The Board of Finance held a special meeting on Monday, December 18 2006 in the meeting room at Town Hall South, 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:40 p.m.
PRESENT: John Kortze, James Gaston, Michael Portnoy, Harrison Waterbury, John Torok, Joseph Kearney
ALSO PRESENT: Finance Director Ben Spragg, Schools Superintendent Dr. Evan Pitkoff, Board of Education members Elaine McClure and Paul Mangiafico, two members of public, one member of press
VOTER PARTICIPATION: Ms. Po Murray, 38 Charter Ridge Drive, had a list of questions for the First Selectman. Regarding the technology park, it has been stated that the lots would be sold and that return would be greater than the expenditures. What is the estimated return on investment? When do you expect the lots to be sold? Regarding Fairfield Hills, what date do we expect the $7 million to be bonded? What is the estimated return on investment? Regarding open space, how many building lots were prevented from development? How may more do you expect to prevent with remaining funds?
Capital Improvement Plan
Finance Director Ben Spragg distributed the current draft of the CIP. The high school expansion is for 2,022 students at $40,826,000 plus $750,000 to turf the stadium. He pointed out that we will not receiving school building grants until the second year of construction so he changed the CIP accordingly so that in FY 07/08, the 30% reimbursement for design will have to be bonded. In the second year, there is $24 million in construction costs that we will not receive the grant for until the following year so that full amount must also be bonded.
Regarding the technology park, he would use short term notes instead of permanent bonding as we expect to sell the lots and use that revenue to repay the notes. The “borrowing” graph (attached to original minutes) shows that this plan would meet the requirements of the CIP regulations without eliminating any projects.
Mr. Kortze asked Board of Education members present if they agree with the numbers being used for the high school expansion. Ms. McClure replied that they will have to make some touch choices.
Mr. Spragg gave a list of items from the First Selectman that could be pushed out past the year 2012 in the CIP.
Mr. Gaston moved to accept and forward to the Legislative Council the Capital Improvement Plan, as presented (attached to original minutes), deleting the following: Police Building Improvements and Renovations (Design) in 2009/2010 and Police Building Improvements and Renovations in 2010/2011; Park & Rec Maintenance Facility Renovation (Design) in 2009/2010 and Park & Rec Maintenance Facility Renovation in 2010/2011; Fire Facilities and Training Tower (Design) in 2010/2011 and Fire Facilities and Training Tower in 2011/2012, for a total of $3,575,000. Motion seconded.
Mr. Portnoy moved to amend by decreasing the Proposed CIP Amount for the high school expansion to $38,515 plus the cost of the turf at the stadium. Motion seconded and failed 5 NO: (Kortze, Gaston, Waterbury, Kearney, Torok) – 1 YES (Portnoy) Mr. Portnoy stated that he made this amendment because he felt the Bothwell projections are inflated.
MAIN MOTION CARRIED: 5 YES (Kortze, Gaston, Waterbury, Kearney, Torok) – 1 NO (Portnoy)
Mr. Kearney moved the following resolution: That the Board of Finance forward the CIP to the Legislative Council requesting that they concentrate on receiving further clarification and substantiation from the Board of Education as to the cost differences of the high school expansion project between 1,989
students and 2,022 students being projected by current Bothwell “high” numbers vs. previous Bothwell “middle” numbers. Motion seconded and unanimously carried.
Mr. Portnoy reminded that at the beginning of the meeting, he polled the Board members about their feelings about going to the 10% spending cap, or if they felt it appropriate to keep a meaningful reserve. Most, if not all, felt that we should not go immediately to the 10% cap and that there should be a reserve. One member actually mentioned 8.5% or 9% as being the limit. Although the Board voted to send the CIP recommendation to the Council at close to a 10% spending level, he believes there is sentiment on the Board that we would like to reduce spending further, and will have other opportunities to do so.
Having no further business, the meeting was adjourned at 9:50 p.m.
Jan Andras, Clerk
Attachment: Proposed CIP (attached to original minutes)
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