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Home My WebLink AboutFY 2003 Budget SummaryFiscal Year 2003 Budget Summary Town of Lexington Town Manager's Office 1625 Massachusetts Avenue December 1, 2002 Budget Highlights The Town of Lexington is proud to present the Fiscal Year (FY) 2003 budget. FY 2003 began on July 1, 2002 and runs through June 30, 2003. This budget funds the operation and maintenance of a full- service municipal government, the pub- lic schools, and a five -year projection of capital improve- ments. Lexington is a community which thrives on public investment. Demands for services always exceed the ability to pay for them. Balancing affordability with services is a challenge that every Board of Selectmen must face annually. Here are some important highlights of the budget approved by the 2002 Annual Town Meeting: • The appropriated budget includes expenditures of $115,068,307 balanced by non -tax levy revenues totaling $39,899,958 and an estimated (non- exempt) tax levy of $73,828,814. The amount the tax levy was raised to pay for the recently approved School Building construction project debt service ($1,339,535 in FY2003) is exempt from the limitations of Proposition 2 '/� and is shown within the budget as a revenue and expenditure offset. • Non -tax levy revenue is increasing by 4.2% from the FY2002 appropriation. • Enterprise Funds -those funds generated through fees for service - (Water, Sewer and Recreation) will increase by 1.7%. • The tax levy will increase by $3,501,124 or 5 %. $75,168,349 or 65.32% of all revenue used to fund town services is raised via property tax. • Health Insurance costs increased 16.59% over FY 2002. Although claims continued to decline, enrollment in- creased. Increased costs for health insurance are likely to continue in the near future. Budget Process The Town of Lexington FY 2003 Budget is truly a commu- nity process. The compilation of work from Town and School Staff, elected and appointed officials and Town Meeting, the FY 2003 Budget took nearly nine months to create. Working with requests from departments and town committees, the Board of Selectmen, the School Committee, the Appropria- tions Committee and the Capital Expenditures Committee met in five summit meetings in November 2001 through January 2002. The Recommended FY 2003 Budget then went to Town Meeting, and was approved on May 22, 2002. Services Provided Education I U Culture & Recreation ' Primary and Secondary Cary Memorial Library - Schooling (K -12); Main Branch & East Lex Minuteman Science- ington Branch; Recreation Technology High School services & programs, Pine a Meadows Community Services Golf Course Street Maintenance; Water Social Services & Sewer; Public Building Council on Aging & Senior Maintenance; Snow Re- Center, Veterans Affairs, moval; Parks & Forestry Youth Services, Develop - Maintenance; Refuse & mentally Disabled Services Recycling Collection & Disposal; Lexpress Public za Community Development _ Transportation Building Inspection, Public IN Public Safety health, Animal Control, Police Patrol & Enforce- Planning, Economic Devel- ment, Traffic Control, opment Criminal Investigation, General Government Fire Suppression, Investiga. Finance, Investments, Legal lion, Prevention & Emer- Services, Town Manager, gency Medical Services Town Clerk, MIS, Web Ser- vices, Public Boards & Committees Town of Lexington - FY 2003 Budget Summary Revenues Funding for services provided to Lexington residents comes from a variety of sources. The Town strives to maintain a diversified and stable revenue system that will provide shelter from short -run fluctuations in any one revenue source and ensure the ability to provide ongoing services. Total budgeted revenue, re- gardless of the source, is equal to $115,068,307. Those sources are: • General Fund (Property Tax, State Aid, Local Receipts) • Enterprise Funds (Water and Sewer, Recreation) • Special Revenue Funds (Puking Meter Fund) • Other Sources (Stabilization Funds, Free Cash, Articles from Trusts) FY 2003 Revenue Breakdown Enterprise State Aid Local Receipts Revenue 14% Bebt Exclusion t% - , Available Funds 1a 3% Revenues in FY 2003 are up $3,283,996, or about 2.94 %. The bulk of the in- crease comes from the allowable 2.5 % increase in the Tax Levy, $2,727,532. Local receipts and state aid actually fell for FY 2003 as the figure below shows. The remainder of revenues necessary to balance the budget came from available funds, primarily free cash reserves ($1,500,000) FY 2002 vs. FY 2003 Revenue Comparison 9% State Aid $ 9,733,036 Local Receipts $ 10,150,075 Property Tax Le $ 73,828,814 Available Funds $ 3,507,418 Debt Exclusion $ 1,339,535 Enterprise Revenue $ 16,509,429 Total Revenues $ 115,068,307 Source: FY 2003 Appropriated Budget Town Accomplishments The Town of Lexington has been busy