $ 2,802 $ 3,126 $ 2,500 $ 2,500 $ — $ 2,500 $ — — % Expenses $ 850,437 $ 651,760 $ 950,313 $ 1,008,984 $ (17,350) $ 991,634 $ 41,321 4.35 % Total 6000 - General Fund $ 1,539,190 $ 1,376,354 $ 1,703,597 $ 1,846,200 $ (17,350) $ 1,828,850 $ 125,253 7.35 % 6100-6200 Human Services Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-6 Budget Summary - Revolving Funds* and Grants Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected EOAI Grant $ 124,992 $ 126,112 $ 126,112 $ 144,128 $ — $ 144,128 $ 18,016 14.29 % Veterans Services Regional Funding $ 81,400 $ 111,899 $ 100,374 $ 105,904 $ — $ 105,904 $ 5,530 5.51 % Senior Services Revolving Fund*$ 54,371 $ 58,496 $ 75,000 $ 75,000 $ — $ 75,000 $ — — % Community Transit Grant $ — $ 200,000 $ — $ — $ — $ — $ — — % Innovation Transit Grant $ — $ — $ — $ 90,000 $ — $ 90,000 $ — — % MBTA Grant $ 67,162 $ 81,933 $ 84,801 $ 87,769 $ — $ 87,769 $ 2,968 3.50 % Total 6000 - Non-General Fund $ 327,925 $ 578,440 $ 476,287 $ 412,801 $ — $ 412,801 $ (63,486) (13.33) % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4. Appropriations Summary (Non-General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended EOAI Grant $ 110,748 $ 116,807 $ 126,112 $ 144,128 $ — $ 144,128 $ 18,016 14.29 % Personal Services $ 85,359 $ 93,239 $ 77,070 $ 104,497 $ — $ 104,497 $ 27,427 35.59 % Expenses $ 25,389 $ 23,568 $ 49,042 $ 39,631 $ — $ 39,631 $ (9,411) (19.19) % Veterans' Services Regional Funding $ 95,635 $ 100,136 $ 100,374 $ 105,904 $ — $ 105,904 $ 5,530 5.51 % Personal Services $ 91,627 $ 95,838 $ 95,257 $ 101,210 $ — $ 101,210 $ 5,953 6.25 % Expenses $ 4,008 $ 4,298 $ 5,117 $ 4,694 $ — $ 4,694 $ (423) (8.27) % Senior Services Revolving Fund Expenses $ 44,602 $ 42,968 $ 75,000 $ 75,000 $ — $ 75,000 $ — — % Transportation Services Grant Funding Expenses $ 67,162 $ 281,933 $ 174,801 $ 87,769 $ — $ 87,769 $ (87,032) (49.79) % Total 6000 - Non-General Fund $ 318,146 $ 541,844 $ 476,287 $ 412,801 $ — $ 412,801 $ (63,486) (13.33) % Budget Summary - All Funds Appropriation Summary (All Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended Compensation $ 865,738 $ 913,671 $ 925,611 $ 1,042,923 $ — $ 1,042,923 $ 117,312 12.67 % Expenses $ 991,598 $ 1,004,527 $ 1,254,273 $ 1,216,078 $ (17,350) $ 1,198,728 $ (55,545) (4.43) % Total 6000 Human Services (All Funds)$ 1,857,336 $ 1,918,198 $ 2,179,884 $ 2,259,001 $ (17,350) $ 2,241,651 $ 61,767 2.83 % 6100-6200 Human Services Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-7 This Page Intentionally Left Blank. 6100-6200 Human Services Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-8 Mission: Under the direction of the Lexington Board of Health, the mission of the Lexington Health Department is to prevent disease and promote wellness in order to protect and improve the health and quality of life of its residents, visitors and workforce. Budget Overview: Beginning in FY2024, the Public Health Office became a separate Public Health Department to better reflect the vital importance of local public health, and is no longer a division of what is now called the Land Use, Housing and Development Department (LUHD) (Program 7000). The Health Department manages disease prevention and surveillance programs designed to protect the health of the community. Programs include but are not limited to public health education, infectious disease surveillance and case investigation activities, oversight and enforcement of all state and local community health and environmental health regulations, mosquito-borne disease prevention efforts, public vaccination clinics, and public health emergency planning and response efforts. The Health Department staff is comprised of the Health Director, an Assistant Health Director, a Health Agent, a Public Health Nurse and an Office Manager. Department Initiatives: 1.Continue to develop and grow the Clinical Public Health programs by increasing access to adult and pediatric vaccines and expanding Senior Wellness Clinics. Collaborate with Human Services to enhance support for seniors and collaborate with other clinical partners in the community. Explore grant opportunities to support the growth of future programs and services. 2.Continue to review all the Board of Health regulations, and update as necessary, to coincide with current state and federal regulations, standards and best practices. Research and develop new regulations as necessary. 3.Work with other Town departments and community partners to address hoarding in the community through a multi-disciplined approach. 4.Continue to respond to all inquires, complaints, and concerns from the public and staff in a timely fashion. Perform routine inspections to ensue compliance with state and local regulations. 5.Continue to work with Region 4AB to improve regional collaboration for Preparedness and with Region 4A to strengthen the Central Middlesex Medical Reserve Corps (CMMRC). Offer preparedness trainings and classes for the community such as Narcan training, Stop the Bleed, CPR and Preparing for natural and weather related events (ie. heat, cold, hurricanes). 6.Evaluate and expand the environmental focus of the Health Department, with an emphasis on climate change and the effects on our community and the environment. Continue to offer or sponsor trainings, certifications or education, on such topics as food safety and ServSafe training for food establishments, septic/cesspool maintenance, well water testing, mosquito/tick safety, air quality, pest control, and hazardous/medical waste. 7.Research grants and other financial opportunities to enhance and expand functions of the Health Department such as the FDA Voluntary Retail Food Grant, Public Health Excellence Grants, or other opportunities offered by the Office of Local and Regional Health of the Massachusetts Department of Public Health. 6500 Health Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-9 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Public Health Director 1 1 1 1 Asst. Public Health Director 1 1 1 1 Public Health Agent 1 1 1 1 Public Health Nurse 1 1 1 1 Office Manager 1 1 1 1 Total FTE 5.0 5.0 5.0 5.0 Total FT/PT 5FT/0PT 5FT/0PT 5FT/0PT 5FT/0PT 6500 Health Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-10 Budget Recommendations: The recommended FY2027 All Funds Health budget inclusive of the General Fund operating budget, the Health Program Revolving Fund which funds health clinics, and the Lab Inspections Revolving Fund which conducts lab inspections at commercial properties, is $810,006. The recommended budget is a $13,982 or 1.76% increase from the FY2026 budget. The FY2027 recommended Health General Fund operating budget is $560,006, which is a $(1,018) or (0.18)% decrease from the FY2026 General Fund budget. The General Fund operating budget for Compensation is $477,006 and reflects a $3,482 or 0.74% increase due to the cost of contractually obligated step increases, cost of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. All of the Health Department's employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The General Fund operating budget for Expenses is $83,000, a $(4,500) or (5.14)% decrease from FY2026, due to alignment with historical spending trends. The FY2027 Health Programs Revolving Fund is recommended at $155,000, level-funded from the FY2026 authorization. The FY2027 Lab Inspections Revolving Fund is recommended at $95,000 to handle lab animal and RDNA inspections at commercial and industrial properties in town. Program Improvement Requests: None requested. 6500 Health Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-11 Budget Summary - General Fund Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 372,730 $ 389,569 $ 478,024 $ 463,006 $ (5,000) $ 458,006 $ (20,018) (4.19) % Directed Funding Permits $ 109,735 $ 123,835 $ 83,000 $ 102,000 $ — $ 102,000 $ 19,000 22.89 % Total 6500 Health $ 482,465 $ 513,404 $ 561,024 $ 565,006 $ (5,000) $ 560,006 $ (1,018) (0.18) % Appropriation Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 435,477 $ 458,485 $ 473,524 $ 477,006 $ — $ 477,006 $ 3,482 0.74 % Expenses $ 46,988 $ 54,919 $ 87,500 $ 88,000 $ (5,000) $ 83,000 $ (4,500) (5.14) % Total 6500 Health $ 482,465 $ 513,404 $ 561,024 $ 565,006 $ (5,000) $ 560,006 $ (1,018) (0.18) % Object Code Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 435,266 $ 457,224 $ 471,684 $ 475,092 $ — $ 475,092 $ 3,408 0.72 % Overtime 211 1,262 $ 1,840 1,914 — $ 1,914 $ 74 4.02 % Personal Services $ 435,477 $ 458,485 $ 473,524 $ 477,006 $ — $ 477,006 $ 3,482 0.74 % Contractual Services $ 39,636 $ 48,439 $ 75,250 $ 75,550 $ (5,000) $ 70,550 $ (4,700) (6.25) % Utilities $ 2,091 $ 1,970 $ 3,000 $ 3,000 $ — $ 3,000 $ — — % Supplies $ 5,260 $ 4,509 $ 9,250 $ 9,450 $ — $ 9,450 $ 200 2.16 % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 46,988 $ 54,919 $ 87,500 $ 88,000 $ (5,000) $ 83,000 $ (4,500) (5.14) % Total 6500 Health $ 482,465 $ 513,404 $ 561,024 $ 565,006 $ (5,000) $ 560,006 $ (1,018) (0.18) % Budget Summary - Revolving Funds* Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Health Programs Revolving Fund $ 63,998 $ 83,786 $ 155,000 $ 155,000 $ — $ 155,000 $ — — % Lab Inspections Revolving Fund $ 40,750 $ 44,325 $ 80,000 $ 95,000 $ — $ 95,000 $ 15,000 18.75 % Total 6500 Health $ 104,748 $ 128,111 $ 235,000 $ 250,000 $ — $ 250,000 $ 15,000 6.38 % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4. Appropriation Summary (Revolving Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended 6500 - Health Programs Revolving Fund Expenses $ 36,404 $ 42,400 $ 155,000 $ 155,000 $ — $ 155,000 $ — — % 6500 - Lab Inspections Revolving Fund Expenses $ 29,825 $ 20,800 $ 80,000 $ 95,000 $ — $ 95,000 $ 15,000 18.75 % Total 6500 Health $ 66,229 $ 63,200 $ 235,000 $ 250,000 $ — $ 250,000 $ 15,000 6.38 % Budget Summary - All Funds Appropriation Summary (All Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 435,477 $ 458,485 $ 473,524 $ 477,006 $ — $ 477,006 $ 3,482 0.74 % Expenses $ 113,217 $ 118,118 $ 322,500 $ 338,000 $ (5,000) $ 333,000 $ 10,500 3.26 % Total 6500 Health - All Funds $ 548,694 $ 576,604 $ 796,024 $ 815,006 $ (5,000) $ 810,006 $ 13,982 1.76 % 6500 Health Program: Human Services & Health Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 VIII-12 This Page Intentionally Left Blank. Section IX: Program 7000: Land Use, Housing and Development Department This section includes detailed information about the FY2027 Operating Budget & Financing Plan for the Land Use, Housing and Development Department. It includes: •7100-7400 Summary IX-3 •7110 Building and Zoning IX-10 •7120 Administration IX-14 •7130 Conservation IX-17 •7200 Planning IX-21 •7300 Economic Development IX-25 FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-1 This Page Intentionally Left Blank. Mission: The Land Use, Health and Development department was created in 2015 to support the Town Manager, under the direction of an Assistant Town Manager for Development, by providing strategic leadership and accountability for a new Department comprising the Planning, Economic Development, Building & Zoning, Conservation, and Public Health functions, and by managing land- related negotiations, acquisitions, agreements, restrictions, leases. The Department included those offices that manage and promote residential and commercial development in Lexington while protecting the health and safety of residents through local bylaws and regulations, as well as state statutes and regulations, in the areas of building code, zoning, wetland protection, planning, economic development, housing and land-use. This structure enabled the Town to further streamline code enforcement, program and policy development, and outreach and educational activities related to commercial, residential and public development and local public health. In recent years the COVID-19 pandemic highlighted the vital importance of local public health, and in 2022 the Town Manager conducted an organization study of the Town's departmental structure. Based on that evaluation, the Health Office became a stand-alone Town department in FY2024 and is now separately reflected under Program 6500. Further, Lexington's commitment to Affordable Housing goals has come to the forefront of the Town's initiatives. Going forward 'Housing' will be reflected in the Department's new name: the Land Use, Housing and Development Department. Budget Overview: The Land Use, Housing and Development Department is comprised of: Building and Zoning, Administration, Conservation, Planning, Housing and Economic Development. •Building and Zoning is responsible for enforcing the State building, electrical, gas and plumbing codes, the local zoning bylaw, and Architectural Access Board Regulations. •Conservation is responsible for administering and enforcing the State and local wetland protection codes and the state Stormwater Management Regulations, managing over 1,400 acres of Town- owned conservation land, and providing outreach and education concerning natural and watershed resources. •Planning supports the Planning Board in the administration of the Subdivision Regulations, the determination of adequacy of unaccepted streets, the granting of special permits for residential development, site plan review and granting of special permits within the commercial manufacturing district, and the review of Planned Development District proposals that go to Town Meeting. In addition, the staff engages in short- and long-term planning in regard to growth and development issues in Lexington, being active participants in various committees dealing with issues of transportation, affordable housing and economic development, as well as participating in regional and statewide initiatives. •Affordable Housing has become an increasing priority in Lexington, and the Town has recently established an Affordable Housing Trust to fund the preservation and creation of affordable housing units in Lexington. While the FY2026 budget does not reflect dedicated staffing or expenses, the Town's Affordable Housing initiatives are expected to expand in future years. •Economic Development works to encourage new investment and support our local businesses. It serves as a liaison for businesses and works to address business-related issues from Center parking to expanding the life sciences sector to updating land use policy. The Office also works to retain and expand local businesses by providing information, conducting research, supporting a visitor- based economy, and leveraging state economic development tools and resources designed to 7100-7400 Program Summary Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-3 improve the business environment. The Economic Development Office manages the Visitors Center and Tourism operations. Departmental Initiatives: 1.Implement the Select Board’s goals associated with the work of the Department. 2.Support the transition of the Public Health function into a new, separate Department, while continuing to coordinate with the Health staff to facilitate Health-related permitting of Economic Development and other development-related work. 3.Support affordable housing studies, plans, resources and initiatives, including the new Affordable Housing Trust, MBTA Multi-family, and Special Residential Developments. 4.Implement high priority and near-term action steps and recommendations of LexingtonNext, the Comprehensive Plan Update adopted September 2022. 5.Continue to support community input on the Bedford Street/Hartwell Avenue 25% design development with the Engineering Division. 7100-7400 Program Summary Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-4 7100-7400 Program Summary Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-5 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Asst. Town Manager for Development 1 1 1 1 Administrative Assistant 1 1 1 1 Administration Dept Office Manager 1 1 1 1 Administration Dept Assistants 3 3 3 3 Economic Development Director 1 1 1 1 Senior Economic Dev. Coordinator 1 1 1 1 Visitor Center Manager 1 1 1 1 Visitor Center PT Assistant Manager 0.56 0.56 0.56 0.56 Tour Services Coordinator 1 1 1 1 Visitor Center Staff Seasonal Seasonal Seasonal Seasonal Battle Green Guides Seasonal Seasonal Seasonal Seasonal Liberty Ride Guides Seasonal Seasonal Seasonal Seasonal Economic Development Intern Seasonal Seasonal Seasonal Seasonal Planning Director 1 1 1 1 Assistant Planning Director 1 1 1 1 Planner 1 1 1 1 Planning Dept. Assistant 1 1 1 1 Conservation Director 1 1 1 1 Conservation Coordinator 1 1 1 1 Land Use Ranger 0.26 0.26 0.26 0.26 Conservation Regulatory Assistant*———— Land Management Interns Seasonal Seasonal Seasonal Seasonal Building Commissioner 1 1 1 1 Asst. Building Commissioner 1 1 1 1 Zoning Enforcement Administrator 1 1 1 1 Building Inspector 1 1 1 1 Plumbing and Gas Inspector 1 1 1 1 Electric Inspector 1 1 1 1 Mechanical Inspector**—0.57 0.57 0.57 Part-time Building Inspector**0.58 0.21 0.21 0.21 Part-time Plumbing Inspector**0.14 0.07 0.07 0.07 Part-time Electric Inspector**0.24 0.12 0.12 0.12 PT Sealer Weights/Measures***———— Total FTE 23.78 23.79 23.79 23.79 Total FT/PT 22FT/9PT + Seasonal 22FT/10PT + Seasonal 22FT/10PT + Seasonal 22FT/10PT + Seasonal *In FY2025, a part-time seasonal non-benefited Conservation Regulatory Assistant position was created via a program improvement. This position will be funded by wetland protection fees passed through from the State. **The hours budgeted for part-time inspectors are filled by multiple individuals. In FY2025, part-time hours were reduced to create the Mechanical Inspector position. ***This is a part-time position shared with the Town of Burlington paid for as a contract service that does not add to overall headcount. 7100-7400 Program Summary Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-6 Budget Recommendations: The FY2027 recommended All Funds Land Use, Housing and Development Department budget, inclusive of the General Fund operating budget, the Tourism, Residential Engineering Review, and Wetland Protection Revolving Funds, is $3,218,873, which is a $114,556 or 3.69% increase from the FY2026 budget. The FY2027 All Funds budget includes fee revenue from Wetlands Protection Act Notice of Intent (NOI) permitting process which is accounted for in a Revolving Fund. This Revolving Fund is authorized by Massachusetts General Law (MGL) Chapter 131, Section 40, which does not require appropriation by Town Meeting. The FY2027 budget includes a part-time seasonal position for the Conservation department be funded by the wetland protection fees. The FY2027 recommended Land Use, Housing and Development General Fund operating budget is $2,542,629, which is a $77,393 or 3.14% increase from the FY2026 General Fund budget. The General Fund operating budget for Compensation is $2,155,688 and reflects a $120,843 or 5.94% increase, which funds step increases, cost of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. All LUHD employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The General Fund operating budget for Expenses is $386,941 and reflects a decrease of $(43,450) or (10.10)% due to targeted reductions in expenses based on prior year spending. The FY2027 recommended budget for the Tourism Revolving Funds is $598,354, an increase of $37,163 or 6.62% in the Tourism budget. Tourism is expected to remain high during the 250th anniversary of the signing of the Declaration of Independence, the FIFA World Cup, and Tall Ships Boston, which is anticipated to generate additional revenue as well as additional expenses. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses) Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Building Inspector Part-Time $ 49,390 $ 716 $ 50,106 $ — $ — $ — $ 50,106 Mechanical Inspector - Additional Hours $ 10,507 $ 152 $ 10,659 $ — $ — $ — $ 10,659 Tourism Model Evaluation $ 50,000 $ — $ 50,000 $ — $ — $ — $ 50,000 7100-7400 Program Summary Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-7 Budget Summary - General Fund Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ (939,193) $ (2,405,650) $ (447,664) $ (162,147) $ (55,824) $ (217,971) $ 229,693 (51.31) % TDM Stabilization Fund $ 46,000 $ 46,000 $ 46,000 $ 46,000 $ — $ 46,000 $ — — % Fees & Charges Departmental Fees $ 99,787 $ 177,370 $ 90,700 $ 97,400 $ — $ 97,400 $ 6,700 7.39 % Licenses & Permits $ 2,977,006 $ 4,378,157 $ 2,776,200 $ 2,617,200 $ — $ 2,617,200 $ (159,000) (5.73) % Total 7100-7400 - General Fund $ 2,183,601 $ 2,195,876 $ 2,465,236 $ 2,598,453 $ (55,824) $ 2,542,629 $ 77,393 3.14 % Appropriation Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 1,872,366 $ 1,901,668 $ 2,034,845 $ 2,166,562 $ (10,874) $ 2,155,688 $ 120,843 5.94 % Expenses $ 311,235 $ 294,209 $ 430,391 $ 431,891 $ (44,950) $ 386,941 $ (43,450) (10.10) % Total 7100-7400 - General Fund $ 2,183,601 $ 2,195,876 $ 2,465,236 $ 2,598,453 $ (55,824) $ 2,542,629 $ 77,393 3.14 % Level-Service Requests (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Total 7110 Building & Zoning $ 614,263 $ 682,400 $ 692,169 $ 729,249 $ — $ 729,249 $ 37,080 5.36 % Total 7120 Administration $ 462,893 $ 491,926 $ 555,676 $ 603,839 $ (10,674) $ 593,165 $ 37,489 6.75 % Total 7130 Conservation $ 244,968 $ 197,453 $ 274,896 $ 280,545 $ (17,700) $ 262,845 $ (12,051) (4.38) % Total 7200 Planning $ 412,865 $ 382,074 $ 459,127 $ 483,778 $ (16,450) $ 467,328 $ 8,201 1.79 % Total 7300 Economic Development $ 448,612 $ 442,024 $ 483,368 $ 501,042 $ (11,000) $ 490,042 $ 6,674 1.38 % Total 7100-7400 - General Fund $ 2,183,601 $ 2,195,876 $ 2,465,236 $ 2,598,453 $ (55,824) $ 2,542,629 $ 77,393 3.14 % Object Code Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 1,856,941 $ 1,881,153 $ 2,000,755 $ 2,132,472 $ (5,000) $ 2,127,472 $ 126,717 6.33 % Overtime $ 15,425 $ 20,515 $ 34,090 $ 34,090 $ (5,874) $ 28,216 $ (5,874) (17.23) % Personal Services $ 1,872,366 $ 1,901,668 $ 2,034,845 $ 2,166,562 $ (10,874) $ 2,155,688 $ 120,843 5.94 % Contractual Services $ 242,247 $ 245,184 $ 369,140 $ 370,460 $ (40,950) $ 329,510 $ (39,630) (10.74) % Utilities $ 8,090 $ 9,418 $ 10,181 $ 10,331 $ — $ 10,331 $ 150 1.47 % Supplies $ 60,315 $ 39,096 $ 49,070 $ 49,100 $ (3,000) $ 46,100 $ (2,970) (6.05) % Small Capital $ 582 $ 511 $ 2,000 $ 2,000 $ (1,000) $ 1,000 $ (1,000) (50.00) % Expenses $ 311,235 $ 294,209 $ 430,391 $ 431,891 $ (44,950) $ 386,941 $ (43,450) (10.10) % Total 7100-7400 - General Fund $ 2,183,601 $ 2,195,876 $ 2,465,236 $ 2,598,453 $ (55,824) $ 2,542,629 $ 77,393 3.14 % 7100-7400 Program Summary Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-8 Budget Summary - Revolving Funds Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Residential Engineering Review Revolving Fund $ — $ — $ 57,600 $ 57,600 $ — $ 57,600 $ — — % Wetland Protection Fees $ — $ — $ 20,290 $ 20,290 $ — $ 20,290 $ — — % Tourism Revolving Fund $ 573,945 $ 513,753 $ 561,191 $ 598,354 $ — $ 598,354 $ 37,163 6.62 % Total 7100-7400 - Rev. Funds $ 573,945 $ 513,753 $ 639,081 $ 676,244 $ — $ 676,244 $ 37,163 5.82 % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4, with the exception of the Wetland Protection Revolving Fund which does not require appropriation. Appropriation Summary (Revolving Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended 7110 - Residential Engineering Review $ — $ — $ 57,600 $ 57,600 $ — $ 57,600 $ — — % Expenses $ — $ — $ 57,600 $ 57,600 $ — $ 57,600 $ — — % 7130 - Wetland Protection $ — $ — $ 20,290 $ 20,290 $ — $ 20,290 $ — — % Compensation $ — $ — $ 20,290 $ 20,290 $ — $ 20,290 $ — — % 7350 - Tourism $ 336,350 $ 481,472 $ 561,191 $ 598,354 $ — $ 598,354 $ 37,163 6.62 % Compensation $ 151,077 $ 236,741 $ 220,439 $ 261,541 $ — $ 261,541 $ 41,102 18.65 % Expenses $ 185,273 $ 244,732 $ 325,000 $ 326,915 $ — $ 326,915 $ 1,915 0.59 % Benefits $ — $ — $ 15,752 $ 9,898 $ — $ 9,898 $ (5,854) (37.16) % Total 7100-7400 - Rev. Funds $ 336,350 $ 481,472 $ 639,081 $ 676,244 $ — $ 676,244 $ 37,163 5.82 % Budget Summary - All Funds Appropriation Summary (All Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 2,023,443 $ 2,138,408 $ 2,275,574 $ 2,448,393 $ (10,874) $ 2,437,519 $ 161,945 7.12 % Expenses $ 496,508 $ 538,940 $ 812,991 $ 816,406 $ (44,950) $ 771,456 $ (41,535) (5.11) % Benefits $ — $ — $ 15,752 $ 9,898 $ — $ 9,898 $ (5,854) (37.16) % Total 7100-7400 - All Funds $ 2,519,951 $ 2,677,349 $ 3,104,317 $ 3,274,697 $ (55,824) $ 3,218,873 $ 114,556 3.69 % 7100-7400 Program Summary Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-9 Mission: The Building and Zoning Division is a regulatory function with the goal of protecting the health and safety of residents. This role is fulfilled through the enforcement of building, zoning and land use regulations. Budget Overview: The Building and Zoning Division enforces state building, electrical, plumbing, gas and mechanical codes, Architectural Access Board Regulations and local zoning bylaws. Staff, comprised of the Building Commissioner, Assistant Building Commissioner, Building Inspectors, Electrical Inspector, Plumbing & Gas Inspector, Mechanical Inspector and Zoning Enforcement Administrator, review construction drawings and specifications, issue permits, inspect new construction, conduct periodic inspections of restaurants, day care centers, schools, religious institutions, museums, places of public assembly and multi-family housing, and levy fines or prosecute when necessary to maintain code compliance. Division Initiatives: 1.Continue to improve and administer the online permitting system, assisting contractors and residents to obtain their permits and inspections without delays. The Open Gov permit system requires all building, mechanical, sheet metal, zoning, electrical, plumbing and gas permits to be applied for electronically. This permitting system allows applicants to do much of their work from their office or home, thereby saving time and money from having to visit the Town offices. 2. With the new State law exempting Accessory Dwelling Units from local zoning requirements, the goal this coming year is to assist the Planning Staff and Planning Board with amending the zoning bylaw to best reflect the state zoning act and draft a Lexington Bylaw that conforms to the states requirements. This will make it easier for permitting new, by-right accessory dwellings in Lexington. 3.Permit, inspect, monitor and ensure code compliance for over one thousand new residential housing units currently permitted by the Planning Board and in the permitting pipeline. These new buildings and residential developments will create an enormous workload on inspectors and will require an extraordinary effort on all to ensure success. This year's budget includes a Program Improvement Request to create a part time Building Inspector position to provide adequate inspectional services to insure code compliance on these new homes. 4.Continue the education and enforcement of the Town's Fossil Fuel Free Bylaw, adopted in the Spring of 2024 and amended again in 2025, that prohibits/limits the use of natural gas and propane in new and existing homes and most commercial buildings. 5.Assist the Planning Staff and Select Board to continue with their efforts to implement a stormwater permitting system for all new homes built, regardless of the lot size. In 2023 the Board added smaller projects that trigger site plan review, and their next steps will be adding all the new home lots so that stormwater will not adversely affect the neighbors and town roads 7110 Building & Zoning Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-10 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Building Commissioner 1 1 1 1 Asst. Bldg. Commissioner 1 1 1 1 Zoning Enforcement Administrator 1 1 1 1 Building Inspectors 1 1 1 1 Plumbing and Gas Inspector 1 1 1 1 Electric Inspector 1 1 1 1 Mechanical Inspector*—0.57 0.57 0.57 Part-time Building Inspector**0.58 0.21 0.21 0.21 Part-time Plumbing Inspector**0.14 0.07 0.07 0.07 Part-time Electric Inspector**0.24 0.12 0.12 0.12 Part-time Sealer of Weights and Measures***———— Total FTE 6.96 6.97 6.97 6.97 Total FT/PT 6FT/3PT 6FT/4PT 6FT/4PT 6FT/4PT *In FY2025, a part-time benefited Mechanical Inspector position was created via a program improvement. **The hours budgeted for part-time inspectors are filled by multiple individuals. In FY2025, part-time hours were reduced to create the Mechanical Inspector position. ***This is a part-time position shared with the Town of Burlington paid for as a contract service that does not add to overall headcount. 7110 Building & Zoning Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-11 Budget Recommendations: The FY2027 recommended All Funds Building and Zoning budget is $786,849, a $37,080 or 4.95% increase from the FY2026 budget. The FY2027 recommended General Fund Building and Zoning budget is $729,249, a $37,080 or 5.36% increase from the FY2026 budget. The recommended budget for Compensation is $686,409 and reflects a $37,080 or 5.71% increase, which is due to contractually obligated step increases, cost of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. All LUHD employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The recommended budget for Expenses is $42,840, level-funded from FY2026. