Financial section and warrant for the annual town meeting

2013·4.6 MB·English

by  Town of Lincoln

LINCOLNPUBLICLIBRARY,MASS.
3 4864 00275 4652
FINANCIAL SECTION AND WARRANT
FOR THE
ANNUAL TOWN MEETING
2013
LINCOLN, MASSACHUSETTS
SATURDAY, MARCH 23, 2013
AM
9:30
BROOKS SCHOOL AUDITORIUM
HandoutsforDistribution atTown Meeting
In order to ensure that the voters are given clear information as to the source of
each handout provided at Town Meeting, the Moderator has established new
conditions underwhich handoutswill be allowed onthe auditorium table:
1. Any partywishingto create a handoutforthetable must notifytheTown
Administrator's office priorto Noon on Wed March 20th
.
2. Onlythose documentswhich deal directlywith town meeting businesswill
be allowed onthe auditoriumtable.
3. All documentsto be placed onthe auditoriumtable mustclearlyidentify
thesourceofthe document (committee/special interestgroup/person) on
thefrontsheet.
4. Anydocuments not dealingwithtown meeting businessorwhich do not
clearlystatethe sourcewill be removed and placed on atable outsideof
the auditorium.
ToallLincolnRegisteredVoters,
This booklet contains materials related to the Annual Town Meeting to be held at 9:30 on Saturday,
March 23, 2013. We hope they will enlighten you and encourage you to attend and participate in
TownMeeting. Weespeciallyurgeandwelcomenewresidentstocomeandtakepartinthelegislative
process oftown government, where registered voters who attend and vote determine the policies and
prioritiesoftheTownofLincolnwhichwillaffectourfuture.
PLEASE ARRIVE EARLY SO YOU CAN SIGN IN AND GET SEATED. IT IS ALWAYS THE
HOPETHATWECANSTARTONTIME.
There are FIVE PARTSto this booklet. First, the FINANCE COMMITTEE REPORT explaining
the preparation ofthe Town's operating budget. Second, the PROPOSED BUDGET for the fiscal
yearbeginningonJuly 1, 2013. Third, anoutline ofcertainrelevant PROCEDURES forthe conduct
ofTownMeeting. Fourth,theWARRANT fortheMeetingwhichliststheArticlestobepresentedat
themeetingforconsiderationandactionbytheregisteredvoterspresent. AndFifth,aGLOSSARYof
commontermsusedinthediscussionofthebudget.
The Annual Town Meeting is a significant event in the life ofthe Town - both in the conduct of
business and also as an enjoyable community gathering where we can meet and greet our neighbors.
While attendance at afirst Town Meeting may seem intimidating, the process is direct democracy in
actionandeveryoneisencouragedtoparticipate. Thisisanopportunitytoaskquestions,learntoknow
fellowcitizensaswell astownvolunteersandstaffandtoparticipate inthe importantdecisionsofthe
Town.
Pleasenote alsothatduringthebreak inthemiddle ofthe day BOXED LUNCHES willbe available
intheBrooksGym/ReedFieldHousenextdoortotheBrooksSchool/DonaldsonAuditorium.
Also during the lunch break please take time to enjoy our SECOND ANNUAL VOLUNTEER
FAIR. RepresentativesofTownBoardsandCommitteesandLincolnClubsandOrganizationswillbe
availabletotalkwithanyone interestedinlearningmore aboutthemandinfindingwaystovolunteer.
Thisiseveryone'sopportunitytoengagemorefullyinthemanagementandenjoymentofLincoln.
WelookforwardtothisannualgatheringonMarch23th.
