HomeMy WebLinkAbout2020-02-05-AC-min 02/05/2020 AC Notes
Information Meeting Minutes
Town of Lexington Appropriation Committee (AC)
February 5, 2020
Place and Time: Cary Memorial Building, Hudson Room, 7:30 p.m.
Members Present: Glenn Parker, Chair; Sanjay Padaki, Vice-Chair; Alan Levine, Secretary;
John Bartenstein; Eric Michelson; Meg Muckenhoupt; Nick Nichols; Carolyn Kosnoff, Assistant
Town Manager, Finance (non-voting, ex officio)
Members)Absent: Lily Manhua Yan
Other Attendees: David Pinsonneault; Director, Department of Public Works (DPW)
The information meeting was called to order at 7:35 p.m.
Announcements and Liaison Reports
Mr. Parker reported that this meeting had not been posted 48 hours in advance, as required to make
it an official meeting; therefore, this would be an information meeting only, without deliberation or
votes being taken.
Ms. Kosnoff reported the following:
• The Town sold $9.57 million in 10-year bonds on Wednesday at a true interest cost(TIC) of
0.93%based on a higher coupon interest rate and a $1.5 million premium. The Town also
sold $5.2 million in one-year Bond Anticipation Notes at the rate of 1.03%. These are
considered extremely favorable rates that will result in budget changes.
• The Minuteman Technical Regional High School Board met and reduced its budget, which
will result in a reduction of Lexington's assessment by $129,000 to $2,863,147.
• The Lexington Public School Department adjusted some assumptions, resulting in a funding
request that is within the allocated budget.
• The Finance Department is completing the FY2021 Town Manager's Budget& Financing
Plan ("Brown Book"), which will include changes from the FY2021 Town Manager's
Preliminary Budget& Financing Plan ("White Book"). A"crosswalk" spreadsheet to
identify the changes between the two documents is being prepared.
2020 Annual Town Meeting (ATM) Financial Articles and Report Planning, including DPW
Budget for FY2021
Mr. Pinsonneault reported on the warrant articles that include a DPW component, as follows:
• Article 4: Appropriate FY2021 Operating Budget:
➢ There is a 3.1% increase in the DPW's requested operating budget as compared to
FY2020, which includes three program improvement requests, as follows:
■ Upgrading a staff engineer position to senior engineer.
■ Purchase of a Roadway Decision Support System that will assist staff in
determining the optimal treatment of roadways during inclement weather;
currently the Town relies on weather reports from the Town of Bedford and
Hanscom Air Force Base.
■ Purchase of software to supplement Lexington's work order system in an effort
to increase efficiency in preparing information for contractors and the Federal
Emergency Management Agency.
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02/05/2020 AC Notes
➢ The FY2021 budget identifies a savings of$35,000, as compared to FY2020, for Line
Item 3130 (Street Lighting)which reflects the savings to be realized from converting
from induction streetlights to LED lights. This is a conservative estimate that reflects a
delay in receiving credits and consideration that some of the reduction will be in energy
savings. The FY2022 budget is expected to show greater savings. It should be noted that
the grant for the LED lights only includes roadway lights, not those for parking lots or
pedestrian ways.
➢ The Town's current contracts for trash and recycle collection provide favorable rates
compared with other towns, approximately $80 and $40 per ton, respectively. Although
the market for some recycling materials has decreased or disappeared, it is hoped that
those markets will recover. New uses for some recycled materials are being developed.
Residents are encouraged to continue to participate in the recycling program, even if a
substantial portion of the resulting waste stream (particularly paper)is not actually being
recycled, because it is best if residents stay in the habit of recycling. It should also be
noted that disposal through the Town's recycling contract is economical, since the per-
ton cost is substantially less expensive than for trash.
➢ The funding request in this article for playgrounds is for maintenance only; playground
upgrades are included as capital requests.
• Article 5: Appropriate FY2021 Enterprise Funds Budgets:
➢ Ms. Kosnoff noted that there are no major surprises in this year's enterprise fund
operating budgets, although there is concern about continued water and wastewater rate
pressure resulting from declining consumption. This rate pressure may be increased by a
plan to gradually transition the funding of the recurring capital expenditure for
continuous maintenance and upgrade of the system (roughly $2 million per year for the
water system and $1 million per year for the wastewater system appropriated under
Articles 13 and 14)from borrowing to cash raised in the rates. The changeover will
lower debt service cost in the long run but result in higher up-front capital costs in the
short term. Ms. Kosnoff said that it is not possible to build flexibility into the annual
town meeting appropriation process because, although the warrant may allow for
funding alternatives, the motion for this article must be specific.
