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Council Passes $121M Budget Package, Three Bonding Authorizations

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Under historical circumstances foisted upon them by the COVID-19 health emergency and Executive Orders aimed at minimizing virus transmissions at local polls, members of the Legislative Council unanimously adopted a $121,626,535 town and school district budget package for the 2020-21 fiscal year during a virtual meeting, May 6.

After some protracted discussion and an attempt to delay approval of another agenda item, the local legislative body also unanimously authorized three of four capital bonding authorizations that would have normally gone to voters at Newtown’s annual referendum eight days earlier, had it not been canceled.

Action on a fourth capital borrowing authorization was postponed, however, after council members learned the Board of Education voted the previous evening to pay for the design phase of a Hawley School HVAC project from a special district nonlapsing account.

The district must now receive authorization from the Board of Finance to tap that nonlapsing fund to underwrite the Hawley HVAC expense.

At the same time, school officials are seeking finance board authorization to shift around $1 million in anticipated surplus budget dollars to that fund, which currently has more than enough to pay up front for the HVAC engineering, even if the finance board does not agree to fortify the nonlapsing account with some of this year’s planned surplus.

Read more about the school district’s surplus proposal here: https://www.newtownbee.com/04292020/school-district-hopes-to-apply-some-surplus-to-hawley-hvac-project/?q=surplus.

The May 6 council meeting, which convened via the Zoom internet platform, also welcomed First Selectman Dan Rosenthal and Town Finance Director Robert Tait, along with school board Chair Michelle Embree Ku, and district Director of Business Ron Bienkowski.

Quick Budget Action

In short order and having already secured consensus on the separate school and municipal spending requests after lengthy deliberations at a previous meeting, Council Chairman Paul Lundquist received motions and unanimous approvals for a $42,947,759 town-side budget, and a district spending plan totaling $78,651,776.

“It’s been a unique process this time around,” Lundquist commented following a winter/spring budget season that began with typical in-person meetings and hearings, and ended with a canceled referendum and legislative authorization taking place via the internet.

What was expected to be a series of swift accompanying capital bonding approvals was slowed somewhat as the first selectman sought a significant reduction to one of the motions, and Councilman Ryan Knapp subsequently requested a two-week delay in approving a revised expenditure.

As previously reported at newtownbee.com, Rosenthal told council members he was uncomfortable saddling taxpayers with the full $7.5 million authorization for a townwide emergency radio system upgrade because they would not have the opportunity to endorse (or reject) that bonding package at referendum. The first selectman did acknowledge the system upgrade was a critical public safety investment, and requested the council reduce the authorization to $2.5 million so key hardware for the upgrade could be ordered.

That prompted questions from Council members Judit DeStefano and Cathy Reiss about what would happen if the $5 million balance for the project failed to get taxpayers’ approval at a subsequent referendum.

Rosenthal responded saying the $5 million second phase of spending for the system was not scheduled to be bonded until the 2021-22 fiscal cycle anyway, and if taxpayers rejected the balance of the bonding authorization, a necessary part of the upgrade would still be accomplished.

The first selectman added that ordering and installing the equipment under the $2.5 million authorization would still expedite the transition of emergency dispatching from Town Hall South to a new dispatch center being incorporated into the Town’s new police headquarters at 191 South Main Street.

More importantly, the first phase installations would greatly improve emergency communications among police, ambulance, paramedics, and the town’s five fire companies — and help reduce dead zones where the current radio system is partially or completely disabled by local topography.

“The first [phase] in the CIP calls for $2.5 million and that’s all that’s necessary to move the project forward,” Rosenthal said. “The next round of funds are needed after July 2021, so it’s more appropriate we only approve Year One and give the public an opportunity to vote on the balance.

“If it doesn’t pass, the system will still operate. It’s a risk, but we’re being honest to [the governor’s] special order by asking for $2.5 million — $7.5 million seems like overreach,” the first selectman added.

Request For Delay

With the question called and unanimously approved, the council moved to authorize the reduced amount. But Knapp proposed to delay the motion for two weeks while some type of voter outreach was initiated about the overall project.

Knapp said he was concerned that when taxpayers saw a $7 million price tag tied to a radio system improvement, they might be frustrated that any related expense was approved without a referendum — even if the package was split into two phases with the first bonding authorization significantly reduced.

“While we can’t have a referendum, it shouldn’t preclude voter outreach,” Knapp said.

While Knapp eventually admitted he would vote to approve the $7 million by council action if the vote came down to it May 6, he felt delaying even the reduced $2.5 million to provide some voter outreach would be the right thing to do nonetheless.

“My concern is not having an opportunity to have a referendum,” he said.

Council Representative Jordana Bloom countered that she felt in a pandemic situation, taxpayers would be even more agreeable to supporting a public safety initiative like a radio system enhancement. Rosenthal and emergency communications officials previously reported to the council that the present system is no longer supported by its manufacturer, and it is being maintained, although it is functionally obsolete.

Lundquist said he was having a hard time understanding why it was being addressed at this late stage. The council, the finance board, and selectmen had already approved the project and the capital plan that contained the $7 million in borrowing.

Bloom, DeStefano, and Rosenthal all noted that over the course of discussions on the system upgrade dating back to last November, there had been numerous reports and discussions on the project, with numerous opportunities for the public to weigh in, and there had been no comments on the issue.

With that, Lundquist thanked his colleagues for the discussion and requested a roll call vote — which resulted in unanimous approval for the system upgrade at the adjusted amount of $2.5 million. The council then quickly approved a capital authorization of $750,000 for the next round of municipal road improvements, and a $1,829,963 authorization for sewer and water system improvements at Fairfield Hills.

Half of that authorized amount will be refunded in the form of a state grant, and the balance will be paid off exclusively by Fairfield Hills ratepayers.

Before adjourning, the council agreed it would return to deliberate the Hawley School bonding request once the finance board completed its required actions on the matter — likely by the date of the council’s next meeting on May 20.

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