You make a lot of good points Sara !

On Tue, Oct 25, 2022 at 5:10 PM Sara Mattes <[email protected]> wrote:

> Simple question-why would we approve the $325,000 to *finalize designs* if
> we questioned the financial wisdom of the final investment of $25 million?
> Regards,
> Sara Mattes
> ------
> Sara Mattes
>
>
>
>
> On Oct 25, 2022, at 2:17 PM, Seth Rosen <[email protected]> wrote:
>
> Friends and Neighbors -
>
> I've recently become more informed on this particular issue, and share a
> lot of the concerns articulated below.  The below information was compiled
> by a group of very diligent and thoughtful neighbors whose opinions I
> respect. I volunteered to send it along to LincolnTalk.
>
> *If you have feelings on this issue, and are concerned about a potential
> ~9% property tax increase to fund it, please make your voice heard on
> November 30th.  *
>
> *The Background*
>
> In May of 2022, a proposal was approved at Town Meeting to establish a
> Committee to explore the construction of a Community Center. The major goal
> for the Community Center is to house the Council on Aging, in other words,
> to operate as a senior center. At that time, the cost of this Community
> Center was estimated at $25MM. This cost would be paid from our property
> taxes.
>
> On November 14th the Committee will provide more details on the two
> designs presented in May and ask residents to approve $325,000 to hire an
> architect to finalize both designs and put them to a vote at the Special
> Town Meeting on November 30th.
>
> While we want to provide seniors with a facility that meets their needs,
> we believe the two very similar designs envisioned by the Committee are not
> the right path forward. The details are spelled out below, but basically:
>
> -       They are too expensive, out of proportion to our needs and means.
> Your property taxes will go up thousands of dollars a year, forever, making
> our town even more unaffordable for many residents.
>
> -       Town’s finances are already stretched after the completion of the
> school building and will be further compromised by unavoidable incremental
> expenses and capital investments.
>
> -       There are better and cheaper ways to achieve the same goals. They
> should be investigated before moving ahead with a final design.
>
> What can you do? First, learn more about this. *There is low awareness of
> this project and its consequences*, but in our experience when folks are
> debriefed on the matter, most agree with our take. Read below for more
> detailed information about the costs and alternatives, and please do not
> hesitate to get in touch if you have questions (email
> [email protected]). Second, come to the Special Town Meeting
> in the Donaldson Auditorium on November 30th at 7:30pm, and vote against
> the proposal to spend another $325,000 to fund additional work on this
> design.
>
> The current proposal is disproportionate to our needs and would make our
> town even more unaffordable for young families and retired seniors. Our
> estimate is that the construction and manning of the Center would increase
> the average property tax bill by $1,700. We can both provide our seniors
> the services they need, and avoid financial hardship in our community.
>
> *Its financial impact has been materially understated*
>
> The preliminary financial impact presented at Town Meeting in May is not
> an accurate representation of the financial burden the Community Center
> will impose on our town:
>
> ·       The 3% interest rate discussed at the time would be over 4%
> today. This alone would increase the debt service cost by 20%.
> ·       The alternatives presented last year ranged between $23MM and
> $25.4MM. We can use $25MM to calculate the debt service. Using the updated
> interest rate, annual debt service would be ~$1.5MM.
> ·       We do not want to get bogged down on this debate, but we would
> just note that the inflation expectations used at the time are looking very
> optimistic. The cost estimate increased an average 10% every year between
> the initial estimate of 2018 and the update in 2021, but are only projected
> to grow 3.5% per year over the next four despite a much higher overall
> inflation background.
>
> ·       There was no estimation of the operating budget of this new
> facility. A good rule of thumb for a public building is to assume 2% annual
> maintenance ($500,000), on top of that we assume $100,000 in utilities
> expense, 0.5% insurance cost ($150,000), perhaps an additional $300,000 for
> 3-4 FTEs (janitors and personnel for new services provided) and another
> $50,000 in sundry expenses like new capital equipment and consumables. This
> would represent a cost increase of ~$1.1MM per year, growing at the rate of
> inflation.
>
> A $2.6MM annual expense would represent an increase of approximately 9%
> versus the FY22 tax levy, $1,700 in incremental property tax for the
> average property owner. This is simply unacceptable at a time in our town
> when we are discussing options of how to reduce the financial burden for
> seniors living on a fixed income. Lincoln families already pay the
> third-highest property tax bills in Massachusetts.
