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HomeMy WebLinkAbout2020-03-19-AC-min 03/19/2020 AC Minutes Minutes Town of Lexington Appropriation Committee (AC) March 19, 2020 Place and Time: Remote Participation: in accordance with the Governor's March 12, 2020 Order Suspending Certain Provisions of the Open Meeting Law; communication took place via a Zoom teleconferencing session that was open to the public; 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) Member(s)Absent: Lily Manhua Yan Other Attendees: Robert Burbidge, Chair, Lexington Housing Authority Board (LexHAB) The meeting was called to order at 7:40 p.m. Announcements and Liaison Reports Mr. Parker announced that in addition to this meeting being held remotely, it was being recorded to the cloud to assist in preparing the minutes. He asked participants to mute their microphones except when speaking, to speak clearly, and to avoid speaking over another person. Mr. Padaki reported that there had been some questions related to the presentation of full-time employee data in the FY2021 Recommended Budget and Financing Plan (Brown Book), and some suggestions may be forthcoming. Ms. Kosnoff said that an effort had been made to be fully transparent. 2020 ATM Financial Articles and Report Planning Mr. Parker facilitated discussion about two articles, as follows: • Article 19: Establish, Dissolve and Appropriate To and From Specified Stabilization Funds: Part d) appropriate funds from the Affordable Housing Capital Stabilization Fund: Because part d) of this article had generated considerable discussion and a split vote at this committee's March 12, 2020 meeting, Mr. Levine had asked that a representative from LexHAB be invited to this meeting to discuss the issues. Mr. Parker introduced Mr. Burbidge. Mr. Burbidge reported that Brookhaven at Lexington, as part of its permitting agreement for an expansion, had committed to 15 annual payments to the Town to assist in expanding Lexington's affordable housing units. The first $111,922 payment was recently received and, under Article 19(c), will go into the Affordable Housing Capital Stabilization Fund. Article 19(d) is a request to withdraw $111,000 from that account to support renovations and repairs to existing affordable housing rather than the acquisition of new units. Mr. Burbidge explained that LexHAB is currently working on new affordable units at Faimview, for which there have already been two appropriations, the second because of financial overruns, and it is still overbudget. Contributing factors include a requirement to pay prevailing wages, the incorporation of sustainability features that result in net zero homes, and the discovery of ledge on the property. He added that it is easier to forecast expenses than rental income. An option would be to use the Brookhaven funds for the Farmview housing,but there are some town officials who are opposed to supporting any 1 03/19/2020 AC Minutes additional appropriations for Farmview. Thus, LexHAB is planning to use its own funds to complete the project, despite its limited resources. Projects for additional new housing are desired but not reasonably attainable in the near future. Mr. Burbidge added that$111,000 would not go far towards building/purchasing new units. Meanwhile, there are existing affordable units that need renovations/upgrades, and the current motion for Article 19(d)requests that the Brookhaven funds be appropriated from the Affordable Housing Capital Stabilization Fund for such projects. Mr. Burbidge noted that if the funds aren't appropriated for this purpose,repairs may be delayed and/or LexHAB would use its own funds and end up in a strapped position financially. He noted the importance of maintaining the properties, some built in the 1980s or even earlier. Mr. Michelson expressed his opposition to this use of the Brookhaven funds because the intent of the agreement was that the funds would be used to increase the supply of affordable housing in Lexington. Mr. Padaki added that old units always need attention and using Brookhaven funds for this purpose sets a precedent for the use of future Brookhaven funds. He noted that there had been an assumption that those funds would build up until they were adequate for building/purchasing a new unit. In response to a question, Ms. Kosnoff said that it was unlikely that the Brookhaven funds could be used to service debt if property were purchased. Other members of the AC noted the importance of maintaining existing units and felt comfortable with using the Brookhaven funds for capital expenses, consistent with the current proposal, but not routine maintenance. There were suggestions that LexHAB create a strategic plan,perhaps incorporating a different funding model, or seek legislation that would ease the financial pressures on building affordable housing efforts. It was also suggested that next year LexHAB should explore applying for CPA funds for the purpose of preserving the units that it currently owns. Mr. Burbidge agreed that these ideas might be explored but said that the current coronavirus crisis has created an emergency for many of the affordable housing residents, and the current focus is on assisting them. Mr. Parker reported that the Capital Expenditures Committee voted 3-2 in favor of supporting Article 19(d) at its meeting held this morning. The Select Board supports it unanimously. A motion was made and seconded to re-vote on recommending approval of Article 19(d). There was a roll call vote. The motion passed. VOTE, including Ms. Yan's vote in the affirmative at the last AC meeting: 6-2 Article 25: Purchase of Land/Eminent Domain: The Town has reached an agreement to purchase property that carries part of the municipal parking lot that is situated along Edison Way and currently owned by the Lexington Historical Society. Although the Town has been using this property for parking, the purchase is viewed as necessary for proceeding with a project associated with the Grain Mill Alley. There were two appraisals of the land; the appropriation request is for$177,000, a value midway between the two appraisals, to come from the general fund. A motion was made and seconded to recommend approval of Article 25. There was a roll call vote. The motion passed. VOTE: 7-0 Mr. Parker expressed appreciation for the material and edits submitted for the report. He added that, because of the COVID-19 virus, the Annual Town Meeting (ATM)has been postponed until 2 03/19/2020 AC Minutes April 15 and could be postponed for an additional amount of time. Ms. Kosnoff added that, minimally, the operating budget and the enterprise funds should be approved before July 1, 2020. Mr. Parker suggested that the report should be posted on-line as soon as possible so that town meeting members have an opportunity to review it in advance. This will be particularly important if a virtual ATM is held. It was agreed that the situation is fluid, and that the report should include caveats in the introduction to that effect. Ms. Kosnoff reported that she does not anticipate changes to the budget, adding that state aid is not expected to change. She said that there could be fewer building permits issued, for example, but the financial impact should be minimal. She added that if additional funds are needed, the Town would request a reserve fund transfer. Mr. Parker added that the economic impact of the COVID-19 pandemic could well continue into future fiscal years. Mr. Parker agreed to edit the draft report using track changes to incorporate his introduction, changes identified at this meeting, and any other changes that are submitted by Sunday. He will distribute it on Sunday. It was agreed to meet virtually on March 24, 2020 at 7:30 p.m. for a final vote. He said that, although it is traditional, it is not legally required that the report be signed. He plans to have some hard copies made,but not enough for distribution to all town meeting members as is customary. Minutes A motion was made and seconded to approve the March 5, 2020 minutes as distributed by Mr. Levine. There was a roll call vote. The motion passed. VOTE: 7-0 The meeting adjourned at 9:01 p.m. Respectfully submitted, Sara Arnold Approved: March 24, 2020 Exhibits Agenda,posted by Mr. Parker, Chair 3