The Board of Finance held a special meeting on Wednesday, December 13, 2006 in the Multi-Purpose Building, Riverside Road, Sandy Hook. Chairman John Kortze called the meeting to order at 7:00 p.m.
PRESENT: John Kortze, James Gaston, Michael Portnoy, Harrison Waterbury, John Torok, Joseph Kearney
ALSO PRESENT: First Selectman Herbert Rosenthal, Finance Director Ben Spragg, Schools Superintendent Dr. Evan Pitkoff, Schools Business Manager Ron Bienkowski, Board of Education members Elain McClure, Andrew Buzzi, David Nanavaty, Andrew Buzzi, Paul Mangiafico, several members of Legislative Council, approximately 10 members of public, one member of press
VOTER PARTICIPATION: Ms. Po Murray, 38 Charter Ridge Drive, stated that she has reviewed the three scenarios for the CIP that were discussed at the last Board of Finance meeting and she feels that they are inadequate. They are short-sighted and have only one goal – staying under the 10% borrowing cap. She feels the town projects were not put under the same microscope as the high school project. She does not feel that open space, a new town hall or a tech park are a priority at this time.
Ms. Desiree Galassi, 151 Huntingtown Road, stated that we cannot estimate the academic and technical needs for the high school in the future. A few empty classrooms can always be used for a need not yet discovered. We should have a new high school, or at least an addition built for the high population estimates; the Middle School needs attention; a recreation and aquatic center at Fairfields, with a Senior Center next door. She does not feel we need a town hall, a tech park or open space.
Mr. Guy Howard, 4 Main Street, suggests that down the road we talk more about long-term planning before we get to this stage. He read the first paragraph of the Town Charter. This statement says what we are about as a government.
Ms. Moira Rodgers, 208 Hattertown Road (member of Fairfield Hills Authority) wanted to clarify the reason why the town hall is being located at Fairfield Hills. This came about after a lot of talk with community groups and realtors who said that if we wanted to attract corporate investment, the town needed to make a commitment at Fairfield Hills. We would not attract the same type of investors or interest with a school building at that site. That does not mean we cannot have a school at some point but a town hall seems to be the best solution for attracting outside dollars to help with other needs there, i.e. a pool, municipal center, etc., when we have no other way of finding that money. First Selectman Rosenthal pointed out that Danbury
Hospital has expressed an interest in locating a medical facility on the property if a town hall were there.
Ms. Ruby Johnson, 16 Chestnut Hill Road, - in terms of long-term planning, it seems the left hand doesn’t know what the right hand is doing. We are purchasing open space to keep people from moving in when the Fairfield Hills Authority seems to be working to get people to move in. She thinks there should be more in the Charter about the Capital Improvement Plan procedures.
Ms. Gianine Crowell, 26 Canterbury Lane, - regarding Moody’s, we have not heard anything from Moody’s about whether bonding beyond the 10% cap will reflect badly on our bond rating. She would like to know what they have to say. She questions whether the Board of Finance imposing the 10% cap and not allowing the town to decide what they want to spend is policy making, as opposed to being an advisory board.
Chairman Kortze advised that the Board of Finance appreciates the input. The Board of Finance has asked to meet with the Legislative Council tonight because we are still in the process of trying to figure out what to do and want to get some direction. We all agree that the Board of Finance is advisory vs. policy making and that is why we asked to have a meeting with Council members tonight. We have labored over all of the data and are trying to come to a conclusion.
Chairman Kortze then asked the First Selectman if he had any comments. First Selectman Rosenthal advised that he received a letter from Attorney Glenn Santoro of Robinson & Cole, who serves as the Town’s bond counsel. The question was asked as to whether or not once bonding was authorized, the town could then go back and rescind or revoke that authorization. Bond Counsel’s opinion is that because we have already issued general obligation bonds under that Resolution, it would be in violation of the Connecticut General Statutes to seek to rescind the Resolution. First Selectman Rosenthal advised that as early as the 1980’s when Representative Julia Wasserman and the State formed a committee, they spent two years looking at the Fairfield Hills property in anticipation of the
hospital closing. That committee produced a document indicating that the property should be used for town and school office space. All of the various Fairfield Hills committees since then have also included town and school office space for the property. Inclusion of a town hall has been part of other activities called for in the Master Plan. This has been part of the plans going back 12 years. Over ten years ago, a space needs study was done for town and school office space. When Mr. Rosenthal was first elected, another committee looked at town space needs. This subject did not just come up. Regarding Capital Improvement Plans, before the Board of Finance was even created, the Legislative Council approved the Plans. Those prior CIP’s contained a number of the items we are still talking about now. The CIP contains projects not yet authorized. In 2001, the public authorized $21,850,000 for several items,
including $1 million for handicapped accessibility at Edmond Town Hall, $600,000 for playing fields at the high school (which was later increased to $800,000). The rest of the funds included purchase of Fairfield Hills, environmental clean-up, demolition of buildings, and construction of town and school space, and playing fields at Fairfield Hills. All of these items were approved at a Town Meeting of approximately 900 people. Each time before any of the funds were borrowed, they have gone through approval by the Board of Selectmen, Board of Finance, Legislative Council and the annual budget referendum as funds in the debt service. Last year, the debt service included $7 million for beginning construction of town and school office space at Fairfield Hills and beginning of construction of playing fields. The proper steps for authorization have been taken and the Board of Selectmen are now following procedures that were laid out for them. He added
that the $1.7 million that was received when the five houses were auction on Mile Hill Road South was approved by the Legislative Council and Town Meeting and authorized to take the proceeds to be used for environmental work at Fairfield Hills.
Transfer
Mr. Gaston moved to transfer FROM Account 01570-2000 Contingency $8,400.00 TO Account 01310-1004 Police Clerical $7,600.00 AND TO Account 01300-2034 Emergency Dispatch Uniforms $800.00. Motion seconded and unanimously carried.
Capital Improvement Plan
Regarding the answer sheet received from the high school expansion architect at a meeting on 11/9/06 which stated that building the expansion to the Bothwell “middle” number would cost $38,815,000, Mr. Gaston asked if that included the money for turfing the stadium field and was told that it did not.
Mr. Kearney questioned why the addition of 33 students increases the cost by $2 million and does the contingency reduce proportionally?
At this time the meeting was adjourned so that the Legislative Council meeting could be called to order at 7:00 p.m.
Legislative Council Meeting
The Legislative Council took care of items on their agenda (see Council minutes) and then began discussions with the Board of Finance.
Board of Finance Chairman Kortze stated that the Capital Improvement Plan is for five years out. It is difficult to look further out. The procedure for the CIP is by regulation that was adopted by the Board of Finance and Legislative Council. Every project request received from the Board of Selectmen and from the Board of Education are included, nothing has been deleted. The Board of Finance’s goal is to do as much as we can with the dollars that we have. Up until this year, that has not been a problem. Hopefully, we can do the majority of these projects within our guidelines. Mr. Kortze then distributed three different scenarios prepared by the Board of Finance and discussed at their last meeting. He advised that the
Board of Finance is looking for input from the Council to see if they are going in the right direction. The Board of Finance members unanimously feel that we should not exceed the 10% cap on borrowing. Mr. Waterbury pointed out that we have never exceeded 8% in the past.
There was a lengthy discussion with Council members asking questions about the three scenarios. When Mr. Kortze asked for a consensus, all Council members present agreed that they do not want to exceed the 10% cap on borrowing.
At 10:45 pm, the Board of Finance finished their discussions with the Council members and the Council meeting continued.
Jan Andras, Clerk
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