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HomeMy WebLinkAbout2011-12-07-AC-minDecember 7, 2011 Minutes Town of Lexington Appropriation Committee Meeting December 7, 2011 Time and Location: Room G 15, Town Office Building, 7:3 0 p.m. Members Present: Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Joe Pato, Vice Chair; Mollie Garberg; Alan Levine; Eric Michelson; Jonina Schonfeld; Rob Addelson (non- voting, ex officio) Not present: Robert Cohen; Richard Neumeier Others in attendance: Mary Ellen Dunn, Assistant School Superintendent The meeting was called to order at 7:32 p.m. Minutes. Minutes of meetings held on 1015111, 10/27/11, and 11/9/11 were approved by a vote of 7 -0 -0. Draft minutes of the meeting held on 10/ 19/11 will be edited for review at the next meeting. LPS transportation fees and school bus contracts (Mary Ellen Dunn). Ms. Dunn gave an update. The schools will seek bids for a 5 -year transportation services contract, starting at the end of January, which would restructure the daily pricing for buses. Action by Town Meeting several years ago allows the Town to negotiate longer -term contracts, and the likely entry of new providers into the Massachusetts school- busing market makes the timing for renegotiation favorable. The current cost of the annual contract is about $1.2m. Lexington contracts for buses on a full -day basis, and there are 17 -18 buses per day. Research is being done to determine needs, costs and other options. The Committee discussed full -day vs. half -day bus rental costs, impacts on response time, Lexpress subsidies, inclusion of set fuel costs in contracts, equipment (age and safety) and capitalization, staffing and training, and routes. Reports by staff and members. Remote participation. Mr. Pato and Mr. Parker reported that a new regulation went into effect over the summer allowing towns to adopt a remote participation policy under the Open Meeting Law. Some other communities, including Arlington, have already done so. The Board of Selectmen has been asked to consider adopting a remote participation policy for Lexington. If such a policy is adopted, members would be able to dial in via phone or video conference, but any conversation must be audible to all participants in the meeting. Votes could be taken by roll call as long as there is a chairperson and quorum physically present at the meeting. Tax Rate: Mr. Addelson reported that the Selectmen set the tax rate for FY 12, with a 1.7 CIP factor, which is unchanged from last year. The Committee discussed past tax rates, how the CIP factor affects the allocation of the tax burden between residential and commercial properties, and the impact of the tax rate that was set on residential taxpayers. Net of new growth, the tax bill for a home of average value, $697,000, will increase 2.8 %. December 7, 2011 Bonds: Mr. Addelson reported that the highly favorable current interest rate environment created an opportunity to refinance four bonds that were issued in 2003 for library and school projects with advance refunding bonds. The original bonds were callable in 2013, but advance refunding bonds can be issued in anticipation of the call. Refinancing does not require authorization by Town Meeting. Bids ranged from 1.865% to 1.749 %. A total of $19m in bonds was issued on 12/1 /11 to replace an existing debt obligation of $22m, saving $2.4m in debt service over the life of the bonds. The proceeds of the issuance, including a bond premium of $2.85 million, will be held in escrow until the original bonds are called in 2013. The lion's share of the debt refinanced was excluded debt, so the savings will accrue primarily to taxpayers. Reserve Fund Request: Mr. Addelson requested that the Committee meet briefly before the health benefits executive session on 12/15/11 to consider a Reserve Fund request by the Town Manager. Funds will be requested to secure a vacant home at 80 Oak Street that is unused, uninhabited, and structurally unsound in many places. A Board of Survey inspected the property on 11/4 and recommended that several actions, including boarding up windows and removing a chimney, be taken to protect public safety. The current estimate of the cost is $40k. Mr. Addelson will look into whether the costs can be recovered through a lien on the property. Civil Service. Mr. Bartenstein reported briefly on conversations with the Town Manager and the Human Resources Director, Denise Casey, about the recent decision to engage an assessment center to assist with the selection of a police sergeant, and about the Town's historical and future participation in the state's Civil Service system. Debt exclusion for Estabrook reconstruction projects: The Committee discussed whether and how to take a position on the upcoming debt exclusion referendum since no action has yet been taken by Town Meeting and the matter is likely to come before the 2012 Annual Town Meeting only if the debt exclusion passes. A motion was made and seconded to support the appropriation of funds to replace Estabrook School if voters approve the exclusion of debt service for the project from the usual limitations of Prop. 2 V2 at the Special Election on January 24, 2012. Vote: Approved 7 -0 -0 SUMMARY OF ACTION ITEMS: Tonight's minutes will be reviewed by Ms. Garberg. Mr. Parker will post an agenda for the Reserve Fund request to be discussed on 12/15/11. Adjourn. The meeting was adjourned at 9:59 p.m. Respectfully submitted, Andrea Yepez Recording Secretary Approved February 29, 2012 2 December 7, 2011 Exhibits Town of Lexington Appropriation Committee Meeting December 7, 2011 1. Meeting Agenda, posted by Glenn Parker, Chair.