• Article 9: Establish and Continue Department Revolving Funds:
➢ DPW has five revolving funds, which may be used to cover operating and/or capital
costs.
➢ The installation of solar panels at the Hartwell Avenue landfill resulted in making some
adjustments to the functioning of the facility.
➢ The Hartwell Avenue facility brings in some revenue by processing a variety of
materials that are then sold in large quantities to landscapers, including bark mulch, leaf
mulch, loam, and compost. The Town does not want to compete with the local
businesses that sell such products to residents.
➢ Siting a Police Department firing range at the landfill is being discussed.
➢ Hazardous waste collection costs have increased. Volume does not impact the costs as
much as the rates because the Town pays a per-vehicle fee. The Town shares the service
with other towns; it is well utilized by Lexington residents.
• Article 10: Appropriate the FY2021 Community Preservation Committee Operating Budget
and Community Preservation Act Projects:
➢ The Battle Green Master Plan was completed in 2011 and accepted in 2012 by the Select
Board. The FY2021 funding request is for implementation of the final portion of this
project, which has experienced a number of starts and stops but only minor adjustments.
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02/05/2020 AC Notes
Except for curbing installations, this final portion can be done in parallel with the Center
Streetscape project.
➢ Ms. Kosnoff noted that the Finance Department is working with the CPC to close out
completed projects that have unused funding.
• Article 11: Appropriate for Recreation Capital Projects:
➢ DPW works closely with the Recreation Department on recreation-related capital
projects but the costs of those projects are not part of the DPW budget. The Recreation
Department's operating costs are funded by the Recreation Enterprise Fund and most of
its capital costs are funded from the General Fund and the Community Preservation
Fund. A Community Needs Assessment, which does not require construction
specifications/supervision, is being handled by the Recreation Department.
• Article 12: Appropriate for Municipal Capital Projects and Equipment:
➢ The Recreation Department is handling the funding request for an Athletic Field
Feasibility Study, which does not have a construction component. The study is expected
to evaluate current usage, identify fields for potential lighting, and recommend
opportunities for synthetic fields.
➢ Design work for a Hill Street sidewalk is in progress. The project could take more than
one year if complications are identified during the design or construction.
➢ New Sidewalk Construction is a new item added to the list of Municipal Capital Projects
and Equipment.
➢ Regulations relating to storm drainage and National Pollutant Discharge Elimination
System permitting have been updated; the Town needs to re-evaluate its programs and,
given the substantial increase in costs, consideration is still being given to the
establishment of a stormwater enterprise fund which would be funded by user fees.
➢ Permitting for culverts can take a long time.
➢ There is a rotating schedule for maintaining the traffic signals for which Lexington is
responsible. Things such as new technology and Americans with Disability Act changes
can result in adjustments to the schedule. Funds were previously appropriated to
reconfigure and rebuild the signalized Massachusetts Avenue/Worthen Road
intersection.
• Article 13: Appropriate for Water System Improvements and Article 14: Appropriate for
Wastewater System Improvements:
➢ A study of the ongoing maintenance and replacement needs of the water and wastewater
systems was performed a year or two ago by an engineering consultant. This study has
resulted in an increase in annual recurring capital expenditures requested for
appropriation with the goal of replacing annually approximately 1% of the systems'
infrastructure, based on an estimated useful life of 100 years.
• Article 16: Appropriate for Public Facilities Capital Projects:
➢ The proposed Westview Cemetery building will be"addition-ready" in the event that it
is decided to add a crematorium. The funding request is for $3.1 million, $300,000 more
than was requested in 2019. An updated funding model is needed to determine how
much will be from the tax levy and how much from the revolving fund.
Mr. Parker reported that the assignment spreadsheet for this Committee's report to the 2020 Annual
Town Meeting is available on this Committee's web page, but it is a read-only document. He
reviewed its color coding.
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02/05/2020 AC Notes
Next Meeting
The next meeting is scheduled for Thursday, February 13, 2020. David Kanter, Vice-Chair& Clerk
of the Capital Expenditures Committee, will be invited.
The information meeting adjourned at 9:31 p.m.
Respectfully submitted,
Sara Arnold
Reviewed:
Exhibits
Agenda, posted 2/4/2020. 1:39 p.m. by Mr. Parker, Chair
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