> https://www.mass.gov/info-details/fy2022-massachusetts-average-single-family-tax
> Property taxes in our town are already more onerous, defined as a
> percentage of our income, than our neighbors and peers’.
> https://dlsgateway.dor.state.ma.us/reports/rdPage.aspx?rdReport=AverageSingleTaxBill.SingleFamTaxBill_wRange
>
> *Dire straits directly ahead*
>
> The town faces a difficult next few years financially as the following
> incremental expenses, to be accomplished through increases in the tax levy,
> are likely to require overrides
> ·       Teacher salaries, which are by far the town’s greatest expense,
> have been frozen for the past two years and their contract is up for
> negotiation this fiscal year.
> ·       The last inflation read was 8.2%, including a 6.6% increase in
> core inflation. The town will have to make tough decisions regarding
> resource prioritization to keep fiscal balances in check and retain talent.
> ·       There are several other non-discretionary capital investments in
> the horizon, including a road maintenance plan and a new DPW facility,
> which would be jeopardized if we moved ahead with this project.
>
> ·       Last year we received a one-off $2MM from the American Rescue
> Plan. We should not expect this type of largesse in the future.
>
> As most of you know, the town has a very small commercial tax base and an
> insignificant amount of new single-family house construction to lighten the
> burden on existing property owners. The current economic consensus is that
> the U.S. economy is heading into a recession. It would be highly imprudent
> to increase our leverage and spending in this macroeconomic environment.
>
> *We have great alternatives*
>
> The town already has enough space to host senior activities, we just need
> to be more open-minded in our approach. We believe that converting Pierce
> House into the town’s COA headquarters would address all of the concerns
> associated with Bemis Hall as presented in the 2018 Planning report. To be
> precise, there would be plentiful parking, easy accessibility and enough
> rooms to both provide services that require confidentiality and conduct
> group activities.
>
> Pierce House is an idyllic location right at the center of town that needs
> to be maintained into perpetuity. This new mission would set it much closer
> to the Pierce family’s original gift intentions (community health) than its
> current use as a wedding facility. We suspect that many neighbors would be
> very happy with the accompanying noise reduction and we would avoid
> doubling down on the existing traffic congestion at the school’s campus.
>
> There is no shortage of currently underutilized public buildings in town
> which could compliment Pierce House to provide additional space for the COA
> and community groups. The Town Building is very large for a town our size
> (the same size as Weston with less than half the population) and Hartwell
> could definitely see heavier use with a more rational floorplan. We should
> also reconsider upgrading Bemis Hall.
>
> Other than housing COA activities, it is not entirely clear what benefits
> the Community Center would provide the town. By its own admission, the
> Parks and Recreation department is happy with the pod where they are
> currently located. There will almost certainly be a need to revamp the pods
> or find alternative accommodations at some point in the near future, but we
> should not let the tail wag the dog.
>
> *A palatial structure out of proportion with our needs and our peers*
>
> The current Community Center proposal is for a 23,500 sqft facility, which
> is out of proportion with the size of our town and our senior population:
>
> ·       Most neighboring towns, all of them more populous than us (pop.
> 4,771 excluding Hanscom), do not have a separate Community Center. Wayland
> (pop. 13,724), Bedford (14,155), Carlisle (5,181) and Harvard (6,844) fall
> in that list.
> ·       Concord, with almost four times our population, has a 18,000 sqft
> Community Center, which also houses its pre-school.
> ·       Sudbury, which has a population also almost four times ours, has
> a project to build a new facility. The space allocated to their senior
> center is 5,754 sqft.
> ·       Weston, is a wealthier town with more than twice the seniors
> (65+) and total population, has a slightly smaller (22,500 sqft), much more
> modest architecturally facility.
> ·       Even Newton, with a population 18 times ours, is projecting a
> cheaper Senior Center ($19.5MM).
> ·       The envisioned cost per square foot of our Center, which would
> surpass $1,000 per square foot, speaks to a lavish facility, more suited to
> an international conference center than a small town’s senior center.
>
> ·       Pierce House has a finished square footage of 5,306, perfect for
> our needs.
>
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