HomeMy WebLinkAbout2010-10-06-AC-min October 6, 2010
Minutes
Town of Lexington Appropriation Committee
October 6, 2010
Place and time Selectmen's Meeting Room, 7 30 PM
Members present Glenn Parker(Chair), John Bartenstein (Vice Chair and Secretary),
Joe Pato (Vice Chair), Mollie Garberg, Alan Levine, Susan McLeish, Dick Neumeier,
Rob Addelson (ex officio, non-voting)
The Committee joined the Board of Selectmen, the School Committee, and the Capital
Expenditures Committee for the first Budget Collaboration-Financial Summit for
FY2012 ("Summit I")
The agenda items were
1 Overview—Lexington's Financial Condition (Carl Valente)
2 FY2012-2014 Revenue and Expenditure Forecast (Rob Addelson)
3 Key Policy Issues Related to FY2012 Budget (Carl Valente, Paul Ash)
4 Estabrook School Update and Special Town Meeting Discussion
5 Establish Date Summit Meeting 2
6 Other Business
Please see the attached minutes of the Board of Selectmen, which are published on the
Town web site at http.//lexinttonma.aov/selectmen.cfm and which are also available in
the Town Clerk's office, for details
The meeting was adjourned at approximately 9 25 PM.
A list of documents and other exhibits used at the meeting is attached.
Respectfully submitted,
John Bartenstein
Approved May 17, 2011
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October 6, 2010
Summit I
October 6 2010
A Summit was held on Wednesda\ October 6 2010 at 7 30 p.m. in the Selectmen Meeting
Room, Town Office Building. Chairman Manz, Mr Kelle` Mr Cohen, Mr Burnell and Ms
Mauger Mr Valente Town Manager. Mr Addelson, Comptroller and Ms Pease Executive
Clerk,were present.
Also Present: All School Committee (SC)members Dr Ash, Supenntendent of Schools Ms
Dunn,Assistant Supenntendant for Finance and Business all members of the Appropnation
Committee (AC) except Mr Michelson, Ms Stoltz and Mr Edson of the Capital Expenditures
Committee (CEC) Mr Goddard, Public Facilities Director. and Ms Brown,Town Moderator
Estabrook School Update and Special Town Meeting Discussion
Dr Ash gave an update on the Estabrook School environmental issues After reviewing the air
samples collected on September 27 2010 the Advisor Committee does not feel the ceiling tiles
need to be removed. The plan is to onl\ replace the crumbling tiles Also some sliding doors
will be removed and all cove will be replaced. The estimated cost for the suggested work is
$750 000 $550 000 has alread` been spent. All of this work is pending approval of a plan b\
the EPA.
The group discussed a date for a Special Town Meeting if needed. The suggested date is
November 15 There was a lot of discussion on whether a Special Town Meeting was needed.
Mr Valente and Mr Addelson need a few days to make sure the\ can work through the tax rate
setting issues
Upon motion dul\ made and seconded, it was voted 4 -1 (Burnell opposed)to set the date for a
special town meeting on November 15 if needed.
Health Hazards Task Force
Mr Manz handed out a proposed charge and membership for a Health Hazards Task Force The
charge is more Estabrook specific and would evaluate and make recommendations with respect
to the post mitigation plan for Estabrook School, identif\ funding sources for the meditation
work, and work on a communication plan going forward. Members would included two
Selectmen,two School Committee members, one member from the Board of Health,two from
the Estabrook Advisor Task Force Liaisons from Appropnation Committee Capital
Expenditures Committee and Permanent Building Committee Staff representatives from the
Public Facilities Department,Town Manager's Office School Supenntendent's Office and
Communit\ Development Department. This task force is specific and another task force could
be formed to discuss capital planning for all town projects
School Committee members also want a capital planning task force to discuss with the
Selectmen and finance committees all the different projects that are in the works
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October 6, 2010
Summit I—October 6 2010
A joint meeting of the Board of Selectmen and School Committee will be planned soon to
discuss forming a capital planning task force
Mr Goddard asked the Selectmen to consider making the Task Force a town-wide health hazard
task force because of the other two Town buildings with PCBs that EPA has been notified about.
