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HomeMy WebLinkAbout2010-12-06-AC-minDecember 6, 2010 Minutes Town of Lexington Appropriation Committee December 6, 2010 Place and time: Town Office Building, Room 207, 7:30 p.m. Members present: Glenn Parker (Chair), Joe Pato (Vice Chair), John Bartenstein, Mollie Garberg, Alan Levine, Eric Michelson, Richard Neumeier, Rob Addelson (ex- officio) The meeting was called to order at 7:40 p.m. 1. Minutes. The revised minutes of the 8/26/10, 9/14/10, 9/24/10, and 10/13/10 meetings were circulated prior to the meeting. Motions were made and approved to accept the minutes as circulated. It was suggested that draft meeting agendas be circulated to the committee prior to submission to the Town Clerk so that committee members can have a chance to include additional items. 2. Recap of the Special Town Meeting. Glenn Parker led a short review of the committee's work in preparation for and during the recently completed fall special town meeting. Committee members' reactions included: it would be nice to have the report done earlier; the editing session was effective; and our presentations were efficient yet effective. 3. Recap of Budget Summit 2. Joe Pato reviewed with the committee his notes from the 11/18/10 Budget Summit 2. At that meeting, Carl Valente reported that the revenue projections had increased $2M from Summit 1. At the end of the meeting, Carl highlighted, and sought the group's input on, the following policy issues relating to the FY2012 budget: • OPEB Funding. Medicare D reimbursements are dropping to $380K from $440K. However, Carl's budget still calls for moving $500K into the OPEB Trust Fund. • Free Cash to Support the Operating Budget. Carl has reduced the amount of free cash applied to the FY2012 operating budget by $80K compared with FY2011. This is the first year of a series of gradual reductions that he feels would be prudent as some recent sources of free cash may not recur. • Snow and Ice Budget. The snow and ice budget has been increased by $100K to $800K, compared with FY2011. The budgeted amount is still under the five -year historical average, and Carl will continue the practice of setting aside $300,000 in revenue to help close any potential deficit. • Potential Reductions in State Aid. The current budget assumes that state aid will remain at FYI levels. Carl is again setting aside a portion of revenue as a hedge against additional cuts to State Aid. He is also prepared to ask to fill -1- December 6, 2010 further shortfalls in State Aid from free cash or the stabilization fund if necessary. • Debt Service /Capital Stabilization Fund. Carl proposed establishing this fund to pay for capital needs. It would be funded from anticipated excess one -time sources of funds. However the fund's projected size would only be able to fund a small percentage of the Town's huge anticipated capital investment and facilities maintenance needs. The minor impact that such a fund would have limited its support among the meeting. The items for the next summit will include the revenue split, Estabrook School plans, and a discussion of planned renovations for the Bridge and Bowman Schools. 4. Estabrook PCB Remediation Update. The results of the latest round of testing (Round 9) were very favorable. Testing will continue. The Emergency SOI has been submitted. 5. Bridge and Bowman Renovations. The School Committee recently voted 5- 0 to request an additional $285K at the 2011 Annual Town Meeting to supplement an appropriation from the 2010 Annual Town Meeting that was to provide design specs to renovate the Bridge and Bowman elementary schools. This will fund an expanded scope of work that will extend the building lives by 20 -25 years. Additional improvements would include updated HVAC and electrical systems, increased classroom space, security improvements and sprinklers. As a side note, the committee asked for an update on the status of the LHS "green project ". 6. Tax Setting /CIP Shift. Rob Addelson reported that the Selectmen recently set the tax rate for FY2011 and voted to keep the CIP factor at 1.7. 7. Minuteman High School Capital Renovations. Eric Michelson reported on a meeting he attended of district municipal officials at the Minuteman High School on 11/17/10. Dr Bouquillon presented a review of Part 1 of the Feasibility Study; the Enrollment Study; the Strategic Plan; the Regional Task Force Agreement recommendations; and a high level overview of the FY12 operating budget. These studies were required by the article passed at the 2010 Annual Town Meeting, which requested funding for design plans for an estimated $60M renovation to the high school. Now that the studies are completed, the high school will be placing an article on the 2011 Annual Town Meeting Warrant asking for approval of the recommended changes to the Regional Agreement. Once approved by all member towns, the project will move into the $724K Design stage. A final vote on the renovations could occur as soon as the 2013 Annual Town Meeting. On this schedule, the first financial impact to the Town would occur in FY14. Carl Valente will be scheduling a joint meeting of the Board of Selectmen, Appropriation Committee, and Capital Expenditures Committee to receive a full presentation from Dr Bouquillon. 8. Community Preservation Committee. Glenn Parker reported on the CPC's progress assessing potential projects for the 2011 Annual Town Meeting. The CPC has -2- December 6, 2010 voted 5 -3 against the Lexington Housing Authority's proposed work at Greeley Village, concluding that is does not qualify for CPA funding. They are also evaluating LEXHAB proposals for a trust fund to give grants to private parties for down payments to purchase private housing and to create a $450K fund to facilitate off - schedule purchases of more rental units. 9. Miscellaneous. Rob Addelson reported that Budget Summit 3 may be rescheduled to December 23. The next meeting will be January 13, 2011. The meeting was adjourned at 9:15 p.m. A list of documents and other exhibits used at the meeting is attached. Respectfully submitted, Eric J. Michelson Approved February 3, 2011 -3- December 6, 2010 Exhibits Appropriation Committee Meeting December 6, 2010 1. Agenda posted by Glenn Parker, Chair 2. Board of Selectmen Agenda Item Summary dated 12/6/2010 for Tax Rate Classification Hearing 3. Tax Classification Packet prepared by the Lexington Assessor's Office for the Lexington Board of Selectman