Town of Princeton, Mass. – April 13, 2018 – 11:30 AM
Selectboard – Town Hall Annex
Present: Chair Richard Bisk, Edith Morgan & Jon Fudeman w/ TA Nina Nazarian.
11:35 AM Meeting was opened by Richy.
Long Term Capital Planning, Facilities – Nina presented some additional responses to questions asked by the Selectboard of the Financial Advisor. Richy reiterated the understanding that he had with the bond rating from our Financial Advisor’s responses; we should maintain between 10-12% of the total general fund budget with stabilization and undesignated funds, but that we have to balance that best practice with capital needs.
Jon raised some questions about the responses of our financial advisor:
- What is the data based on?
- What role does the stabilization play in the bond rating, 1% or 99%?
- What do other towns do?
- What is the dollar cost that goes up with a reduction in the bond rating?
Nina presented recommendations for the use of available funds for the Annex and the Public Safety stabilization projects, and also that the Selectboard propose borrowing for the Bagg Hall stabilization project, borrowing for the Public Safety complex construction, with approximately $587k from the infrastructure stabilization fund to reduce the borrowing, and borrowing for the Bagg Hall rehab/addition of a community center. Jon asked how long Bagg Hall could last without further renovation if the $1.25 million borrowing was the only approval made for Bagg Hall. Karen said that this was not concluded by the FSC. There was discussion by the Selectboard regarding the importance of the $1.25 million proposal. Nina agreed that the project would resolve most safety and comfort issues, leaving
organization/efficiency needs. Richy asked if the SB was in favor of borrowing for the 1.25 million. Edie agreed with borrowing, however suggested that the borrowing become as short term as possible. Jon and Richy agreed with borrowing. Some discussion on estimated annual and total costs per year if the Bagg Hall stabilization is borrowed for less than the 10 or 15 years presented. Nina presented the suggestion of using of $50k previously set aside for fire alarms, etc. at the Princeton Center and $50k from free cash to fund the Public Safety Complex stabilization work estimated at $100k. The Selectboard agreed with the proposal.
The Selectboard discussed the Annex funding. Nina recommended that we use $200k from free cash and $150k from the emergency repair, noting that this would leave about $74k in free cash, without having addressed the potential renovation at a leased space, or placing money into a stabilization funds. Discussion about the annual reserve fund. Edie suggested that the article for the Annex be broad enough to include the use of the funds for renovating space in a leased building. Karen responded if non-town uses are incorporated into the space, then it might be difficult to have the space sufficiently available for meetings. Richy asked if we would need the Annex for the time when the Bagg Hall was being stabilized. Karen will double check with Chris Conway. The board agreed that we should present
the $200k/$150k plan for the Annex. Nina suggested that we spend $587k from the infrastructure stabilization fund against the $7 million for the Public Safety complex Edie suggested that we use $500k. The board agreed to use $500k or $600k from stabilization to offset the $7 million borrowing for the Public Safety Complex, reducing the borrowing authorization to $6.5 million.
Long Term Capital Planning, Fire Truck/Department – Discussion about borrowing term: Edie said that she preferred 3, 5, or 7 years for a fire truck borrowing given that the fire department has other needs and may have a layering effect on debt that could be problematic. Karen suggested that the board consider the other fire department needs, suggesting that if for example we have a fire truck need in 3 years, that maybe a shorter term of paying the truck would be important.
Nina described a suggestion that was made to break up the Bagg Hall article into a small renovation, Richy described the things he has heard about whether the Bagg Hall renovation should be kept on the town meeting warrant. Residents in support of keeping it on the warrant argued that the town meeting should make the decision about when and how to proceed. Residents against suggested that some folks would come to town meeting and disagree with everything, given that there was too much in total cost proposals. A non-binding article may be a way to get a sense of town meeting. Edie said that she would think that at a minimum we should ask for the design funds for the plans for renovating Bagg Hall. Jon would only support the Bagg Hall item if it was a non-binding option, or the full amount for
design and construction. Karen Cruise suggested that we could try to restructure the articles, including Option A into one article (complete Public Safety and Bagg Hall/community center design/construction), then have another with Bagg Hall Stabilization and Public Safety design/construction.
Discussion about Bagg Hall options:
- Design and construction proposal on warrant
- Design only proposal on warrant
- Non-binding on warrant
- Non-binding on election ballot
- Bagg Hall reduced scope for smaller building, with community center somewhere else.
Edie feels that we should definitely have something on the town meeting warrant for Bagg Hall. In the scenario where we only place design funds on the warrant, Jon asked that we determine how many years we can borrow for a design of a building, without a commitment to construction. Jon raised the issue about the RAC needs and potential needs, such as the route 31 bridge and Calamint Hill Road North, and the new issue that has come up about $900k being removed for Route 140. Group agreed to discuss this later.
Bond Bill Update Nina updated the board that she had spoken with Mr. Bryan Barash and Ms. Anna Freedman of Senator Chandler’s Office and that they both anticipated that the Conference Committee would be wrapping up this month, and that the next best step might be to have a letter ready for the Executive Offices of Administration & Finance and Public Safety.
Public Comment Phil G. suggested that we refer to the building stabilization projects with another term, such as “minimal emergency usability needs”, or something similar.
Adjourned 1:56 PM
Respectfully submitted, Nina Nazarian, Town Administrator
BOS Referenced Documents: Q&A email with Financial Advisor, FY19 Capital Requests Summary as of April 12, 2018, Fire Truck Payment/Financing Options summary
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