Upon motion dul\ made and seconded,the School Committee voted 4 -1 (Coppe opposed)to
form a Task Force specific to Estabrook School post mitigation as well as to identifying sources
to cover the cost of mitigation.
Upon motion dul\ made and seconded,the Board of Selectmen voted 3 -1 -1 (Kelley opposed and
Burnell abstained)to form a Task Force specific to Estabrook School post mitigation as well as
to identifying sources to cover the cost of mitigation.
Overview of Lexington's Financial Condition
Mr Valente presented a summary evaluation of the town's financial condition. 1) evaluate fiscal
health through a senes of financial indicators and comparative benchmarks 2) 3 -year revenue
and expenditure projection, and 3)key policy issues that the Selectmen, School Committee and
finance committees need to consider when discussing the budget for FY2012
Lexington's financial condition is generally sound. it has good revenue growth, stable labor
costs as a percentage of total operating costs, adequate pension funding, a good balance of
revenues related to economic growth,low debt service and adequate reserves is satisfactory in
the areas of expenditure growth, and is unsatisfactory in the areas of state aid and employee
liabilities, in particular employee benefit costs and unreliable state aid.
Revenue growth has, for the most part,been positive State aid dependence ma` be difficult to
manage where there is a reduction in funding,but the contingency plan in place helps create
reserves capable of offsetting cyclical downturns in state aid and local receipts Uncollected
propert\ taxes have increased and ma` indicate an inability b` propert\ owners to pay due to
economic conditions which ma` result in less cash on hand for the Town to invest. Personnel
cost indicators are favorable to marginal, increasing salanes and wages ma` point to future
pension and health insurance costs and if salaries and wages as a percent of operating
expenditures are increasing it ma` be an indicator of deferred maintenance of the Town's
infrastructure Employee benefits indicator is unfavorable and represents a significant and
increasing share of the Town's operating costs Debt Service indicator is favorable over the last
ten years Lexington has invested extensively in new capital projects Reserves and fund balance
indicator is favorable because of several types of reserves
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October 6, 2010
Summit I—October 6 2010
FY2012 -2014 Revenue and Expenditure Forecast
Mr Addelson reviewed the 3 -year revenue and expenditure projections The information
provided is a tool for planning the budget. The variable cost dnvers include municipal wages,
school wages and new debt service
Ke` Polic\ Issues Related to FY2012 Budget
The ke` polic\ issues related to the FY2012 budget are Use of stabilization fund reserves to
offset State Aid Reductions Potential for debt exclusion question for Bndge and Bowman
schools and roads, abilit\ to continue to fund general fund capital at $3 to $4 million annuall`
and impact of federal health care reform on employee health insurance plans
Establish Date for Summit Meeting 2
At the next summit there will be a presentation of revenue projections for FY2012 and the
proposed split. The suggested date for Summit Meeting 2 is November 18
Documents Presented
1 Letter Regarding Air Samples Collected on September 27 2010 at Estabrook School
2 Estabrook Environmental Concern Cost Estimate Summar\ dated 10/6/10
3 PCB Presentation prepared b\ EH&E
4 Draft Estabrook Health Hazards Task Force Charge
5 Financial Summit I—Indicator Analysis for Fiscal Year 2000 -2010 Projections &
Estimates for Fiscal Year 2012 -2013 dated October 6 2010
Upon motion dul\ made and seconded, it was voted to adjourn at 9 30 p.m.
A true record,Attest:
Lvnne A. Pease
Executive Clerk
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October 6, 2010
Exhibits
Budget Collaboration-Financial Summit I
October 6, 2010
1 Agenda posted by Carl Valente, Town Manager
2 Updated proposal circulated by Hank Manz, Chair of the Board of Selectmen for
Estabrook Health Hazards Task Force
3 Estabrook Environmental Concern, Cost Estimate Summary, dated 10/6/2010
4 Slides prepared by Environmental Health & Engineering (EH&E) regarding
results of Estabrook remediation efforts
5 Memo from EH&E dated October 6, 2010 re"Air Samples Collected on
September 27, 2010, Estabrook Elementary School
6 Financial Summit I—Indicator Analysis, Fiscal Year 2000-2010, Projections &
Estimates, Fiscal Year 2012-2014, October 6, 2010
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