HomeMy WebLinkAbout2020-10-14-CEC-STM#3-rpt CAPITAL EXPENDITURES COMMITTEE REPORT TO STM 2020-3
CAPITAL EXPENDITURES COMMITTEE
TOWN OF LEXINGTON
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APRIL 19-REPORT TO THE
SPECIAL TOWN MEETING (STM) 2020-3
OCTOBER 14, 2020
Released October 7, 2020
Submitted by:
Charles Lamb, Chair
David G. Kanter, Vice-Chair & Clerk
Sandy Beebee
Rodney Cole
Wendy Manz
Frank Smith
(Begins on the reverse of this cover)
CAPITAL EXPENDITURES COMMITTEE REPORT TO STM 2020-3
STM 2020-3 Warrant-Article Explanations and
Recommendations
Cites of the "Town Warrant" refer to the September 14, 2020, "Town of Lexington Warrant for
the Special Town Meeting 2020-3", October 14, 2020.
Article 3:Establish, Dissolve Funds Requested Funding Committee
and Appropriate To and Source Recommends
From Specified (h) Capital SF (CSF)
Stabilization Funds (SFs)
(Only those actions related to Withdrawal
Capital) $1,100,000 CSF Approval (6-0)
"To see if the Town will vote to create, amend, dissolve, rename and/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) Debt Service; (g) Transportation Management Overlay District; (h)
Capital; (i) Payment in Lieu of Parking; 0) Visitor Center Capital Stabilization Fund; (k)
Affordable Housing Capital Stabilization Fund; (1) Water System Capital Stabilization Fund; and
(m) 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.
"DESCRIPTION: This is an annual article to establish, dissolve, and/or 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 specific designated purpose by a two-thirds vote of an Annual or Special
Town Meeting, for any lawful purpose."
(Town Warrant)
All Stabilization Funds (SFs) deposits (additions) are approved by a simple majority vote of
Town Meeting.
Background Regarding CSF:
Available cash would be added to this SF with the intent that there would be continuing
withdrawals—not necessarily at each Town Meeting—to mitigate the tax burden of major capital
proj ects.
The withdrawals are expected to be amounts cited toward debt service; to be an
additional source, to the extent funds remain in the CSF, toward each year's projected debt
service for projects excluded from the Proposition 2�/z property-tax-levy limit, as approved by the
voters; and, to a much lesser degree, for debt not excluded from that limit (i.e., funded within the
tax-levy limit).
The FY2020 year-end balance for this SF was $25,229,254—which includes $432,085 in
interest earned during that fiscal year.
FY2021 CSF Situation:
Revenue reductions in the FY2021 budget because of the effects of the COVID-19
pandemic made it prudent for available funding that could have been a deposit to this SF instead
to be reserved for use in FY2022.
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CAPITAL EXPENDITURES COMMITTEE REPORT TO STM 2020-3
However there is still a need to withdraw funds from the CSF, as assumed over several
years, to mitigate debt service by the General Fund for previously funded projects. As explained
above, such mitigation is primarily for exempt debt—and this withdrawal is solely for exempt
debt. This additional funding in FY2021 is to address what will be an additional,
not–originally–budgeted, principle payment in June FY2021 as $15,900,000 in debt (net of
premiums paid by the purchaser), were issued in June 2020 rather than in February 2021 as is
usually done and then the first payment on that debt would have been in FY2022. The earlier
bonding was to lock-in an interest rate of 1.39% when the normal budgeting presumes 4.0%.
Article 4: Rescind Amount for Original Committee
Prior Borrowing Rescission Authorization Recommends
Authorizations $79,334.00 See Below Approval (6-0)
"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.
"DESCRIPTION: State law requires that Town Meeting vote to rescind authorized and unissued
debt that is no longer required for its intended purpose."
(Town Warrant)
At the time of this report, the following rescissions have been requested because those projects
are completed without needing the remaining borrowing authority:
Unused Borrowing Authorizations to be Rescinded
Rescind
Purpose Original Appropriation Total Appropriation Amount Percentage
Bridge& Bowman Schools 2011 STM, Article 2 $21,670,000.00 $5,887.00 0.03%
Reconstruction
Concord Avenue Sidewalk 2013 ATM, Article 10(s) $3,000,000.00 $59,073.00 1.97%
Construction and Easements
Supplemental Appropriation for 2016 STM 5, Article 4 $910,000.00 $14,374.00 1.58%
School Facilities Capital Projects
Totals $25,580,000.00 $79,334.00 0.31%
Note: No-longer-needed cash balances from issued debt are not a subject for rescission. Those
are normally proposed to Town Meeting for re-appropriation to later Capital Articles of a similar
purpose.
Article 7:Land Acquisition
"To see if the Town will vote to authorize the Select Board to purchase, take by eminent domain,
or otherwise acquire for Open Space, Community Housing and Preservation of Historic
Resources a particular parcel or parcels of land; and to appropriate a sum of money therefor and
determine whether the money shall be provided from the tax levy, by transfer from available
funds, including the Community Preservation Fund, or by borrowing, or by applying and
receiving funding from available grant sources to reimburse the Town for a portion of the
purchase price of the property; to enter into any contracts and agreements related to the
application or the award of funds; or any combination of these methods; or act in any other
manner in relation thereto.
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CAPITAL EXPENDITURES COMMITTEE REPORT TO STM 2020-3
"DESCRIPTION: This article requests funds to purchase land."
(Town Warrant)
At the time of this report, negotiations with the land owner were continuing so this Committee
has taken no position.
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