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Home My WebLink About2011-01-19-AC-min-summit IV January 19, 2011 Minutes Town of Lexington Appropriation Committee January 19,2011 Place and time: Public Services Building Cafeteria, 7:30 PM Members present: Glenn Parker (Chair), John Bartenstein (Vice Chair and Secretary), Joe Pato (Vice Chair), Robert Cohen, 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 fourth Budget Collaboration-Financial Summit for FY2012 ("Summit IV"). The agenda items were: 1. Review FY2012 Proposed Budget(The White Book) 2. Discuss Options for Closing School Budget Gap 3. Hear Comments from Capital Expenditures Committee Regarding Proposed Capital Budget 4. Review Draft list of Annual Town Meeting Warrant Articles 5. Schedule Summit 5 (if necessary) 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 9:55 PM. A list of documents and other exhibits used at the meeting is attached. Respectfully submitted, John Bartenstein Approved June 21, 2011 - 1 - January 19, 2011 Summit 4 January 19, 2011 A Summit was held on Wednesday, January 19, 2011, 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); and Mr. Kanter, Mr. Lamb and Ms. Stoltz representing the Capital Expenditures Committee (CEC). Discuss Options for Closing School Budget Gap The School Committee discussed options for balancing the School budget. The current remaining unfunded balance is $521,159, which includes $165,000 for Unemployment Insurance Contingency. Funding options include: Medicaid Insurance Reimbursements - $23,000, Minuteman HS Assessment- $35,000; and use of unallocated revenues $250,000, which total $308,000. That would leave a$262,613 shortfall. Upon motion duly made and seconded, it was voted 5 -0 to support using $308,000 to reduce the School Budget shortfall. Review FY2012 Proposed Budget Mr. Valente reviewed the FY2012 Preliminary Budget & Financing Plan. The revenue change since the November 18 Summit is projected at $2,100. A comparison of Summit 3 to the current proposed project: Shared Expenses Capital/Other has increased by $10,987 to increase the fuel budget for the Facilities Department; School Allocation is now$509,670; the Municipal Allocation budget has $99,227 available; Unallocated Revenue was reduced by $10,987 (for Facilities fuel); and Revenue Adjustment increased by $2,100. A total of$412,543 is needed to balance the budget. Reserve recommendation is $500,000 for the Post Employment Benefits Fund. Capital Budget requests include: $5,154,620 General Debt Fund; $145,100 Water Debt; $1,300,000 Sewer Debt; $1,530,000 Possible Excluded Debt; $2,365,940 Cash Capital; $901,000 Other. Total $11,396,660. The CPA-Town Only amount is $1,191,863. This capital budget is very aggressive but consistent with the recommendations of the Fiscal Task Force. Total projected levy supported debt service for FY2011 is projected to be $4,669,173. For FY2013 it is projected to be $5,631,087 which is troubling because it does not include possible projects for Bridge Bowman, Estabrook, Fire Station Repairs and High School roof and the rising interest rates. - 2 - January 19, 2011 Summit 4 January 19, 2011 Outstanding issues are: State Aid (Governor's Budget comes out on January 26, 2011) and Minuteman Voc -Tech Assessment. Take -aways include: addressing school budget, reviewing capital projects financed with levy supported debt and resolving funding of Bridge/Bowman Renovations and possible new Estabrook School. Next steps: respond to questions, review budget, target date for Selectmen approval of budget is February 22 and target date for budget to go to financial committees and Town Meeting Members is February 28. Dr. Ash updated the group on MSBA's visit to the Estabrook School and that it was made clear to them that a timetable needed to be expedited quickly so that hopefully an article could be presented to the Annual Town Meeting. Address School Budget Mr. Burnell asked the School Committee to explain the current gap and what caused it. He has concerns about street and building infrastructure and would like to devote a significant portion of the growth for that into those areas where needed. Mr. Cole explained that there was a massive cut in the SPED reimbursement rate (about $600,000 or 1.15 %) and the enrollment went up which accounts for 1/3 of a percent. Enrollment was discussed and whether there were ways to estimate what enrollments would be from year to year. Dr. Ash wants the Bridge and Bowman school projects to have a capacity of 500 students by adding additional classrooms to each project, so that if enrollment increases there will be space available. Mr. Levine feels the proposal for closing the gap is responsible, but hopes the School Committee will continue to look for savings. Mr. Bartenstein asked what the implications are for future allocation splits if the proposed money is used to close the school gap. Concerned we are chipping away at the Town budget by putting part in shared and part in school budgets. Upon motion duly made and seconded, it was voted 5 -0 to support the plan as put forth by the School Superintendent. - 3 - January 19, 2011 Summit 4 January 19, 2011 Hear Comments from Capital Expenditures Committee Regarding Proposed Capital Budget Mr. Lamb, Chair of the Capital Expenditures Committee, gave an update of the proposed capital budget. The Committee made few recommendations for projects that should be deferred, removed or adjusted from what was in the white book The Committee applauds several new capital programs proposed by the Public Facilities Department. They are also pleased that the white book proposes using cash for ongoing capital programs rather than debt funded. Mr. Levine stated his position on funding the OPEB liability. He believes the Town should not be funding the OPEB liability and that further dialogue and analysis is needed. Mr. Cohen explained that state law requires that money be put aside for pension funding. Also the issue of outstanding liability for future health care costs was questioned 10 years ago by securities regulators and said that all municipalities had to figure out what their liabilities would be because of disclosure issues. Lexington got the legislation to approve setting up a fund so we could start funding the liability. Review Draft List of Annual Town Meeting Warrant Articles Mr. Cohen reviewed the current draft list of proposed 2011 Annual Town Meeting Warrant Articles. Mr. Kanter requested that the Planning Board needs to make a report at Town Meeting as a follow-up to the approved bylaw change to establish the overlay district plan for Hartwell Avenue. Schedule Summit 5 Summit 5 will be scheduled for February 2, 2011. The Selectmen will also schedule a meeting for February 22, 2011 to approve the FY2012 Budget. Documents Presented 1. School Recommended FY2012 Budget, dated January 14, 2011. 2. FY 2012 Preliminary Budget & Financing Plan dated January 19, 2011. 3. Draft Table of Contents of 2011 Annual Town Meeting Warrant Articles. Upon motion duly made and seconded, it was voted to adjourn at 9:55 p.m. A true record; Attest: Lynne A. Pease, Executive Clerk - 4 - January 19, 2011 Exhibits Budget Collaboration-Financial Summit IV January 19,2011 1. Agenda posted by Carl Valente, Town Manager 2. Recommended FY 12 Budget for the School Department, dated January 14, 2011, showing January 18, 2011 Revised Budget Request 3. Town of Lexington, FY 2012 Preliminary Budget & Financing Plan, prepared for Summit 4, January 19, 2011 4. Draft, 2011 Annual Town Warrant Table of Contents - 5 -