Capital Expenditures Committee Town of Lexington Report to the

Capital Expenditures Committee Town of Lexington Report to the 2004 Annual Town Meeting April 26, 2004 Cash Capital Policy • Sets aside 5% of revenue after Enterprise funds taken out • Subtract tax levy debt service (Principal + Interest) • Cash that is left should be used to pay for capital items in that Fiscal Year CEC Report to 2004 Annual Town Meeting 2 Cash Capital FY05 • From page IV-5 of Budget Book 5% of General Fund Policy Debt Service Short-Term Debt Available Cash Capital 4,806,314 (4,041,446) (275,000) 489,868 • $489,868 available for cash capital CEC Report to 2004 Annual Town Meeting 3 Cash Capital FY05 • Free cash and stabilization fund low • Town’s Aaa rating has negative outlook • Allowable cash capital incorporated into stabilization fund • All capital projects funded using BAN’s CEC Report to 2004 Annual Town Meeting 4 Cash Capital FY05 • FY04: we paid $3,253,000 in principal • FY05: we will pay $3,701,000 in principal • FY05: we will borrow $2,530,000 for capital projects (net reduction of $1,171,000 in debt) CEC Report to 2004 Annual Town Meeting 5 FY04 in Review Finished restoration of secondary schools In the process of building two new elementary schools Brought our streets to acceptable standards (ongoing) Completed Lincoln Field project New library opened Water, Sewer, Recreation (Enterprise) continue to function normally • Cary Hall restoration (ongoing) • • • • • • CEC Report to 2004 Annual Town Meeting 6 Taxpayer Impact of Excluded Debt 600 Permanent Bonding 500 400 $ per Average Household 300 Issue Harrington Fiske Sec. Schools Roads Lincoln Park SBA Reimbursement (est.) Start(FY) 04,05 06 03,04,07 04-07 04 07 End(FY) 14,23 25 23,26 08-11 18 30 200 100 0 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (100) Fiscal Year (200) CEC Report to 2004 Annual Town Meeting 7 Town Capital Assets • Municipal – 17 buildings – 220,396 sq. ft. – replacement value $36,359,399 • DPW – 160 pieces of equipment – 15 years average life – $5,580,275 replacement value • Schools – 11 buildings – 1,077,199 sq. ft. – replacement value $223,122,142 • Fire equipment – 17 units (8 major pieces) – 6 to 18 years age – $2,600,000 replacement value • Roads – 139 miles of streets • Water & Sewer: $72,321,446 replacement value • Recreation – Assets included in municipal figures – $19,000,000 invested in golf course, Lincoln Park, pools – 11 miles of bikeway 8 • Conservation – 1300 acres – $3,800,000 cost to town CEC Report to 2004 Annual Town Meeting Maintenance • General maintenance is in operating budget • When maintenance exceeds $25,000 it becomes a capital expense (building envelope) – Boilers, windows, HVAC, electrical, roofs – School restoration – Very large capital items have traditionally been funded through debt exclusions • Streets – Chapter 90 money ($460K this year) – Tax levy funding (borrowed and cash) – Major restoration from 2002 debt exclusion CEC Report to 2004 Annual Town Meeting 9 Outstanding Major Issues • • • • • Remaining elementary schools White House DPW Barn East Lexington Library Munroe Arts CEC Report to 2004 Annual Town Meeting 10 Elementary Schools • Estabrook – Significant issues including roof and asbestos • Bowman, Bridge, Hastings – Have been maintained well – Need evaluation by the School Committee • Maintenance • Restoration • Rebuilding • Future SBA policy will be a factor CEC Report to 2004 Annual Town Meeting 11 School Administration Building a/k/a the “White House” • Simply stated: a “disaster” – Floors failing (people and copiers at risk) – Siding failing (won’t hold paint) • ADA access a serious issue • Under review HDC • $25,000 proposed for professional review – Determine options available to restore CEC Report to 2004 Annual Town Meeting 12 CEC Report to 2004 Annual Town Meeting 13 CEC Report to 2004 Annual Town Meeting 14 CEC Report to 2004 Annual Town Meeting 15 DPW Facility • Existing barn extremely crowded and inefficient – Poor ventilation, lighting – Employees regularly breathe diesel exhaust • Remodel 201 Bedford St. or move to Hartwell Ave. • $3.5 - $12.0 Million • $30,000 study proposed by CEC CEC Report to 2004 Annual Town Meeting 16 East Lexington Library • Also under HDC review • Floor load capacity not sufficient for use • Library trustees need to identify future needs and use • ADA access CEC Report to 2004 Annual Town Meeting 17 Munroe Arts • Not on anyone’s radar • Minimal maintenance by the Arts Council • Need to review present arrangement CEC Report to 2004 Annual Town Meeting 18 Summary • CEC is developing a comprehensive list of assets with a projected maintenance schedule – Roofs, HVAC, electrical, windows • Anticipate completion for next Town Meeting • CEC looks forward to working with – – – – School Committee Municipal Departments (DPW, etc.) Selectmen’s Building Finance Advisory Committee Permanent Building Committee 19 CEC Report to 2004 Annual Town Meeting Summary • We have an obligation to maintain our capital assets • Any new assets require a matching operating budget • If we can’t maintain an asset, then we shouldn’t own it CEC Report to 2004 Annual Town Meeting 20