Capital Programming

In case you missed it, the Winchester Select Board Budget Summit 1-5-24 is now available for viewing on demand at WinCam.

https://wincam.org/programs/ondemand/

On the agenda for tonight's Mon, Jan 8 Select Board meeting -- Public session begins at 7:30 pm broadcast on WinCAM (Comcast 9, Verizon 37). Full agenda is here: https://www.winchester.us/AgendaCenter/ViewFile/Agenda/_01082024-5330

Here is a link to the video recording.

https://www.youtube.com/watch?v=wKVV6MwRthw

Town Manager's Report 1:05 to 4:50

2024 Election Update 6:00 to 16:40

ARPA Update 16:40 to 1:10:40

(includes lengthy discussion of the heating system in the Mystic School)

Capital Planning Update 1:10:40 to 1:35:00

FY25 Budget 1:35:00

Waterfield Lot

Washington / Swanton Streets

CPA Working Group Update

The Town Manager's FY25 - FY29 Capital Improvement Program is available here https://www.winchester.us/AgendaCenter/ViewFile/Item/4691?fileID=14290

and will be discussed by the Select Board at their 1/22/24 meeting under Business Item #8.

https://winchester.us/AgendaCenter/ViewFile/Agenda/_01222024-5356?html=true

G. BUSINESS

1. Committees & Commissions Appointments/Reappointments
   1. Board of Appeals – 1 Alternate Position, 1 New Applicant - William McGonigle – Appoint, term to expire March 31, 2024
   2. Capital Planning Committee – 1 Position, 1 Incumbent - Roger McPhee – Reappoint, term to expire January 1, 2027
   3. Cultural Council – 1 Position, 1 New Applicant - Sarah Colella – Interview/Appoint, term to expire July 31, 2026
2. Volleyball Courts Fundraising Request
3. Field Management Committee Recommendation
4. FY25 Budget Discussion 
5. Capital Planning Discussion
6. ARPA Discussion
7. Spring Town Meeting Warrant Articles 
8. CPA Working Group Update

"We don't have a planning problem. We have a funding problem." Town Manager Beth Rudolph

This is the crux of the problem. More plans won't magically create more money. The CPA is the first step in starting to bridge the funding gap.

https://youtu.be/ocVWja4RtjU?si=Ky_BGklZDu2jcm31

Last night's FinCom meeting had an excellent analysis by John Miller. If the Stabilization Funds were to be funded at the same levels they were designed to be funded at in 2001 when they were formed, based on a percentage of current assets in town, we would need an additional $11M annually. Put simply, there's your problem. Identifying a problem is the first step in finding a solution. But, however it is done, an additional $11M annually won't be easy.

Thanks Brian and Rich. Very interesting information! I remember the override (I believe in of March 2002) that created the Building stabilization fund ($1.8 million) and the Capital stabilization fund ($800,000). That override also included a general override for operating expenses ($1.9 million, if my files are correct.) The FACTS (Financial Advisory Committee to the Selectmen) committee of 2000 (a one-time appointed advisory committee I served on along with John Miller) had pointed out the inadequate inventory/tracking of capital and funding for maintenance of capital infrastructure (a common issue for most MA cities/towns). I think it was pretty innovative of the town Selectmen at the time to file a home rule petition to establish the two stabilization funds to provide an ongoing dedicated source of revenue restricted for the two capital funds. It isn't surprising that the amount of funding going to those to funds hasn't kept up with inflation and might need a reset. I thought the building fund was intended for major capital repairs/maintenance (ie roofs, HVAC, windows, etc ) versus full building renovations, but I must be recalling that incorrectly.

Updating those funds could be an interesting approach to solving the capital planning challenges by dedicating an adequate revenue source for ongoing capital equipment and building maintenance/renovation. How this would work with CPA would be an interesting question, but hopefully not insurmountable. Should be an interesting discussion tonight.

