Dear Friends and Colleagues, 

Continuing my reflections on the 1/3rd of a School Committee member’s responsibilities: What are these budget summits?! 

Terms like Prop 2.5; Level service budget, PIR, AAA rating, debt ceiling, cash capital, building envelope, etc. etc. falling about my ears means we are in financial summit season while the leaves are falling outside. 

Prop 2.5, as it is affectionately called, is the state law that allows a town to increase its tax revenues by that percentage annually. However, our town is able to generate more than just a 2.5% increase because old buildings get rebuilt! Our real estate tax collection rate is almost near perfect, and people continue to want to move in, therefore the value of the real estate base continues to grow. Much like the trees in our backyards which are definitely producing more than any 2.5% increase in leaves annually.

Given Massachusetts’ usual plentiful rain, trees can grow 10-20 inches every year. Similarly given our plentiful demand for housing in town, our funds have grown by a respectable 5+% (in recent years). If we keep our spending+savings increases under control we get a balanced budget and the ability to invest in capital projects!

Imagine four apical committees and staff gathered around long tables (computer screens now). We’re all waiting for the magic number to be unveiled, which is the amount of extra real estate tax to be collected in the coming year vs. the last, and its distribution between Municipal, Schools, and Savings buckets (26% to 74%, after savings are taken out first). 

Every year Ms. Kosnoff (Municipal Finance Dept) gives detailed summaries of the funds available. She explains the context, the framework within which all the various expenses must fit. Just like in years of drought when trees suffer, if revenues decrease or expenses increase beyond our town’s capacity, lean years result. Money does not grow on trees unfortunately!

My best memories of the joint financial summits were when I had Sandro Alessandrini (then School Committee member and now TMM precinct 4) on one elbow and Mr. Kanter (Capital Expenditure Committee member and TMM precinct 7) on the other. A quick whispered question or scribbled note would get me answers as the acronyms flew all around. It’s a little lonely without the benefit of a quiet consultation. I even miss the Select Board Chair shushing us when we got too noisy.

For those who want to experience the online financial summits join us in January! The leaves will be gone, but the cycle continues. 

Best

Deepika Sawhney

(Vice Chair of School Committee till March 2025, Precinct 6 Town Meeting Member)

Resources:

Most recent financial summit in Lexington: https://drive.google.com/file/d/19HvTk4-h3O93xbscKd8fu3NHGimVizXA/view?usp=sharing

Evidence of our AAA bond rating, Yay! https://www.lexingtonma.gov/DocumentCenter/View/10977/Moodys-Credit-Official-Statement-2024?bidId=

Comparison of Lexington with other towns: https://dlsgateway.dor.state.ma.us/reports/rdPage.aspx?rdReport=Community_Comparison_Report&rdRequestForwarding=Form.

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