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses)Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Building Inspector Part-Time $ 49,390 $ 716 $ 50,106 $ — $ — $ — $ 50,106 Mechanical Inspector - Additional Hours $ 10,507 $ 152 $ 10,659 $ — $ — $ — $ 10,659 7110 Building & Zoning Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-12 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ (2,266,663) $ (3,585,187) $ (2,012,031) $ (1,897,951) $ — $ (1,897,951) $ 114,080 (5.67) % Directed Funding Departmental Fees $ 13,655 $ 13,265 $ 11,000 $ 10,000 $ — $ 10,000 $ (1,000) (9.09) % Licenses and Permits $ 2,867,271 $ 4,254,322 $ 2,693,200 $ 2,617,200 $ — $ 2,617,200 $ (76,000) (2.82) % Total 7110 Building and Zoning $ 614,263 $ 682,400 $ 692,169 $ 729,249 $ — $ 729,249 $ 37,080 5.36 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 577,562 $ 650,840 $ 649,329 $ 686,409 $ — $ 686,409 $ 37,080 5.71 % Expenses $ 36,702 $ 31,559 $ 42,840 $ 42,840 $ — $ 42,840 $ — — % Total 7110 Building and Zoning $ 614,263 $ 682,400 $ 692,169 $ 729,249 $ — $ 729,249 $ 37,080 5.36 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ 571,514 $ 648,127 $ 642,739 $ 679,819 $ — $ 679,819 $ 37,080 5.77 % Overtime $ 6,048 $ 2,714 $ 6,590 $ 6,590 $ — $ 6,590 $ — — % Personal Services $ 577,562 $ 650,840 $ 649,329 $ 686,409 $ — $ 686,409 $ 37,080 5.71 % Contractual Services $ 24,977 $ 17,621 $ 31,690 $ 31,690 $ — $ 31,690 $ — — % Utilities $ 5,502 $ 6,826 $ 6,000 $ 6,000 $ — $ 6,000 $ — — % Supplies $ 6,223 $ 7,112 $ 5,150 $ 5,150 $ — $ 5,150 $ — — % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 36,702 $ 31,559 $ 42,840 $ 42,840 $ — $ 42,840 $ — — % Total 7110 Building and Zoning $ 614,263 $ 682,400 $ 692,169 $ 729,249 $ — $ 729,249 $ 37,080 5.36 % Budget Summary - Revolving Funds* Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Residential Engineering Review $ — $ — $ 57,600 $ 57,600 $ 57,600 $ — — % Total 7110 B&Z Rev. Funds $ — $ — $ 57,600 $ 57,600 $ — $ 57,600 $ — — % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4. Appropriation Summary (Revolving Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended 7110 - Residential Engineering Review Revolving Fund Expenses $ — $ — $ 57,600 $ 57,600 $ 57,600 $ — — % Total 7110 B&Z Rev. Funds $ — $ — $ 57,600 $ 57,600 $ — $ 57,600 $ — — % Budget Summary - All Funds Appropriation Summary (All Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 577,562 $ 650,840 $ 649,329 $ 686,409 $ — $ 686,409 $ 37,080 5.71 % Expenses $ 36,702 $ 31,559 $ 100,440 $ 100,440 $ — $ 100,440 $ — — % Total 7110 B&Z - All Funds $ 614,263 $ 682,400 $ 749,769 $ 786,849 $ — $ 786,849 $ 37,080 4.95 % 7110 Building & Zoning Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-13 Mission: To develop comprehensive regulatory and technical assistance services to town residents and commercial entities transacting development business with the Town. Budget Overview: Administration provides management oversight and administrative support to the Building and Zoning, Conservation, Planning and Economic Development Offices and to the numerous boards and commissions, including the Zoning Board of Appeals and Historic Districts Commission, and coordinates their daily operations. The staff, comprised of an Assistant Town Manager, an Office Manager, Administrative Assistant and three Department Assistants, schedules and coordinates hearings, prepares legal notices, sets agendas, processes applications and permits, inputs data into Access databases, maintains files, circulates petitions among Town boards and officials, prepares meeting notices, agendas and minutes, determines and notifies abutters, communicates with the public, attends meetings, performs payroll and accounts payable functions, makes daily deposits, and files all final documentation. The Assistant Town Manager for Development position oversees all operations of the five divisions within the Land Use, Housing and Development Department. Division Initiatives: 1.Mobilize the Department to advance the Select Board's Goals. 2. Conduct the design public hearing and respond to comments for the Bedford & Hartwell Roadway Reconstruction project. Assist the design consultant in the preparation of the 75% highway design submission and complete the necessary wetlands permitting process. 3.Select a design consultant and execute a contract with MassDOT for the design of safety improvements at the I-95 & Route 4/225 interchange. Funding for this project component was awarded through the FY2026 Project Design Pilot by the Boston MPO. Staff to provide quarterly updates to MPO staff while the design is underway to facilitate identification of future TIP funding. 4.Focus Department resources to support the increased volume of the Planning Division's construction monitoring and development permitting. 7120 Administration Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-14 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Asst. Town Manager for Development 1 1 1 1 Administrative Assistant 1 1 1 1 Office Manager 1 1 1 1 Department Assistants 3 3 3 3 Total FTE 6 6 6 6 Total FT/PT 6 FT 6 FT 6 FT 6 FT 7120 Administration Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-15 Budget Recommendations: The recommended FY2027 General Fund budget for the Office of Administration is $593,165, an increase of $37,489 or 6.75% from the FY2026 budget. The General Fund operating budget for Compensation is $536,265 and reflects an increase of $42,489 or 8.60% due to contractually obligated step increases, cost of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. All LUHD employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The General Fund operating budget for Expenses is $56,900 and reflects a net decrease of $(5,000) or (8.08)%, which is primarily due to targeted reductions based on prior year spending. Program Improvement Requests: None requested. Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 454,793 $ 483,826 $ 541,976 $ 582,439 $ (10,674) $ 571,765 $ 29,789 5.50 % Directed Funding Departmental Fees $ 8,100 $ 8,100 $ 13,700 $ 21,400 $ — $ 21,400 $ 7,700 56.20 % Total 7120 Administration $ 462,893 $ 491,926 $ 555,676 $ 603,839 $ (10,674) $ 593,165 $ 37,489 6.75 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 438,686 $ 457,630 $ 493,776 $ 540,439 $ (4,174) $ 536,265 $ 42,489 8.60 % Expenses $ 24,207 $ 34,296 $ 61,900 $ 63,400 $ (6,500) $ 56,900 $ (5,000) (8.08) % Total 7120 Administration $ 462,893 $ 491,926 $ 555,676 $ 603,839 $ (10,674) $ 593,165 $ 37,489 6.75 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ 432,936 $ 450,135 $ 480,615 $ 527,278 $ — $ 527,278 $ 46,663 9.71 % Overtime $ 5,750 $ 7,496 $ 13,161 $ 13,161 $ (4,174) $ 8,987 $ (4,174) (31.71) % Personal Services $ 438,686 $ 457,630 $ 493,776 $ 540,439 $ (4,174) $ 536,265 $ 42,489 8.60 % Contractual Services $ 13,773 $ 28,823 $ 49,200 $ 50,700 $ (6,500) $ 44,200 $ (5,000) (10.16) % Utilities $ 745 $ 63 $ 700 $ 700 $ — $ 700 $ — — % Supplies $ 9,689 $ 5,410 $ 12,000 $ 12,000 $ — $ 12,000 $ — — % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 24,207 $ 34,296 $ 61,900 $ 63,400 $ (6,500) $ 56,900 $ (5,000) (8.08) % Total 7120 Administration $ 462,893 $ 491,926 $ 555,676 $ 603,839 $ (10,674) $ 593,165 $ 37,489 6.75 % 7120 Administration Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-16 Mission: To protect the health and safety of Town residents through education about and regulation of and management of natural areas and wetlands. Budget Overview: The Conservation Division provides administration, interpretation and enforcement of all applicable State laws and Local codes; counsel, guidance and education to the public on environmental issues; research and reports on relevant issues for the Conservation Commission meetings to aid the Commission in key decision making; enforcement of permit conditions through construction inspections; management of conservation areas and the Land and Watershed Stewardship Program. The Conservation Director manages and supervises the Conservation staff and operations and, along with the Conservation Stewardship Coordinator, performs administrative, supervisory, professional and technical work in connection with managing and directing comprehensive environmental programs. Division Initiatives: 1.Conduct a review of Conservation Commission fees and adjust accordingly to bring in additional revenue to offset cost of services. 2.Obtain Local Approvals from State in order to execute longstanding Conservation Restrictions between Town, CLC, and State for CPA conservation land acquisitions. 3.Implement recommendations of the extended Ten Year Action Plan of the 2023 Open Space and Recreation Plan in collaboration with Recreation and Community Programs and other applicable staff, boards,committees, and community stakeholders and apply for eligible State grant opportunities as applicable. 4.Continue to complete the numerous conservation land management and stewardship prioritized projects, including annual boardwalk surveys and repairs, invasive species management, and in progress CPA funded projects (Wright Farm, Cotton Farm/Community Center Trail Connector, Rangeway/Simonds Brook Trail Realignment) 5.Plan for and acquire open space parcels as prioritized by the Conservation Commission. 7130 Conservation Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-17 Authorized/Appropriated StaffingAuthorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Conservation Director 1 1 1 1 Conservation Coordinator 1 1 1 1 Land Use Ranger 0.26 0.26 0.26 0.26 Conservation Regulatory Assistant*———— Seasonal Land Management Interns Seasonal Seasonal Seasonal Seasonal Total FTE 2.26 2.26 2.26 2.26 Total FT/PT 2FT/1PT + Seasonals 2FT/1PT + Seasonals 2FT/1PT + Seasonals 2FT/1PT + Seasonals *In FY2025, a part-time seasonal non-benefited Conservation Regulatory Assistant position was created via a program improvement. This position will be funded by wetland protection fees passed through from the State. 7130 Conservation Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-18 Budget Recommendations: The recommended FY2027 All Funds Conservation budget is $283,135, a decrease of $(12,051) or (4.08)% from the FY2026 budget. The recommended FY2027 General Fund Conservation budget is $262,845, a decrease of $(12,051) or (4.38)% from the FY2026 budget. This includes a $5,649 or 2.32% increase in Compensation which funds step increases, cost of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. All LUHD employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The recommended budget for Expenses is $14,961, which is a decrease of $(16,000) or (51.68)% compared to FY2026 due to targeted reductions in contract services. Program Improvement Requests: None 7130 Conservation Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-19 Budget Summary: Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Estimate Projected Add/Del Projected Increase Increase Tax Levy $ 220,240 $ 150,602 $ 248,896 $ 254,545 $ (17,700) $ 236,845 $ (12,051) (4.84) % Directed Funding Departmental Fees $ 24,728 $ 46,851 $ 26,000 $ 26,000 $ — $ 26,000 $ — — % Total 7130 Conservation $ 244,968 $ 197,453 $ 274,896 $ 280,545 $ (17,700) $ 262,845 $ (12,051) (4.38) % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 221,392 $ 178,520 $ 243,935 $ 249,584 $ (1,700) $ 247,884 $ 3,949 1.62 % Expenses $ 23,576 $ 18,933 $ 30,961 $ 30,961 $ (16,000) $ 14,961 $ (16,000) (51.68) % Total 7130 Conservation $ 244,968 $ 197,453 $ 274,896 $ 280,545 $ (17,700) $ 262,845 $ (12,051) (4.38) % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Salaries & Wages $ 221,157 $ 178,055 $ 240,735 $ 246,384 $ 246,384 $ 5,649 2.35 % Overtime $ 235 $ 465 $ 3,200 $ 3,200 $ (1,700) $ 1,500 $ (1,700) (53.13) % Personal Services $ 221,392 $ 178,520 $ 243,935 $ 249,584 $ (1,700) $ 247,884 $ 3,949 1.62 % Contractual Services $ 16,163 $ 13,052 $ 22,100 $ 21,950 $ (16,000) $ 5,950 $ (16,150) (73.08) % Utilities $ 1,423 $ 2,109 $ 3,061 $ 3,211 $ — $ 3,211 $ 150 4.90 % Supplies $ 5,989 $ 3,773 $ 5,800 $ 5,800 $ — $ 5,800 $ — — % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 23,576 $ 18,933 $ 30,961 $ 30,961 $ (16,000) $ 14,961 $ (16,000) (51.68) % Total 7130 Conservation $ 244,968 $ 197,453 $ 274,896 $ 280,545 $ (17,700) $ 262,845 $ (12,051) (4.38) % Budget Summary - Revolving Funds* Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Wetland Protection Fees $ — $ — $ 20,290 $ 20,290 $ — $ 20,290 $ — — % Total 7130 Revolving Fund $ — $ — $ 20,290 $ 20,290 $ — $ 20,290 $ — — % *This Revolving Fund is authorized by Massachusetts General Law (MGL) Chapter 131, Section 40 and does not require appropriation. Appropriations Summary (Non-General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Wetland Protection $ — $ — $ 20,290 $ 20,290 $ — $ 20,290 $ — — % Personal Services $ — $ — $ 20,290 $ 20,290 $ 20,290 $ — — % Total 7130 - Revolving Fund $ — $ — $ 20,290 $ 20,290 $ — $ 20,290 $ — — % Budget Summary - All Funds Appropriations Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Percent Actual Actual Appropriation Request Add/Del Recommended Increase Increase Compensation $ 221,392 $ 178,520 $ 264,225 $ 269,874 $ (1,700) $ 268,174 $ 3,949 1.49 % Expenses $ 23,576 $ 18,933 $ 30,961 $ 30,961 $ (16,000) $ 14,961 $ (16,000) (51.68) % Total 7300 - All Funds $ 244,968 $ 197,453 $ 295,186 $ 300,835 $ (17,700) $ 283,135 $ (12,051) (4.08) % 7130 Conservation Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-20 Mission: The Planning Office helps residents envision and work toward a community that serves the needs of all its citizens and to manage growth and change. The Planning Office provides staff assistance to the Planning Board, helps to administer the Zoning Bylaw, and reviews development permit applications for residential, industrial, and commercial projects. Budget Overview: The Planning Office supports the Planning Board in the administration of the subdivision regulations, the adequacy determinations of unaccepted streets, the granting of certain special permits for development, site plan review applications, as well as proposing and making recommendations on all zoning amendments and planned development district proposals that go to Town Meeting. In addition, the staff engages in short- and long-term planning regarding growth and development issues in Lexington, actively participants in various committees dealing with transportation, affordable housing, economic development, as well as regional and statewide initiatives. Planning staff performs technical reviews and prepares plan review memorandums to verify compliance with the Zoning Bylaw, Planning Board Regulations, and related land-use policies for the Planning Board. The planning staff participates on the Development Review Team, Transportation Safety Group, and provides assistance to the Housing Partnership Board, Parking Management Group, Transportation Forum, the HOME Consortium, and the Boston Metropolitan Planning Organization (MPO). Division Initiatives: 1.Work with applicants and property owners of new developments to incorporate various community goals. 2.Monitor new development projects during construction for compliance with Planning Board approvals. 3.Apply to become designated as a Housing Choice Community to gain priority for various environmental and infrastructure state grant programs. 4.Propose zoning amendments consistent with the objectives in the Lexington NEXT Comprehensive Plan and as necessary to achieve compliance with state laws. 5.Advance and advocate for the Bedford Street & Hartwell Avenue Complete Streets Reconstruction project. 7200 Planning Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-21 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Planning Director 1 1 1 1 Assistant Planning Director 1 1 1 1 Planner 1 1 1 1 Administrative Assistant 1 1 1 1 Total FTE 4 4 4 4 Total FT/PT 4 FT 4 FT 4 FT 4 FT 7200 Planning Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-22 Budget Recommendations: The FY2027 recommended General Fund Planning Office budget is $467,328, which is an increase of $8,201 or 1.79% from the FY2026 budget. The General Fund operating budget for Compensation is $384,438 and reflects a $24,651 or 6.85% increase from the FY2026 budget, due to contractually obligated step increases, cost of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. All LUHD employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The recommended budget for Expenses is $82,890 which reflects a $(16,450) or (16.56)% decrease from FY2026 due to targeted reductions in contract and professional services. Program Improvement Requests: None. 7200 Planning Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-23 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 359,561 $ 272,920 $ 419,127 $ 443,778 $ (16,450) $ 427,328 $ 8,201 1.96 % Directed Funding Fees $ 53,303 $ 109,154 $ 40,000 $ 40,000 $ — $ 40,000 $ — — % Total 7200 Planning $ 412,865 $ 382,074 $ 459,127 $ 483,778 $ (16,450) $ 467,328 $ 8,201 1.79 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 362,787 $ 333,381 $ 359,787 $ 384,438 $ — $ 384,438 $ 24,651 6.85 % Expenses $ 50,078 $ 48,693 $ 99,340 $ 99,340 $ (16,450) $ 82,890 $ (16,450) (16.56) % Total 7200 Planning $ 412,865 $ 382,074 $ 459,127 $ 483,778 $ (16,450) $ 467,328 $ 8,201 1.79 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 359,396 $ 327,731 $ 351,685 $ 376,336 $ — $ 376,336 $ 24,651 7.01 % Overtime $ 3,392 $ 5,650 $ 8,102 $ 8,102 $ — $ 8,102 $ — — % Personal Services $ 362,787 $ 333,381 $ 359,787 $ 384,438 $ — $ 384,438 $ 24,651 6.85 % Contractual Services $ 48,632 $ 47,336 $ 96,350 $ 96,320 $ (16,450) $ 79,870 $ (16,480) (17.10) % Utilities $ 420 $ 420 $ 420 $ 420 $ — $ 420 $ — — % Supplies $ 1,026 $ 938 $ 2,570 $ 2,600 $ — $ 2,600 $ 30 1.17 % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 50,078 $ 48,693 $ 99,340 $ 99,340 $ (16,450) $ 82,890 $ (16,450) (16.56) % Total 7200 Planning $ 412,865 $ 382,074 $ 459,127 $ 483,778 $ (16,450) $ 467,328 $ 8,201 1.79 % 7200 Planning Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-24 Mission: The Economic Development Office works to encourage new investment and support for our local businesses - big and small. A strong local business environment is a critical component of a healthy and sustainable community, creating places to eat and shop, as well as opportunities for employment and added revenue to support local services. To that end, the Economic Development Office serves as a liaison for businesses and works to address business-related issues from parking to updating land use policy. The Office also works to retain and expand local businesses by providing information, conducting research, and leveraging state economic development resources. The Economic Development Office also cultivates and maintains relationships with State-level partners for business development, tourism, and infrastructure investment opportunities. The Economic Development Office works to leverage economic opportunities from tourism through the operations of the Visitors Center, the Liberty Ride Trolley Tour, and the Battle Green Guides program. Sharing our role in American history attracts many thousands of visitors to Lexington each year. These visitors help to support our local businesses which contributes to our community's overall economic sustainability. Budget Overview: The Economic Development Office is tasked with strengthening the commercial tax base, providing services to existing and prospective businesses, and overseeing tourism functions and staff. The Economic Development Office works on initiatives with input from the Economic Development Advisory Committee, the Lexington Center Committee, and the Tourism Committee. In prior years, the Economic Development budget was divided into three elements: the Economic Development Office, the Liberty Ride Trolley Tour Program, and the Visitors Center Operations. Starting in FY2024, the recommended budget combined the Liberty Ride Revolving Fund and the Visitor Center Revolving Fund into one Tourism Revolving Fund. The Liberty Ride is a trolley tour of Lexington and Concord which also serves as the only transportation link to the area’s historic sites. The Visitors Center, located next to the Lexington Battle Green serves as gateway for over 120,000 people who come to visit Lexington every year and generates revenue from gift shop retail sales to offset operating costs. The Town recently completed construction of a new Visitors Center which opened to the public in spring 2020. Division Initiatives: 1.Focus on Lexington's Public Art Program and support community events to increase foot-traffic and commercial activity; 2.Continue to work with committees on streamlining Lexington's Zoning Bylaw for attracting new users; 3.Work on filling prominent vacancies in Lexington Center, Hartwell Ave, and East Lexington; 4.Evaluate operations models for Tourism operations, including Destination Marketing Organization 7300 Economic Development Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-25 Tourism/Visitor Activities 1.Expand programs & retail operations in the Visitors Center. 2.Develop additional materials for non-English speaking visitors and implement the Freedoms Way Grant. 3.Identify other funding opportunities to augment revenue for the tourism revolving funds. 4.Increase the use of social media and target online advertising to increase visits to Lexington. 7300 Economic Development Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-26 Authorized/Appropriated Staffing Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Element: 7310 Econ. Dev. Office Budget Budget Budget Request Economic Development Director 1 1 1 1 Senior Economic Development Coordinator 1 1 1 1 Economic Development Intern Seasonal Seasonal Seasonal Seasonal Subtotal FTE 2 2 2 2 FY2024 FY2025 FY2026 FY2027 Element: 7330 Tourism Revolving Fund Budget Budget Budget Request Visitor Center Manager 1 1 1 1 Visitor Center Assistant Manager 0.56 0.56 0.56 0.56 Tour Services Coordinator 1 1 1 1 Visitor Center Staff Seasonal Seasonal Seasonal Seasonal Battle Green Guides Seasonal Seasonal Seasonal Seasonal Liberty Ride Guides Seasonal Seasonal Seasonal Seasonal Subtotal FTE 2.56 2.56 2.56 2.56 Total FTE 4.56 4.56 4.56 4.56 Total FT/PT 4FT/1PT + Seasonal 4FT/1PT + Seasonal 4FT/1PT + Seasonal 4FT/1PT + Seasonal Multiple individuals fill seasonal positions from April through October, operating on a reduced schedule from November to March. 7300 Economic Development Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-27 Budget Recommendations: The FY2027 recommended All Funds Economic Development budget, inclusive of the General Fund operating budget and the Tourism Revolving Fund, is $1,088,396, which is a $43,837 or 4.20% increase from the FY2026 budget. The FY2027 recommended General Fund Economic Development operating budget is $490,042, which is a $6,674 or 1.38% increase from the FY2026 General Fund budget. The recommended General Fund operating budget for Compensation is $300,692, and reflects a $12,674 or 4.40% increase, which captures contractually obligated step increases, cost of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. The recommended General Fund operating budget for Expenses is $189,350, a decrease of $(6,000) or (3.07)%, due to targeted reductions in supplies, memberships, and travel based on prior year spending. The Tourism Revolving Fund combines the operations of Lexington Visitors Center and the Liberty Ride trolley service, both of which previously operated as independent Revolving Funds. The Tourism Revolving Fund will generate revenue from the sale of gift shop merchandise, the sale of ticketed walking tours on the Lexington Battle Green, and the sale of tickets and charters for the Liberty Ride trolley tour. The Revolving Fund budget is $598,354, an increase of $37,163 or 6.62% compared to the FY2026 budget, which includes both the Liberty Ride and Visitor Center operations. This increase is reflective of a return to full operations post-pandemic, as well as seasonal staffing to support an expected increase in tourism due to the Semiquincentennial celebration of the Battle of Lexington in 2025 and the signing of the Declaration of Independence in 2026. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses)Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Tourism Model Evaluation $ 50,000 $ — $ 50,000 $ — $ — $ — $ 50,000 7300 Economic Development Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-28 Budget Summary - General Fund Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 402,612 $ 396,024 $ 437,368 $ 455,042 $ (11,000) $ 444,042 $ 6,674 1.53 % TDM Stabilization Fund $ 46,000 $ 46,000 $ 46,000 $ 46,000 $ — $ 46,000 $ — — % Total 7300 - General Fund $ 448,612 $ 442,024 $ 483,368 $ 501,042 $ (11,000) $ 490,042 $ 6,674 1.38 % Appropriation Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 271,938 $ 281,296 $ 288,018 $ 305,692 $ (5,000) $ 300,692 $ 12,674 4.40 % Expenses $ 176,674 $ 160,728 $ 195,350 $ 195,350 $ (6,000) $ 189,350 $ (6,000) (3.07) % Total 7300 - General Fund $ 448,612 $ 442,024 $ 483,368 $ 501,042 $ (11,000) $ 490,042 $ 6,674 1.38 % Program Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended 7310 Economic Development Office $ 448,612 $ 442,024 $ 483,368 $ 501,042 $ (11,000) $ 490,042 $ 6,674 1.38 % Total 7300 - General Fund $ 448,612 $ 442,024 $ 483,368 $ 501,042 $ (11,000) $ 490,042 $ 6,674 1.38 % Object Code Summary (General Fund) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 271,938 $ 277,106 $ 284,981 $ 302,655 $ (5,000) $ 297,655 $ 12,674 4.45 % Overtime $ — $ 4,190 $ 3,037 $ 3,037 $ — $ 3,037 $ — — % Personal Services $ 271,938 $ 281,296 $ 288,018 $ 305,692 $ (5,000) $ 300,692 $ 12,674 4.40 % Contractual Services $ 138,702 $ 138,352 $ 169,800 $ 169,800 $ (2,000) $ 167,800 $ (2,000) (1.18) % Utilities $ — $ — $ — $ — $ — $ — $ — — % Supplies $ 37,389 $ 21,864 $ 23,550 $ 23,550 $ (3,000) $ 20,550 $ (3,000) (12.74) % Small Capital $ 582 $ 511 $ 2,000 $ 2,000 $ (1,000) $ 1,000 $ (1,000) (50.00) % Expenses $ 176,674 $ 160,728 $ 195,350 $ 195,350 $ (6,000) $ 189,350 $ (6,000) (3.07) % Total 7300 - General Fund $ 448,612 $ 442,024 $ 483,368 $ 501,042 $ (11,000) $ 490,042 $ 6,674 1.38 % Budget Summary - Revolving Funds* Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tourism Revolving Fund $ 573,945 $ 513,753 $ 561,191 $ 598,354 $ — $ 598,354 $ 37,163 6.62 % Total 7300 - Revolving Funds $ 573,945 $ 513,753 $ 561,191 $ 598,354 $ — $ 598,354 $ 37,163 6.62 % *Revolving Funds are authorized by Town Meeting via Article 9, and are not appropriated under Article 4. Appropriation Summary (Revolving Funds) FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended 7350 Tourism Rev. Fund*$ 336,350 $ 481,472 $ 561,191 $ 598,354 $ — $ 598,354 $ 37,163 6.62 % Compensation $ 151,077 $ 236,741 $ 220,439 $ 261,541 $ — $ 261,541 $ 41,102 18.65 % Expenses $ 185,273 $ 244,732 $ 325,000 $ 326,915 $ — $ 326,915 $ 1,915 0.59 % Benefits $ — $ — $ 15,752 $ 9,898 $ — $ 9,898 $ (5,854) (37.16) % Total 7300 - Revolving Funds $ 336,350 $ 481,472 $ 561,191 $ 598,354 $ — $ 598,354 $ 37,163 6.62 % Budget Summary - All Funds Appropriations Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 423,015 $ 518,036 $ 508,457 $ 567,233 $ (5,000) $ 562,233 $ 53,776 10.58 % Expenses $ 361,946 $ 405,459 $ 520,350 $ 522,265 $ (6,000) $ 516,265 $ (4,085) (0.79) % Benefits $ — $ — $ 15,752 $ 9,898 $ — $ 9,898 $ (5,854) (37.16) % Total 7300 - All Funds $ 784,962 $ 923,496 $ 1,044,559 $ 1,099,396 $ (11,000) $ 1,088,396 $ 43,837 4.20 % 7300 Economic Development Program: Land Use, Housing and Development Department Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 IX-29 This Page Intentionally Left Blank. This Page Intentionally Left Blank. Section X: Program 8000: General Government This section includes detailed information about the FY2027 Operating Budget & Financing Plan for General Government. It includes: •8100 Select Board X-1 •8200 Town Manager X-6 •8300 Town Committees X-11 •8400 Finance X-13 •8500 Town Clerk X-18 •8600 Innovation & Technology X-22 FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-1 Mission: The Select Board, together with the Town Manager, represents the executive branch of the Town government. The Board consists of five members, elected for three-year terms. Select Board members serve without compensation. The Board acts as the Town’s primary policy-making body for a wide variety of issues affecting service delivery, finance and Town infrastructure. They provide oversight in matters of litigation, act as the licensing authority, enact rules and regulations regarding traffic control and are responsible for calling Town Meetings and approving the Town Meeting Warrant. Budget Overview: This budget includes funding for the Select Board’s Office, Town Counsel, the Annual Town Report, and the Public, Education, Governmental (PEG) programming budget. Day-to-day operation of the Select Board’s Office is under the direction of the Office Manager/Executive Clerk and the Department Assistant who assist the Select Board members and coordinate activities with the Town Manager’s Office. The staff prepare the Annual and Special Town Meeting Warrants and assist the Select Board members in responding to questions and inquiries from the public. They also receive all contributions to Select Board gift accounts, the Fund for Lexington, the PTA Council Scholarship, the Lexington Education Fund and all other Trustees of Public Trusts funds. Staff manage the licensing and permitting process for the Board (the licensing authority). These licenses include alcoholic beverage, auctioneer, cable television, common victualler, entertainment, flammable storage, innkeeper, lodging house, theater, Class I, II and III for the sale of used cars, vehicles for hire such as common carrier, limousine and taxi cab and automatic amusement machines. Staff maintain approximately 320 Select Board appointments to more than 50 committees. In addition, the Select Board's Office notifies Lexington residents of all national, state and local elections. Town Counsel represents the Town, through the Select Board and Town Manager, on all legal matters including litigation, contracts, drafting of Town bylaws and enforcement of bylaws through the Court system. The Town Report is the official proceeding and activities of Town Government. It is required to be prepared annually under State law. The PEG budget funds activities related to the Town’s cable television programming. Under Massachusetts law, municipalities may receive up to 5% of the basic cable bill for PEG programming activities. These funds are largely used, under the guidance of the Communications Advisory Committee, to fund the LexMedia contract. Departmental Initiatives: 1.Enhance resident engagement with committees and improve communication effectiveness. 