SarahCannonHolden,Moderator
Digitized by the Internet Archive
2013
in
http://archive.org/details/financialsection2013town
REPORT
ofthe
FINANCE COMMITTEE
ofthe
TOWN OF LINCOLN
forthe
FISCAL YEAR
JULY 1, 2013 - JUNE 30, 2014
LINCOLNFINANCECOMMITTEE
JeffBirchby
KarlGeiger
EricHarris
SanjKharbanda
PeytonJ.Marshall,ViceChair
LauraSander,Chair
EllenMeyerShorb
TableofContents
1. Introduction 1
2. Overview 1
3. Revenues 3
4. OperatingExpenditures 5
5. CapitalExpenditures 7
6. CommunityPreservationAct 9
7. GovernmentalAccountingStandardsBoardStatementNo.45 (GASB45) 12
8. PropertyTax 13
9. LookingForward 13
10. Departmental Budgets
GeneralGovernment 14
PublicSafety 16
Education:
LincolnPublic Schools 21
Lincoln-SudburyRegionalHighSchool 28
MinutemanCareerandTechnicalHighSchool 37
PublicWorksandFacilities 39
HumanServices 41
Recreation,Conservation.CelebrationsandPierceHouse 42
Library 44
DebtService 48
Pensions&Insurance 49
WaterDepartment 51
11. Appendix
Table 1: FiscalDetail FY'12-FY '14 53
12. AnOutlineofTownMeetingProcedures 59
13. WarrantArticles 62
14. Glossary 77

1.Introduction
TheFinanceCommitteeischargedwithadvisingandmakingrecommendationstoTown
Meetingonthebudget,capitalprojectsandotherareasoffinance,andadministeringtheTown's
ReserveFund.Thecommitteeseekstodevelopanoverallbudgetthatisfiscallyprudent,that
reflectstheTown'svalues,andthatmeetstheneedsofresidents. Italsoseekstoobtainbroad
publicunderstandingandsupportforthebudgetthatitrecommendsatTownMeeting.
InthisannualreportwedescribetheFY '14budgetanditscomponentparts,including
supportingdetail,andoutlineissuesfacingtheTownthatunderlieourbudgetrecommendations.
Buildingthebudgetisacollaborativeendeavor,andtheFinanceCommitteeworkscloselywith
manyboardsandcommittees.Amongmanyothers,wethankLincolnTownAdministratorTim
Higgins,FinanceDirector&TownAccountantColleenWilkins.AssistantTownAdministrator
AnitaScheipers,LincolnPublic SchoolsAdministratorforBusinessandFinanceBuckCreel,
andLincoln-SudburyRegionalHighSchoolBusinessManagerMichaelConnelly.
Withthisyear'sreport,theFinanceCommitteeisincludinganewsectiontoprovidegreater
contexttotheannualbudget. This"AnnualReportInitiative"isintendedtoincrease
transparencyforLincolncitizensabouthowthebudgetedexpendituresareputtouse. Town
agenciesanddepartmentshavebeenaskedtoreviewtheirfunctionsandreportonwhatis
workingandwhatcouldbechanged. Wealsoinvitedthemtopresentthechallengesand
opportunitiestheyseeforthefuture. Inaddition,theywererequestedtobenchmarktheircosts
andperformanceagainstpeersinothercommunities. Participantsinthisinauguraleffortarethe
PoliceDepartment,theLincolnPublic Schools,Lincoln-SudburyRegionalHighSchool,andthe
Library. Additionalagenciesanddepartmentswilljoinintheeffortinsubsequentyears.
ExecutivesummariesoftheAnnualReportsareincludedintherespectiveagencyordepartment
sectionbelow. ThefullversionoftheAnnualReportscanbefoundontheFinanceCommittee
pageoftheTownwebsiteathttp://www.lincolntown.org/depts/fincom.htm.
2.Overview
ForFY'14,theFinanceCommitteeisrecommendingabasebudgetof$33,091,002. Forthe
sixthyearinarow,theoperatingbudgetcanbefundedwithoutanoverride.TheTowncontinues
tobenefitfromthestrongfinancialpositionthatitestablishedbeforethenationaleconomic
crisis,additionaltaxrevenuesgeneratedbyTheGrovesatLincolndevelopment,strong
cooperationfromtownemployeesincontractnegotiations,changesinhealthinsuranceproviders
andplandesignchanges,andreductionindebtserviceforthehighschool. Inkeepingwiththe
slowrecoveryfromtheeconomiccrisis,theFinanceCommitteeestablishedamodestbudget
increaseguideline. ThebudgetforFY'14containsminimalincreasesinTownexpenditures
abovethatguidelineforonlytargetedfunctions.
