HomeMy WebLinkAbout2010-11-18-AC-min-Summit II November 18, 2010
Minutes
Town of Lexington Appropriation Committee
November 18, 2010
Place and time: Public Services Building Cafeteria, 7:30 PM
Members present: 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 second Budget Collaboration-Financial Summit for FY2012
("Summit II").
The agenda items were:
1. FY2012 Revenue Projections
• Overview (Carl Valente)
• Presentation by Revenue Source (Rob Addelson)
• Policy Issues (Carl Valente)
o Use of Reserves to Offset FY2012 State Aid Reductions
o Use of Reserves (Free Cash) to Fund FY2012 Capital/Debt Service
2. Establish Date: Budget Collaboration-Summit 3
Please see the attached minutes of the Board of Selectmen, which are published on the Town
web site at http://lexingtonma.gov/selectmen.cfm and which are also available in the Town
Clerk's office, for details.
The meeting was adjourned at approximately 9:30 PM.
A list of documents and other exhibits used at the meeting is attached.
Respectfully submitted,
John Bartenstein
Approved June 21, 2011
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November 18, 2010
Summit 2
November 18, 2010
A Summit was held on Thursday,November 18, 2010, at 7:30 p.m. in the Public Services
Building Cafeteria, 201 Bedford Street. Chairman Manz, Mr. Kelley, 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, Superintendent of Schools; Ms.
Dunn, Assistant Superintendant for Finance and Business; all members of the Appropriation
Committee (AC), except Mr. Parker and Mr. Michelson; All members of the Capital
Expenditures Committee (CEC), except Ms. Stoltz and Mr. Hurley.
FY 2012 Revenue Projections
Overview
Mr. Valente reviewed a chart that compared FY2011 revenue projections to the FY2012 revenue
projections. The percent change for FY2011 was projected to be 3.38 percent and for FY2012 it
is projected to be 3.14 percent.
Presentation by Revenue Source
Mr. Addelson presented information on the current revenue projections for FY2012, updated
since Summit 1. The current revenue projection is $152,613,327, an increase of$2,03 8,060 that
was presented at Summit 1. The current revenue projection is an increase of 3.8 percent from
gross revenues in FY2011.
For FY2012 the property tax levy is projected to grow $4.86 million (3.97 percent) and new
growth is projected at $1.8 million.
State Aid for FY2012 is projected to be the same as the FY2011 amount of$8,508,839. It is
proposed that any reduction in state aid be offset by a Stabilization Fund appropriation or the use
of undesignated free cash. The final state aid number will not be known until after the Annual
Town Meeting.
FY 2012 Local Receipts are projected to grow by 2.9 percent.
Available Funds include: a) $7.6 million identified as available to fund the FY2012 budget; b) a
major component is undesignated fund balance or free cash at $7.125 million; and c) amount of
free cash proposed to support the FY2012 operating budget is $3.78 million.
Policy Issues
Mr. Valente reviewed the five policy issues that need to be considered for the FY2012 budget.
1. OPEB at $500,000;
2. Reduce Free Cash to support operating budget by $80,000;
3. Increase snow/ice budget by $100,000;
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November 18, 2010
Summit 2—November 18, 2010
4. State Aid reductions offset by reserves;
5. Create Debt Service/Capital Stabilization Fund to reduce amount of debt exclusions for
large capital projects that would be funded by ongoing revenues not needed to support the
operating budget and one -time Free Cash, overlay surplus, etc.
Establish Date for Summit 3
The next Summit will be scheduled for Wednesday, December 15, 2010 at 7:30 p.m.
Documents Presented
1. FY2012 Revenue Projections,November 18, 2010.
Upon motion duly made and seconded, it was voted to adjourn at 9:30 p.m.
A true record; Attest:
Lynne A. Pease
Executive Clerk
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November 18, 2010
Exhibits
Budget Collaboration-Financial Summit II
November 18, 2010
1. Agenda posted by Carl Valente, Town Manager
2. FY2012 Revenue Projections, Presentation Slides
3. Town of Lexington, FY2012 Revenue Projections, prepared by Town Manager's Office,
Finance Department,November 18, 2010
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