2.Continue to improve methods of communication between the Select Board and residents. 3.Transition public meeting agenda management to a new platform with the upcoming obsolescence of NovusAGENDA. 8100 Select Board Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-2 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Office Manager/Executive Clerk 1 1 1 1 Department Assistant 1 1 1 1 Recording Secretary 0.25 0.25 0.25 0.25 Total FTE 2.25 2.25 2.25 2.25 Total FT/PT 2 FT/1 PT 2 FT/1 PT 2 FT/1 PT 2 FT/1 PT 8100 Select Board Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-3 Budget Recommendations: The FY2027 recommended General Fund operating budget for the Select Board is $1,553,553, which is a $114,024 or 7.92% increase from the FY2026 General Fund budget. The Compensation budget is $165,644, an increase of $10,573 or 6.82%, which reflects contractually obligated step increases, cost-of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. The overall Select Board Expense budget is $1,387,909, an increase of $103,451 or 8.05%. The increase is primarily due to expenses for LexMedia, the Town's public access television provider. Expenses also reflect an increase of $7,000 in the contracted expense for the Town's annual financial audit, offset by a reduction in professional services. Additionally, the budget for the printing and mailing of Town Meeting Warrants was moved from the Town Clerk's line items over to the Select Board line items. The recommended FY2027 budget for legal expenses is unchanged from FY2026 at $375,000. The recommended FY2027 budget for the annual Town Report is unchanged from FY2026 at $13,688. The FY2027 recommended budget for the Town’s annual contract with LexMedia for broadcasting public meetings and events is $862,708, which is a $97,951 or 12.81% increase from FY2026. This reflects contractual commitments to LexMedia, and an increase in the Town's lease agreement for Kline Hall, the location from which LexMedia operates. This lease agreement escalates annually with the Consumer Price Index (CPI). Beginning in FY2024, the Town is funding LexMedia partly from the tax levy in addition to the PEG Access Special Revenue Fund. PEG Access revenues are primarily from cable fees which have been on the decline as consumers discontinue cable subscriptions in favor of streaming platforms. Cable fees will not fully cover expenses needed to support local access cable TV going forward, and the amount of General Fund support is expected to increase in the coming years. This does not add expense to the Town's overall budget; instead the revenue contribution from the PEG Access Special Revenue fund is $200,000 less than the PEG Access expense budget. Program Improvement Requests: None requested. 8100 Select Board Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-4 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 702,613 $ 707,632 $ 793,186 $ 832,591 $ (20,000) $ 812,591 $ 19,405 2.45 % Transfers from Enterprise Funds to General Fund (Indirects)$ 664 $ 1,171 $ 1,218 $ 1,254 $ — $ 1,254 $ 36 2.96 % PEG Access Special Revenue Fund $ 560,046 $ 618,751 $ 568,125 $ 662,708 $ — $ 662,708 $ 94,583 16.65 % Fees Licenses & Permits $ 78,385 $ 79,530 $ 77,000 $ 77,000 $ 77,000 $ — — % Total 8100 (General Fund)$ 1,341,708 $ 1,407,084 $ 1,439,529 $ 1,573,553 $ (20,000) $ 1,553,553 $ 114,024 7.92 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 150,735 $ 150,342 $ 155,071 $ 165,644 $ — $ 165,644 $ 10,573 6.82 % Expenses $ 1,190,973 $ 1,256,743 $ 1,284,458 $ 1,407,909 $ (20,000) $ 1,387,909 $ 103,451 8.05 % Total 8100 (General Fund)$ 1,341,708 $ 1,407,084 $ 1,439,529 $ 1,573,553 $ (20,000) $ 1,553,553 $ 114,024 7.92 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Total 8110 Select Board's Office $ 229,185 $ 281,340 $ 286,084 $ 322,157 $ (20,000) $ 302,157 $ 16,073 5.62 % Total 8120 Legal $ 473,669 $ 407,708 $ 375,000 $ 375,000 $ — $ 375,000 $ — — % Total 8130 Town Report $ 12,562 $ 12,773 $ 13,688 $ 13,688 $ — $ 13,688 $ — — % Total 8140 PEG Access $ 626,292 $ 705,263 $ 764,757 $ 862,708 $ — $ 862,708 $ 97,951 12.81 % Total 8100 (General Fund)$ 1,341,708 $ 1,407,084 $ 1,439,529 $ 1,573,553 $ (20,000) $ 1,553,553 $ 114,024 7.92 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 150,735 $ 150,342 $ 155,071 $ 165,644 $ — $ 165,644 $ 10,573 6.82 % Overtime $ — $ — $ — $ — $ — $ — $ — — % Personal Services $ 150,735 $ 150,342 $ 155,071 $ 165,644 $ — $ 165,644 $ 10,573 6.82 % Contractual Services $ 1,173,912 $ 1,237,879 $ 1,264,195 $ 1,387,646 $ (20,000) $ 1,367,646 $ 103,451 8.18 % Utilities $ — $ — $ — $ — $ — $ — $ — — % Supplies $ 17,061 $ 18,864 $ 20,263 $ 20,263 $ — $ 20,263 $ — — % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 1,190,973 $ 1,256,743 $ 1,284,458 $ 1,407,909 $ (20,000) $ 1,387,909 $ 103,451 8.05 % Total 8100 (General Fund)$ 1,341,708 $ 1,407,084 $ 1,439,529 $ 1,573,553 $ (20,000) $ 1,553,553 $ 114,024 7.92 % 8100 Select Board Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-5 Mission: The Select Board appoints the Town Manager who oversees the daily operations of all general government departments, implements the policies of the Select Board, proposes an annual operating and capital budget, and enforces Town bylaws and regulations. The Town Manager's authority and responsibilities are established in the Select Board-Town Manager Act of 1968. The Town Manager's Office is also responsible for Human Resources and benefit administration, as well as risk management. Budget Overview: The Town Manager’s Office budget is comprised of the following elements: Organizational Direction and Administration, Human Resources, Sustainability, Public Outreach and Communication, and Diversity, Equity and Inclusion. Organizational Direction and Administration includes day-to-day oversight for all Town departments, townwide staff training and professional development, and special projects. This function also implements all decisions of the Select Board and provides staff support to various Town committees. The Sustainability and Resilience Officer and Director of Communications positions are in the Town Manager's Office to support and further the goals and priorities of the Town. In addition, the Town Manager's Office, through the Human Resources function, is responsible for personnel administration, benefits administration, collective bargaining negotiations, workers compensation and unemployment benefits. Departmental Initiatives: 1.Continue to support the Racial Diversity, Inclusion, and Equity Transformation plan and other social equity initiatives in coordination with the Select Board. 2.Work to support the organization's high-performance culture by providing directed team building to the Middle and Senior Management Team. 3.Develop new revenue sources to support the budget, particularly the capital budget, by developing long-term debt management strategies to mitigate the impact of large project debt service. 4.Continue the initiative to develop organizational sustainability by passing on institutional knowledge, engaging mid-level managers in organization decision-making and selecting and training qualified individuals. 8200 Town Manager Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-6 8200 Town Manager Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-7 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Town Manager 1 1 1 1 Deputy Town Manager 1 1 1 1 Director of Communications 1 1 1 1 Sustainability and Resilience Officer 1 1 1 1 Chief Equity Officer*1 1 1 — Office Manager/Special Events Coordinator 1 1 1 1 Management Fellow/Analyst I 1 1 1 1 Management Analyst II**1 1 1 — Web & Digital Engagement Specialist 1 1 1 1 Hearing Officers***0.12 0.12 0.12 0.12 Human Resources Director 1 1 1 1 Asst. Human Resources Director/Internal Equity Officer*———1 Human Resources Associate 1 1 1 1 Benefits Coordinator 1 1 1 1 Benefits Assistant 1 1 1 1 Administrative Assistant 1 1 1 1 Total FTE 14.12 14.12 14.12 13.12 Total FT/PT 14FT / 2PT 14FT / 2PT 14FT / 2PT 13FT / 2PT *In FY2026, the Chief Equity Officer was reassigned by the Town Manager from Organizational Direction & Administration to Human Resources as Assistant Human Resources Director/Internal Equity Officer. **A second Management Analyst role was added via 2021 Fall STM, in part to help manage the American Recovery Plan Act (ARPA) projects. A portion of that salary was funded from ARPA. In FY2025-26, this position is vacant and was not funded to allow for funding more critical or mandated changes. The department is not requesting to fund this position in FY2027 or future years. ***Two hearing officers hear appeals for parking fines; one municipal hearing officer hears appeals for fines issued by the Fire Department (regional position, shared with Winchester and Woburn). 8200 Town Manager Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-8 Budget Recommendations: The FY2027 recommended budget inclusive of the Town Manager’s Office and Human Resources is $1,674,736, which is a $65,014 increase from the revised FY2026 budget. The recommended FY2027 budget for Compensation is $1,263,376, and reflects a $48,464 or 3.99% increase compared to FY2026. The increase in compensation is due to annual step increases, cost-of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study. All of the Town Manager's Office employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The Management Analyst position is currently vacant and management intends to leave this position open in FY2027 to allow for funding other critical or mandated changes in the municipal budget. Filling the Management Analyst position is not anticipated to occur in future years. The recommended FY2027 budget for Expenses is $411,360, which reflects an increase of $16,550 or 4.19% from FY2026, primarily due to an increase in professional services, offset by targeted reductions in contract services and professional development. Professional Services will continue to fund HR consultations, investigations, and assessment centers for the Police and Fire Departments. The department's budget includes a Salary Adjustment Account, which reflects anticipated FY2027 collective bargaining settlements, other wage increases, and compensated leave payments due certain employees at retirement. Once contractual settlements are reached, funds are transferred from this account to the appropriate departmental budget upon a vote of the Select Board. Beginning in FY2025 the Town Manager's Salary Reserve Account has set-aside funding to cover a new Town Policy for Paid Parental Leave that went into effect as of July 1, 2024. This policy was implemented through contract negotiations and was therefore included in the initial budget request by the Town Manager. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses)Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Women's Institute Development $ 2,500 $ — $ 2,500 $ — $ — $ — $ 2,500 8200 Town Manager Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-9 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 787,658 $ 1,095,037 $ 1,205,285 $ 1,292,205 $ (30,000) $ 1,262,205 $ 56,920 4.72 % Enterprise Funds (Indirect)$ 36,728 $ 52,816 $ 51,813 $ 53,341 $ — $ 53,341 $ 1,528 2.95 % Available Funds Rentals*$ 479,390 $ 308,021 $ 352,623 $ 359,190 $ — $ 359,190 $ 6,567 1.86 % Total 8200 Town Manager $ 1,303,776 $ 1,455,874 $ 1,609,722 $ 1,704,736 $ (30,000) $ 1,674,736 $ 65,014 4.04 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended Compensation $ 1,038,807 $ 1,123,198 $ 1,214,912 $ 1,263,376 $ — $ 1,263,376 $ 48,464 3.99 % Expenses $ 264,969 $ 332,675 $ 394,810 $ 441,360 $ (30,000) $ 411,360 $ 16,550 4.19 % Total 8200 Town Manager $ 1,303,776 $ 1,455,874 $ 1,609,722 $ 1,704,736 $ (30,000) $ 1,674,736 $ 65,014 4.04 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended Total 8210 Organizational Dir. & Admin.$ 926,208 $ 997,370 $ 1,219,844 $ 1,089,532 $ (10,000) $ 1,079,532 $ (140,312) (11.50) % Total 8220 Human Resources $ 377,568 $ 458,504 $ 389,878 $ 615,204 $ (20,000) $ 595,204 $ 205,326 52.66 % Total 8200 Town Manager $ 1,303,776 $ 1,455,874 $ 1,609,722 $ 1,704,736 $ (30,000) $ 1,674,736 $ 65,014 4.04 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended Salaries & Wages $ 1,038,807 $ 1,123,198 $ 1,214,912 $ 1,263,376 $ — $ 1,263,376 $ 48,464 3.99 % Overtime $ — $ — $ — $ — $ — $ — $ — — % Personal Services $ 1,038,807 $ 1,123,198 $ 1,214,912 $ 1,263,376 $ — $ 1,263,376 $ 48,464 3.99 % Contractual Services $ 231,826 $ 298,129 $ 351,725 $ 399,775 $ (30,000) $ 369,775 $ 18,050 5.13 % Utilities $ 1,308 $ 2,954 $ 3,100 $ 3,100 $ — $ 3,100 $ — — % Supplies $ 28,967 $ 28,379 $ 35,485 $ 33,985 $ — $ 33,985 $ (1,500) (4.23) % Small Capital $ 2,868 $ 3,215 $ 4,500 $ 4,500 $ — $ 4,500 $ — — % Expenses $ 264,969 $ 332,675 $ 394,810 $ 441,360 $ (30,000) $ 411,360 $ 16,550 4.19 % Total 8200 Town Manager $ 1,303,776 $ 1,455,874 $ 1,609,722 $ 1,704,736 $ (30,000) $ 1,674,736 $ 65,014 4.04 % *Rentals are comprised of rental receipts from the Waldorf School, LexFarm, outdoor seating sidewalk rentals, cell tower lease revenue and the sublease of Kline Hall to LexMedia. Budget Summary - Salary Adjustment (8230) Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 725,300 $ 294,179 $ — $ 840,000 $ (40,000) $ 800,000 $ 800,000 — % Total 8230 Salary Adjustment $ 725,300 $ 294,179 $ — $ 840,000 $ (40,000) $ 800,000 $ 800,000 — % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualRevisedRequestAdd/Del Recommended Total 8230 Salary Adjustment $ 725,300 $ 294,179 $ — $ 840,000 $ (40,000) $ 800,000 $ 800,000 — % Total 8230 Salary Adjustment $ 725,300 $ 294,179 $ — $ 840,000 $ (40,000) $ 800,000 $ 800,000 — % 8200 Town Manager Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-10 Mission: Town Committees includes the Appropriation Committee, Capital Expenditures Committee, Public Celebrations Committee and various boards and committees appointed by the Select Board, Moderator and the Town Manager. Budget Overview: The Town Committees budget provides funding for a variety of statutory and advisory committees that are an integral part of the operation of local government in Lexington. The financial committees - the Appropriation Committee and the Capital Expenditures Committee - provide detailed financial review and analysis to Town Meeting. The Town Celebrations Committee, appointed by the Select Board, plans the Town's annual celebrations, including the Martin Luther King Jr. Day celebration, and parades on Veterans Day, Patriots Day, and Memorial Day. Authorized/Appropriated Staffing Limited staff support is provided through the Town Manager’s Office and Finance Department, and a part-time Recording Secretary takes meeting minutes. 8300 Town Committees Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-11 Budget Recommendations: The FY2027 recommended Town Committees budget is $73,120, which is an level-funded from FY2026 for both compensation and expenses. Program Improvement Requests: None requested. Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 51,785 $ 53,813 $ 73,120 $ 73,120 $ — $ 73,120 $ — — % Total 8300 Town Committees $ 51,785 $ 53,813 $ 73,120 $ 73,120 $ — $ 73,120 $ — — % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ — $ — $ 7,320 $ 7,320 $ — $ 7,320 $ — — % Expenses $ 51,785 $ 53,813 $ 65,800 $ 65,800 $ — $ 65,800 $ — — % Total 8300 Town Committees $ 51,785 $ 53,813 $ 73,120 $ 73,120 $ — $ 73,120 $ — — % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Total 8310 Financial Committees $ 363 $ 374 $ 8,820 $ 8,820 $ — $ 8,820 — — % Total 8320 Misc. Boards & Committees $ 5,999 $ 6,000 $ 10,500 $ 10,500 $ — $ 10,500 $ — — % Total 8330 Town Celebrations $ 45,423 $ 47,439 $ 53,800 $ 53,800 $ — $ 53,800 $ — — % Total 8300 Town Committees $ 51,785 $ 53,813 $ 73,120 $ 73,120 $ — $ 73,120 $ — — % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ — $ — $ 7,320 $ 7,320 $ — $ 7,320 $ — — % Overtime $ — $ — $ — $ — $ — $ — $ — — % Compensation $ — $ — $ 7,320 $ 7,320 $ — $ 7,320 $ — — % Contractual Services $ 5,999 $ 6,000 $ 10,000 $ 10,000 $ — $ 10,000 $ — — % Utilities $ — $ — $ — $ — $ — $ — $ — — % Supplies $ 45,786 $ 47,813 $ 55,800 $ 55,800 $ — $ 55,800 $ — — % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 51,785 $ 53,813 $ 65,800 $ 65,800 $ — $ 65,800 $ — — % Total 8300 Town Committees $ 51,785 $ 53,813 $ 73,120 $ 73,120 $ — $ 73,120 $ — — % 8300 Town Committees Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-12 Mission: The Finance Department is responsible for: (1) maintaining timely and accurate records on all financial activities of the Town; (2) administering internal financial controls; (3) facilitating the evaluation of the Town’s financial condition; (4) ensuring that the delivery of Town services is done in compliance with Massachusetts General Laws that govern municipal finance; (5) providing timely and accurate financial information to managers of Town services to facilitate the evaluation of the cost effectiveness and efficiency of Town programs; (6) providing timely and accurate financial information to Town boards and committees to facilitate policy deliberation and formulation; and (7) safeguarding the financial assets of the Town. Budget Overview: The Finance Department is comprised of the following divisions: the Comptroller's Office, the Treasurer/Collector’s Office and the Assessing Office. •The Comptroller's Office is responsible for maintaining the Town's general ledger (accounting), accounts payable, payroll and centralized purchasing. The Comptroller's budget is also inclusive of funding for the Assistant Town Manager for Finance, who oversees all financial operations of the Town, and the Budget Director who, in concert with the Assistant Town Manager for Finance and the Town Manager, develops and monitors the annual capital and operating budgets. •The Treasurer/Collector's Office has three primary responsibilities: the collection and deposit of all Town taxes, fees and charges including property taxes, motor vehicle excise, utility billing and other local receipts (permit and license fees, fines, etc.); the management and investment of all revenues collected; and the issuance and servicing of debt. •The Assessor's Office's primary function is the development of assessed values of real and personal property. Staff also support various boards and committees including the Appropriation Committee, Capital Expenditures Committee, Retirement Board, Water and Sewer Abatement Board and other ad hoc committees as assigned. Departmental Initiatives: 1.Finance is undertaking a Water and Sewer rate study during FY2026 to establish a new utility rate structure that will allow for a migration to quarterly utility billing (current billing is semi- annual). Funding for this initiative was approved in the FY2026 budget. 2.The department continues to explore additional functionality in Munis ERP including integration with time and attendance systems and automation of employee accrual tracking. The department continues to support the implementation of Employee Self Service (ESS) and automated benefits enrollment and Employee Action Forms that will help move Finance and Human Resources closer to paperless processing. 3.Continue reviewing new fiscal policies, specifically updating strategies for funding the Town's Pension and OPEB Liabilities. 4.Maintain GFOA best practices for budgeting and accounting; comply with latest GASB and GAAP accounting standards. 8400 Finance Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-13 8400 Finance Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-14 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Element 8410: Comptroller Budget Budget Budget Request Asst. Town Manager for Finance/Comptroller 1 1 1 1 Town Accountant 1 1 1 1 Staff Accountant 1 1 1 1 Procurement Director*0.91 0.91 1 1 Financial Clerk 1 1 1 1 Payroll Manager 1 1 1 1 Budget Director 1 1 1 1 Administrative Assistant 0.40 0.40 0.40 0.40 Subtotal FTE 7.31 7.31 7.40 7.40 Subtotal FT/PT 6FT/2PT 6FT/2PT 7FT/1PT 7FT/1PT Element 8420: Treasurer/Collector Treasurer/Collector 1 1 1 1 Assistant Tax Collector 1 1 1 1 Treasury Assistant 1 1 1 1 Departmental Assistant 1 1 1 1 Municipal Clerk 0.46 0.46 0.46 0.46 Subtotal FTE 4.46 4.46 4.46 4.46 Subtotal FT/PT 4FT/1PT 4FT/1PT 4FT/1PT 4FT/1PT Element 8430: Assessor Director of Assessing 1 1 1 1 Assistant Director of Assessing 1 1 1 1 Residential Analyst/Inspector 2 2 2 2 Office Manager 1 1 1 1 Administrative Assistant 1 1 1 1 Subtotal FTE 6.0 6.0 6.0 6.0 Subtotal FT/PT 6FT/0PT 6FT/0PT 6FT/0PT 6FT/0PT Total FTE 17.77 17.77 17.86 17.86 Total FT/PT 16FT/3 PT 16FT/3 PT 17FT/2 PT 17FT/2 PT *In FY2026, Procurement Director hours return to full time. 8400 Finance Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-15 Budget Recommendations: The FY2027 recommended Finance Department budget is $2.32 million, which represents a $109,542, or 4.97% increase from the FY2026 budget. The operating budget for Compensation is $1,798,645, and reflects an increase of $112,917 or 6.70%, which captures cost of living increases, contractually obligated step increases and market adjustments that were identified during the recent Class and Compensation Study. All of the Finance Department's employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The recommended budget for Expenses is $517,115, and reflects a decrease of $(3,375) or (0.65)% due targeted reductions in professional and legal services, partly offset by increasing postage costs. Program Improvement Request: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses) Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Treasury Municipal Clerk $ 27,491 $ 22,655 $ 50,146 $ — $ — $ — $ 50,146 Tyler ERP Cashiering Module*$ 115,000 $ — $ 115,000 $ 115,000 $ — $ 115,000 $ — Financial Analyst $ 75,000 $ 23,344 $ 98,344 $ — $ — $ — $ 98,344 *Recommended for financing through capital appropriation The Tyler ERP Cashiering Module was submitted as a requested Program Improvement Request for the fourth consecutive year, and is being recommended for funding via the Application Implementation capital program. The initial purchase and implementation, including first year licensing is estimated at $115,000. There will be an annual increase in to our Tyler licensing agreement (approximately $15,000 beginning in FY2028) that will be absorbed by the Innovation & Technology Department. fThe software will replace existing online payment centers Invoice Cloud and UniPay for real estate, water/sewer bills, and motor vehicle excise tax billing. This will benefit taxpayers by providing a more modern payment experience and real-time updates to customer accounts as the platform integrates with the Town's general ledger accounting system. The advanced point-of-sale cashiering module will allow for credit card payments at the Treasurer's counter, barcoded bills, check scanning, online donations, and other miscellaneous billing. This system will also benefit staff by eliminating manual keying, processing and reconciliation steps between software programs, improving efficiency and processing time. Upgrading this cashiering system may eliminate the need for additional Treasury staff as the Town considers new revenue streams and transition to a quarterly Utility billing process. 8400 Finance Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-16 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 1,782,496 $ 1,857,484 $ 1,999,997 $ 2,133,093 $ (23,900) $ 2,109,193 $ 109,196 5.46 % Enterprise Funds (Indirects)$ 149,914 $ 178,426 $ 181,221 $ 186,567 $ — $ 186,567 $ 5,346 2.95 % Fees & Charges Charges for Services $ 19,225 $ 18,400 $ 25,000 $ 20,000 $ — $ 20,000 $ (5,000) (20.00) % Total 8400 Finance $ 1,951,635 $ 2,054,310 $ 2,206,218 $ 2,339,660 $ (23,900) $ 2,315,760 $ 109,542 4.97 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 1,585,167 $ 1,647,360 $ 1,685,728 $ 1,798,645 $ — $ 1,798,645 $ 112,917 6.70 % Expenses $ 366,468 $ 406,950 $ 520,490 $ 541,015 $ (23,900) $ 517,115 $ (3,375) (0.65) % Total 8400 Finance $ 1,951,635 $ 2,054,310 $ 2,206,218 $ 2,339,660 $ (23,900) $ 2,315,760 $ 109,542 4.97 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Total 8410 Comptroller $ 761,262 $ 906,680 $ 881,157 $ 982,499 $ (10,000) $ 972,499 $ 91,342 10.37 % Total 8420 Treasurer/Collector $ 447,129 $ 450,833 $ 498,676 $ 521,525 $ — $ 521,525 $ 22,849 4.58 % Total 8430 Assessing $ 743,245 $ 696,796 $ 826,385 $ 835,636 $ (13,900) $ 821,736 $ (4,649) (0.56) % Total 8400 Finance $ 1,951,635 $ 2,054,310 $ 2,206,218 $ 2,339,660 $ (23,900) $ 2,315,760 $ 109,542 4.97 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 1,583,974 $ 1,647,360 $ 1,685,728 $ 1,798,645 $ — $ 1,798,645 $ 112,917 6.70 % Overtime $ 1,194 $ — $ — $ — $ — $ — $ — — % Personal Services $ 1,585,167 $ 1,647,360 $ 1,685,728 $ 1,798,645 $ — $ 1,798,645 $ 112,917 6.70 % Contractual Services $ 332,710 $ 374,994 $ 484,965 $ 503,425 $ (17,900) $ 485,525 $ 560 0.12 % Utilities $ 4,426 $ 3,713 $ 2,910 $ 3,000 $ — $ 3,000 $ 90 3.09 % Supplies $ 29,332 $ 28,243 $ 32,615 $ 34,590 $ (6,000) $ 28,590 $ (4,025) (12.34) % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 366,468 $ 406,950 $ 520,490 $ 541,015 $ (23,900) $ 517,115 $ (3,375) (0.65) % Total 8400 Finance $ 1,951,635 $ 2,054,310 $ 2,206,218 $ 2,339,660 $ (23,900) $ 2,315,760 $ 109,542 4.97 % 8400 Finance Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-17 Mission: The Office of the Town Clerk acts as the primary repository of official documents for the Town, and the custodian of and recording office for official Town and vital records. Responsibilities include issuing marriage licenses, recording vital statistics, issuing dog licenses, registering businesses, fulfilling public records requests, receipt and recording of Planning/Zoning filings, and conducting the annual Town Census. The Town Clerk's Office conducts elections in conformance with State and local laws, and with the Board of Registrars, processes voter registrations and certifications. The Town Clerk reports to the Deputy Town Manager. Budget Overview: The four elements comprising the Office of the Town Clerk include Town Clerk Administration, Registration, Elections, and Archives & Records Management. Town Clerk Administration: The Town Clerk acts as the Town's recording officer, Registrar of Vital Statistics, and Chief Election Official. The Town Clerk is the official record-keeper of Town Meeting, certifies bylaws, Town Meeting appropriations, filings with the Department of Revenue, signs notes for borrowing, and certifies official documents. The Town Clerk also registers all vital events within Lexington, recording births, marriages and deaths in accordance with State law. The Town Clerk is keeper of the seal, administers the oath of office to elected and appointed members of boards and committees, maintains records of adopted municipal codes, regulations, bylaws, oaths of office, resignations, appointments, and submits general bylaws and zoning bylaws to the Attorney General for approval. The Town Clerk’s Office issues licenses and permits and serves as a central information point for residents. Board of Registrars: Registrars, appointed by the Select Board, are responsible for promoting voter registration, overseeing voter records and ruling on voter eligibility. Stipends for the Board of Registrars remain level-funded. Annual voter confirmations are conducted in accordance with State statute. The Annual Town Census and the publishing of the List of Residents is funded in this element. Election Management: The Town Clerk serves as the Chief Election Official and oversees administration and oversight of local, state and federal elections in accordance with election laws, most recently including the Early Voting Act, which mandates allowable vote-by-mail for all local, State and Federal elections, pre-registration of 16- and 17-year-olds, and automatic voter registration. Staff provide information for candidate certifications, referenda, initiative petitions, campaign finance laws, election procedures, ballot initiatives and voter information. Over 110 Election Workers staff Lexington's polling locations, and site preparations are coordinated with Public Works, Public Facilities, Police and the Lexington Public Schools. Records Management: This element addresses inventory and retention of historic and current records and documents, including proper maintenance and storage, preservation, management of electronic documents, and public access to public records and information. A part-time Archivist/ Records Manager is responsible for this work and oversees the conservation and preservation of Lexington's historic documents. 