HomeMy WebLinkAbout2009-03-04-AC-minMinutes
Town of Lexington Appropriation Committee
March 4, 2009
Place and time: Town Office Building, Room 111, 7:30 PM
Members present: Alan Levine (Chair), John Bartenstein (Vice Chair), Richard Eurich,
Pam Hoffman, Susan McLeish (Secretary), Eric Michelson, Glenn Parker, and Mollie
Garberg
The meeting was called to order at 7:40 PM.
2009 Budget. Alan reported that he attended a meeting where a discussion of
a projected school budget deficit of $375,000 (it is now $428,000 and likely to
change by the end of the year) was discussed. Dr. Ash explained that a
portion is due to legal services as they are more serious in screening SPED
cases, there is a deficit related to substitute teachers and a surplus related to
teachers. Short of layoffs there is not a lot the schools can do to avoid the
shortfall.
Rob Addelson reported that the current estimate of what has been expended
for snow and ice is $1.5 million through this latest storm. The 2009 budget is
$650,000 and there is $300,000 in next year's budget so there is a shortfall of
$550,000.
We discussed the strategy for handling the snow and ice deficit and that it
does not legally need to be paid for this year whereas a school deficit does
need to be covered. We also discussed using the SPED stabilization fund for
that and the AC reserve and free cash for other potential problems that could
come up. Pam mentioned that she attended a recent School Committee
meeting and indicated that it was not certain that they would be seeking
funding for the $375,000 shortfall; they are looking for ways to save money in
other areas.
2. Future Meetings. Tom Diaz of the School Committee would like to meet
with us on March 10 to discuss the economic stimulus package (neither Mollie
nor Pam are able to make that meeting). Ed Grant has also indicated that he
would like to meet with the group to discuss the Beal proposal. Alan
suggested that we meet with them in April subsequent to the issuance of our
report.
3. Report. We discussed an approach for completing our report. Eric will draft
and send the shell and others will send out articles as they draft them. We
should shoot for a rough draft of a report by March 16. Pam and Mollie will
conduct an editing session on Friday and Saturday March 20 and 21.
4. Article 30. Rob Addelson explained that the Town received reimbursement
in August 2006 from the MA School Building Authority for approximately
$14 million for Clarke, Diamond, and the High School. There was a note that
came due for approximately $11 million. The residual (exempt costs of the
project) was set aside per the directive of the Department of Revenue and the
balance was to be drawn down over the life of the High School bond (until
2023). A schedule was developed and the funds were set aside and have been
in a Massachusetts Municipal Depository Trust. Per the advice of bond
counsel and the DOR directive, the monies should be set aside in a separate
stabilization fund and should be drawn out through appropriation. A request
to appropriate $130,000 out of the stabilization fund to offset debt service on
the high school will be requested. The Article asks that the stabilization fund
be created this year, that it be funded and that $130,000 be taken out. A two
thirds vote is required. The committee, by a vote of 8 -0, voted in favor of the
article.
4. Other Articles. We briefly discussed Article 27 in that Eric mentioned that
he would circulate a write -up and a short discussion ensued. Regarding
Article 35, the fee will be set in the coming weeks, we had a short discussion
on retirement and OPEB as well as the municipal budget and that it is
effectively a level service budget. John briefly explained Article 34 and tax
relief.
The meeting was adjourned at 9:47 PM.
Respectfully submitted,
Susan McLeish
Approved July 6, 2009
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