HomeMy WebLinkAbout2009-09-22-AC-minSeptember 22, 2009
Minutes
Town of Lexington Appropriation Committee
September 22, 2009
Place and time: Town Hall, Room 111, 7:30 p.m.
Members present: Alan Levine (Chair), John Bartenstein (Vice - Chair), Richard Eurich,
Mollie Garberg, Pam Hoffman, Susan McLeish (Secretary), Eric Michelson, Glenn
Parker, Rob Addelson (ex officio, non - voting)
The meeting was called to order at 7:40 p.m.
1. Special Town Meeting. The Board of Selectmen has set a date for a fall
special town meeting. It will begin Monday, 11/9/09 and carry over to Monday, 11/16/09
and Wednesday, 11/18/09 if necessary. The warrant for the special town meeting will
close on Friday, 9/25/09 at 4:00 p.m.
2. Updated Free Cash Estimate. Rob Addelson reported to the Committee on
the most recent estimate of free cash as of July 1, 2009 (the end of FY2009): just under
$6.2 million. A final number will be certified by the Massachusetts Department of
Revenue (DOR) sometime in October, in time for the upcoming special town meeting.
However, the current estimate should be close to the final number.
Rob reviewed with the Committee a handout analyzing the sources and amounts
of the free cash estimate. Approximately $3.1 million is attributable to turn -backs
(amounts appropriated for various line items in the general fund budget but not spent);
$1.7 million to the closeout of prior years' purchase orders from FY2006, FY2007 and
FY2008; and $1.7 million to additional revenue that was not originally included in the
FY2009 budget. Set off against these items, which total approximately $6.5 million, is a
$300,000 reserve required by the DOR for accounts outside of the general fund.
In response to questions by the Committee, Rob provided further detail and
emphasized that many components of this year's estimated free cash can fairly be
characterized as non - recurring. In particular, in the turn -back category, $835,000
resulting from the overestimate of health benefit costs in the FY2009 budget, $585,000
turned back by the school department and a substantial portion of $731,000 turned back
by the Facilities Department are not likely to be repeated in the current fiscal year. The
closeout of prior years' purchase orders resulted from a particularly thorough "scrubbing"
of the accounts in question and is also not likely to recur. Approximately $800,000 in
federal stimulus funds were made available by the state in FY2009 to offset a reduction
in special education circuit breaker reimbursements; there could be further cuts in state
aid in FY2010 without a similar offset.
In the category of "miscellaneous, non - recurring" revenue, totaling approximately
$625,000, $479,000 is attributable to Medicare Part D reimbursements. Similar
reimbursements have been received for the past several years on a regular basis, and are
expected to continue. Recently they have not been included in the revenue estimated for
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September 22, 2009
budgeting purposes. The amounts received in FYs 2007 and 2008 were appropriated at
the 2008 and 2009 Annual Town Meetings, respectively, toward the funding of the
Town's unfunded OPEB (other post - employment benefits) liability. The balance is
attributable to bond premiums paid by underwriters in connection with the issuance of
Town debt.
The Committee discussed the impact of the updated free cash estimate on budget
planning for FY2011. It was noted that because the estimate is some $3 million higher
than the amount assumed during the deliberations of the Ad Hoc Fiscal Task Force earlier
in the summer, the recommendation of the Task Force to consider significant withdrawals
from the Stabilization Fund to help balance the FY2011 budget should be revisited.
3. Structure of the Committee and Election of Officers. The Committee
continued its discussion of organizational and operational issues and the possibility of
engaging in a facilitated strategic planning process later in the fall. Pam Hoffman and
Mollie Garberg will look into the matter further and seek a facilitator who could assist the
Committee on a pro bono basis. There was also a discussion of the importance of
planning for future changes in leadership.
The Committee then voted unanimously to elect Alan Levine as Chair, to elect
Glenn Parker and John Bartenstein as co- Vice - Chairs for the balance of FY2010, and to
appoint John Bartenstein as Secretary. It was agreed that these positions might be
revisited after a strategic planning process.
4. School Facilities Planning. Pam Hoffman and Richard Eurich gave a report
on the discussions of the School Facilities Committee, whose meetings they have been
attending as liaisons. That committee is expected to recommend major renovations and
improvements at the High School and at four of the elementary schools on an urgent
basis. There was a discussion of the implications of such a recommendation in a time of
fiscal austerity and how such improvements might be funded.
5. Future Meeting Schedule. The first financial summit for FY2010 will be
held on Thursday, October 1 and will focus on anticipated revenue and revenue
allocation. After this, Committee meetings are scheduled for October 8, 14, 21, 28 and
November 4. The Community Preservation Committee has proposed a joint meeting
with the Board of Selectmen and the financial committees for November 12. The Annual
Meeting of the Association of Town Finance Committees (ATFC) will be held on
October 24, and Mollie Garberg is planning to attend.
The meeting was adjourned at 10:00 p.m.
Respectfully submitted,
John Bartenstein
Approved October 8, 2009
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