8500 Town Clerk Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-18 Departmental Initiatives: 1.Ongoing administration of town/state/federal elections in conformance with statutory requirements to provide legal and accessible elections to Lexington voters. Emphasis on management of the new vote-by-mail State election procedural changes. 2.Further development of Archives & Records Management Program, including the management of the Town's electronic documents and historical data, especially with regards to public records requests. 3.Expanded use of Laserfiche Document Imaging System for records retention, electronic access, and archives/records portal. 4.Continuing collaboration with the Select Board Office to utilize the new Board/Committee database. 5.Act as the liaison to the State Ethics Commission to learn and implement the new online learning management system (LMS) across the Town. 6.Development of internal training programs in partnership with the Information Technology Department. 8500 Town Clerk Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-19 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Town Clerk 1 1 1 1 Assistant Town Clerk 1 1 1 1 Administrative Assistant 1 1 1 1 Municipal Assistants*1.23 0.52 0.52 0.52 Election Administrator*—0.71 0.71 0.71 Archivist/Records Manager 0.46 0.46 0.46 0.46 Total FTE 4.69 4.69 4.69 4.69 Total FT/PT 3 FT/ 3 PT 3 FT/ 3 PT 3 FT/ 3 PT 3FT/ 3 PT *In FY2025, one Municipal Assistant was converted to Elections Administrator. Budget Recommendations: The FY2027 recommended Town Clerk budget is $680,998 which is a $(11,481) or (1.66)% decrease from the FY2026 budget. The budget for Compensation is $552,273 and reflects a $(9,756) or (1.74)% decrease in FY2027. The decrease in FY2027 compensation is due to contractually obligated step increases, cost-of living adjustments, and market adjustments that were identified during the recent Class and Compensation Study, offset by a reduction in election staffing costs. All of the Town Clerks's employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The budget for Expenses is $128,725, which is a decrease of $(1,725) or (1.32)%, which reflects an increase in contract services and police details, offset by targeted reductions in supply and material costs. In FY2027, funding for printing and mailing the select board warrant is moved to the Select Board Office Budget. Program Improvement Requests: Request Recommended Description Salaries and Expenses Benefits (reflected in Shared Expenses)Total Requested Salaries and Expenses Benefits (reflected in Shared Expenses)Total Not Recommended Transcription Services $ 3,600 $ — $ 3,600 $ — $ — $ — $ 3,600 8500 Town Clerk Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-20 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 459,293 $ 531,899 $ 609,479 $ 597,998 $ (2,000) $ 595,998 $ (13,481) -2.21 % Directed Funding Departmental Fees $ 36,055 $ 35,134 $ 34,000 $ 34,000 $ — $ 34,000 $ — — % Licenses and Permits $ 51,110 $ 52,495 $ 49,000 $ 51,000 $ — $ 51,000 $ 2,000 4.08 % Total 8500 Town Clerk $ 546,457 $ 619,528 $ 692,479 $ 682,998 $ (2,000) $ 680,998 $ (11,481) -1.66 % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 427,108 $ 501,388 $ 562,029 $ 552,273 $ — $ 552,273 $ (9,756) -1.74 % Expenses $ 119,349 $ 118,140 $ 130,450 $ 130,725 $ (2,000) $ 128,725 $ (1,725) -1.32 % Total 8500 Town Clerk $ 546,457 $ 619,528 $ 692,479 $ 682,998 $ (2,000) $ 680,998 $ (11,481) -1.66 % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Total 8510 Town Clerk Admin.$ 364,227 $ 379,746 $ 381,914 $ 402,086 $ (1,000) $ 401,086 $ 19,172 5.02 % Total 8520 Board of Registrars $ 21,236 $ 22,346 $ 19,925 $ 21,925 $ — $ 21,925 $ 2,000 10.04 % Total 8530 Elections $ 114,956 $ 171,182 $ 230,914 $ 193,850 $ — $ 193,850 $ (37,064) -16.05 % Total 8540 Records Management $ 46,039 $ 46,254 $ 59,726 $ 65,137 $ (1,000) $ 64,137 $ 4,411 7.39 % Total 8500 Town Clerk $ 546,457 $ 619,528 $ 692,479 $ 682,998 $ (2,000) $ 680,998 $ (11,481) -1.66 % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 415,565 $ 487,976 $ 500,438 $ 512,273 $ — $ 512,273 $ 11,835 2.36 % Overtime $ 11,544 $ 13,412 $ 61,591 $ 40,000 $ — $ 40,000 $ (21,591) -35.06 % Personal Services $ 427,108 $ 501,388 $ 562,029 $ 552,273 $ — $ 552,273 $ (9,756) -1.74 % Contractual Services $ 110,756 $ 102,334 $ 115,875 $ 116,125 $ (1,000) $ 115,125 $ (750) -0.65 % Utilities $ 2,243 $ 2,493 $ 2,000 $ 2,000 $ — $ 2,000 $ — — % Supplies $ 6,351 $ 13,313 $ 12,575 $ 12,600 $ (1,000) $ 11,600 $ (975) -7.75 % Small Capital $ — $ — $ — $ — $ — $ — $ — — % Expenses $ 119,349 $ 118,140 $ 130,450 $ 130,725 $ (2,000) $ 128,725 $ (1,725) -1.32 % Total 8500 Town Clerk $ 546,457 $ 619,528 $ 692,479 $ 682,998 $ (2,000) $ 680,998 $ (11,481) -1.66 % 8500 Town Clerk Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-21 Mission: The Department of Innovation and Technology (IT) provides a customer-centric approach to the delivery of innovative technology solutions to meet the needs of the Town Departments and to strengthen the services provided to our residents while ensuring the highest level of security to the Town Network. Budget Overview: The Department of Innovation and Technology supports, maintains and manages townwide business-related technology. The department supports townwide core services including the financial system (Enterprise ERP), time keeping, document management (Laserfiche), facilities maintenance and management technology, domain management, emergency management web sites and services, and VoIP telephone systems. IT maintains the infrastructure and security of the network core and co-manages the townwide area network for Municipal and School departments. The Department manages all Municipal technology purchases and performs the installations and maintenance of Municipal IT equipment and services. IT collaborates with Town departments to select, design and implement technologies. Some Municipal systems supported by the Department include the public safety system (ProPhoenix), Assessors database (VISION), Town permitting and inspections system (Citizen Services), GIS systems (ESRI), work and asset management systems (PeopleGIS, SchoolDude, Freshservice), Town website and social communication systems, Municipal Systems and Infrastructure (VMWare, Microsoft applications, antivirus/cybersecurity software, archiving applications, backup systems, IT management systems, cloud storage), and many other applications. IT staff also provide support and training for end-users. Departmental Initiatives: 1. Continue to invest in the Town's IT infrastructure and security posture a.Implement recommendations from network assessments b.Implement recommendations from cybersecurity assessments c.Investigate additional cybersecurity measures and services d.Provide cybersecurity training to all staff 2. Maximize the value of current systems a.Laserfiche b.OpenGov c.Enterprise ERP d.Vision e.JotForm Enterprise f.Public Safety System g.Microsoft 365 3. Increase Customer Service Quality and Responsivenessa. Emphasis on a customer-centric approach to working with the departments and staff 4. Focus on future visioning for IT a.Security trends and compliance b.Microsoft 365 c.Electronic Workflows d.Enhanced Communications e.Hybrid work/meeting spaces a.Disaster Recovery (DR) planning and expansion of capabilities b.Network redundancy planning and implementation 8600 Innovation & Technology Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-22 Authorized/Appropriated Staffing FY2024 FY2025 FY2026 FY2027 Budget Budget Budget Request Innovation & Technology Director 1 1 1 1 Information Technology Director 1 1 1 1 Administrative Assistant 0.54 0.54 0.54 0.54 Business Analyst/Project Manager 2 2 2 2 Network Administrator 1 1 1 1 GIS/Database Administrator 1 1 1 1 Applications & Systems Administrators*1 2 2 2 Support Technician*1 ——— Part-time Intern 0.25 0.25 0.25 0.25 Total FTE 8.79 8.79 8.79 8.79 Total FT/PT 8 FT/2 PT 8 FT/2 PT 8 FT/2 PT 8 FT/2 PT *In FY2025, the Support Technician position was upgraded to a second Applications & Systems Administrator position via a program improvement. 8600 Innovation & Technology Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-23 Budget Recommendations: The FY2027 recommended Innovation & Technology budget is $3,279,426, which is a $(96,698) or (2.86)% decrease from the FY2026 budget. The recommended budget for Compensation is $950,037, and reflects a $82,311 or 9.49% increase, due to contractually obligated step increases, cost-of living adjustments, and market adjustments identified in the Class and Compensation study, offset by a one-year freeze on the department internship. All of the IT Department's employees belong to either the LMEA, LMMA or non-represented bargaining units, all of which were included in the study. The recommended budget for Expenses is $2,329,389 and reflects a $(179,009) or (7.14)% decrease, which incorporates the following adjustments: •Increase in Memberships/Dues ($3,350) due to loss of federal funding; •Increase in PC Hardware ($5,000) due to planned laptop and desktop replacements; •Decrease in Contract Services ($7,743) due to increased staff training offsetting dependence on outside contractors; •Decrease in Software Support ($125,907) due to migration to Microsoft 365, allowing for elimination of multiple applications and services; •Decrease in Hardware Support ($1,600) due to migration to cloud-based applications; •Decrease in Communications/Network Support ($50,600) due to contract changes; and •Decrease in LAN Software ($10,000) due to migration to Microsoft 365, reducing licensing needs. Program Improvement Requests: None requested. 8600 Innovation & Technology Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-24 Budget Summary Funding Sources FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualEstimateProjectedAdd/Del Projected Tax Levy $ 2,328,204 $ 2,640,009 $ 3,243,427 $ 3,152,815 $ (10,000) $ 3,142,815 $ (100,612) (3.10) % Enterprise Funds (Indirects)$ 89,039 $ 123,455 $ 132,697 $ 136,612 $ — $ 136,612 $ 3,915 2.95 % Total 8600 Innovation & Tech.$ 2,417,243 $ 2,763,464 $ 3,376,124 $ 3,289,426 $ (10,000) $ 3,279,426 $ (96,698) (2.86) % Appropriation Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Compensation $ 814,311 $ 861,924 $ 867,726 $ 960,037 $ (10,000) $ 950,037 $ 82,311 9.49 % Expenses $ 1,602,931 $ 1,901,540 $ 2,508,398 $ 2,329,389 $ — $ 2,329,389 $ (179,009) (7.14) % Total 8600 Innovation & Tech.$ 2,417,243 $ 2,763,464 $ 3,376,124 $ 3,289,426 $ (10,000) $ 3,279,426 $ (96,698) (2.86) % Program Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended 8610 IT Administration $ 2,417,243 $ 2,763,464 $ 3,376,124 $ 3,289,426 $ (10,000) $ 3,279,426 $ (96,698) (2.86) % Total 8600 Innovation & Tech.$ 2,417,243 $ 2,763,464 $ 3,376,124 $ 3,289,426 $ (10,000) $ 3,279,426 $ (96,698) (2.86) % Object Code Summary FY2024 FY2025 FY2026 FY2027 Manager's FY2027 Dollar Increase Percent IncreaseActualActualAppropriationRequestAdd/Del Recommended Salaries & Wages $ 802,997 $ 850,487 $ 857,226 $ 949,537 $ (10,000) $ 939,537 $ 82,311 9.60 % Overtime $ 11,314 $ 11,437 $ 10,500 $ 10,500 $ — $ 10,500 $ — — % Personal Services $ 814,311 $ 861,924 $ 867,726 $ 960,037 $ (10,000) $ 950,037 $ 82,311 9.49 % Contractual Services $ 1,358,519 $ 1,504,392 $ 2,226,578 $ 2,053,397 $ — $ 2,053,397 $ (173,181) (7.78) % Utilities $ 92,183 $ 83,361 $ 146,600 $ 142,900 $ — $ 142,900 $ (3,700) (2.52) % Supplies $ 8,098 $ 9,342 $ 10,720 $ 14,070 $ — $ 14,070 $ 3,350 31.25 % Small Capital $ 144,131 $ 304,446 $ 124,500 $ 119,023 $ — $ 119,023 $ (5,477) (4.40) % Expenses $ 1,602,931 $ 1,901,540 $ 2,508,398 $ 2,329,389 $ — $ 2,329,389 $ (179,009) (7.14) % Total 8600 Innovation & Tech.$ 2,417,243 $ 2,763,464 $ 3,376,124 $ 3,289,426 $ (10,000) $ 3,279,426 $ (96,698) (2.86) % 8600 Innovation & Technology Program: General Government Town of Lexington, MA FY2027 Preliminary Budget & Financing Plan January 23, 2026 X-25 This Page Intentionally Left Blank. Section XI: Capital Investment FY2027 Capital Improvement Budget & Financing Plan INTRODUCTION A crucial aspect of the Town’s operations, from providing services to its residents and businesses to equipping employees to effectively perform their jobs, requires the existence of certain basic physical assets. These assets include streets, water mains, parks, buildings, large equipment, and technology. They must be purchased, maintained, and replaced on a timely basis or their usefulness in providing public services will diminish. The Town’s five-year Capital Improvements Program and annual Capital Budget are developed to ensure adequate capital investment in the Town’s assets. Definition of Capital Projects A capital project is defined as a major, non-recurring expenditure that generally meets the following criteria: •Massachusetts General Law permits the Town to issue bonds to finance the expenditure; •The expenditure is $25,000 or more; •The expenditure will have a useful life of 10 years or more for buildings or building components and 5 years for vehicles and equipment; and •Planning, engineering, or design services may be considered capital when such services are integral to a construction, renewal, or replacement project that meets the criteria for a capital expenditure. CAPITAL POLICY FRAMEWORK The FY2027 Capital Budget was developed within the capital policy framework initially adopted by the Select Board in 1991, and subsequently amended in 2006 and 2009 to ensure adequate planning and funding for capital investment, particularly cash capital projects within the General Fund. This capital investment strategy includes the following major elements: •Multi-year planning for capital investment; •Debt exclusions for major capital projects; and •Ensuring sufficient operating budget resources for maintaining capital assets. FIVE-YEAR CAPITAL PROGRAM Five-year capital improvement planning has been part of Lexington’s budget development process for many years. Multi-year planning allows proper staging and sequencing of capital projects to smooth financing plans and make funding needs more predictable. Capital investment requirements can vary year-over-year, from DPW equipment replacement to uniquely large projects such as a fire vehicle or a school building. Other capital investment needs are recurring, such as the annual program to resurface roadways. The five-year Capital Improvement Program includes anticipated capital projects identified by school and municipal departments and spending projections for all of the Town's ongoing capital investment programs. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-1 Funding the Town's Capital Improvement Budget The following are potential funding sources for financing of the Town’s capital investments. Over the last five years, management has shifted the majority of the Town's ongoing capital programs to be funded with cash sources as opposed to debt financing. The use of debt is primarily for large one-time capital projects. Capital projects and programs may be funded from one source, or by a combination of the following sources. •Cash Financing - The Town regularly appropriates available funds (i.e., cash financing) from the general and enterprise funds to finance certain capital investment projects. Examples of available funds are unreserved fund balance (Free Cash), tax levy, enterprise fund retained earnings, specialized stabilization funds, premiums received when issuing bond anticipation notes, and, when available, unexpended balances of prior years’ capital articles. •Debt - The Town has traditionally financed large dollar value capital projects with debt. Depending upon the project, the debt service resulting from debt-funded capital projects can be financed from a variety of sources including the General Fund (either within the Levy Limit or from a voter approved Proposition 2½ debt exclusion), Enterprise and Revolving Funds, or the Community Preservation Fund (see discussion of the CPA below). In 2019, the Town's management, Select Board, and finance committees reviewed the Town's finance policies and have since implemented new strategies for funding the Town's capital plan. This includes increasing cash financing of projects, particularly the items that are part of a continuing capital program, and reducing the Town's overall reliance on debt financing. These efforts have greatly reduced interest costs and the amount of within-levy debt service. •Other Sources - The Town uses dedicated state aid, grant, or gift funds to finance capital investment when these funds are available. •Community Preservation Act (CPA) Funds - Beginning in FY2007, following voter approval, the Town began to assess a Community Preservation Surcharge of 3% of the property tax levied against all taxable real property. For owners of residential property, the assessed value used to calculate the surcharge is net of a $100,000 residential exemption. Community Preservation funds can be used for those purposes defined by the Community Preservation Act, MGL Ch. 44B. Such purposes include the acquisition and preservation of open space, the creation and support of community (affordable) housing, the acquisition and preservation of historic resources, and the creation and support of recreational facilities. Beginning in FY2008, the Town began to receive State matching funds to supplement the local surcharge. Over time, the annual percentage of State matching funds has fluctuated due to changes in State legislation and varying levels of funding available at the State level. The Town's local match is further impacted as additional communities in the Commonwealth adopt the CPA surcharge resulting in available funds being spread across more communities. The following table presents the history of Lexington's State matching funds. FISCAL YEAR PERCENTAGE AMOUNT 2015 32.6 %$1,230,116 2016 30.7 %$1,229,774 2017 21.3 %$897,243 2018 17.8 %$789,905 2019 19.8 %$922,256 2020 24.8 %$1,219,950 FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-2 2021 29.7 %$1,549,955 2022 45.5 %$2,500,261 2023 40.0 %$2,323,956 2024 21.8 %$1,354,935 2025 18.7 %$1,234,313 2026 17.5 %$1,215,638 2027 (estimated) 15.0 %$1,080,000 Receipts for FY2027 from the surcharge and state matching funds are preliminarily estimated at $8.67 million, reflecting an estimated match of $1,080,000 or 15%. This continues a trend of lower state matches in recent history due to a decline in available revenues in the CPA Trust Fund and the state budget, as well as the addition of new communities noted above. FY2027 CAPITAL FINANCING STRATEGY The proposed financing plan for the recommended FY2027 capital budget is shown in the table below. Capital Requests Summary Free Cash/ Tax Levy Other Funding Sources Debt Total Other** General Fund $ 17,896,453 $ — $ 2,500,000 $ 20,396,453 $ — Other Funding & Chapter 90 $ — $ 262,159 $ — $ 262,159 $ 1,768,022 Water Enterprise $ — $ 2,606,639 $ — $ 2,606,639 $ — Sewer Enterprise $ — $ 900,000 $ 404,080 $ 1,304,080 $ — Recreation Enterprise $ — $ 190,000 $ — $ 190,000 $ — Community Preservation Act*$ — $ 8,345,355 $ — $ 8,345,355 $ — Total (all Funds)$ 17,896,453 $ 12,304,153 $ 2,904,080 $ 33,104,686 $ 1,768,022 *Includes both Town and non-Town CPA funded projects. **Other represents Chapter 90 Aid for street improvements. This item does not require a Town Meeting appropriation. RECENT DEVELOPMENTS IN CAPITAL INVESTMENT Affordable Housing Trust Lexington Town Meeting approved the creation of an Affordable Housing Trust (AHT) at the Fall 2022 Special Town Meeting and the first appropriation to the AHT was in FY2024. The charge of the Trust is to fund the preservation and creation of affordable housing in the Town for the benefit of low- and moderate-income households and for the funding of community housing. The AHT's primary funding source will be CPA funds, and the AHT expects to request CPA funds annually. Additional information about the Affordable Housing Trust can be found in Appendix C of this FY2027 Recommended Budget and Financing Plan. Lexington High School Construction In Fall 2025 Town Meeting appropriated funding to construct a new Lexington High School, and a townwide referendum subsequently approved excluding the debt service for this project from the limits of Proposition 2 1/2, allowing the project to move forward. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-3 The project has been accepted into the Massachusetts School Building Authority's (MSBA) grant program with a total approved budget of $659 million that includes feasibility study, design and construction. The MSBA will oversee all phases of the project and is expected to contribute approximately $121 million in grant funding, with the remainder to be financed with municipal bonds. The construction and financing of the project will begin in the summer of 2026 and debt service will begin in FY2027. See table V:Exempt Debt for additional information on Lexington High School debt service. Stormwater Management Over the last decade the Town has funded three separate capital programs related to stormwater management, flood mitigation, Illicit Discharge Detection and Elimination (IDDE), nutrient removal, and overall improvement in water quality that is regulated by the federal Environmental Protection Agency (EPA): •Culvert Replacement; •Storm Drainage Improvements and National Pollutant Discharge and Elimination System (NPDES) Compliance; and •Comprehensive Watershed Stormwater Management. These three programs have historically been funded with General Fund revenue sources, but required work has expanded and costs have continued to increase steadily in recent years. From FY2019-2024 Town management and the Department of Public Works explored creating a Stormwater Enterprise Fund that would assess a stormwater fee to every parcel of real property in Lexington. This new fee revenue would fund the three capital programs noted above, and related Stormwater operating expenses. The establishment of this new Enterprise fund has been put on hold as the EPA's regulations evolve and until the agency issues the town a new Municipal Separated Storm Sewer System (MS4) permit, which is expected in calendar year 2026. Once issued, Town staff will assess requirements of the permit and whether or not Stormwater capital requirements can be managed within the existing budget. If the new permit requirements result in an expansion of the Town's Stormwater management program, costs may increase rapidly, and the Town may reconsider the proposal for a Stormwater Enterprise Fund. In FY2025, the three existing capital programs related to Stormwater were combined into one request for a Stormwater Management Program. One combined program allows the department more flexibility in planning and removes complexity from bidding and managing projects that have many overlapping components but separate funding authorizations. The work proposed and total amounts requested in this one program are aligned with the historic programs and funding requests. Additional information can be found under Table VIII: Cash Capital. In FY2025, a new program was created for Sustainable Capital Initiatives including electric vehicle (EV) charging equipment and infrastructure. In the future this program may also include the study, design, and construction of rooftop solar or solar canopies, including battery storage, as well as other projects identified by the Sustainability and Resilience Officer to move the Town towards achieving its sustainability goals. The following table, FY2027 Recommended Capital Budget, lists all FY2027 projects recommended by the Town Manager for consideration and their estimated costs by program area and funding source. The Capital Expenditures Committee and Appropriation Committee have also been evaluating these requests and will issue reports and recommendations to Town Meeting. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-4 FY2027 Recommended Capital Budget Department Project Description Recommendation Requested Funding Source(s)ATM Article Planning Townwide Bicycle and Pedestrian Plan Implementation $ 100,000 Traffic Mitigation Stabilization Fund, General Fund 12 Land Use Bike-Ped Implementation: MMBW to LHS $ 180,000 Traffic Mitigation Stabilization Fund, General Fund 12 Planning/Engineering Transportation Mitigation $ 80,000 TNC Funds /Free Cash 12 Total Land Use, Housing and Development $ 360,000 Fire Ladder Truck $ 2,500,000 GF Debt 12 Total Public Safety $ 2,500,000 Recreation & Comm. Pgms.Pine Meadows Improvements $ 130,000 Recreation RE 11 Recreation & Comm. Pgms.Pine Meadows Equipment $ 60,000 Recreation RE 11 Recreation & Comm. Pgms.Park Improvements - Athletic Fields $ 2,630,000 CPA 10 Total Culture and Recreation $ 2,820,000 Public Facilities Public Facilities Bid Documents $ 125,000 Free Cash 16 Public Facilities Public Facilities Interior Finishes $ 486,720 Free Cash 16 Public Facilities School Paving and Sidewalks $ 225,000 Free Cash 16 Public Facilities Public Facilities Mechanical/Electrical/Plumbing Replacements $ 4,565,000 Free Cash/ Tax Levy/Prior Bond Auth.16 Public Facilities LHS Equipment Emergency Needs $ 400,000 Free Cash 16 Total Public Facilities Department $ 5,801,720 Public Works Equipment Replacement $ 1,700,000 Free Cash/Water RE 12 Public Works Sidewalk Improvements $ 820,000 Free Cash 12 Public Works Street Improvements $ 2,746,777 Tax Levy 12 Public Works Hydrant Replacement Program $ 150,000 Free Cash/Water RE 12 Public Works Stormwater Management Program $ 2,665,000 Free Cash 12 Public Works Sanitary Sewer System Investigation and Improvements $ 1,104,080 Sewer User Fees/ Sewer Debt 14 Public Works Water Distribution System Improvements $ 2,381,639 Water User Fees/ Water RE 13 Public Works Pump Station Building Improvements $ 200,000 Sewer RE 14 Public Works DPW Building Improvements - Vehicle Floor Repairs $ 220,000 Free Cash 12 Public Works New Sidewalk Installation - Burlington & North $ 250,000 Free Cash 12 Public Works New Sidewalk Installation - Lowell Street $ 30,000 Free Cash 12 Public Works Adams Street Intersections Improvements (@East; @Hancock)$ 100,000 Free Cash 12 Public Works Refuse & Recycling Automated Collection Carts $ 1,204,000 Free Cash 23 Public Works Hartwell Training Facility Paving $ 67,458 Free Cash 12 Total Public Works Department $ 13,638,954 Lexington Public Schools LPS Technology Program $ 1,425,657 Free Cash 15 Total Lexington Public Schools $ 1,425,657 Innovation & Technology Application Implementation $ 115,000 Free Cash 12 Innovation & Technology Municipal Technology Improvement Program $ 145,000 Free Cash 12 Innovation & Technology Network Technology Improvements $ 120,000 Free Cash 12 Town Clerk Document Conservation $ 20,000 CPA 10 Town Manager Sustainable Capital Initiatives $ 463,000 Free Cash 7 Total General Government $ 863,000 Affordable Housing Trust Affordable Housing Trust (AHT) Funding $ 3,200,000 CPA 10 CPC Munroe Center Refinancing $ 2,000,000 CPA 10 LexHAB LexHAB Support - Restoration, Preservation, Decarbonization $ 395,355 CPA 10 Total Non-Governmental Projects $ 5,595,355 Total FY2027 Recommendations - All Funds $ 33,104,686 FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-5 CAPITAL PLAN BY FINANCING SOURCE The following pages include tables that show the recommended FY2027 capital projects by financing source: General Fund debt; Water Fund debt; Wastewater Fund debt; Recreation and Community Programs Fund debt; Proposition 2½ excluded debt; Community Preservation Fund debt; Compost Revolving Fund debt; and cash capital (i.e., current revenue). Each debt-related table includes the projected debt service impact of recommended projects, actual debt service on debt authorized and issued, and projected debt service on debt authorized and unissued. Finally, each table is accompanied by a written description of each recommended project. FY2027 RECOMMENDED PROJECTS - GENERAL FUND DEBT (Table I) TABLE I: FY2027 RECOMMENDED PROJECTS - GENERAL FUND DEBT Amount Financed Interest Rate PROJECTED DEBT SERVICE Term FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 MUNICIPAL PROJECTS 1 Ladder Truck $ 2,500,000 10 4%$ — $ 66,667 $ 350,000 $ 340,000 $ 330,000 TOTAL PROJECT COSTS $2,500,000 $ — $ 66,667 $ 350,000 $ 340,000 $ 330,000 AUTHORIZED LEVY SUPPORTED DEBT SERVICE FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 A Approved and Issued $ 3,697,662 $ 3,323,830 $ 3,040,230 $ 2,759,660 2,434,660 B Projected Approved and Unissued $ 2,577,153 $ 2,002,440 $ 1,943,140 $ 1,883,840 $ 1,824,540 C Total Debt Service on Authorized Debt $ 6,274,815 $ 5,326,270 $ 4,983,370 $ 4,643,500 $ 4,259,200 D Projected New Levy Supported Debt Service (above)$ — $ 66,667 $ 350,000 $ 340,000 $ 330,000 E TOTAL - PROJECTED LEVY SUPPORTED DEBT SERVICE $ 5,732,433 $ 6,274,815 $ 5,392,937 $ 5,333,370 $ 4,983,500 $ 4,589,200 F Plus: Projected Debt Service on Future Capital Projects $ — $ — $ 1,108,265 $ 2,117,453 $ 3,144,462 $ 4,190,183 G Less: Debt Service Funded from Special Revenue Accounts $ (102,971) $ (94,750) $ (93,125) $ (39,000) $ (37,500) $ (34,500) H Less: Proposed Use of Stabilization Fund $ — $ — $ — $ — $ — $ — I Total Offsets to Projected Levy Supported Debt Service (G+H)$ (102,971) $ (94,750) $ (93,125) $ (39,000) $ (37,500) $ (34,500) J PROJECTED NET LEVY SUPPORTED DEBT SERVICE (E+F+I)$ 5,629,462 $ 6,296,114 $ 6,408,077 $ 7,411,823 $ 8,090,462 $ 8,744,883 Ladder Truck - $2,500,000 (General Fund Debt): This request is to replace the fire department's 2017 aerial ladder truck. The useful life of a ladder truck is approximately twenty years, with ten years as a frontline vehicle, and another ten years as a reserve. The department's current ladder truck will be moved to reserve. Due long lead times for ordering fire vehicles, the truck is not expected to be delivered for several years. Financing and debt service will not occur until the vehicle is delivered, which will not be until at least FY2028, but likely later. The timing of debt service projections will be updated annually based on the expected delivery date. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-6 FY2027 RECOMMENDED PROJECTS - WATER FUND DEBT (Table II) TABLE II: FY2027 RECOMMENDED PROJECTS - WATER DEBT Project Amount Financed Term Interest Rate FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 1 None Proposed $ — ---—%$ — $ — $ — $ — $ — TOTAL PROJECT COSTS $ — $ — $ — $ — $ — $ — AUTHORIZED WATER DEBT SERVICE FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 A Subtotal: Authorized and Issued $ 1,301,015 $ 1,147,339 $ 929,500 $ 916,500 $ 872,050 B Subtotal: Approved and Unissued (short and long-term) $ 89,300 $ 165,400 $ 160,560 $ 155,720 $ 150,880 C Total: Debt Service on Authorized Debt $ 1,390,315 $ 1,312,739 $ 1,090,060 $ 1,072,220 $ 1,022,930 D Subtotal: Projected Debt Service on Proposed Capital Projects $ — $ — $ — $ — $ — E TOTAL PROJECTED WATER DEBT SERVICE $ 1,344,517 $ 1,390,315 $ 1,312,739 $ 1,090,060 $ 1,072,220 $ 1,022,930 No new recommendations for debt financing. FY2027 RECOMMENDED PROJECTS - WASTEWATER FUND DEBT (Table III) TABLE III: FY2027 RECOMMENDED PROJECTS - WASTEWATER DEBT Project Amount Financed Term Interest Rate FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 1 Sanitary Sewer System Investigation and Improvements $404,080 10 4.0%$ 10,775 $ 56,571 $ 54,955 $ 53,339 $ 51,722 TOTAL PROJECT COSTS $404,080 $ 10,775 $ 56,571 $ 54,955 $ 53,339 $ 51,722 AUTHORIZED SEWER DEBT SERVICE FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 A Subtotal: Authorized and Issued Debt $ 1,369,485 $ 1,192,069 $ 1,019,150 $ 822,950 $ 666,400 B Subtotal: Approved and Unissued Debt (short and long-term) $ 238,471 $ 233,261 $ 228,051 $ 222,841 $ 217,631 C Total: Debt Service on Authorized Debt $ 1,607,956 $ 1,425,330 $ 1,247,201 $ 1,045,791 $ 884,031 D Subtotal: Projected Debt Service on Proposed Capital Projects $ 10,775 $ 56,571 $ 54,955 $ 53,339 $ 51,722 E TOTAL PROJECTED SEWER DEBT SERVICE $ 1,530,176 $ 1,618,731 $ 1,481,901 $ 1,302,156 $ 1,099,130 $ 935,753 1.Sanitary Sewer System Investigation and Improvements - $1,104,080 ($700,000 Wastewater User Charges, $404,080 Sewer Debt): This annual program provides for rehabilitation of sanitary sewer infrastructure. The Town's sanitary sewer infrastructure is made up of approximately 176 miles of main line, 8.5 miles of force main and 5,280 manholes. Work will include replacement or repair of deteriorated sewers, force mains, and manholes in order to improve flow and reduce inflow and infiltration into the system. Engineering investigation and evaluation will continue on sewers throughout town, including those in remote, hard to access areas. These capital investments improve the operation of the sewer system, reduce backups and potential overflows, prevent system malfunctions, and reduce the measured flows through the MWRA meter. Beginning in FY2021, the funding source for this ongoing capital replacement program has been gradually shifting to Wastewater user charges, with the ultimate goal of transitioning the entire program to cash funding over 10 years. This is the seventh year of transition and $700,000 is being requested from user fees. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-7 FY2027 RECOMMENDED PROJECTS - RECREATION FUND DEBT (Table IV) TABLE IV: FY2027 RECOMMENDED PROJECTS - RECREATION and COMMUNITY PROGRAMS DEBT Project Amount Financed Term Interest Rate FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 1 None Proposed $ — ---—%$ — $ — $ — $ — $ — TOTAL PROJECT COSTS $ — $ — $ — $ — $ — $ — AUTHORIZED RECREATION REVENUE DEBT SERVICE FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 A Subtotal:Approved and Issued Debt Service $ — $ — $ — $ — $ — B Subtotal:Approved and Unissued Debt Service $ — $ — $ — $ — $ — C Total:Approved Debt Service $ — $ — $ — $ — $ — D Subtotal:Projected Debt Service on Proposed Capital Projects $ — $ — $ — $ — $ — E TOTAL PROJECTED DEBT SERVICE $ — $ — $ — $ — $ — $ — No new recommendations for debt financing. For FY2027 there are no new requests for debt financing, and no existing debt service obligated to the Recreation Enterprise Fund; however this budget does include a contribution of $100,000 from the Recreation Enterprise Fund to offset General Fund debt service for the Pine Meadows Clubhouse renovation which was approved at the 2024 Annual Town Meeting. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-8 FY2027 RECOMMENDED PROJECTS - FUNDING THROUGH PROPOSITION 2½ DEBT EXCLUSION (Table V) TABLE V: FY2027 RECOMMENDED PROJECTS - FUNDING THROUGH PROPOSITION 2½ DEBT EXCLUSION Project Amount Financed Term Interest Rate FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Project that is a potential candidate for debt exclusion None Proposed $ — ——%$ — $ — $ — $ — $ — Subtotal $ — $ — $ — $ — $ — $ — APPROVED AND PROPOSED EXCLUDED DEBT SERVICE FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Subtotal:Approved and Issued Excluded Debt Service $ 15,462,795 $ 14,701,017 $ 12,014,897 $ 10,350,771 $ 9,931,409 Subtotal:Approved and Unissued Debt (non-LHS)$ 438,007 $ 591,480 $ 574,260 $ 557,040 $ 539,820 Subtotal:Approved and Unissued LHS Debt $ 2,606,486 $ 9,755,504 $ 20,863,433 $ 29,745,002 $ 34,978,244 Total: Approved Excluded Debt Service $ 18,507,288 $ 25,048,001 $ 33,452,590 $ 40,652,814 $ 45,449,473 Proposed Exempt Debt Service (above)$ — $ — $ — $ — $ — Subtotal Other Debt Related Costs $ — $ — $ — $ — $ — Total Approved and Proposed Excluded Debt Service $ 16,207,456 $ 18,507,288 $ 25,048,001 $ 33,452,590 $ 40,652,814 $ 45,449,473 Less: Portion of Debt Service Paid Within-Levy Per Per CSF Policy $ (800,000) $ (5,800,000) $ (6,580,908) $ (6,580,908) $ (6,580,908) Less: Use of Capital Stabilization Fund to Mitigate Debt Service Impacts on Property Tax Bills $ — $ — $ — $ (5,900,000) $ (11,000,000) $ (13,500,000) Net Excluded Debt Service $ 16,207,456 $ 17,707,288 $ 19,248,001 $ 20,971,682 $ 23,071,906 $ 25,368,565 No new recommendations for debt financing. Lexington High School Construction As noted in the Section XI: Capital Plan Introduction, construction of a new Lexington High School has been approved. The construction and financing of the project will begin in the summer of 2026 and debt service will begin in FY2027 as projected in the table above. A draw-down of $800,000 from the Capital Stabilization Fund is recommended in FY2027 to mitigate the impact of the high school debt service on the taxpayers. Information about the Lexington High School construction timing, location, design, cost estimates, public engagement, committee meetings and frequently asked questions are all available on the School Building Project website at: www.lhsproject.lexingtonma.org. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-9 FY2027 RECOMMENDED PROJECTS - Community Preservation Act Debt (Table VI) TABLE VI: FY2027 RECOMMENDED PROJECTS - COMMUNITY PRESERVATION ACT DEBT Project Amount Financed Term Interest Rate FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 1 None Proposed $ — ——%$ — $ — $ — $ — $ — TOTAL PROJECT COSTS $ — $ — $ — $ — $ — $ — AUTHORIZED CPA REVENUE DEBT SERVICE FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 A Subtotal:Approved and Issued Debt $ — $ — $ — $ — $ — B Subtotal:Approved and Unissued Debt $ — $ — $ — $ — $ — C Total:Approved Debt Service $ — $ — $ — $ — $ — D Subtotal:Projected Debt Service on Proposed Capital Projects $ — $ — $ — $ — $ — E TOTAL PROJECTED DEBT SERVICE $ — $ — $ — $ — $ — $ — No recommendations for debt financing. FY2027 RECOMMENDED PROJECTS - Compost Revolving Fund (Table VII) TABLE VII: FY2027 RECOMMENDED PROJECTS - Compost Revolving Fund Project Amount Financed Term Interest Rate FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 1 None Proposed $ — ——%$ — $ — $ — $ — $ — TOTAL PROJECT COSTS $ — $ — $ — $ — $ — $ — AUTHORIZED REVENUE SUPPORTED DEBT SERVICE FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 A Subtotal:Approved and Issued Debt $ 111,226 $ 14,338 $ 13,838 $ 13,438 $ 10,000 B Subtotal:Approved and Unissued Debt $ 86,710 $ 83,720 $ 80,730 $ 77,740 $ — C Total:Approved Revenue Supported Debt Service $ 197,936 $ 98,058 $ 94,568 $ 91,178 $ 10,000 D Subtotal:Projected Debt Service on Proposed Capital Projects $ — $ — $ — $ — $ — E TOTAL PROJECTED DEBT SERVICE $ 181,539 $ 197,936 $ 98,058 $ 94,568 $ 91,178 $ 10,000 No new recommendations for debt financing. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-10 FY2027 RECOMMENDED PROJECTS - CASH CAPITAL (Table VIII) TABLE VIII: FY2027 RECOMMENDED FUNDING FROM REVENUES (Cash by Source) Project Free Cash Tax Levy Water/Sewer Retained Earnings Recr. Retained Earnings Enterprise Operating Funds CPA*Other Funds**Total Cost Other *** SCHOOL PROJECTS & PROGRAMS 1 LPS Technology Program $ 1,425,657 $ 1,425,657 SUBTOTAL $ 1,425,657 $ — $ — $ — $ — $ — $ — $ 1,425,657 $ — FACILITIES 2 Public Facilities Bid Documents $ 125,000 $ 125,000 3 Public Facilities Interior Finishes $ 486,720 $ 486,720 4 Public Facilities Mechanical/Electrical/Plumbing Replacements $ 4,083,459 $ 242,332 $ 239,209 $ 4,565,000 5 School Paving and Sidewalks $ 225,000 $ 225,000 6 LHS Equipment Emergency Needs $ 400,000 $ 400,000 7 Playground Infrastructure Upgrades $ — $ 100,000 $ 100,000 SUBTOTAL $ 5,320,179 $ 242,332 $ — $ — $ — $ 100,000 $ 239,209 $ 5,901,720 $ — MUNICIPAL PROJECTS & PROGRAMS 8 Transportation Mitigation $ 57,050 $ 22,950 $ 80,000 9 Townwide Bicycle and Pedestrian Plan Implementation $ 100,000 $ 100,000 10 Bike-Ped Implementation: MMBW to LHS $ 180,000 $ 180,000 11 Pine Meadows Improvements $ 130,000 $ 130,000 12 Pine Meadows Equipment $ 60,000 $ 60,000 13 Park Improvements - Athletic Fields $ 2,630,000 $ 2,630,000 14 Equipment Replacement $ 1,550,000 $ 150,000 $ 150,000 $ 1,850,000 15 Sidewalk Improvements $ 820,000 $ 820,000 16 Street Improvements $ 2,746,777 $ 2,746,777 $ 1,768,022 17 Hydrant Replacement Program $ 75,000 $ 75,000 $ 150,000 18 Stormwater Management Program $ 2,665,000 $ 2,665,000 19 Sanitary Sewer System Investigation and Improvements $ 700,000 $ 700,000 20 Water Distribution System Improvements $ 981,639 $ 1,400,000 $ 2,381,639 21 Pump Station Building Improvements $ 200,000 $ 200,000 22 Adams Street Intersections Improvements (@East; @Hancock)$ 100,000 $ 100,000 23 DPW Building Improvements - Vehicle Floor Repairs $ 220,000 $ 220,000 24 New Sidewalk Installation - Burlington & North $ 250,000 $ 250,000 25 New Sidewalk Installation - Lowell Street $ 30,000 $ 30,000 26 Hartwell Training Facility Paving $ 67,458 $ 67,458 27 Refuse & Recycling Automated Collection Carts $ 1,204,000 $ 1,204,000 Network Core Equipment Replacement $ — $ — 28 Municipal Technology Improvement Program $ 145,000 $ 145,000 29 Application Implementation $ 115,000 $ 115,000 30 Network Technology Improvements $ 120,000 $ 120,000 31 Sustainable Capital Initiatives $ 463,000 $ 463,000 32 Document Conservation $ 20,000 $ 20,000 SUBTOTAL $ 8,161,508 $ 2,746,777 $ 1,406,639 $ 190,000 $ 2,100,000 $ 2,650,000 $ 172,950 $ 17,427,874 $ 1,768,022 OTHER CPA FUNDED PROJECTS 33 LexHAB Affordable Housing Support, Restoration, and Preservation $ 395,355 $ 395,355 34 Affordable Housing Trust (AHT) Funding $ 3,200,000 $ 3,200,000 35 Munroe Center Refinancing $ 2,000,000 $ 2,000,000 SUBTOTAL $ — $ — $ — $ — $ — $ 5,595,355 $ — $ 5,595,355 $ — TOTAL $ 14,907,344 $ 2,989,109 $ 1,406,639 $ 190,000 $ 2,100,000 $ 8,345,355 $ 412,159 $ 30,350,606 $ 1,768,022 * CPA totals do not include proposed FY2027 administrative budget of $150,000. **Other Funds include the Transportation Network Company (TNC) Special Revenue Fund, Ambulance Stabilization Fund and BAN Premiums received from prior issuances. ***Other includes Chapter 90 funds for Street Improvements, which does not require Town Meeting appropriation. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-11 School Department Projects 1.LPS Technology Program - $1,425,657 (Free Cash): This request addresses the District’s strategic goal for enhancing the capacity to utilize technology as an instructional and administrative tool. The request will continue to support student access to devices to allow for innovative learning methods that integrate supportive technologies, problem-based approaches and higher order thinking skills. It also maintains and improves, when needed, current infrastructure such as networks, access points and servers. The capital improvement request for FY2027 would provide funding for the following: Tech Workstations - $220,050 is requested for this category of the capital project. Replace Unit A (all classroom teachers, counselors, librarians and staff working under the teacher contract; Unit A) workstations and peripheral devices (laptops, desktops, printers and monitors). Prices have remained relatively stable for all devices in this category (170 laptops @$1,150 each, 10 printers @ $355 each, 15 monitors @$300 each, 15 workstations at $1,100 each). PreK-5 Mobile Devices - $104,000 is requested to replace end-of-life iPads across all district Kindergarten classes (260 iPads @ $400 each). 1:1 Middle School Program - $251,428 is requested to fund 500 Chromebooks for 6th graders entering Diamond and Clark Middle Schools. All middle school students have 1:1 devices and the devices follow them through middle school (three year life span). Generally, by the end of middle school, many devices have reached their end of life due to use. These Chromebooks are more expensive than the high school devices due to their having dual cameras and touch screens. (526 Chromebooks @ $478 each). The previous model has been discontinued, and the newer model is more expensive. 1:1 at Lexington High School - $246,768 is requested to purchase 636 Chromebooks for 9th graders. All high school students, once provided a device in 9th grade or upon entering the high school, have the device through their senior year (four-year life span), (636 Chromebooks @ $388 each). Science/Technology/Engineering/(Art)/Math (STEM/STEAM)/Computer Science - $12,500 is requested to update computer labs at the High School level and purchase STEM/STEAM based curricular materials. The high school lab equipment will be updated (5 replacement lab computers at $1,300, and $6,000 for STEM/STEAM Materials). Digital Learning Coaches (DLCs) work with all department heads that are holding curriculum reviews. The small amount of money allocated for STEM/STEAM may result in equipment being piloted or may also replace some equipment currently being used (elementary small robots for coding, etc.). Interactive Projectors/Whiteboard Units and Document Cameras - $135,861 is requested for this category of the capital project. •Replace 37 interactive projectors districtwide. This equips buildings with a touch-activated, interactive system and soundbar. The replacements will begin with the oldest model per school until all systems are within a 7 year window with all of the same functionality (37 projectors @ $3,553 each). •The request will also replace 5 document cameras districtwide. All elementary schools have had document cameras replaced, and upgrades have been made in many middle school classrooms as well. (5 document cameras @ $880 each). FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-12 District and Building Network Infrastructure - $435,050 is requested to replace end of life Wireless Access Points (WAPs) at both middle schools and switches across all elementary schools. This is a phased project and WAPs will be replaced in all elementary schools in subsequent years. Due to the impending high school building project and a final determination for the current Central Office, WAPs and cabling for those sites have been deferred. The current five year capital submission also includes anticipated costs for future replacement of the district’s core and firewalls with the building of a new high school and possible relocation of Central Office. Server/Storage Infrastructure - $20,000 is requested to maintain and upgrade any server related hardware. Department of Public Facilities Projects 2.Public Facilities Bid Documents - $125,000 (Free Cash): This is an annual request for funding professional services to produce design development, construction documents and/or bid administration services for smaller projects in anticipation of requests for construction funding at town meeting that have a high probability of approval. This will ensure that both municipal and school projects can be completed in the then-current construction season, which is particularly important for the timely completion of school building projects given the short window between the end of school in June and the end of summer. There has been a steady uptick in the number of projects requiring these services in recent years. 3.Public Facilities Interior Finishes - $486,720 (Free Cash): Initiated in FY2011, this is an annual request for funds to be used for the replacement of flooring systems in municipal and school buildings and interior finishes including mill work, ceiling work, tile work, countertop replacement and bathroom finish renovations. The goal of this annual program is to ensure failing systems are replaced and are safe for all users. The FY2027 request will allow the Department of Public Facilities to complete approximately four classroom flooring systems in six school buildings and prioritize other floors requiring attention. This request also covers other building finishes, based on priority. Projects recently completed include replacement of flooring in classrooms at Clarke Middle School, three elementary school main offices, and the Lexington Community Center. 4.Public Facilities Mechanical/Electrical/Plumbing Replacements - $4,565,000 ($4,083,459 Free Cash, $242,332 Tax Levy, $239,209 Prior Bond Authorization): This project is an annual replacement of Mechanical, Electrical and Plumbing systems that have exceeded their useful life and require replacement before catastrophic failures occur. After the development of the 20-year Capital Plan, the report identifies significant projects that are coming due in the next 5 years. This category has significant dollars scheduled for investment over the next 5 years. Spending in FY2027 will cover energy recovery units at Fiske Elementary School. 5.School Paving and Sidewalks - $225,000 (Free Cash): This capital request provides as- needed replacement of sidewalks, hardscape for playgrounds, bus loops, and parking areas on school grounds. Extraordinary repairs for school paving areas are necessary to maintain parking and pedestrian surfaces in a condition suitable for public safety and highlights the Safe Routes to School program. Projects recently completed include the full driveway and sidewalk replacement at Diamond Middle School. The FY2027 request will fund repairs at Fiske Elementary School. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-13 6.LHS Equipment Emergency Needs - $400,000 (Free Cash): This project is to provide funding for emergency needs, including major equipment failure, related to the existing Lexington High School building up until demolition following the completion of the new LHS building. 2022 Annual Town Meeting approved $500,000 in funds for the same purpose; as of January 2026, about $90,000 in funds remain. Demolition is expected to occur in FY2030. 7.Playground Infrastructure Upgrades - $100,000 (CPA): This project is to install playground fencing structures at Bridge Elementary School and Fiske Elementary School. The current lack of fencing creates safety concerns for staff and students; the proposed playground improvements will allow school playground aides to maintain a perimeter to keep students safe, and will comply with recommended safety and accessibility standards. Municipal Projects 8.Transportation Mitigation - $80,000 ($57,050 Free Cash, $22,950 Transportation Network Company (TNC) Special Revenue Fund): This annual capital request is to support the ongoing work of the Transportation Safety Group (TSG). The TSG is staffed by the Planning, Engineering, School and Police departments. Between FY2008 and FY2011, Town Meeting appropriated funds to collect data, perform analysis, review citizen requests and recommendations for various Townwide transportation improvements in support of the Traffic Mitigation Group (dissolved in 2012 and later reconstituted as the TSG). Anticipated projects for FY2027 include continued implementation of the Bicycle and Pedestrian Plan, design work to access MassDOT grant opportunities, and engineering services to address safety requests and conduct speed surveys. 9.Bicycle-Pedestrian Implementation: Minuteman Bikeway to LHS - $180,000 (Free Cash): This request is to support design of a proposal to provide designated bicycle and pedestrian access between the Minuteman Bikeway (MMBW) and Lexington High School (LHS). Identified as a high priority of the recently completed Town-wide Bicycle and Pedestrian Plan, this project will focus on gathering public input and assessing safety concerns. The project outcome expects to identify and design to the 25% level a pedestrian and bicycle route from the MMBW through the Center to the LHS and from the MMBW across Bedford Street to LHS. 10.Townwide Bicycle-Pedestrian Plan Implementation - $100,000 (Free Cash): This request is to support design and construction of key safety improvements identified as priorities in the 2024 Town-Wide Bicycle and Pedestrian Plan. Potential projects include multi-use side paths on Worthen Road from Mass Ave. to Waltham St., safety improvements on Mass. Ave. in East Lexington, trail improvements, and crosswalks, side paths, bike lanes, and intersection improvements at various locations. 11.Pine Meadows Improvements - $130,000 (Recreation Retained Earnings): This is an ongoing program to implement improvements at the Pine Meadows Golf Course. The FY2027 request is to reshape the second green and bunker (which will involve stripping the sod, shaping the green, and replacing the sod from the nursery), extend the third fairway to the left and install irrigation, and complete an as-built irrigation and drainage plan. 12.Pine Meadows Equipment - $60,000 (Recreation Retained Earnings): This is an ongoing program to purchase and replace equipment at the Pine Meadows Golf Course. The FY2027 request is to purchase a new Toro sprayer and a new Toro fairway aerator replacing the 2006 FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-14 Toro fairway aerator. The life expectancy of a fairway aerator and a sprayer is approximately twelve years. 13.Park Improvements - Athletic Fields - Harrington - $2,630,000 (CPA): This request is for the third phase of a multi-phase project to construct new natural grass athletic fields at 146 Maple Street, the former location of the LPS Central Administration Office building. Schematic design funding for this project was approved at the Fall 2024 Special Town Meeting ($100,000). The 2025 Annual Town Meeting appropriated funding to demolish the School Central Administration building at this site, which will take place in early 2026. The 2025 Annual Town Meeting also appropriated $1,197,904 of CPA funds for design, engineering, construction documents, and site work for the project. This FY2027 request will fund the remaining construction cost for the fields. 14.Equipment Replacement - $1,700,000 ($1,550,000 Free Cash; $150,000 Water Retained Earnings): This is an annual request to replace equipment that is beyond its useful life and whose mechanical condition no longer meets the requirements of the Department of Public Works (DPW). The DPW has an inventory of 146 pieces of equipment including sedans, hybrid SUVs, construction vehicles and specialized equipment used to mow parks, plow snow, repair streets, and complete a variety of other projects. Without regular equipment replacement, the efficiency and cost effectiveness of the DPW’s operations would be handicapped due to equipment down time and excessive repair costs. Each piece of equipment is inventoried with original and current replacement cost, state of condition and replacement time interval. Replacement intervals vary from 5 to 20 years and are based on manufacturer recommendations and use (type and duration). The selection of vehicles to be replaced begins with the proposed replacement date. Then each vehicle is assessed as to its mechanical condition and work requirements. The systematic replacement program defines what equipment is expected to need replacement during the next five years with the intent of preventing any unexpected emergency purchases. Annual updates are conducted by the Equipment Maintenance Division, Division Superintendents and reviewed by the Manager of Operations and Director of Public Works. The FY2027 request, by funding source, is shown in the table below. Equipment Free Cash Water RE Total Utility Truck $ 150,000 $ 150,000 Asphalt Roller $ 125,000 $ 125,000 Dump Truck with Plow $ 400,000 $ 400,000 Floor Sweeper $ 165,000 $ 165,000 Front End Loader $ 275,000 $ 275,000 Compact John Deere Tractor $ 125,000 $ 125,000 John Deere Tractor $ 150,000 $ 150,000 Small Front Loader with Blower $ 135,000 $ 135,000 Wacker Sidewalk Machine $ 175,000 $ 175,000 $ 1,550,000 $ 150,000 $ 1,700,000 15.Sidewalk Improvements - $820,000 (Free Cash): This request is to rebuild and/or repair existing sidewalks that are in poor condition, measured in linear feet (LF). DPW, in conjunction FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-15 with various committees and other town departments, will generate a list each year of the sidewalks most in need of repair/replacement based on four determining factors: i.Is the sidewalk unsafe for travel due to trip hazards, defects, etc. ii.Is the sidewalk within the Safe Routes to School Program iii.Is the volume of pedestrian traffic heavy, light or average iv.Is the general condition of the sidewalk poor, fair or good which dictates treatments such as full reconstruction, overlay or patching DPW currently reviews 30% of sidewalks annually to identify the work to be done. Sidewalks considered for FY2027 funding include: Elena Rd.700 LF Asphalt Birch Hill Lane 900 LF Asphalt Pheasant Lane 1000 LF Asphalt Phinney Rd.1400 LF Asphalt Tufts Rd. (Phinney to Marrett)550 LF Asphalt Spring St. (Hayden Ave. to Rt. 2 Bridge)300 LF Asphalt Spring St.600 LF Asphalt Hampton Rd.450 LF Asphalt Kitson Park Dr.600 LF Asphalt 4 Plymouth Rd. 185 LF Concrete Mass Ave (133-121 Bow Street)80 LF Concrete The following table presents the recent history of Sidewalk appropriations: FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 $ 870,000 16.Street Improvements - $2,746,777 (Tax Levy): This is an annual request for the street resurfacing and maintenance program that improves and repairs Lexington’s streets and sidewalks, increasing their quality and safety. In addition to the $2,746,777 appropriated from the tax levy, $1,768,022 of Chapter 90 State Aid funds will be utilized, which does not require a Town Meeting appropriation. Funds will be used for design, inspections, planning, repair, patching, crack sealing and construction of roadways and roadway related infrastructure including repair and installation of sidewalks. A pavement management system is utilized to assist in analyzing the road network and selecting roadways for repairs. Streets that are candidates for completion include Valleyfield Street, Grassland Street, Philbrook Terrace, Bridge Street, Payson Street, Vine Street, Manley Court, Adams Street (East to North), Howard Munroe Place, and Waltham Street (Brookside to Blossomcrest). FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-16 Street Improvements - Financing Components FY27 2001 Override Increased by 2.5% per year $ 798,851 Maintenance of unallocated revenue from FY2012 Revenue Allocation Model $ 281,234 Maintenance of unallocated revenue from FY2013 Revenue Allocation Model $ 164,850 FY2014 Health Insurance Savings $ 1,100,000 Additional Tax Levy Funding $ 381,871 Estimated Chapter 90 Aid $ 1,768,022 Total $ 4,494,827 Without Chapter 90 $ 2,726,806 17.Hydrant Replacement Program - $150,000 ($75,000 Free Cash, $75,000 Water Retained Earnings): This is an ongoing replacement program designed to maintain the integrity of the fire protection system throughout town. Faulty hydrants need to be replaced to meet safety requirements. A list of hydrants needing replacement is generated each year during the annual inspection and flushing of hydrants by the Water and Fire Departments. The Town of Lexington has 1,747 fire hydrants in its fire protection system and the goal is to replace approximately 45 hydrants per year at a cost of $3,700 per hydrant, with labor covered by the operating budget. The expected life of a hydrant is 50 years. 