ForFY'14,thepropertytaxesonthemedianvaluehouse(assessedvalueof$796,900)will
increasebyabout$542(4.8%)withtheproposedbudget. Thisincreaseincludesthe2.8%
increaseintheoperatingbudget($317)anda2.0%increaseinthedebtportionofthebudget
($225). AfterapplicationofCPAfundstothepaymentoftheTownHalldebtpayment(Warrant
Article 15),theincreaseinpropertytaxesonthemedianhousewillbe$391 (3.4%).
About0.4%oftheincreaseintaxrevenuewillcomefromnewconstruction,andthisrevenueis
raisedfromspecificpropertyowners. Asaresult,thesesummarystatisticsresultinaslight
overstatementofthefinancialimpactoftheFY '14budgetonmosttaxpayers.
TheTownbudgetisbasedonprojectionsandassumptionswhichreflectlocalneedsand
availablefundsinthecontextoftheeconomicandpoliticalconditionsoftheCommonwealthand
theUnitedStates.Thebudgetisheavilydependentonrealestatetaxes(thetaxlevyandexcluded
debt). InFY'01,realestatetaxes(taxlevyplusexcludeddebt)accountedfor68%ofrevenue.In
FY'14,realestatetaxesareprojectedtoaccountforabout77%ofrevenue. TheTownhasa
smallnumberofcommercialpropertiesandrelativelyfewopportunitiestoincreaselocal
revenues.AlthoughtheFY'14statebudgetisnotyetknown,theFY'14budgetisbuiltonan
assumptionthatstateaidwillremainequaltotheFY'13 amountof$1,497,866.
TheFinanceCommitteebuildsthebudgetbyreviewingavailablefundsandrevenueprojections
andsettingasidefundsforfixedcosts,suchaspensions,insuranceanddebtservice.This
process,whichthecommitteecallsa"fundsavailableanalysis,"resultsinabudgetguidelinefor
thebasebudget.Lastfall,thecommitteesetthebasebudgetguidelineat2.5%,basedon
preliminary(un-certified)resultsofFY'12andassumptionsthatwereconsideredreasonableat
thattime.
Asthenationalandstateeconomicsituationcontinuestoimprovesomewhatfitfully,theFinance
Committeehassupportedminorrequeststoincreasedepartmentalbudgetsbeyondtheinitial
guideline. Webelievetheadditionalrequestsincludedintheproposedbudgetarewarrantedto
addressrecognizeddemandforgreaterservicesorwillallowdepartmentstooperatemore
efficientlyandresultinlesspressureonfutureexpenses.
Inadditiontotheoperatingbudget(WarrantArticle8)andcapitalbudget(WarrantArticle9),
TownMeetingwillconsidermaintenancearticlesandotherappropriations(WarrantArticles 12,
13& 14). AlsobeforeTownMeetingisaproposednewborrowingandassociateddebt
exclusionforafiresuppressionsystemattheLibrary(WarrantArticle 11). TheFinance
CommitteeisalsorecommendingwithdrawaloffundsfromtheDebtStabilizationFundtopay
foranarchitecturalandengineeringdesignstudyfortheLincolnSchoolsfacilities(Warrant
Article 10). WeexpecttheDebtStabilizationFundbalancewouldbereplenishedbyother
sourcesinFY'14(WarrantArticle 16). TheFinanceCommitteetakestheseotherappropriations
intoaccountwhendeterminingthefundsavailablefortheoperatingandcapitalbudgets.
TheFinanceCommitteeplacesahighpriorityonmaintainingadequateEmergencyReserves.
EmergencyReservesallowunforeseenchangesinrevenuesorneededexpenditurestobe
addressedwithoutunduedisruptionofongoingactivities.Thecommittee'sgoalistosetasidean
amountequalto3to5%oftheprioryear'sGeneralFundbudgetasEmergencyReserves(the
GeneralFundbudgetistheTownoperatingbudgetlessthetotalfortheWaterEnterpriseFundas
showninTable 1).TheFinanceCommitteedefinesEmergencyReservesasunspentcertified
FreeCash,plusnomorethanhalfoftheReserveFund,andthefullamountofanyStabilization
Funds. Itisdesirablethatthe3%minimumEmergencyReservebesetasideentirelyfrom
unspentcertifiedFreeCash.