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HomeMy WebLinkAbout2008-09-26 Finance Committee Minutes Town of Reading 16 Lowell Street Reading, MA 01867-2685 ASSISTANT TOWN MANAGER/FINANCE DIRECTOR (781) 942-6636 FAX: (781) 942-9037 Email: blelacheur@ci.reading.ma.us To: Finance Committee Date: September 26, 2008 Enclosed please find a DRAFT COPY of the revised FY09-FY19 Capital Plan, as well as the revised DRAFT requested COPY of the Debt Schedule. This Capital Plan reflects the capital from all of the various departments in Town. Many – but not all – new items are shown in red in this plan. When compared to the Capital Plan from April 2008 Town Meeting, there are over $9 million more in total requests – including the addition of the year FY19 into the CIP. Annually, here are the changes in requests since the April CIP: FY09 + $ 141,800 FY10 + $ 218,200 FY11 + $ 847,000 FY12 + $ 661,200 FY13 + $1,596,400 FY14 - $ 50,443 FY15 + $ 456,981 FY16 + $ 792,766 FY17 - $ 103,195 FY18 + $3,033,793 FY19 + $2,073,200 (since all requests are ‘new’ to the CIP) The April 2008 CIP showed an FY17 equilibrium – which is to say that by then, the 5% funding mechanism that FINCOM has designed showed a cumulative surplus in that year. This revised list of requests shows a $1.7 million cumulative deficit even after FY19. This enclosed document is NOT a plan that is approved by the Town Manager (although he has reviewed it). The final draft of the new CIP will rearrange, re-prioritize and exclude specific requests such that at the very least the previous FY17 equilibrium point is achieved. For now, we thought it would be helpful for all Boards, Committees and Commissions in Town to see a complete list of capital requests. To be clear, while these items have a wide range of priority in the community, none of them are considered frivolous. In fact, this CIP does not address several things that are being widely discussed in the Town, including Library renovations, facilities for all-day kindergarten, downtown parking garage(s), Community Center, land acquisitions, and improvements to the Northern Area Greenway. This DRAFT COPY presents all school & facilities capital as it was shown to the School Committee on Monday. Revisions may be forthcoming. Thus this draft shows many energy improvements (shaded by light green) that may be pulled out in the event that performance contracting is considered. This version also presumes a pay-as-you go approach to our share of annual road improvements. One change to that you will see is annual increases well in excess of the previous 2.5% per year amount (which was promised during the last over-ride). There is an Article on for November Town Meeting that requests permission to borrow five- year’s worth of this local share up front in order to do all the work starting next spring. If passed, this capital plan and the debt schedule would both change. Please let me know if you need printed copies for your meeting next week, and I will bring some along.