18.Stormwater Management Program - $2,665,000 (Free Cash): This program was created in FY2025 to combine three former programs - Townwide Culvert Replacement, Storm Drain Improvements and NPDES Compliance, and Comprehensive Stormwater Management - into one annual stormwater management request. Many of the challenges and solutions are multi-pronged and cross over between the three programs, which creates complications in the selection and awarding of projects. By combining these projects, it creates more flexibility and agility for the Department for the improvements of stormwater throughout Lexington. The aggregated funding will be utilized for supporting the National Pollutant Discharge and Elimination System (NPDES) program with an emphasis on Illicit Discharge Detection and Elimination (IDDE) and nutrient removal which are both required by the Environmental Protection Agency (EPA) Municipal Separated Storm Sewer System (MS4) permit. These regulations are focused around improving water quality. Additionally, this request will support the stream management plan, culvert replacement and rehabilitation program, and storm drain improvements to mitigate flooding. In FY2027 work will continue on MS4 compliance, and may include phosphorus removal, drainage investigations, and drainage improvements. 19.Sanitary Sewer System Investigation and Improvements - $1,104,080 ($700,000 Wastewater User Charges, $404,080 Sewer Debt): See a detailed description of this project under Table III: Wastewater Fund Debt. 20.Water Distribution System Improvements - $2,381,639 ($1,400,000 Water User Charges; $981,639 Water Retained Earnings): This is an annual program that replaces unlined, inadequate, aged and vulnerable water mains, deteriorated service connections and eliminates dead ends in the water mains. The Town completed a hydraulic model for the entire distribution network and an asset management plan for replacing the Town's aging water infrastructure that will ensure a proactive approach for keeping Lexington’s water both safe and reliable. The model identifies areas of vulnerability, water main aging, and those areas with low FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-17 volumes and pressures. The asset management plan recommends replacing 1% of our water mains on an annual basis. Beginning in FY2021, the funding source for this ongoing capital replacement program has been gradually shifting to Water user charges, with the ultimate goal of transitioning the entire program to cash funding over 11 years. While rate payers may pay slightly higher water rates in the short-term, significant debt service savings will be realized, resulting in lower overall costs in the long-term. This is the seventh year of transition and $1,400,000 is being requested from water user fees. Water mains were recently replaced on Eldred Street and Lowell Street. Several water mains were replaced as part of a joint effort with the Town of Burlington and the Massachusetts Water Resource Authority, including a high-priority replacement along Lowell Street and North Street. 21.Pump Station Building Improvements - $200,000 (Sewer Retained Earnings): This is an annual request to provide building, safety, and equipment improvements at the Town's ten wastewater pump stations. The FY2027 funding will replace HVAC and electrical systems at the main pump station. Maintaining HVAC and electrical systems in pump stations is crucial for ensuring efficiency, reducing downtime, preventing sewer discharges, and mitigating future capital costs. 22.Adams Street Intersections Improvements (@East; @Hancock) - $100,000 (Free Cash): The Town Engineering department has been working with a consultant on concept drawings for improvements at the intersection of Adams & East street and Adams & Hancock streets, and previously approved funding will bring this project to 100% design. This request is for funding for land acquisition for intersection projects at East Street and Hancock Street which may be required to move this project forward. At the time of this submittal an appraisal is not available as the Engineering Department is still progressing through the design stages; this request is an estimate. A subsequent funding request for the construction of these intersections is anticipated in FY2029, currently estimated at $5.5 million. 23.DPW Building Improvements - Vehicle Floor Repairs - $220,000 (Free Cash): This request is for funding to repair and reseal the vehicle staging and prep area floors and the mechanics bays floors at the Public Services Building. Repairs are needed in order to provide a floor surface that allows for heavy truck traffic without deteriorating and provides a non-slip surface for employee foot traffic. The floors are in constant use due to vehicle and employee foot traffic and need to be properly maintained to accommodate equipment and safe travel and operation. 24.New Sidewalk Installation - Burlington & North - $250,000 (Free Cash): This request is additional funding for survey, design and engineering for a new sidewalk installation at Burlington & North Streets. New sidewalk requests are submitted through the Transportation Safety Group (TSG) through resident petitions, which were evaluated and prioritized by TSG and forwarded to Engineering for design and construction. The last roadways from that list are the Burlington Street and North Street sidewalks. Survey funds for these sidewalks were requested in FY2026, and FY2027 funding is being requested for additional design and engineering. Staff anticipate that future a future request for land acquisition would be required to move this project forward (FY2028), and construction funding would be requested in FY2030. Current estimates for land acquisition and construction are approximately $5.4 million. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-18 25.New Sidewalk Installation - Lowell Street - $30,000 (Free Cash): This request is to design a sidewalk on the north side of Lowell Street from the intersection of Lowell Street and North Street to approximately 665 Lowell Street. The purpose of this sidewalk is to provide safe pedestrian access to connect with an existing footpath at 665 Lowell Street (Locke Village), and continues through 675 Lowell Street (Cycle Loft) to the Middlesex Commons Mall. A sidewalk exists on the south side of Lowell Street, but no pedestrian crossing exists to cross Lowell Street for safe access close to the head of this existing footpath. The sidewalk extension will include a crosswalk with accessible ramps and a pedestrian-activated crossing light. 26.Hartwell Training Facility Paving - $67,458 (Free Cash): This project proposes grading and asphalt paving of the existing outdoor Lexington Police Department's Firing Range Facility located at the 60 Hartwell Avenue compost facility. The project will replace the current dirt and rock range surface with a properly graded and paved asphalt surface, enhancing safety, usability and maintenance efficiency. A smooth, level asphalt surface will eliminate tripping hazards, loose debris, and uneven terrain, providing a safer environment for officers during dynamic training exercises involving movement, sprinting and tactical drills. 27.Refuse & Recycling Automated Collection Carts - $1,204,000 (Free Cash): Plans are underway to migrate from the Town's current manual refuse and recycling collection program to an automated system. This request will fund the purchase of 11,000 trash and 11,000 recycling carts to be distributed to all households or businesses that participate in municipal trash collection. These carts will allow for automated curbside pickup of trash and recycling which is planned to begin in summer 2027. 28.Municipal Technology Improvement Program - $145,000 (Free Cash): This capital program funds major municipal technology improvements including servers, Storage Area Network (SAN)/data arrays and other critical Town hardware and components, including audio-visual systems and equipment. New infrastructure and equipment is obtained with a focus to achieve technical consolidation, energy savings, reduction in financial burdens and reduction in staff maintenance time while increasing management efficiencies, increasing reliability, and introducing new capabilities. The FY2027 request will fund the replacement of the video broadcast system in Battin Hall at the Cary Memorial Building. This purchase will support the many events that take place in our event space and ensure a high quality level of service to our community and staff. 29.Application Implementation - $115,000 (Free Cash) - This request is to fund the initial purchase and implementation of the Tyler Cashiering Module for the Finance Department and residents of Lexington. The software will replace existing online payment centers Invoice Cloud and UniPay for real estate, water/sewer bills, and motor vehicle excise tax billing. This will benefit taxpayers by providing a more modern payment experience and real-time updates to customer accounts as the platform integrates with the Town's general ledger accounting system. The advanced point-of-sale cashiering module will allow for credit card payments at the Treasurer's counter, barcoded bills, check scanning, online donations, and other miscellaneous billing. This system will also benefit staff by eliminating manual keying, processing and reconciliation steps between software programs, improving efficiency and processing time. Upgrading this cashiering system may eliminate the need for additional Treasury staff as the Town considers new revenue streams and transition to a quarterly Utility billing process. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-19 30.Network Technology Improvements - $120,000 (Free Cash): This request includes funding for the replacement of approximately 100 end-of-life access points and the procurement of a management application necessary for the operation of the new models. The units are approaching end-of-life (EOL) and will no longer receive any support in terms of security updates. If unsupported, this will increase the risk of a security breach as unsupported hardware are common targets for a cyber-attack. 31.Sustainable Capital Initiatives - $463,000 (Free Cash): This request is to install electric vehicle chargers in the police station garage for fleet charging, including four Level 3 ports and four Level 2 ports, as well as a transformer and sub-panel to connect the charger to a generator to ensure charging capability is not lost in the event of a power outage. Installation of chargers at the station will enable the department to continue moving towards an all-electric fleet. 32.Document Conservation - $20,000 (CPA): This is an ongoing request to fund the conservation and preservation of historic municipal documents and records and to make them available on the Town's digital archives. This request will fund conservation and preservation of Police Department Journal, Book 1, June 1923 to December 1925; Police Department Journal, Book 2, January 1926 to July 1927; Marriage Intention Ledger, 1918-1923; Marriage Intention Ledger, 1923-1927; Police Department Arrest Ledger No. 2, 1921-1926; Tax Collector's Book, 1899. Other CPA Funded Projects 33.LexHAB Affordable Housing Support, Restoration, and Preservation - $395,355 (CPA): This FY2027 request seeks funding for the preservation, rehabilitation, and restoration of several Lexington Housing Assistance Board (LexHAB) affordable housing units. The scope of the work at these units varies by property. There will be preservation, rehabilitation, and restoration projects at eight units which were acquired with CPA funds and there will be preservation projects at 23 LexHAB units that were not acquired with CPA funds. The request also includes funding to subsidize the rents of LexHAB's lowest income tenants. 34.Affordable Housing Trust (AHT) Funding - $3,200,000 (CPA): This request is to fund the Lexington AHT by providing seed money for affordable housing and to allow the AHT greater flexibility in purchasing property and competing with for-profit developers in the real estate market. See Appendix C for additional information on the Affordable Housing Trust. 35.Munroe Center Refinancing - $2,000,000 (CPA): This request is to replace the debt financing for the Munroe Center for the Arts ADA compliance and HVAC improvements with CPA cash. The 2023 Annual Town Meeting (Art. 10b) originally authorized $2 million in debt financing for the project; however, the balance in the CPA fund is adequate to fund the remainder of the project with cash financing. The debt authorization is anticipated to be rescinded in conjunction with this funding request. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-20 Ongoing Capital Programs - General Fund Dept.Project Name Deferred FY2027 FY2028 FY2029 FY2030 FY2031 Total Public Facilities Public Facilities Bid Documents $ — $ 125,000 $ 150,000 $ 150,000 $ 150,000 $ 575,000 Public Facilities Interior Finishes $ — $ 506,189 $ 526,437 $ 547,494 $ 569,394 $ 2,149,514 School Paving and Sidewalks $ — $ 250,000 $ 250,000 $ 250,000 $ 250,000 $ 1,000,000 Public Facilities Mechanical/Electrical/Plumbing Replacements $ — $ — $ 3,000,000 $ — $ 3,932,500 $ 6,932,500 Municipal Building Envelopes and Associated Systems $ — $ 2,670,000 $ — $ 3,300,000 $ — $ 5,970,000 School Building Envelopes and Associated Systems $ — $ 1,975,000 $ 1,975,000 $ 3,000,000 $ — $ 6,950,000 $ — $ 5,526,189 $ 5,901,437 $ 7,247,494 $ 4,901,894 $ 23,577,014 Public Works Equipment Replacement $ — $ 1,480,000 $ 1,835,000 $ 1,750,000 $ 1,905,000 $ 6,970,000 Sidewalk Improvements $ — $ 820,000 $ 820,000 $ 820,000 $ 820,000 $ 3,280,000 Townwide Signalization Improvements $ — $ 55,000 $ — $ — $ — $ 55,000 Street Improvements $ — $ 2,767,247 $ 2,788,230 $ 2,809,737 $ 2,931,781 $ 11,296,995 Stormwater Management Program $ — $ 2,718,300 $ 2,772,666 $ 2,828,119 $ 2,884,681 $ 11,203,766 Hydrant Replacement Program (1)$ — $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 300,000 $ — $ 7,915,547 $ 8,290,896 $ 8,282,856 $ 8,616,462 $ 33,105,761 Land Use, Housing and Development Transportation Mitigation $ — $ 80,000 $ 80,000 $ 100,000 $ 100,000 $ 360,000 $ — $ 80,000 $ 80,000 $ 100,000 $ 100,000 $ 360,000 Innovation & Technology Application Implementation $ — TBD TBD TBD TBD $ — Network Core Equipment Replacement $ — $ 160,000 $ 100,000 $ 700,000 $ 700,000 $ 1,660,000 Municipal Technology Improvement Program $ — $ 100,000 $ 100,000 $ 365,000 $ 100,000 $ 665,000 Network Redundancy & Improvement Plan $ — $ 200,000 $ 200,000 $ 150,000 $ 150,000 $ 700,000 Phone Systems & Unified Communications $ — $ 80,000 $ 80,000 $ 60,000 $ 60,000 $ 280,000 Network Technology Improvements $ — $ 65,000 $ 86,000 $ 86,000 $ 165,000 $ 402,000 $ — $ 605,000 $ 566,000 $ 1,361,000 $ 1,175,000 $ 3,707,000 Schools LPS Technology Program $ — $ 1,465,685 $ 1,465,906 $ 1,441,608 $ 1,409,003 $ 5,782,202 $ — $ 1,465,685 $ 1,465,906 $ 1,441,608 $ 1,409,003 $ 5,782,202 Town Manager Sustainable Capital Initiatives $ — $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 200,000 $ — $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 200,000 Total Capital Programs - General Fund $ — $ 15,642,421 $ 16,354,239 $ 18,482,958 $ 16,252,359 $ 66,731,977 Ongoing Capital Programs - Enterprise Funds Dept.Project Name Deferred FY2027 FY2028 FY2029 FY2030 FY2031 Total Public Works Hydrant Replacement Program (1)$ — $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 300,000 Pump Station Upgrades $ — $ 100,000 $ 520,000 TBD TBD $ 620,000 Sanitary Sewer System Investigation and Improvements $ — $ 1,126,161 $ 1,148,684 $ 1,171,658 $ 1,195,091 $ 4,641,594 Water Distribution System Improvements $ — $ 2,429,271 $ 2,477,857 $ 2,527,414 $ 2,578,044 $ 10,012,586 $ — $ 3,730,432 $ 4,221,541 $ 3,774,072 $ 3,848,135 $ 15,574,180 Recreation & Community Programs Pine Meadows Improvements $ — $ 90,000 $ 105,000 $ 120,000 $ — $ 315,000 Pine Meadows Equipment $ — $ — $ 80,000 $ 40,000 $ — $ 120,000 $ — $ 90,000 $ 185,000 $ 160,000 $ — $ 435,000 Total Capital Programs - Enterprise Funds $ — $ 3,820,432 $ 4,406,541 $ 3,934,072 $ 3,848,135 $ 16,009,180 Table IX: Deferred FY2027 and Proposed FY2028-FY2031 Capital Requests FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-21 Table IX: Deferred FY2027 and Proposed FY2028-FY2031 Capital Requests Ongoing and One-time Capital Projects - CPA Fund Dept.Project Name Deferred FY2027 FY2028 FY2029 FY2030 FY2031 Total Land Use, Housing and Development Wright Farm Barn Preservation and Rehabilitation (Step 3)$ — $ — TBD $ — TBD $ — Cotton Farm/Community Center Connector $ — $ — TBD $ — $ — $ — Simond's Brook Conservation Area Trail Design & Engineering $ — $ — $ — $ — $ — $ — Recreation & Community Programs Park and Playground Improvements $ — $ 1,050,000 $ — $ 350,000 $ — $ 1,400,000 Park Improvements - Athletic Fields (2)$ — $ 250,000 $ 350,000 $ 350,000 $ 1,300,000 $ 2,250,000 Park Improvements - Site Amenities $ — $ — $ — $ — $ — $ — Center Recreation Complex - Track & Athletic Field Resurfacing $ — $ — $ — $ — $ 755,000 $ 755,000 Park Improvements - Hard Court Surfaces $ — $ 380,000 $ 2,025,000 $ — $ — $ 2,405,000 Lincoln Park Boardwalks $ 300,000 $ — $ — $ — $ 300,000 Aquatics Improvements $ — $ 125,000 $ 175,000 $ 150,000 $ 50,000 $ 500,000 Town Clerk Document Conservation $ — $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 80,000 Total Capital Projects - CPA Funds $ — $ 2,125,000 $ 2,570,000 $ 870,000 $ 2,125,000 $ 7,690,000 One-Time Capital Projects - General Fund Dept.Project Name Deferred FY2027 FY2028 FY2029 FY2030 FY2031 Total Fire Ladder Truck $ — $ — $ — $ — $ — $ — Turnout Gear Replacement $ — $ 444,063 $ — $ — $ — $ 444,063 Off Road Fire Engine $ — $ — $ 460,000 $ — $ — $ 460,000 Ambulance Replacement $ — $ 600,000 $ — $ — $ — $ 600,000 Recreation & Community Programs Lincoln Park Parking Lot $ — $ — $ — $ — $ 4,308,610 $ 4,308,610 Land Use, Housing and Development Bike-Ped Implementation: MMBW to LHS $ 330,000 $ 1,040,000 $ — $ — $ 1,370,000 Public Facilities East Lexington Fire Station $ — $ — $ 1,000,000 $ 14,470,000 $ — $ 15,470,000 Cary Memorial Library Upper Floors HVAC Renovation $ — $ — $ 200,000 $ 1,800,000 $ 21,000,000 $ 23,000,000 Public Works Hartwell Ave. Compost Site Improvements $ — $ 250,000 $ — $ — $ — $ 250,000 Cemetery Columbarium Construction $ — $ 450,000 $ — $ — $ — $ 450,000 Public Parking Lot Improvement Design $ — $ 528,000 $ — $ — $ — $ 528,000 New Sidewalk Installation - Burlington & North $ — $ 200,000 $ — $ 5,200,000 $ — $ 5,400,000 Bedford St. and Hartwell Ave. Long-Range Transportation Improvements $ — $ 1,950,000 $ — $ — $ — $ 1,950,000 Hartwell Training Facility Paving $ — $ — $ — $ — $ — $ — DPW Building Improvements - Vehicle Floor Repairs $ — $ 550,000 $ 550,000 $ 220,000 $ 550,000 $ 1,870,000 $ — $ 6,402,063 $ 3,250,000 $ 21,690,000 $ 25,858,610 $ 57,200,673 One-Time Capital Projects - Enterprise Funds Dept.Project Name Deferred FY2027 FY2028 FY2029 FY2030 FY2031 Total Public Works Pump Station Building Improvements $ — $ 150,000 $ 150,000 $ — $ — $ 300,000 Public Works Water Tank Rehabilitation $ — $ 2,600,000 $ — $ 1,300,000 $ — $ 3,900,000 Total Capital Projects - Enterprise Funds $ — $ 2,750,000 $ 150,000 $ 1,300,000 $ — $ 4,200,000 (1) Hydrant replacement Program is split-funded between the General Fund and Water Enterprise Fund. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-22 This Page Intentionally Left Blank. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-23 This Page Intentionally Left Blank. FY2027 Preliminary Budget & Financing Plan January 23, 2026 XI-24 Appendix A: Program Improvement Request Summary This Page Intentionally Left Blank. Appendix A:Program Improvement Requests Shared and Municipal Programs 2000 - 8000 FY2027 Recommended Budget: Program Improvements Program Improvement Request Summary Program Department Requests Recommended Not Recommended General Fund Public Facilities $ 35,000 $ 35,000 $ — Public Works $ — $ — $ — Police $ 25,363 $ — $ 25,363 Fire $ — $ — $ — Library $ 103,846 $ — $ 103,846 Recreation - Non-Enterprise $ 118,516 $ — $ 118,516 Human Services $ 86,381 $ — $ 86,381 Health $ — $ — $ — Land Use, Housing and Development $ 110,765 $ — $ 110,765 Select Board $ — $ — $ — Town Manager's Office $ 2,500 $ — $ — Misc. Boards and Committees $ — $ — $ — Finance $ 263,490 $ 115,000 $ 148,490 Town Clerk $ 3,600 $ — $ 3,600 Innovation & Technology $ — $ — $ — Total General Fund Requests $ 749,461 $ 150,000 $ 596,961 Non-General Fund Recreation Enterprise $ 100,000 $ 100,000 $ — Total Non-General Fund $ 100,000 $ 100,000 $ — Combined Requests Total $ 849,461 $ 250,000 $ 596,961 FY2027 Preliminary Budget & Financing Plan January 23, 2026 A-1 GENERAL FUND Departmental Request Recommendation Program Description Public Facilities Compensation Expenses Benefits Total Recommended Not Recommended 2620 - Municipal Facilities Garage Door Maintenance $ — $ 35,000 $ — $ 35,000 $ 35,000 $ — Total Public Facilities $ — $ 35,000 $ — $ 35,000 $ 35,000 $ — Public Works Compensation Expenses Benefits Total Recommended Not Recommended Total Public Works $ — $ — $ — $ — $ — $ — Police Compensation Expenses Benefits Total Recommended Not Recommended 4140 - Investigations/Prevention Overtime Funds - Community Engagement $ 25,000 $ — $ 363 $ 25,363 $ — $ 25,363 Total Police $ 25,000 $ — $ 363 $ 25,363 $ — $ 25,363 Fire Compensation Expenses Benefits Total Recommended Not Recommended Total Fire $ — $ — $ — $ — $ — $ — Library Compensation Expenses Benefits Total Recommended Not Recommended 5130 - Youth Services Full-Time Teen Services Librarian $ 80,423 $ — $ 23,423 $ 103,846 $ — $ 103,846 Total Library $ 80,423 $ — $ 23,423 $ 103,846 $ — $ 103,846 Recreation - General Fund Compensation Expenses Benefits Total Recommended Not Recommended 8600 - Innovation and Technology Technical Support Technician $ 55,455 $ — $ 23,061 $ 78,516 $ — $ 78,516 2620 - Municipal Facilities Community Center Maintenance Expenses $ — $ 40,000 $ — $ 40,000 $ — $ 40,000 Total Recreation - General Fund $ 55,455 $ 40,000 $ 23,061 $ 118,516 $ — $ 118,516 Human Services Compensation Expenses Benefits Total Recommended Not Recommended 6150 - Youth & Family Services Housing Case Coordinator $ 63,208 $ — $ 23,173 $ 86,381 $ — $ 86,381 Total Human Services $ 63,208 $ — $ 23,173 $ 86,381 $ — $ 86,381 Health Compensation Expenses Benefits Total Recommended Not Recommended Total Health $ — $ — $ — $ — $ — $ — Land Use, Housing & Development Compensation Expenses Benefits Total Recommended Not Recommended 7110- Building and Zoning Building Inspector Part-Time $ 49,390 $ — $ 716 $ 50,106 $ — $ 50,106 7110- Building and Zoning Mechanical Inspector - Additional Hours $ 10,507 $ — $ 152 $ 10,659 $ — $ 10,659 7300 - Economic Development Tourism Model Evaluation $ — $ 50,000 $ — $ 50,000 $ — $ 50,000 Total Land Use, Housing & Development $ 59,897 $ 50,000 $ 868 $ 110,765 $ — $ 110,765 Select Board Compensation Expenses Benefits Total Recommended Not Recommended Total Select Board $ — $ — $ — $ — $ — $ — Town Manager Compensation Expenses Benefits Total Recommended Not Recommended 8210 - Organizational Direction and Administration Women's Institute Development $ — $ 2,500 $ — $ 2,500 $ — $ — Total Town Manager $ — $ 2,500 $ — $ 2,500 $ — $ — FY2027 Preliminary Budget & Financing Plan January 23, 2026 A-2 Town Committees Compensation Expenses Benefits Total Recommended Not Recommended Total Town Committees $ — $ — $ — $ — $ — $ — Finance Compensation Expenses Benefits Total Recommended Not Recommended 8420 - Treasurer/Collector Tyler ERP Cashiering Module $ — $ 115,000 $ — $ 115,000 $ 115,000 $ — 8420 - Treasurer/Collector Treasury Municipal Clerk $ 27,491 $ — $ 22,655 $ 50,146 $ — $ 50,146 8410 - Comptroller Financial Analyst $ 75,000 $ 23,344 $ 98,344 $ — 98344 Total Finance $ 102,491 $ 115,000 $ 45,999 $ 263,490 $ 115,000 $ 148,490 Town Clerk Compensation Expenses Benefits Total Recommended Not Recommended 8540 - Records Management Transcription Services $ — $ 3,600 $ — $ 3,600 $ — $ 3,600 Total Town Clerk $ — $ 3,600 $ — $ 3,600 $ — $ 3,600 Innovation & Technology Compensation Expenses Benefits Total Recommended Not Recommended Total Innovation & Technology $ — $ — $ — $ — $ — $ — Total General Fund $ 386,474 $ 246,100 $ 116,887 $ 749,461 $ 150,000 $ 596,961 NON-GENERAL FUND Water/Sewer Enterprise Compensation Expenses Benefits Total Recommended Not Recommended Total Water/Sewer Enterprise $ — $ — $ — $ — $ — $ — Recreation Enterprise Compensation Expenses Benefits Total Recommended Not Recommended 5210 - Administration Strategic Plan*$ — $ 100,000 $ — $ 100,000 $ 100,000 $ — Total Recreation Enterprise $ — $ 100,000 $ — $ 100,000 $ 100,000 $ — Total Non-General Fund $ — $ 100,000 $ — $ 100,000 $ 100,000 $ — FY2027 Preliminary Budget & Financing Plan January 23, 2026 A-3 This Page Intentionally Left Blank. Appendix C: Financial Information Affordable Housing Trust Fund The Lexington Affordable Housing Trust (AHT) was created by a vote of Fall 2022 Special Town Meeting. The charge of the trust is to leverage funds for the preservation and creation of affordable housing in the Town for the benefit of low- and moderate-income households and for the funding of community housing. The Trust is overseen by a five member Board of Trustees and accounting operations are provided by the Town's Finance Department. Since its inception in April 2023, the Affordable Housing Trust has obtained $7.7 million in CPA funding and helped the Town acquire two grants from the Commonwealth's One Stop program: one for $10,000 to undertake a housing needs assessment and another for $1.6 million for housing-related infrastructure. The AHT Board has granted LexHAB $2.25 million for the acquisition and creation of five affordable housing units. Town Meeting appropriations into the Trust, other income, approved expenses of the Affordable Housing Trust Board of Trustees, and annual fund balances are shown in the table below. This Recommended Budget and Financing Plan proposes to fund $3,200,000 in CPA funds to the AHT in FY2027. Affordable Housing Trust Fund - Revenues, Expenses & Fund Balance FY2024 Actual FY2025 Actual FY2026 YTD1 FY2027 Budgeted Beginning Fund Balance $ — $ 952,900 $ 3,176,505 $ 6,334,702 Income: T.M. Appropriations from CPA $ 1,500,000 $ 3,200,000 $ 3,000,000 $ 3,200,000 Transfers from Stab. Fund $ 439,402 $ — $ 14,003 $ — Donations, MOUs, etc.