over the last year. Among its accomplishments: ALS: Advanced Life Support The Lexington Fire Department imple- mented the first phase of their Advanced Life Support system. For the first time, cer- tified paramedics/EMT's will staff Lexing- ton ambulances and fire apparatuses. With the transition to ALS, Lexington residents will receive a higher quality of care and b etter cost control over their emergency services. Cary Library The Cary Memorial Library renovation is well underway Construction started i in Fall 2001 and s anticipated to be completed in Spring 2003. The new Cary Memorial Library will have over 61,000 square feet of collections, study areas and meeting spaces. It will also contain state -of -the art HVAC, technology stations, and be fully ADA accessible. Comprehensive and Strategic Planning One of the major accomplishments of the last year was the completion of the first four elements of the Comprehensive Plan JrI Ask, "The Lexington We Want." This sigmfi cant accomplishment marks the first revs ' sions to Lexington's comprehensive plan in over 35 years. The first four elements, Land Use, Natural and Cultural Re- sources, Housing and Economic Development form a solid foundation for planning and for the future of Lexington. The Transportation element will be completed during FY 2003. Work on the Comprehensive Plan also mirrors ongoing commu- nity vision planning occurring with Lexington Vision 2020. A 2020 Vision progress report will be produced in FY 2003. Construction Management and Technology The Town of Lexington is working hard to super- vise over $60,000,000 in renovations to Town N and School facilities, reconstructing town roads \\ through a multi -year $7,000,000 resurfacing pro- La gram, and clean town water and sewer lines. Util- izing a series of new software programs, Town and School staff are working together to improve facilities management, manage Lexington's burgeoning Recreation programs, manage Town finances and inform the community of events. Town of Lexington Statistics Population: 30,355 Land Area 16.64 sq. mi. Registered Voters: 19,811 A # of Employees: Full -Time: 295 Seasonal/Part -Time: 252 A # Emergency (Fire/EMS/Police) Calls: 17844 # Miles Public Roads: 138.89 # Miles of Water Mains: 157.02 Sewers: 158.07 # Acres Conservation Land: 1299.8 # People Participating in Recreation Programs: 116,000 # Building Permits Issued: 899 A Cary Library Circulation: 364,243 Online: & Town: http: / /ci.lexington.ma.us M School: http: / /Ips.lexingtonma.org Revenue Breakdown Town of Lexington - FY 2003 Budget Summary Expenditures The Town of Lexington has budgeted $115,068,307 for expenditures in FY 2003 The Town of Lexington has several categories of exp enditures. They include: • Exempt Debt Service ($1,339,535) • Articles & Capital ($2,112, 500) • Intergovernmental Charges and Assessors Overlay ($2,602,655) • Operating Expenses ($109,013,617) This largest category covers everything from wages to programs, benefits to municipal expenses. A complete description of Town services is listed on the front of the summary. Debt The Town of Lexington is authorized to issue debt pursuant to Massachusetts Ge n- eral Law, Chapter 44, Sections 7 and 8. Under this law and within the provisions of Proposition 2 / The Town of Lexington has issued debt for a variety of capital needs. Debt falls into three categories: Permanent Debt: Debt approved by the voters or Town Meeting, has been issued, and has been financed. The total outstanding debt is $10,717,262. Temporary Debt: Debt approved by the voters or Town Meeting but has not been permanently issued/financed. The total authorized but not issued debt is $71,000,000. Authorized but not Issued: Debt approved at the 2002 Town Meeting. FY 2003 Total: $38,675,000. Debt, Town of Lexington Debt (i Permanent Debt $10,717,262 Prop. 21/2 1,850,654 Enterpnse 2866,608 Temporary Debt $71,000,000 Debt Exclusion 52235,000 Prop. 212 1,400,000 Enterpnse 1 365,000 Authorized but not Issued $38,675,000 Debt Exclusion 36 250,000 Prop. 21/2 1,865,000 Enterrnse 560,000 Total Debt '.. $120,392262: Historically, the cost of issuing and repay- ing debt has been dramatically lowered due to the town's long -standing Aaa (Moody's) bond rating. This is the highest bond rating offered to municipalities and results in low- ered interest rates. The total debt for Le x- ington as of FY 2003 is shown above. Source: FY 2003 Appropriated Budget School Accomplishments The FY 2003 Lexington Public Schools Budget reflects the core values of respect for diversity and individuality and a commit - ment to shared responsibility and continuous improvement. Some of this years goals and accomplishments include: Curriculum Renewal Our schools continue to work with state curriculum frameworks to make sure that the essential content, con- cepts and skills