HomeMy WebLinkAbout2025-12-04 Dept Budget PresentationsSELECT 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