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HomeMy WebLinkAbout2011-03-01-CEC-minMinutes of the Lexington Capital Expenditures Committee Meeting Date, Place and Location: 3/1/11, 8:00 a.m., Town Office Building, Room 111 Members Present: David Kanter; Shirley Stone; Charles Lamb, Chair; Bill Hurley Member Absent: Ted Edson Others Attendees: Glenn Parker, Chair, Appropriation Committee; Wendy Manz, Chair, Community Preservation Committee (CPC) Document Presented: Community Preservation Act Summary of Funds from the FY2012 Recommended Budget and Financing Plan (the "Brown Book ") Mr. Lamb called the meeting to order at 8:00 a.m. Minutes: Mr. Kanter moved to accept minutes of 2/15/11 as distributed. Mr. Hurley seconded the motion. Vote: Approved 3 -0 -1. Mr. Kanter will forward final minutes to the Town Clerk. Discussion of Article 17— Reduce Community Preservation Act (CPA) Surcharge: There was a general discussion that included, among other things, past State -match rates, how the Town has put into use matching funds from the State, whether the very -large CPA projects should be voted on by debt - exclusion referendum, and the 5- month — year -over- year— recovery in the Registry of Deeds CPA fees. The Committee discussed a reduction in the 3% surcharge by some number other than the 1 % being proposed to Town Meeting, the scale of the types of projects, and the existing exemptions from the surcharge —both in general and for low- income taxpayers. Ms. Manz described that those towns that elect a 3% surcharge are eligible for additional rounds in the State -match procedure. Mr. Kanter reported Lexington picked up an additional 1% in the last State -match rate as a result of being at a 3% surcharge and benefiting from those additional rounds. Mr. Hurley raised a concern regarding the taxpayers' freedom of choice on specific projects as well as the citizens' right to rescind a vote within 10 days of a Town Meeting. Ms. Stolz had been happy to try out the surcharge and initially wanted the rate set to 1% instead of 3 %; however, after having seen what has been accomplished under the CPA program, she is convinced of its beneficial uses despite that certain projects do not benefit her directly as a taxpayer. Her preference is to wait another year before taking any action on the surcharge level to see how the current program plays out. Mr. Kanter encouraged the Committee, for the purpose of this discussion, to view this as committee members responsible for making recommendations based on the capital needs of the Town, not as a Town Meeting Members or as voters. He is in support of keeping the current surcharge, but he discussed the many pros and cons that he considered in coming to that decision. The Committee voiced continued support that any of the Town's CPA - eligible projects should be submitted to the CPC for CPA funding so as to qualify for the State match to reduce the burden on our taxpayers. Ms. Manz indicated the CPC is not a planning body, but one that responds to the applications that are submitted to it. Approval at Town Meeting of the proposed reduction would put it into effect for fiscal year (FY) 2013. Over the 5 -year period (FY2007— FY2011) that the surcharge has been in place, so far, the Committee noted that State - matching funds of just over $6.4 million have been received in recognition of our taxpayers having paid a surcharge total of just under $11.3 million in the first four of those years — reflecting a cumulative return of nearly 57 %. (For the about $3.2 million surcharge being collected this fiscal year, the Town expects to receive in FY2012 a match of at least $0.86 million; which is at least a 27% match.) The Committee believes that Town Meeting's decisions regarding the use of the total CPA funding generally represents the constituents' views. The Committee discussed constituents' views along with the history of the CPA - funded projects, taxes, overall benefits to taxpayers, and flexibility in adjusting spending as needed. CPA has also assisted the Town in meeting the 10% quota of affordable housing under the State's Chapter 40b and in maintaining the historic aspect of the Town. Mr. Parker spoke as a Town Meeting Member who voted in favor of adopting the CPA — with the 3% surcharge. He sees that by doing so, the Town has had the ability to increase the quality of life through the approved projects. He does not believe there are any sufficient reasons to warrant changing CPA in Lexington at this time. The Committee deferred any formal vote on the Article until next week's meeting which all members are expected to attend. (Mr. Hurley left at this point.) Committee Report to the 2011 Annual Town Meeting: There was discussion regarding the status of the report and the future actions to complete the report. Members were encouraged to be sure to add value through the report. Agenda for the meeting on the 8th will include a continued discussion of Article 17 and a vote on it, as well as a review of the report and to consider taking further votes. Other Business: Another meeting is scheduled at 12 noon on Thursday, the 10 to review the report to Town Meeting. Recording Secretary is to post with agenda and reserve a room. At 9:57 a.m., a Motion was made by Mr. Kanter and seconded by Ms. Stolz to adjourn. Vote: Approved 3 -0. These Minutes were approved by the CEC at its meeting on March 8, 2011.