9/17/2013 COMMUNITY PRESERVATION ACT COMMITTEE Minutes

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3 Community Preservation Cottee Minutes September 17,201 3 APPOINTMENTS & HEARINGS: Town Accountant—CPC Finances: Members of the Community Preservation Committee met with Dawn Thayer,the Town Accountant for the purpose of revie m" g CPC finances pertaining to the Town's debt obligation for prior Land Bank purchases Inside 2 1 through 2020 and ensurng years. The general obligation debt of the CPA from the former Land Bank is fended by the 3%real estate tax surcharge which includes the state trust fund distribution minus the 10%revenues appropriated and reserved in the Open Space/Recreation, Historic and Community Housing Reserves. Appropriations from the 10% special reserves are restricted to those purposes only. 1f the surcharge were to be revoked by the Town in the year Zoo, all existing obligations, including future debt service and revenue shortfalls must be identified and funded by the existing Conuunity Preservation fund. In the event of insufficient CPA funds,the %real estate tax surcharge would be required to continue until adequate monies are appropriated to cover the debt obligation until 2026. By law, a CPA comnmunity.cannot opt out of co,r i iuhity preservation funding until the debt obligation is met. And further,the debt obligation cannot be paid in advance of the year 2026. However, funding can be encumbered for the debt service payments. In reviewing the debt obligation, it is estimated that$7,000,000 's required to fund the Land Bark debt until its finality in the year 2026. Approximately$2,1 Oopo is obligated to be funded from 2020 through 2026. Discussion followed with respect to encurnbering funds to cover the debt pAyments after the year 2020. It was noted that after the year 2020, it is permissible for a CPA community to reduce the %surcharge if it is so detennined. The benefits of Community Preservation funding and the projects that have greatly assisted the Town and the community were identified. To enure the Town of ll lashpee has sufficient funding for the debt obligation by 2020,the CPC Cornniittee agreed to encumber funding by continuing their course to wisely -reviewroJ proposed ro osed for CPA funding. It was noted that for the past year, p severs worthwhileprojects have been submitted by the Torn of Iashpee for funding. As a result,the CPA has contributed a considerable amount of finding t the May 2013 Town Meeting, and the voters will act on several key projects proposed for October 2013 Town Meeting approval.