$ 125,969 $ 129,749 $ 133,641 $ 137,650 Interest Earned $ 57,461 $ 48,530 $ 11,516 $ 5,000 Fee Revenue & Other Income $ — $ — $ — $ — Total Revenue $ 2,122,833 $ 3,378,279 $ 3,159,160 $ 3,342,650 Expenses: Grants $ 1,150,000 $ 1,100,000 $ — $ 4,570,000 Administrative Expenses2 $ 19,933 $ 54,673 $ 963 $ 200,000 Other $ — $ — $ — $ 1,700,000 Total Expenses $ 1,169,933 $ 1,154,673 $ 963 $ 4,770,000 Ending Fund Balance3 $ 952,900 $ 3,176,505 $ 6,334,702 $ 4,907,352 While future funding requests from the Trust are not fully known, the Trust anticipates future requests to include the acquisition of land and housing, investment in the development of new housing, buy- downs of market rate housing units to affordable rent levels, rent assistance to Lexington residents, and other legal or administrative expenses related to these activities. 1 As of 1/13/2026 2 Includes studies, project expenses, clerical supplies, etc. 3 The AHT strives to maintain an annual balance of approximately $1,000,000 AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Update: Massachusetts Water Resource Authority (MWRA) on Combined Sewer Outflows (CSO) Control Efforts PRESENTER: Matthew Romero, Executive Director, MWRA Advisory Board ITEM NUMBER: I.3 SUMMARY: Category: Informing The City of Cambridge and the Massachusetts Water Resources Authority (MWRA) are collaborating to improve water quality in the Charles River, and are also collaborating with the city of Somerville to improve water quality in the Alewife Brook and Mystic River through the development of updated combined sewer overflow (CSO) control plans. Matthew Romero, Executive Director MWRA Advisory Board, will present an update on the Combined Sewer Overflow (CSO) long term control plan. SUGGESTED MOTION: N/A FOLLOW-UP: DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 7:15pm ATTACHMENTS: Description Type MWRA CSO Presentation Presentation Updated CSO Long-Term Control Plan CSOs, Water Quality, and the Future of MWRA Communities Infrastructure, Affordability, and Trade-offs For Today •Role of the Advisory Board •What’s driving the CSO conversation •Ratepayer impacts MWRA and the Advisory Board Distinct Roles, Shared Goals. MWRA (Operator) MWRA Created to improve water quality and public health. Advisory Board Represent ratepayers and ensure affordability. 40 Years of Focus on Affordability •Created 40 years ago with MWRA •Statutory focus on affordability and rate impacts •Long-term sustainability for communities Capital spending How Rates are Managed Master Plan 10-Year CIP 5-Year Spending Cap Annual Assessment Increases Advisory Board FY26 Goals and Priorities40 Years of Environmental Progress Before After 43 CSOs closed across the system •87% reduction in total CSO volume •95% of remaining overflows treated CSOs ≠ the main limiter today Treated CSO* Alewife Brook Upper Mystic River * Treated CSO is disinfected before discharge Treated CSO*Untreated CSO Dry Weather Charles River * Treated CSO is disinfected before discharge Stormwater Impacts Even if all CSOs closed tomorrow, the rivers would not necessarily be fishable or swimmable at all times. What “More Control” Really Looks Like Multi-year projects Difficult construction environment Regional Financial Impacts Rates Increase for Decades Regional Costs In scope: CSO Mitigation Not in scope: Climate change impacts to local systems Not in scope: Upstream stormwater & flood controls Not in scope: MS4 stormwater pollution Next Steps •February 4 → MWRA Board of Directors meefing •April 30 → Draft Plan due •Public Meeting #7 •Public hearing and public comment period •January 2027 → Final plan submifted Balancing Trade-Offs Understand the tradeoffs before committing ratepayer dollars Construction Impacts Affordability Environmental Benefits AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Presentation: 2026 Annual Town Meeting Article PRESENTER: Robert Rothberg ITEM NUMBER: I.4 SUMMARY: Category: Informing Robert Rothberg will give an overview about his Citizen petition regarding installation of speed humps on Walnut St. SUGGESTED MOTION: FOLLOW-UP: DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 7:35pm ATTACHMENTS: Description Type Walnut Street humps presentation Presentation Art 28 Speed humps article text Backup Material Art 28 speed humps draft motion Cover Memo WALNUT STREET Citizen’s Article ++Why we need speed humps++ THE PROBLEM •Walnut is narrow •Walnut cannot be widened •Walking on Walnut is perilous •Walnut has more than its share of accidents and near misses •Six crashes, two head on, over last two years •Abutters feel unsafe •Abutters want remediation and action •Potter Pond exiting drivers have long waits to get out •Traffic will get much heavier when construction of 331 Concord Ave commences. TSG report downplays this impact, but it will be real THE SOLUTION, 1 •Traffic slowing •Signs are not enough •Side marking (proposed) are unlikely to do much to calm traffic •Islands (proposed) could easily be demolished by tractor-trailers and larger trucks, or even by poorly driven cars. (TEC reports heavy truck traffic, TSG erroneously downplays) •The island at the bottom of Walnut St/Concord Ave has been smashed into numerous times •The islands have not yet been designed, so the cost estimate is still pending. But it could be as expensive as $60,000 for 3 islands THE SOLUTION, 2 •Speed humps or speed cushions promise more effective traffic slowing. •TEC recommended speed cushions in a technical report on Oct. 6, 2025 •Shade St has had five humps for a decade. None is ever removed. •The Shade St. cost for humps was about $36,000, only, plus design costs •Fire trucks have not been impeded on Shade St. •Traffic has been calmed successfully there. •Why not opt for a proven technology, permanent asphalt humps? •Conceivably only three humps would do the job on Walnut St.] •PS –Waltham Fire says that they are very minimally involved. DRAF T ARTICLE 28 SPEED HUMPS - WALNUT STREET (Citizen Petition) That the Town install three speed humps or speed cushions on Walnut St. in order to help calm speeding traffic on a dangerous and hazardous road. Car numbers traversing on Walnut St. are bound to increase when massive new construction in the area and especially on Concord Ave. commences. The positive experience of speed humps on Shade St should guide the town's experience. (Inserted by Robert Rotberg and 9 or more registered voters) DESCRIPTION: This article would request that the Town to install speed humps or speed cushions on Walnut St. 1 DRAF T ARTICLE 28 SPEED HUMPS - WALNUT STREET (Citizen Petition) MOTION: That the Town install three speed humps on Walnut Street for the purpose to slow traffic on a very heavily trafficked and busy cut-through street. (date) Town of Lexington Motion 2026 Annual Town Meeting 1 AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Review: 2026 Annual Town Meeting DRAFT Warrant PRESENTER: Kelly Axtell, Deputy Town Manager ITEM NUMBER: I.5 SUMMARY: Category: Informing Kelly Axtell will review the DRAFT 2026 Election and Annual Town Meeting including the Moderator letter to request hybrid Town Meeting. At their February 2, 2026 meeting, the Board will be asked to vote and sign the 2026 Election and Annual Town Meeting warrant. SUGGESTED MOTION: N/A FOLLOW-UP: N/A DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 7:55pm ATTACHMENTS: Description Type 2026 Election and ATM DRAFT Warrant Backup Material 2026 ATM Moderator Letter Backup Material DRAF T Town of Lexington, Massachusetts Select Board JILL I. HAI, CHAIR JOSEPH N. PATO DOUGLAS M. LUCENTE MARK D. SANDEEN VINEETA A. KUMAR TEL: (781) 698-4580 February 2, 2026 To the Residents of Lexington: This warrant document provides notification of the 2026 Annual Town Meeting and advises residents of the various issues being considered at the meetings. Only Articles listed in this warrant may be discussed. The purpose of the Warrant is to inform citizens of the issues to be discussed and does not provide for detailed information about the Articles. Articles for the Annual Town Meeting are grouped in three categories: Financial, General and Zoning. Descriptions are provided in an attempt to make the Warrant useful and understandable. The most important votes that take place at the Annual Town Meeting are related to the budget. We urge citizens to read the budget, understand it, and help us find a way to foster excellence within the community. The Town website, http://www.lexingtonma.gov/town-meeting, includes the most recent version of the FY2027 Budget and other financial Articles as well as other relevant information for each Article. Between now and Town Meeting there will be multiple meetings to develop a comprehensive recommended budget for FY2027. That budget will be delivered to all Town Meeting Members prior to the consideration of any financial articles by Town Meeting. SELECT BOARD Jill I. Hai, Chair Joseph N. Pato Douglas M. Lucente Mark D. Sandeen Vineeta A. Kumar DRAF T WARRANT 2026 ANNUAL TOWN MEETING Detailed information on these Town Meeting Warrant Articles and other updated information can be found at https://www.lexingtonma.gov/town-meeting TABLE OF CONTENTS SELECT BOARD MESSAGE ................................................................................................3 ARTICLE 1 NOTICE OF ELECTION .......................................................................................................3 ARTICLE 2 ELECTION OF DEPUTY MODERATOR AND REPORTS OF TOWN BOARDS, OFFICERS AND COMMITTEES ..........................................................................................4 ARTICLE 3 APPOINTMENTS TO CARY LECTURE SERIES ...............................................................4 FINANCIAL ARTICLES .....................................................................................................4 ARTICLE 4 APPROPRIATE FY2027 OPERATING BUDGET ..............................................................4 ARTICLE 5 APPROPRIATE FY2027 ENTERPRISE FUNDS BUDGETS ..............................................5 ARTICLE 6 AMEND FY2026 OPERATING, ENTERPRISE AND CPA BUDGETS .............................6 ARTICLE 7 SUSTAINABLE PROJECTS ................................................................................................6 ARTICLE 8 APPROPRIATE FOR VISION FOR LEXINGTON SURVEY 6 ARTICLE 9 ESTABLISH AND CONTINUE DEPARTMENTAL REVOLVING FUNDS .....................6 ARTICLE 10 APPROPRIATE FOR THE FY2027 COMMUNITY PRESERVATION COMMITTEE OPERATING BUDGET AND CPA PROJECTS ..................................................................7 ARTICLE 11 APPROPRIATE FOR RECREATION CAPITAL PROJECTS .............................................8 ARTICLE 12 APPROPRIATE FOR MUNICIPAL CAPITAL PROJECTS AND EQUIPMENT ..............8 ARTICLE 13 APPROPRIATE FOR WATER SYSTEM IMPROVEMENTS .............................................9 ARTICLE 14 APPROPRIATE FOR WASTEWATER SYSTEM IMPROVEMENTS ...............................9 ARTICLE 15 APPROPRIATE FOR SCHOOL CAPITAL PROJECTS AND EQUIPMENT .....................9 ARTICLE 16 APPROPRIATE FOR PUBLIC FACILITIES CAPITAL PROJECTS ..................................9 ARTICLE 17 APPROPRIATE TO POST EMPLOYMENT INSURANCE LIABILITY FUND ...............10 ARTICLE 18 RESCIND PRIOR BORROWING AUTHORIZATIONS .....................................................10 ARTICLE 19 ESTABLISH, AMEND, DISSOLVE AND APPROPRIATE TO AND FROM SPECIFIED STABILIZATION FUNDS ................................................................................10 ARTICLE 20 APPROPRIATE FOR PRIOR YEARS’ UNPAID BILLS .....................................................11 ARTICLE 21 APPROPRIATE FOR AUTHORIZED CAPITAL IMPROVEMENTS ................................11 ARTICLE 22 STREET ACCEPTANCE 11 ARTICLE 23 APPROPRIATE FOR TRASH/RECYCLING BINS .............................................................11 ARTICLE 24 ELDERLY AND DISABLED TAXATION AID FUND & COMMITTEE (GL c. 60, § 3D) ...........................................................................................................................................11 ARTICLE 25 SURCHARGE ON SPECIFIC RESIDENTIAL DEVELOPMENT (Citizen Petition) ..........12 DRAF T ARTICLE 26 OVERSEE FINANCIAL EXPENDITURES LEXINGTON HIGH SCHOOL PROJECT (Citizen Petition) ....................................................................................................................12 ARTICLE 27 PROCUREMENT FOR ONLINE CAPITAL PROJECT PLATFORM (Citizen Petition) ...12 ARTICLE 28 SPEED HUMPS - WALNUT STREET (Citizen Petition)12 GENERAL ARTICLES ........................................................................................................13 ARTICLE 29 SELECT BOARD TO ACCEPT EASEMENTS ....................................................................13 ARTICLE 30 AMENDMENT TO ANNUAL MEETING DATE (ELECTION) PROVISIONS IN TOWN BYLAW 13 ARTICLE 31 AMENDMENT-CHAPTER 90, § 9 "REGULATION OF REFUSE DISPOSAL" ...............13 ARTICLE 32 AMEND COUNCIL ON AGING CHARGE .........................................................................13 ARTICLE 33 UNIVERSAL DESIGN RESOLUTION ................................................................................13 ARTICLE 34 SKIP THE STUFF (Citizen Petition) ......................................................................................14 ZONING ARTICLES ...........................................................................................................14 ARTICLE 35 AMEND ZONING BYLAW - TECHNICAL CORRECTIONS ..........................................14 ATTACHMENT A MODERATOR LETTER .......................................................................15 TOWN MEETING MEMBER LISTING ...............................................................................16 2 DRAF T TOWN OF LEXINGTON WARRANT ANNUAL TOWN MEETING 2026 Commonwealth of Massachusetts Middlesex, ss. To the Constable of the Town of Lexington, in said County, Greetings: In the name of the Commonwealth of Massachusetts, you are directed to notify the inhabitants of the Town of Lexington qualified to vote in elections and in Town affairs to meet in their respective voting places in said Town. PRECINCT ONE CARY MEMORIAL BUILDING PRECINCT TWO CARY MEMORIAL BUILDING PRECINCT THREE LEXINGTON COMMUNITY CENTER PRECINCT FOUR CARY MEMORIAL BUILDING PRECINCT FIVE CARY MEMORIAL BUILDING PRECINCT SIX CARY MEMORIAL BUILDING PRECINCT SEVEN CARY MEMORIAL BUILDING PRECINCT EIGHT SAMUEL HADLEY PUBLIC SERVICES BUILDING PRECINCT NINE LEXINGTON COMMUNITY CENTER On Monday, the Second Day of March, 2026 From 7:00 a.m. to 8:00 p.m., then and there to act on the following article: ARTICLE 1 NOTICE OF ELECTION Two Select Board members; for a term of three years; One Moderator for a term of one year; One School Committee members; for a term of three years; Two Planning Board member; for a term of three years; One Lexington Housing Authority Member, for a term of five years. Eight Town Meeting Members in Precinct One, the seven receiving the highest number of votes to serve for terms of three years; the one receiving the next highest number of votes to fill an unexpired term for a seat ending in 2028; Seven Town Meeting Members in Precinct Two, the seven receiving the highest number of votes to serve for terms of three years; Seven Town Meeting Members in Precinct Three, the seven receiving the highest number of votes to serve for terms of three years; Seven Town Meeting Members in Precinct Four, the seven receiving the highest number of votes to serve for terms of three years; Seven Town Meeting Members in Precinct Five, the seven receiving the highest number of votes to serve for terms of three years; Seven Town Meeting Members in Precinct Six, the seven receiving the highest number of votes to serve for terms of three years; Eight Town Meeting Members in Precinct Seven, the seven receiving the highest number of votes to serve for terms of three years; the one receiving the next highest number of votes to fill an unexpired term for a seat ending in 2027; 3 DRAF T Seven Town Meeting Members in Precinct Eight, the seven receiving the highest number of votes to serve for terms of three years; Eight Town Meeting Members in Precinct Nine, the seven receiving the highest number of votes to serve for terms of three years; the one receiving the next highest number of votes to fill an unexpired term for a seat ending in 2028; You are also to notify the inhabitants aforesaid to meet at the Margery Milne Battin Hall in the Cary Memorial Building, 1605 Massachusetts Avenue, Lexington or by means of the audio/video conferencing platform described more particularly below on Monday, the thirtieth day of March, 2026 at 7:30 p.m. at which time and place the following articles are to be acted upon and determined exclusively by the Town Meeting Members in accordance with Chapter 215 of the Acts of 1929, as amended, and subject to the referendum provided for by Section eight of said Chapter, as amended. Pursuant to Chapter 92 of the Acts of 2020, as amended, including without limitation by Chapter 2 of the Acts of 2023, the Town Meeting shall be held through a hybrid of in person meeting and remote participation by the means requested by the Moderator as follows: Town Meeting members will either attend the meeting in person at Margery Milne Battin Hall, or via remote participation. The meeting will be facilitated by use of: (1) the Zoom videoconferencing platform, (2) the online voting tool developed by Select Board member Joe Pato and (3) an online queuing function developed by Select Board member Joe Pato to facilitate debate. Other Town residents who wish to follow the proceedings may do so by attending the meeting in person in the areas reserved for non-Town Meeting Members, or via LexMedia at https://www.youtube.com/user/LexMediaMATV. Other residents who wish to participate in the Meeting may email the Town Clerk's Office at clerk@lexingtonma.gov and by completing the online form at http://www.lexingtonma.gov/town-meeting. For more information, please see the Moderator's letter dated January 20, 2026 to the Select Board attached to this warrant as Attachment A. ARTICLE 2 ELECTION OF DEPUTY MODERATOR AND REPORTS OF TOWN BOARDS, OFFICERS AND COMMITTEES To see if the Town will vote to approve the Deputy Moderator nominated by the Moderator; receive the reports of any Board or Town Officer or of any Committee of the Town; or act in any other manner in relation thereto. (Inserted by the Select Board) DESCRIPTION: This article remains open throughout Town Meeting and reports may be presented at any Town Meeting session by boards, officers, or committees. In addition, the Town will consider the approval of the nomination of a Deputy Moderator as authorized under Section 118-11 of the Code of the Town of Lexington. ARTICLE 3 APPOINTMENTS TO CARY LECTURE SERIES To see if the Town will authorize the appointment of the committee on lectures under the wills of Eliza Cary Farnham and Susanna E. Cary; or act in any other manner in relation thereto. (Inserted by the Select Board) DESCRIPTION: This is an annual article that provides for the appointment of citizens to the Cary Lecture Series by the Moderator. FINANCIAL ARTICLES 4 DRAF T ARTICLE 4 APPROPRIATE FY2027 OPERATING BUDGET To see if the Town will vote to make appropriations for expenditures by departments, officers, boards and committees of the Town for the ensuing fiscal year and determine whether the money shall be provided by the tax levy, by transfer from available funds, by transfer from enterprise funds, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: See the most recent version of the FY2027 budget proposals posted at http://lexingtonma.gov/budget. DESCRIPTION: This article requests funds for the FY2027 (July 1, 2026 - June 30, 2027) operating budget. The operating budget includes the school and municipal budgets. The operating budget includes requests for funds to provide prospective salary increases for employees, including salaries to be negotiated through collective bargaining negotiations. The budget also includes certain shared expenses. ARTICLE 5 APPROPRIATE FY2027 ENTERPRISE FUNDS BUDGETS To see if the Town will vote to appropriate a sum of money to fund the operations of the Department of Public Works, Water and Wastewater Divisions, and the Department of Recreation and Community Programs; determine whether the money shall be provided by the estimated income to be derived in FY2027 from the operations of the related enterprise, by the tax levy, by transfer from available funds, including the retained earnings of the relevant enterprise fund, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: Enterprise Fund FY2025 Actual FY2026 Approved FY2027 Requested a) Water Personal Services $923,588 $1,074,990 $1,089,872 Expenses $460,827 $675,100 $694,600 Debt Service $1,368,116 $1,438,006 $1,390,315 MWRA Assessment $8,432,204 $8,650,822 $9,515,904 Total Water Enterprise Fund $11,184,735 $11,838,918 $12,690,691 b) Wastewater Personal Services $423,941 $497,353 $502,884 Expenses $459,440 $617,100 $632,400 Debt Service $1,569,746 $1,672,086 $1,618,731 MWRA Assessment $9,153,352 $9,359,196 $10,295,116 Total Water Enterprise Fund $11,606,479 $12,145,735 $13,049,131 c) Recreation and Community Programs Personal Services $1,668,961 $1,816,854 $1,967,722 Expenses $1,438,519 $1,670,835 $1,593,035 Total Recreation and Community Programs Enterprise Fund $3,107,480 $3,487,689 $3,560,757 DESCRIPTION: Under Massachusetts General Laws Chapter 44, Section 53F½, towns may establish Enterprise Funds for a utility, health care, recreation or transportation operation, with the operation to receive related revenue and receipts and pay expenses of such operation. This article provides for the appropriation to and expenditure from three enterprise funds previously established by the Town. The Recreation and Community Programs Fund includes the operations and programs for the Community Center. 5 DRAF T ARTICLE 6 AMEND FY2026 OPERATING, ENTERPRISE AND CPA BUDGETS To see if the Town will vote to make supplementary appropriations, to be used in conjunction with money appropriated under Articles 4, 5, 9, and 10 of the 2025 Annual Town Meeting, and Articles 4 and 6 of the warrant for the Special Town Meeting 2025-2, to be used during the current fiscal year, or make any other adjustments to the current fiscal year budgets and appropriations that may be necessary; to determine whether the money shall be provided by transfer from available funds including the Community Preservation Fund; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: Unknown at press time DESCRIPTION: This is an annual article to permit adjustments to current fiscal year (FY2026) appropriations. ARTICLE 7 SUSTAINABLE PROJECTS To see if the Town will vote to appropriate a sum of money for sustainable capital projects including electric vehicle charging equipment and related infrastructure improvements; the study, design, purchase and installation of a solar collector, canopy, rooftop or other solar energy collection systems, including battery storage and any costs incidental or related thereto; and to determine whether the money shall be provided by the tax levy, by transfer from available funds, by borrowing, or by any combination of these methods; and further to determine whether the Town will authorize the Select Board to apply for, accept, and expend in anticipation of federal and state aid for such sustainable projects, or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: $463,000 DESCRIPTION: This article requests funds for sustainable capital projects which may include the purchase and installation of electric vehicle chargers in municipal and public parking lots, the study, design and construction of rooftop solar or solar canopies, including battery storage, and other projects intended to move the Town towards achieving its sustainability goals. ARTICLE 8 APPROPRIATE FOR VISION FOR LEXINGTON SURVEY To see if the Town will vote to appropriate a sum of money for the purpose of conducting a Town-wide Vision for Lexington survey and related expenses and determine whether the money shall be provided by the tax levy, by transfer from available funds, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board at the request of Vision for Lexington) FUNDS REQUESTED: $75,000 DESCRIPTION: This article will allow the Vision for Lexington committee to conduct a survey as part of a longitudinal study to assess community perspectives and progress toward meeting stated preferences of community members and to inform planning and decision-making by the three elected boards. ARTICLE 9 ESTABLISH AND CONTINUE DEPARTMENTAL REVOLVING FUNDS To see if the Town will vote, pursuant to the Massachusetts General Laws Chapter 44, Section 53E½ and Chapter 110 of the Code of the Town of Lexington, to continue existing revolving funds; to amend said Chapter 110 to establish new revolving funds; to determine whether the maximum amounts that may be expended from such new and existing revolving fund accounts in FY2027 shall be the following amounts or any other amounts; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: 6 DRAF T Program or Purpose for Revolving Funds FY2027 Authorization School Bus Transportation $1,300,000 Building Rental $683,000 Lexington Tree Fund $150,000 DPW Burial Containers $60,000 DPW Compost Operations $1,039,000 Minuteman Household Hazardous Waste Program $250,000 Senior Services $75,000 Residential Engineering Review $57,600 Health Programs $155,000 Lab Inspections $95,000 Tourism $599,000 Refuse and Recycling Collection $0 DESCRIPTION: The amount that may be spent from a revolving fund established under Massachusetts General Laws Chapter 44, Section 53E½ must be approved annually by Town Meeting. The Funds are credited with the receipts received in connection with the programs supported by such funds, and expenditures may be made from the revolving fund without further appropriation. ARTICLE 10 APPROPRIATE FOR THE FY2027 COMMUNITY PRESERVATION COMMITTEE OPERATING BUDGET AND CPA PROJECTS To see if the Town will vote to hear and act on the report of the Community Preservation Committee on the FY2027 Community Preservation budget and, pursuant to the recommendations of the Community Preservation Committee, to appropriate from the Community Preservation Fund, or to reserve amounts in the Community Preservation Fund for future appropriations; for the debt service on previously authorized financing; for the administrative expenses of the Community Preservation Committee for FY2027; for the acquisition, creation and preservation of open space; for the acquisition, preservation, rehabilitation and restoration of historic resources; for the acquisition, creation, preservation, rehabilitation and restoration of land for recreational use; for the acquisition, creation, preservation and support of community housing; and for the rehabilitation or restoration of open space and community housing acquired or created with moneys from the Community Preservation Fund; to appropriate funds for such projects and determine whether the money shall be provided by the tax levy, or from estimated Community Preservation Act surcharges and the state match for the upcoming fiscal year, by transfer from available funds, including enterprise funds, by borrowing, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board at the request of the Community Preservation Committee) FUNDS REQUESTED: a. Document Conservation – $20,000 b. Munroe Center for the Arts Cash Refinancing – $2,000,000 c. Affordable Housing Trust Funding – $3,200,000 d. LexHAB Affordable Housing Support, Restoration, and Preservation – $395,355 e. Park Improvements – Athletic Fields - Harrington: Phase 2 – $2,630,000 f. Playground Infrastructure Upgrades – $100,000 g. Administrative Budget – $150,000 7 DRAF T DESCRIPTION: The article requests that Community Preservation Funds and other funds as necessary, be appropriated for the projects recommended by the Community Preservation Committee and for administrative costs. ARTICLE 11 APPROPRIATE FOR RECREATION CAPITAL PROJECTS To see if the Town will vote to appropriate a sum of money for recreation-related capital projects and equipment; and determine whether the money shall be provided by the tax levy, by transfer from available funds, including the Recreation and Community Programs Enterprise Fund, by borrowing, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board at the request of the Recreation Committee) FUNDS REQUESTED: $190,000 DESCRIPTION: For a description of the proposed projects, see Section XI: Capital Investment section of the FY2027 budget. The most recent version of the capital section can be found at www.lexingtonma.gov/fy27capital. ARTICLE 12 APPROPRIATE FOR MUNICIPAL CAPITAL PROJECTS AND EQUIPMENT To see if the Town will vote to appropriate a sum of money for the following capital projects and equipment: a)Transportation Mitigation; b)Bicycle-Pedestrian Plan Implementation: Minuteman Bikeway to LHS; c)Townwide Bicycle-Pedestrian Plan Implementation; d)Fire Ladder Truck; e)Equipment Replacement; f)Sidewalk Improvements; g)Hydrant Replacement; h)Street Improvements; i)Stormwater Management Program; j)DPW Building Floor Repairs; k)Burlington & North Streets Sidewalk; l)Lowell Street Sidewalk; m)Adams Street Intersection Improvements at East & Hancock Streets; n)Hartwell Training Facility Paving; o)Municipal Technology Improvement Program; p)Application Implementation; and q)Network Technology Improvements. and authorize the Select Board to take by eminent domain, purchase or otherwise acquire, any fee, easement or other interests in land necessary therefor; determine whether the money shall be provided by the tax levy, by transfer from available funds, including enterprise funds, by borrowing, or by any combination of these methods; determine if the Town will authorize the Select Board to apply for, accept, expend and borrow in anticipation of state aid for such capital improvements; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: $11,989,235 DESCRIPTION: For a description of the proposed projects, see Section XI: Capital Investment section of the FY2027 budget. The most recent version of the capital section can be found at www.lexingtonma.gov/fy27capital. 