HomeMy WebLinkAbout2011-10-19-AC-minOctober 19, 2011
Minutes
Town of Lexington Appropriation Committee Meeting
October 19, 2011
Time and Location: Cary Hall, Legion Room, 7:30 p.m.
Members Present: Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Joe Pato,
Vice Chair; Robert Cohen; Mollie Garberg; Alan Levine; Eric Michelson; Richard Neumeier;
Jonina Schonfeld; Rob Addelson (non- voting, ex officio)
Others in Attendance: Carl Valente, Town Manager; Sam Silverman, Town Meeting Member;
Mary Ann Stewart, School Committee; Margaret Coppe, School Committee
The meeting was called to order at 7:36 p.m.
Announcements.
Mr. Parker requested someone to track the BoS meeting minutes and Mr. Pato agreed to do this.
Special Town Meeting.
Article 4 — Budget Adjustments (Carl Valente): Mr. Valente distributed a packet containing a
summary entitled "FY2012 Operating and Capital Budget — Preliminary Adjustments" and
supporting documents. He said that he would give just an overview of the most current numbers
and turn over the presentation to Mr. Addelson to cover greater detail and answer any questions.
The proposed adjustments are for both revenue (approximately $1.4m additional revenue is
expected) and expenditures (approximately $1.2m in additional appropriations are proposed),
leaving a positive balance of $255,551. It is hoped that there will be a reduction in the FY2012
health benefits budget in an amount yet to be determined, due to a reduction in claims, which
would result in a larger balance. The document outlined four potential uses for some or all of the
residual balance: 1) increasing the snow and ice removal budget; 2) funding reconstruction of
streets and roads; 3) allowing the funds to flow to free cash that will become available for
appropriation for the FYI budget; and 4) appropriating to the stabilization fund.
Revised Revenue Adjustments: Mr. Addelson discussed the growth in revenue versus previous
estimates. The largest driver is a $1.2m increase in the tax levy, attributable to new growth of
approximately $3m versus the original estimate of $1.8m. New growth for FY12 is attributable
to residential and commercial construction activity from FYI as well as personal property
increases (i.e. business machinery). New construction of single family homes and condos totaled
about $71 m in valuation, which translates to $1 m in new revenue, and commercial and industrial
construction added about $25m in valuation, which translates to $680k in new revenue. Mr.
Addelson answered questions about the projects that have impacted revenue. He explained in
particular that new growth resulting from recent construction at Shire not subject to the TIF
agreement will likely be offset by a temporary reduction in revenues (in effect, "negative new
growth ") from the portion that is subject to the TIF, although the amounts offset will ultimately
be recouped as additional new growth in future years when the TIF discounts are reduced.
October 19, 2011
Supplemental appropriations: Mr. Addelson discussed preliminary adjustments for
supplemental appropriations by line item. He noted that Lexington is waiting for guidance from
DOR regarding the supplemental amount of state aid (about $93k) that will be paid due to
legislation restoring recent state aid cuts. A proposal to update the Fire Department's
communication system will be handled under Article 3. Article 4 (Operating Budget) will
handle the following:
• Veteran's benefits, which have increased significantly.
• The Veteran's Service Officer Position, which is legally required, might move from part -
time to full -time if an exemption is not granted. See letter dated 9/15/11.
• Technical support consulting services are needed to address noise complaints related to
the noise by -law.
• Election costs for debt exclusion vote for Bridge /Bowman and Estabrook.
• Hiring a recording secretary for the Historical Commission.
• The Fire Department needs vehicle maintenance to repair the ladder truck.
• There are increased sewer and utility costs for the Facilities Department.
• There will be expenses to the Town Manager for a Police Sergeant Assessment Center.
• There may be reductions to the health insurance budget.
• There may be a need to supplement the legal budget for appellate tax board appeals
Additional funds needed to complete previously approved capital projects involving paving at
the Clarke School and upgrading library archives will be handled under Article 7.
Potential uses: There was a discussion of potential uses of the balance of new revenue not
currently targeted for appropriation, though the actual net surplus has not yet been determined.
The possibilities include:
• Snow and ice removal - The budget has been $1.1m as the last few years and the FY 11
cost was $1,440,000. However, clearing the center is very costly and the projection
should be increased for future years.
Streets and roads — If additional funds were put into streets and roads, the Town would
likely subcontract engineering work. This is a capital item where the money stays in the
budget until it is used and the Town is looking at a total annual appropriation of $2m.
