The Board of Finance held a regular meeting on October 14, 2008 in the Conference Room in Town Hall South, 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:30 p.m.
PRESENT: John Kortze, James Gaston, Martin Gersten, Joseph Kearney, Michael Portnoy, Harrison Waterbury.
ALSO PRESENT: First Selectman Joseph Borst, Financial Director Robert Tait, Schools Superintendent Dr. Janet Robinson, Schools Director of Business Ron Bienkowski, Schools Director of Grounds and Maintenance Gino Faiella, Board of Education member Kathy Fetchick, Parks and Recreation Director Amy Mangold and Commission Chairman Ed Marks and member Pat Barczak (8:35), three members of public, one member of press.
VOTER PARTICIPATION. George Schmidt, Old Castle Drive, asked if the $38.8 million approved in April had been bonded; Mr. Kortze replied no.
COMMUNICATIONS. Mr. Kortze received a letter from Superintendent Robinson concerning a joint meeting with the Board of Education and the Boards of Finance and Selectmen, the Legislative Council and the Public Building and Site Commission to discuss possible alternatives to the High School expansion. The meeting will be on Wednesday, October 22 at 7:30 p.m. in a place to be determined. Dr. Robinson said that the Board of Education is looking for options, possibly concerning rebidding or redesigning the project. Mr. Kortze was concerned with the wording in the original resolution He feels that there is a moral and ethical obligation to include everything that the voters approved. He is also concerned about debt service and our ability to issue bonds; also should we wait or will we be likely to be
looking at substantial increases if we do.
Mr. Kortze noted that he received a fair amount of emails concerning the State. He said that the State will bond their own money and will have to bond whatever they fund to the municipalities; we have to get the money on our own in the market even though the bonding is done. He said that the bond market is loosening; we don’t know what will happen early next year.
Mr. Portnoy asked if it is true that we may not lose the architect’s fees if there is not a major redesign; Dr. Robinson said it is not know if the fees can be attached to this project but that we would appeal this if necessary. Mr. Gersten asked if there have been any efforts to recover those fees; Mr. Borst does not know but will contact the bond counsel and the town attorney. Mr. Kearney asked if there has been discussion to attract new bidders or to replace the construction manager. Mr. Kortze feels that we would probably attract the same bidders unless we redesign. Dr. Robinson said that everyone knows what the low bids are. Mr. Gersten asked if the Board of Ed has considered getting revised population estimates; Dr. Robinson said that we have a wave not a bubble third grade through high school.
Projections are up to 1,900 and are 1,700 to 1,800 right along.
MINUTES. Upon motion of Mr. Gersten, the minutes of the regular meeting of September 25, 2008 were unanimously accepted as presented.
FIRST SELECTMAN REPORT. Mr. Borst reported that tomorrow at 9:00 a.m. there will be a pre-construction meeting for Bridgeport Hall.
Mr. Portnoy asked Mr. Borst if Newtown is taking steps now to cut expenses. Mr. Borst said that quite a lot was taken out of the CIP and that Mr. Tait has asked for no more than increases of 3% going forward.
FINANCIAL DIRECTOR REPORT. Mr. Tait reported discussed “Moody's Postpones Application of Global Scale Ratings for US Public Finance Credits” (Attachment A). Mr. Tait distributed a draft 2009-2010 BUDGET TIMETABLE which he will revise to note presentations to the Board of Finance by the Boards of Education and Selectmen prior to the Board of Finance’s public hearing.
UNFINISHED BUSINESS.
Current and Proposed Guidelines for adoption or re-affirmation. This item will be carried forward to consider the Reserve for Capital and Non-Recurring Fund Policy
NEW BUSINESS.
Board of Education Capital Improvement Plan (CIP). Mr. Gaston asked Mr. Bienkowski if a 16% increase had been added to each item for inflation of 8% per year plus 8% for the one year that all items were pushed out; to which Mr. Bienkowski said yes. Mr. Bienkowski said that the cost of this additional increase would be $3,540,778.00. Mr. Kortze said that we are already out one year and it seems that we may be out another year and has the Board of Education considered scenarios for the completion of projects. Ms. Fetchick said that rebid would take 3-4 months. Dr. Robinson said that redesign is an unknown and we would have to re-submit to the State by June 2009 if the project is redesigned.
Mr. Kortze said that it is important now than ever to have a Plan B. Dr. Robinson said that the reality is that we cannot built this project for $38.8 million and that other factors will dictate the timeline. Mr. Kortze said that we were told that a redesign would have to be done. Dr. Robinson said that we will have $28 million left after redesign to build the project. Mr. Gersten asked if with the use of portables could we design something expandable and affordable. Mr. Kearney feels that Plan A is a rebid and noted that unit prices were not included in the bids so this is conjecture. Dr. Robinson noted that we have two years from June 2009 to complete the project. Mr. Gaston recommended rebid as soon as possible.
Board of Education report on “State of the District.” Dr. Robinson distributed State of the District. (Attachment B to original minutes). She noted that the Board of Education’s mission statement and strategies will be presented at the October 22 meeting.
Board of Selectmen Capital Improvement Plan (CIP). Mr. Tait previously distributed “Town of Newtown Capital Improvement Plan – Selectmen – Approved October 6, 2008.” (Attachment C to original minutes). Mr. Borst noted that $19 million will be bonded rather than the $40 million that was requested by the Departments.
At this time Parks and Recreation Commission Chairman Ed Marks and member Pat Barczak and Parks and Recreation Director Amy Mangold joined the meeting.
Mr. Tait will prepare a list of LoCIP grants included in the CIP, and a breakdown of where the grants are coming from. Also open space balances from the $10 bond issue. Mr. Kortze asked Mr. Tait for a rationale of what is the Capital and Non-Recurring Fund and what is at our disposal? Mr. Kortze also asked what is the life of the police radio enhancement and should it be bonded? Mr. Kortze said that there is a gap where we are pushing things out and that it makes sense to do things sooner and save money. Mr. Tait will also provide back up information for the CIP items.
ADJOURNMENT Having no further business, the meeting was adjourned at 9:00 p.m.
Ann M. Mazur, Clerk
ATTACHMENT A
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Announcement: |
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Moody's Postpones Application of Global Scale Ratings for US Public Finance Credits |
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New York, October 07, 2008 -- Moody's Investors Service announced today that current conditions in the credit markets have prompted a delay in its planned migration of U.S. public finance ratings to a single global scale. In the interim, Moody's will maintain its surveillance of public finance ratings and will continue to take ratings actions when appropriate based on its long-standing rating scale for municipal credits. "Conditions in the global credit markets continue to be unsettled. While Moody's remains
committed to ensuring that our US public finance ratings are comparable to ratings in other sectors, we are sensitive to introducing a recalibration in the midst of current credit market turmoil," said Gail Sussman, Group Managing Director for U.S. Public Finance. |
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