8 DRAF T ARTICLE 13 APPROPRIATE FOR WATER SYSTEM IMPROVEMENTS To see if the Town will vote to make water distribution system improvements, including the installation of new water mains and replacement or cleaning and lining of existing water mains and standpipes, the replacement or rehabilitation of water towers, engineering studies and the purchase and installation of equipment in connection therewith, in such accepted or unaccepted streets or other land as the Select Board may determine, subject to the assessment of betterments or otherwise; and to take by eminent domain, purchase or otherwise acquire any fee, easement or other interest in land necessary therefor; appropriate money for such improvements and land acquisition and determine whether the money shall be provided by the tax levy, water enterprise fund, by transfer from available funds, including any special water funds, or by borrowing, or by any combination of these methods; to determine whether the Town will authorize the Select Board to apply for, accept, expend and borrow in anticipation of federal and state aid for such projects; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: $2,381,639 DESCRIPTION: For a description of the proposed projects, see Section XI: Capital Investment section of the FY2027 budget. The most recent version of the capital section can be found at www.lexingtonma.gov/fy27capital. ARTICLE 14 APPROPRIATE FOR WASTEWATER SYSTEM IMPROVEMENTS To see if the Town will vote to install and line sanitary sewer mains and sewerage systems and replacements and upgrades to pump stations thereof, including engineering studies and the purchase of equipment in connection therewith; in such accepted or unaccepted streets or other land as the Select Board may determine, subject to the assessment of betterments or otherwise, in accordance with Chapter 504 of the Acts of 1897, and acts in addition thereto and in amendment thereof, or otherwise; and to take by eminent domain, purchase or otherwise acquire any fee, easement or other interest in land necessary therefor; appropriate money for such installation and land acquisition and determine whether the money shall be provided by the tax levy, the wastewater enterprise fund, by transfer from available funds, including any special wastewater funds, by borrowing, or by any combination of these methods; to determine whether the Town will authorize the Select Board to apply for, accept, expend and borrow in anticipation of federal and state aid for such wastewater projects; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: $1,304,080 DESCRIPTION: For a description of the proposed projects, see Section XI: Capital Investment section of the FY2027 budget. The most recent version of the capital section can be found at www.lexingtonma.gov/fy27capital. ARTICLE 15 APPROPRIATE FOR SCHOOL CAPITAL PROJECTS AND EQUIPMENT To see if the Town will vote to appropriate a sum of money to maintain and upgrade the schools’ technology systems and equipment; determine whether the money shall be provided by the tax levy, by transfer from available funds, by borrowing, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board at the request of the School Committee) FUNDS REQUESTED: $1,425,657 DESCRIPTION: For a description of the proposed projects, see Section XI: Capital Investment section of the FY2027 budget. The most recent version of the capital section can be found at www.lexingtonma.gov/fy27capital. ARTICLE 16 APPROPRIATE FOR PUBLIC FACILITIES CAPITAL PROJECTS To see if the Town will vote to appropriate a sum of money for capital improvements and renovations, including new construction of public facilities for: a)Public Facilities Bid Documents; b)Public Facilities Interior Finishes; c)School Paving and Sidewalks; 9 DRAF T d)Public Facilities Mechanical/Electrical/Plumbing Replacements; and e)LHS Equipment Emergency Needs. and to determine whether the money shall be provided by the tax levy, by transfer from available funds, including enterprise funds, by borrowing, or by any combination of these methods; to determine if the Town will authorize the Select Board to apply for, accept, expend and borrow in anticipation of state aid for such capital improvements; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: $5,801,720 DESCRIPTION: For a description of the proposed projects, see Section XI: Capital Investment section of the FY2027 budget. The most recent version of the capital section can be found at www.lexingtonma.gov/fy27capital. ARTICLE 17 APPROPRIATE TO POST EMPLOYMENT INSURANCE LIABILITY FUND To see if the Town will vote to appropriate a sum of money to the Town of Lexington Post Retirement Insurance Liability Fund, as established by Chapter 317 of the Acts of 2002; determine whether the money shall be provided by the tax levy, by transfer from available funds, including enterprise funds, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: Unknown at press time DESCRIPTION: This article will allow the Town to continue to fund its liability for post-employment benefits for Town of Lexington retirees. Beginning with the FY2007 audit, the Town has been required to disclose this liability. Special legislation establishing a trust fund for this purpose was enacted in 2002. ARTICLE 18 RESCIND PRIOR BORROWING AUTHORIZATIONS To see if the Town will vote to rescind the unused borrowing authority voted under previous Town Meeting articles; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: Unknown at press time DESCRIPTION: State law requires that Town Meeting vote to rescind authorized and unissued debt that is no longer required for its intended purpose. ARTICLE 19 ESTABLISH, AMEND, DISSOLVE AND APPROPRIATE TO AND FROM SPECIFIED STABILIZATION FUNDS To see if the Town will vote to create, amend, dissolve, rename or appropriate sums of money to and from Stabilization Funds in accordance with Massachusetts General Laws, Section 5B of Chapter 40, for the purposes of: (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) Visitors Center Capital; (j) Affordable Housing Capital; (k) Water System Capital; (l) Ambulance Stabilization Fund; determine whether such sums shall be provided by the tax levy, by transfer from available funds, from fees, charges or gifts or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: Unknown at press time DESCRIPTION: This article proposes to establish, dissolve, and fund Stabilization Funds for specific purposes and to appropriate funds therefrom. Money in those funds may be invested and the interest may then become a part of the particular fund. These funds may later be appropriated for the fund's specific designated purpose by a majority vote of an Annual or Special Town Meeting. 10 DRAF T ARTICLE 20 APPROPRIATE FOR PRIOR YEARS’ UNPAID BILLS To see if the Town will vote to raise and appropriate money to pay any unpaid bills rendered to the Town for prior years; to determine whether the money shall be provided by the tax levy, by transfer from available funds, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: Unknown at press time DESCRIPTION: This is an annual article to request funds to pay bills after the close of the fiscal year in which the goods were received or the services performed and for which no money was encumbered. ARTICLE 21 APPROPRIATE FOR AUTHORIZED CAPITAL IMPROVEMENTS To see if the Town will vote to make supplementary appropriations to be used in conjunction with sums appropriated in prior years for the installation or construction of water mains, sewers and sewerage systems, drains, streets, buildings, recreational facilities or other capital improvements and equipment that have heretofore been authorized; determine whether the money shall be provided by the tax levy, by transfer from the balances in other articles, by transfer from available funds, including enterprise funds and the Community Preservation Fund, by borrowing, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: Unknown at press time DESCRIPTION: This is an annual article to request funds to supplement existing appropriations for certain capital projects in light of revised cost estimates that exceed such appropriations. ARTICLE 22 STREET ACCEPTANCE: WILLARD CIRCLE, CART PATH LANE AND STAGE COACH ROAD To see if the Town will vote to accept as a Town way Willard Circle as shown on a plan dated November 19, 2025 and Cart Path Lane and Stage Coach Road, shown on a plan set (2 pages) dated December 29, 2025, all of which are on file with the Town Clerk and to take by eminent domain, donation or otherwise acquire any fee, easement, or other interest in land necessary therefore; or act in any other manner in relation thereto. (Inserted by the Select Board) DESCRIPTION: This article will accept the identified streets as public ways, and will authorize the Town to take title to Willard Circle, Cart Path Lane and Stage Coach Road. ARTICLE 23 APPROPRIATE FOR TRASH/RECYCLING BINS To see if the Town will vote to appropriate a sum of money to purchase recycling and trash wheeled carts for all households served by the municipal solid waste program; determine whether the money shall be provided by the tax levy, by transfer from available funds, or by any combination of these methods; or act in any other manner in relation thereto. (Inserted by the Select Board) FUNDS REQUESTED: $1,204,000 DESCRIPTION: This article requests funds for wheeled carts for all households who are served by the municipal solid waste program. ARTICLE 24 ELDERLY AND DISABLED TAXATION AID FUND & COMMITTEE (GL c. 60, § 3D) To see if the Town will vote to accept the provisions of Massachusetts General Laws Chapter 60, Section 3D, which authorizes municipalities to establish a dedicated Elderly and Disabled Taxation Aid Fund; or act in any other manner in relation thereto. 11 DRAF T (Inserted by the Select Board) DESCRIPTION: The purpose of the this article is to establish a fund to provide financial assistance to elderly and disabled residents of low income who, in the judgment of the fund’s administrators, are unable to fully meet their real estate tax obligations; establish a committee charged with developing and administering local policies and procedures for awarding aid; and add a voluntary check-off option for voluntary donations on quarterly tax bills. ARTICLE 25 SURCHARGE ON SPECIFIC RESIDENTIAL DEVELOPMENT (Citizen Petition) To see if the Town will vote to establish a surcharge on specific residential development activities for the purpose of funding affordable and community housing construction, renovation, associated land acquisition or easements; and further to authorize the Select Board to petition the Massachusetts General Court to enact legislation to enable this surcharge in the Town of Lexington, and further to authorize the Select Board to approve amendments to said act before its enactment by the General Court that are within the scope of the general objectives of the petition; or act in any other manner in relation thereto. (Inserted by Matthew Daggett and 9 or more registered voters) DESCRIPTION: The purpose of this article is to authorize the Select Board to petition the Massachusetts General Court to enact special legislation to help address the loss of moderate-income housing by establishing a surcharge on specific residential development activities, as previously approved under Special Town Meeting 2020-2 Article 6. ARTICLE 26 OVERSEE FINANCIAL EXPENDITURES LEXINGTON HIGH SCHOOL PROJECT (Citizen Petition) To see if the Town Meeting will authorize the Select Board to form a committee to oversee financial expenditures for the BLOOM project (new Lexington High School). Additionally, for the committee to periodically report back to the Town Meeting Members Association, and/or the Select Board, School Committee, and financial committees on the fiscal progress of the project, or to act in any other manner in relation thereto. (Inserted by Gauri Govil and 9 or more registered voters) DESCRIPTION: This article would authorize the Select Board to establish a committee to oversee the financial expenditures specifically related to the Lexington High School building project. ARTICLE 27 PROCUREMENT FOR ONLINE CAPITAL PROJECT PLATFORM (Citizen Petition) To see if the Town will vote to authorize the Town Manager, in consultation with the Purchasing Director, Procurement Office and the Assistant Town Manager for Finance, to procure, through a competitive process consistent with M.G.L. c. 30B and other applicable law, an online capital project financial transparency platform to provide the public with searchable, downloadable, and regularly updated visibility into Town and School Department capital projects; such platform to present project-level budget information and status, including but not limited to approved budgets, expenditures to date, remaining balances, contracts, change orders, invoices, and cumulative spending versus budget; provided that any data published shall be subject to appropriate redaction and exclusion of confidential or personally identifiable information as required by law; and further to appropriate a sum not to exceed $50,000, or take any other action relative thereto. (Inserted by Steven Kaufman and 9 or more registered voters) FUNDS REQUESTED : $50,000 DESCRIPTION: This article would authorize the Town Manager to procure a financial platform to provide additional information to the public regarding capital projects. ARTICLE 28 SPEED HUMPS - WALNUT STREET (Citizen Petition) That the Town install three speed humps or speed cushions on Walnut St. in order to help calm speeding traffic on a dangerous and hazardous road. Car numbers traversing on Walnut St. are bound to increase when massive new construction in the area and especially on Concord Ave. commences. The positive experience of speed humps on Shade St should guide the town's experience. 12 DRAF T (Inserted by Robert Rotberg and 9 or more registered voters) DESCRIPTION: This article would request that the Town to install speed humps or speed cushions on Walnut St. GENERAL ARTICLES ARTICLE 29 SELECT BOARD TO ACCEPT EASEMENTS To see if the Town will vote to authorize the Select Board to acquire by purchase, gift, or eminent domain or otherwise accept, easement interests for trails, drainage, sewer, utility or other public purposes, on such terms and conditions and in a final location or locations as the Select Board may determine, or act in any other manner in action relation thereto. (Inserted by the Select Board ) DESCRIPTION: This article would permit the Select Board to accept easements for trails and utility infrastructure in order to allow these amenities to be built and conveyed to the Town as required in accordance with many land use permits, as opposed to requiring each such easement to be approved by Town Meeting. ARTICLE 30 AMENDMENT TO ANNUAL MEETING DATE (ELECTION) PROVISIONS IN TOWN BYLAW To see if the Town will vote to amend Chapter 118, Section 118-4 of the Code of Lexington to hold the annual municipal election on a Tuesday, rather than a Monday; or act in any other manner in relation thereto. (Inserted by the Select Board) DESCRIPTION: This article would change future municipal elections from Mondays to Tuesdays. ARTICLE 31 AMENDMENT-CHAPTER 90, § 9 "REGULATION OF REFUSE DISPOSAL" To see if the Town will vote to amend § 90-9 of the Code of the Town of Lexington to permit the Select Board to impose reasonable fees in connection with the disposal of waste and to otherwise update and modernize the terminology in said section; or act in any other manner in relation thereto. (Inserted by the Select Board) DESCRIPTION: This Article proposes to update § 90-9 of the Town bylaws to reflect modern practices for trash disposal, including (a) state regulation of solid waste disposal; and (b) the potential imposition of fees to incentivize waste reduction and control program costs. ARTICLE 32 AMEND GENERAL BYLAWS CHAPTER 35 To see if the Town will vote to amend Chapter 35 of the Town of Lexington General Bylaws to reflect a change in the name of a state agency referenced therein; or act in any other manner in relation thereto. (Inserted by the Select Board at the request of the Council on Aging) DESCRIPTION: This article would amend the Town of Lexington General Bylaws to reflect a name change to a state department from the Office of Elder Affairs to the Executive Office of Aging and Independence (AGE). ARTICLE 33 UNIVERSAL DESIGN RESOLUTION To see if the Town will vote to adopt a non-binding resolution to reaffirm the Town's public commitment to inclusivity, as well as to the ongoing improvement of accessibility and usability in housing for all community members. (Inserted by the Select Board at the request of the Commission on Disabilities) DESCRIPTION: This article aims to broaden the community’s understanding of what accessibility truly means. Practical examples of universal design features include no-step entries, wide doorways and 13 DRAF T hallways, accessible first-floor bathrooms, and structural elements such as wall studs positioned for easy future installation of grab bars, or stacked closets designed to accommodate a future elevator. These features not only support residents in aging in place but also ensure that homes can easily adapt to the needs of individuals with physical challenges. ARTICLE 34 SKIP THE STUFF (Citizen Petition) To see if the Town will vote to amend the general by-laws to establish a customer opt-in requirement for distribution of single-use service ware and single-use packaged condiments or act in any other manner in relation thereto. (Inserted by Laura Swain 9 or more registered voters) DESCRIPTION: This article would reduce plastic waste by prohibiting the distribution of certain food and beverage serviceware and single-use items unless they are requested by the customer. ZONING ARTICLES ARTICLE 35 AMEND ZONING BYLAW - TECHNICAL CORRECTIONS To see if the Town will vote to approve amendments to the Zoning Bylaw, Chapter 135 of the Code of the Town of Lexington, that are clerical in nature to correct any typographical errors, create consistency, or make other non- substantive changes; or act in any other manner in relation thereto. (Inserted by the Select Board at the request of the Planning Board) DESCRIPTION: This article would not change the Zoning Bylaw in any substantive way, but would correct typos, changes to section references for consistency, and correct any errors discovered during the public hearing process for zoning amendments. And you are directed to serve this warrant not less than seven days at least before the time of said meeting, as provided in the Bylaws of the Town. Hereof fail not, and make due return on this warrant, with your doings thereon, to the Town Clerk, on or before the time of said meeting. Given under our hands at Lexington this 2nd day of February, 2026. Jill I. Hai, Chair Select Board Joseph N. Pato Douglas M. Lucente of Mark D. Sandeen Vineeta A. Kumar Lexington A true copy, Attest: Constable of Lexington 14 DRAF T ATTACHMENT A Town of Lexington MODERATOR DEBORAH BROWN January 20, 2026 DELIVERED BY EMAIL Dear Select Board Members, Pursuant to Massachusetts Section 26 of Chapter 22 of the Acts of 2022, as amended by Section 47 of Chapter 2 of the Acts of 2023, I request approval to conduct the 2026 Annual Town Meeting as a hybrid meeting. I propose to use a combination of: (1) the Zoom videoconferencing platform, (2) the online voting tool developed by Select Board member Joe Pato, and (3) an online queuing function developed by Select Board member Joe Pato to facilitate the process of debate. I certify that all components of the system described above have been fully tested and utilized successfully for prior Town Meetings, and I am satisfied that this system enables our meetings to be conducted in substantially the same manner whether a member is participating in person or remotely. I certify that the system for those opting for remote participation (i) allows the moderator, town meeting members, town officials and any other interested members of the public to identify and hear the moderator and each town meeting member who attends and participates in the remote meeting, as well as any other individuals who participate in the meeting; (ii) provides the ability to determine whether a quorum is present; (iii) allows participants to request recognition by the moderator and makes such requests visible to the meeting participants and the public; (iv) allows the moderator to determine when a town meeting member wishes to be recognized to speak, make a motion, or raise a point of order or personal privilege; (v) enables the moderator to recognize a town meeting member, town official or other individual and enable that person to speak; (vi) provides the ability to conduct a roll call or electronically recorded vote; (vii) allows any interested members of the public to access the meeting remotely through LexMedia for purposes of witnessing the deliberations and actions taken at the town meeting; (viii) allows members of the public to participate in debate in-person or through the submission of statements for or against a motion; and (ix) provides for the town meeting to be recorded and available for future viewing. I further confirm that I have consulted with Lexington’s Commission on Disability regarding system accessibility. Sincerely, Deborah Brown Town Moderator 617-512-7901 1625 MASSACHUSETTS AVENUE • LEXINGTON, MASSACHUSETTS 02420 15 DRAF T ATTACHMENT A Town of Lexington MODERATOR DEBORAH BROWN January 20, 2026 DELIVERED BY EMAIL Dear Select Board Members, Pursuant to Massachusetts Section 26 of Chapter 22 of the Acts of 2022, as amended by Section 47 of Chapter 2 of the Acts of 2023, I request approval to conduct the 2026 Annual Town Meeting as a hybrid meeting. I propose to use a combination of: (1) the Zoom videoconferencing platform, (2) the online voting tool developed by Select Board member Joe Pato, and (3) an online queuing function developed by Select Board member Joe Pato to facilitate the process of debate. I certify that all components of the system described above have been fully tested and utilized successfully for prior Town Meetings, and I am satisfied that this system enables our meetings to be conducted in substantially the same manner whether a member is participating in person or remotely. I certify that the system for those opting for remote participation (i) allows the moderator, town meeting members, town officials and any other interested members of the public to identify and hear the moderator and each town meeting member who attends and participates in the remote meeting, as well as any other individuals who participate in the meeting; (ii) provides the ability to determine whether a quorum is present; (iii) allows participants to request recognition by the moderator and makes such requests visible to the meeting participants and the public; (iv) allows the moderator to determine when a town meeting member wishes to be recognized to speak, make a motion, or raise a point of order or personal privilege; (v) enables the moderator to recognize a town meeting member, town official or other individual and enable that person to speak; (vi) provides the ability to conduct a roll call or electronically recorded vote; (vii) allows any interested members of the public to access the meeting remotely through LexMedia for purposes of witnessing the deliberations and actions taken at the town meeting; (viii) allows members of the public to participate in debate in-person or through the submission of statements for or against a motion; and (ix) provides for the town meeting to be recorded and available for future viewing. I further confirm that I have consulted with Lexington’s Commission on Disability regarding system accessibility. Sincerely, Deborah Brown Town Moderator 617-512-7901 1625 MASSACHUSETTS AVENUE • LEXINGTON, MASSACHUSETTS 02420 15 AGENDA ITEM SUMMARY LEXINGTON SELECT BOARD MEETING AGENDA ITEM TITLE: Review & Approve: Town Manager Goals PRESENTER: ITEM NUMBER: I.6 SUMMARY: Caterogy - Decision Making The Select Board will review and discuss the Town Manager’s proposed goals, which will serve as the basis for the Town Manager’s next performance review. In addition, the Board will discuss whether to adjust the Town Manager’s annual performance review period to better align with the Town’s fiscal year, with the intent of improving consistency between goal-setting, evaluation, and the budget cycle. SUGGESTED MOTION: Move to approve the Town Manager's Performance Evaluation form (as proposed or as edited) FOLLOW-UP: Select Board Office DATE AND APPROXIMATE TIME ON AGENDA: 1/26/2026 8:05pm ATTACHMENTS: Description Type Proposed SB Perfomance Evaluation Form 2025-2026 Backup Material Town of Lexington, MA Town of Lexington, Massachusetts SELECT BOARD OFFICE | 1625 Massachusetts Avenue, Lexington, MA 02420 | Phone 781-698-4580 | Fax 781-863-9468 www.lexingtonma.gov | SelectBoard@LexingtonMA.gov Town Manager Performance Evaluation – Period: November 2025 – June 2027 A. Strategic Goal Areas (40%) These are the five strategic goal areas (each of which contains three sub- goals) identified by the Select Board that the Town Manager his team are working to accomplish or advance in 2025-2027. Members of the Management are assigned subgoals as part of their annual performance evaluation; the Town Manager is responsible, broadly, for each goal area and subgoal. Strategic Goal Areas Weight Rating Score 1 Lexington High School: meet planned timelines; lower cost / impact on residents; engage residents to explain tax implications. 20% 2 Clean, Healthy, Resilient Lexington: CSIP into business practices; decarbonize per HPB/Fleet Elec. Policies; reduce waste/inc. recycling. 20% 3 Economic and Community Vibrancy: next steps to revitalize center; integrate DEI in community; propose EconDev strategies in all districts. 20% 4 Fiscal Stability: avoid overrides; ID options for revenue diversification / comm. base growth; convos on L/T fiscal challenges and policy guidance. 20% 5 Livable Community: evaluate true 10% affordable housing; bike ped and TSG recs for multi-modal; strategies to enhance community belonging. 20% Total 100% B. Operational Performance Objectives (50%) These objectives reflect the key day-to-day management responsibilities of the Town Manager. Operational Performance Objective Weight Rating Score 1 Leadership & Team Integration: Build strong working relationships with the Select Board while fostering trust and cohesion among senior management and staff. 25% 2 Financial Management: Successfully manage the FY2027 budget process, and implememtation of Town financial policies. 25% 3 Personnel & General Management: Effectively manage the collective bargaining process to ensure fair and timely contract settlements, while also addressing key personnel policy issues. 20% 4 Community Relations & Communication: continue to build an engaged presence, and positive relationships with residents, businesses, and committees. 15% 5 Diversity, Equity & Inclusion (DEI): Demonstrate commitment to an inclusive culture by advancing the Town's DEI initiatives. 15% Total 100% Rating Scale 4.S to 5.0 - Outstanding 4.0 to 4.4 - Exceeds Expectations 3.0 to 3.9 - Meets Expectations 2.0 to 2. 9 - Needs Improvement 0.0 to 1.9 - Unacceptable Town of Lexington, MA C. Special Achievements or Discretionary Performance Assessment (10%) This section captures extraordinary items or achievements not known during the objective- setting process. Special Achievements / Discretionary Performance Weight Rating Score 1 2 Total 100% OVERALL SCORE: Evaluation Section Score Weight Weighted Score Strategic Goal Areas (A) x 0.4 Operational Objectives (B) x 0.5 Special Achievements (C) x 0.1 Total /5.0 Feedback & Commentary Submitted By: _______________________________ Date: _______________________ Rating Scale 4.S to 5.0 - Outstanding 4.0 to 4.4 - Exceeds Expectations 3.0 to 3.9 - Meets Expectations 2.0 to 2. 9 - Needs Improvement 0.0 to 1.9 - Unacceptable