Reporting from the Winchester News.

https://winchesternews.org/select-board-mulls-use-for-960k-in-overlay-fund-gym-floor-on-list/?utm_medium=email&utm_campaign=Winchester%20News%20%20Should%20960000%20be%20spent%20to%20renovate%20the%20high%20school%20gym&utm_content=Winchester%20News%20%20Should%20960000%20be%20spent%20to%20renovate%20the%20high%20school%20gym+CID_91b8af4d36012e5859fcdaa4e6ad70e1&utm_source=WN%20analytics%20for%20website&utm_term=Read%20more

As reported to 2023 Fall Town Meeting, the Finance Committee has been working on approaches to improve the Town’s long-term financial outlook with respect to funding mechanisms and funding levels for:

• maintenance, repair, and replacement of existing buildings, and
• replacement of major items of existing equipment.

Over the Fall and Winter, FinCom has been conducting that work in open sessions on Win Cam, in noticed public meetings (reported in our meeting minutes). Finance Committee has placed Article 28 on the 2024 Spring Town Meeting that relates to this work (included below).

 The Finance Committee will conduct a live informational session on Tuesday April 9 for a substantive discussion of Article 28. This is an Information session of the Finance Committee. A quorum of the Finance Committee will not be present. Fin Com business will NOT be transacted.

Date:                   April 9, 2024

Where:               WinCam Studio, 32 Swanton St

Time:                  5:30 – 6:30 pm

The session will be live on WinCam (and available for subsequent viewing on WinCam OnDemand link).

 MOTION:

MOVED AND SECONDED that the Town direct the Finance Committee, in consultation and cooperation with the Select Board and Capital Planning Committee, to present Fall 2024 Town Meeting with recommended purposes and funding levels for the Building Stabilization Fund and the Capital Stabilization Fund.

(Finance Committee)

BACKGROUND: 

This article serves to direct the Finance Committee, Select Board, and Capital Planning Committee to review practices related to the Town’s Capital Assets, one of the most financially significant set of practices in the Town of Winchester. The administration of capital assets is a complex topic, and, as we are all aware, faces formidable challenges in the years to come.

The goal of this article is to initiate a review of and potential redefinition of purposes and funding levels of the Building Stabilization Fund (“BSF”) and the Capital Stabilization Fund (“CSF”) in an effort to regain a stable footing for future management of the Town’s Capital Assets.

In case anyone is looking for more background (and more reading material!) about what a municipal stabilization fund is and can do, the Mass. Division of Local Services (DLS) has some: https://www.mass.gov/doc/special-purpose-stabilization-funds/download and https://www.mass.gov/files/documents/2017/09/11/igr17-20.pdf

Winchester's building and capital stabilization funds were established prior to significant changes made to the laws in 2018.

Susan, this is an interesting link - thanks for sharing (I actually read it!!). The conversation that FinCom has been having about our stabilization funds is a good one. IMO, it was innovative of the town to establish these funds and it makes sense to analyze whether we should update them.

I followed the link to the state law to better understand how the revenue collection works in successive years after a stabilization fund override passes. https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter59/Section21c. HERE's an extract:

Any question submitted to the voters shall be worded as follows:— 

''Shall the (city/town) of ___ be allowed to assess an additional $___ in real estate and personal property taxes for the purposes of (state the purpose(s) for which the monies from this assessment will be used) for the fiscal year beginning July first, nineteen hundred and ___? 

YES <\/ul> NO <\/ul>'' 

Said question shall be deemed approved if a majority of the persons voting thereon shall vote ''yes''. 

If a question as aforesaid shall provide for assessing taxes for the purpose of funding a stabilization fund established pursuant to section 5B of chapter 40, the assessors shall in each successive fiscal year assess property taxes for the same purpose in an amount equal to 102.5 per cent of the amount assessed in the next preceding year in which additional taxes were assessed for such purpose, but only if the local appropriating authority votes by a 2/3 vote to appropriate such increased amount in such year for such purpose. The voters of the city or town, by majority vote at a referendum, may alter the purpose of a stabilization fund or authorize the assessment of such additional property taxes for another purpose. In any year in which the local appropriating authority does not vote to appropriate such amount as aforesaid, the total property tax levy for such year shall be reduced by the amount that could otherwise have been assessed, so that such additional taxes may not be assessed for any other purpose. The maximum levy limit under paragraph (f) shall not be affected by any such reduction in the levy for such year.