The previous debt exclusion for streets and roads in the amount of about $7m has now
been largely depleted, and although the Town's Chapter 90 monies were increased by the
State this year for the first time in many years, the Town has had to appropriate funds
within the levy to accomplish major road reconstruction projects such as the Woburn
Street reconstruction. The Committee discussed models to use in regards to funding
streets and roads.
• Flow to free cash —This money would be available for the FY2014 budget and might
allow capital projects to be funded with cash instead of debt.
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• Stabilization fund — The stabilization fund is in fairly good shape although it has not yet
reached the target recommended several years ago by the Fiscal Policy Committee.
There have been three difficult years, and while the Town has not added much to the fund
over the last couple of years, it has also not needed to make any withdrawals. The
Committee was not prepared to make any recommendation to the Board of Selectmen
(BoS) at this time, but Mr. Valente said he would bring the individual comments of
Committee members to the BoS at its meeting on Monday.
School Committee Presentation on Article 2 (Bridge and Bowman Reconstruction): School
Committee Chair MaryAnn Stewart and School Member Margaret Coppe made a presentation on
the Bridge and Bowman Schools reconstruction project, beginning with a brief history of the
School Department's ten -year master plan. The first plan was done in 2006 with Design
Partnership of Cambridge and was redone in 2009. An expanded plan was approved by the
School Committee in November and will go forward to Town Meeting with a revised estimate of
about $22.5m (this amount is an estimate of the total project cost based on 80% completion of
the design, and includes design funds already appropriated).
Specific parts and phasing of the project were discussed (FF &E, landscaping and windows) (the
committee wanted to know why these were not included in the cost of the design) as well as
when the work will be done to have the least impact on the school year, budget, scheduling
contingencies and school enrollment. Mr. Cohen asked if there were any monetary incentives as
well as penalties for either finishing the project early or behind schedule. Ms. Stewart was not
aware of any such language being in the contract. The expectation is to have necessary reviews
accomplished to obtain building permits on 11/8.
There will be an update from the Estabrook architect at the 10/25/11 School Committee meeting
and an update on all building projects at the 11/8/11 meeting. Further information can be found
on the Bridge and Bowman school websites, to which Committee members were referred for
background in writing up their report on Article 2.
Updated Article Assignments.
Article 2: Bridge and Bowman School Reconstruction - Alan Levine, Mollie Garberg and Jonina
Schonfeld
Article 3: Fire Communication System - Richard Neumeier; Mr. Parker will provide some
information on this article from the CEC meeting on 10/18/11.
Article 4: FY12 Operating and Enterprise Fund Budgets - John Bartenstein and Glenn Parker
Article 5: Specified Stabilization Funds -Eric Michelson
Article 6: Stabilization Fund - Eric Michelson
Article 7: Authorized Capital Improvements - Eric Michelson
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SUMMARY OF ACTION ITEMS:
Tonight's minutes will be reviewed by Robert Cohen.
Mr. Pato will track BoS meeting minutes.
Mr. Addelson will provide the Committee with information regarding the special stabilization
funds, including the transportation demand management and traffic mitigation funds, for the
write -up on Article 5.
Mr. Addelson will still provide a reconstruction debt service schedule for Bridge and Bowman
and the current status of existing excluded debt, a schedule of budget transfers, as well as a
number in regards to a reduction in the appropriation for health insurance.
Mr. Valente will bring Committee comments to the BoS meeting coming up this Monday.
The meeting was adjourned at 9:46 p.m.
A list of documents and other exhibits used at the meeting is attached.
Respectfully submitted,
Andrea Yepez
Recording Secretary
Approved February 8, 2012
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October 19, 2011
Exhibits
Town of Lexington Appropriation Committee Meeting
October 19, 2011
1. Meeting Agenda, posted by Glenn Parker, Chair.
2. Packet distributed by Carl Valente, Town Manager, including
a. FY2012 Operating and Capital Budget— Preliminary Adjustments, dated 10/19/11
b. Radio Solutions estimate, dated 10 /11 /11
c. FY12 Veteran's Benefits distributed to date — 108 CMR Chapter 115 Program as of
10/10/11
d. Letter from Reps. Kaufman and Stanley and Sen. Donnelly to Lt. Governor Murray,
Att. General Coakley and Veterans Services Sec. Nee, dated 9/15/11
e. Debt Exclusion Cost Estimate for FYI 2. dated 10/10/11
f. FY 13 -17 Capital Improvement Proj ects summary done by Pat Goddard, dated
10/9/11
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