are incorporated into Lexington's curriculum at all levels. We are working on formatting our curriculum in a way that is consistent across disciplines, easily communicated and can utilize our technology resources to preserve and en- hance the best of our current educational program, and further improve student's success on statewide assessments. r F A Technology The Lexington Public Schools completed their landmark $5.2 million, Five -Year Technology Capital Plan. This plan focused on specific goals, starting with completion of the network to provide access, followed by professional develop- ment to promote teachers' comfort and proficiency with this powerful instructional tool, and systematic efforts which inte- grated technology into the curriculum. Students and staff now can utilize advanced computers, printers, display devices and workstations. Building Expansion and Renovation W Several major projects throughout the Lexington Public Schools have modernized buildings, classrooms and en- e learning opportunities. Renovations to the secondary schools - Clarke and Diamond Middle Schools and Lexington High approved in FY 1999 - have been completed. Last May Town Meeting approved a $32,000,000 for the complete recon- struction of Fiske and Harrington Elementaries, beginning a long -term elementary capital improvement plan. Cost-Effective Operating and Capital Budget Operating and capital budget planning will continue to re- flect a balance between the needs of the schools and the ability of the town to pay for those needs. School and town boards work together to identify efficiencies and develop a re- sponsible budget strategy. Lexington Public Schools Statistics 0 # of Employees: Full -Time: 660 # of Part -Time: 345 0 548 staff members hold advanced degrees 0 Per Pupil expenditures: • 2001 -02 - $9,696 • 2002 -03 - $10,264 0 Enrollment: • 2001-02-5,981 • 2002 -03 - 5,992 0 Average class size: • Elementary - kindergarten: 16, grades 1 -5: 21 • Middle - typical class size: 22 • High - typical class size: 24 0 LHS Class of 2002 Statistics • Graduating Class - 348 students • 97.9% pursuing post - secondary education • 13 National Merit Finalists • 43 Advanced Placement Scholars 0 Lexington Education Foundation contribution to school staff each year: in excess of $100,000 Phone: & Town: (781) 862 -0500 0 Schools: (781) 861 -2580 Town of Lexington - FY 2003 Budget Summary FY 2003-2007 Capital Improvements Plan Capital Planning is important to the long- term viability of the Town. In order to meet the continuing service demands of the community, maintaining Town assets is just as important as providing the op- erations themselves. Shown at right is the list of capital pro- jects approved for FY 2003. This list is the current year of the FY 2003 -2007 Capital Improvements Plan. The Town of Lexington uses five -year planning to ade- quately predict what capital needs will require attention in the near term. Both large scale projects (New Facility Con- struction) and smaller projects (Sidewalk Improvements) are included in this plan. FY 2003 Capital Projects :Funding Source Coat SCHOOLS Remodeling / Construction of Town Schools Debt Exclusion $32, 150, 000 School Capital Project - Acoustical Modifications General Fund (GF) 1,100,000 Gym Floor Replacement General Fund (GF) 80,000 School Technology Plan General Fund (GF) 185,000 >COMMUNITY SERVICES flDj Building Envelope General Fund (GF) 085,000 DPWEquipment GF Cash/ Water/Sewer Enterprise 327500 Street Improvements GF Cash/ Chapter 90/ Debt Exclusion 8,100,000 Traffic Signal Improvements General Fund (GF) 180,000 Water Distribution System Improvements Water/Sewer Enterprise / State Aid 900,000 Storrs Sewer Improvements Water /Sewer Enterprise 100,000 ;RECREATION <. Pi ne Meadows Golf Course Improvements Recreation Enterprise 300.000 Playground Improvement;- Justin Park General Fund (GF) 30,000 Lincoln Field Improvements Debt Exclusion/ Recreation Ente rise 3 400 000 ;TOTAL S47 5 The Town of Lexington has adopted several capital policies in recent years with the goal of ensuring adequate funding for capi- tal investment. Enterprise fund capital projects are funded through Water, Sewer and Recreation enterprise funds. Large capital projects for which long -term borrowing is appropriate are proposed for debt exclusion. Smaller capital replacement or renewal projects are funded by allocating 5% of the general fund revenues to debt service and capital needs. Unfortunately, the Town has taken on more debt within the general fund than anticipated, and this constrains the amount of cash available for capital needs. Staff is currently working on a new policy framework that will generate adequate funding for capital investment while maintain- ing fiscal prudence. Town of Lexington 1625 Massachusetts Avenue Lexington, Massachusetts, 02420