Lincoln Finance Committee State of the Town Meeting October 20, - - PowerPoint PPT Presentation

Lincoln Finance Committee

State of the Town Meeting

October 20, 2018

Town of Lincoln Finance Committee

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School Building Related FinComm + Town Actions Since June

▪ Drafted written management policies to boost that sub-score in S&P credit rating

▪ Budget oversight, Debt Mgt, Emergency Reserves, Financial Forecasting, Fraud, and Post Issuance Compliance

▪ Attended SBC meetings and followed proceedings ▪ Developed a review plan based on relevant parts of MSBA process ▪ Creating a tentative financing plan and schedule ▪ Investigating new Senior Means Tested Tax Exemption Program

Town of Lincoln Finance Committee

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School Building Financing Issues

▪ Looking at ALL available funding sources

▪ Likely: bonding, Stabilization Fund, and Free Cash ▪ Investigating: Solar incentives, CPA, Chap 90, cable fees, Complete Streets,

• ther state funding

▪ Endorsed 3rd party “PPA” approach for solar install rather than purchasing directly ▪ Working on borrowing schedule proposal

▪ Use Stabilization for lowering amount of borrowing and/or smoothing tax bill increases ▪ Interest rate risk concerns probably argue for “front loading” the borrowing

500,000 $ 750,000 $ 997,500 $ 1,250,000 $ 1,500,000 $ 2,000,000 $ Percentage 93,900,000 $ 4% 1,276 $ 1,915 $ 2,546 $ 3,191 $ 3,829 $ 5,105 $ 18.8% 93,900,000 $ 5% 1,435 $ 2,153 $ 2,864 $ 3,589 $ 4,306 $ 5,742 $ 21.1% Median Taxpayer: 2018 Tax Bill of $13,566

Annual Residential Tax Bill Increase for L3 Building Concept

Using FY2018 Valuations and Excluding Stabilization Borrowing Amount Interest Rate Property Value

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Note: This “level debt” approach adds the same fixed amount to your tax bill every year of the 30 year term.

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

Debt Service as % of Operating Budget

Borrow $93.9mil in 2019 and $20.4mil in 2024, Excluding Stabilization

Case 1: 30 year, 4.0% interest rate Case 2: 30 year, 5.0% interest rate

Increase due to Community Center

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4-15% Agency Range

Increase due to School Building

Backup slides

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$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2019 2020 2021 2022 2023 2024 2025 2026 2027

Fiscal Year

Estimated Room Available Under 5% Debt Limit

Assuming 2% EQV Annual Growth and Excluding Stabilization

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Town should have $14.7m available at March 2019 Town Meeting even if we bond entire $93.9mil School Building cost $16m Community Center Cost w/ 5% escalation Room available if $93.9m authorized in FY19 Community Center should fit under Debt Limit by 2023 completion of School

Projected Capital Expenditures 2020-2030

• Focus on items other than school building and community center
• Possible large debt exclusions:

○ FY20 Hartwell roof design+repair ~$659,000 ○ TBD Property acquisitions for conservation

• Smaller possible capital or debt exclusions:

○ FY21 LS roof ~$300,000 (Lincoln portion) ○ FY23 Replace fire engine 1 ~$575,000 ○ FY24+ DPW roof repair ~$250,000 ○ TBD Brooks athletic field renovation ~$400,000

0% 2% 4% 6% 8% 10% 12% 14% 16%

Debt Service as Percent of General Fund Budget

2006: Fire Truck Bemis Renovation 2011: Road Improvements Ambulance 2012: Town Office Renovation 2015: Library Fire Suppression

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1989: Flints Fields Landfill Closure 1996: Public Safety Building School Building 1988: Library Renovation