Finance Director Robert Tait presented the town’s Capital Improvement Plan (CIP) debt forecast for the next several years to the Board of Selectmen at its October 1 meeting. Additionally, the BOS approved the 2024-25 through 2027-28 CIP unanimously.

“Debt service is in good shape,” said Tait, who forecasted that the ratio of encumbered debt to the town budget would be below 8% by 2026, and would continue to be below 10% of the budget.

For the fiscal year ending in 2023, total debt is $9,879,193, compared to a $123,219,554 total budget, an 8.02% debt service.

Tait forecasted in 2024, debt would be $10,146,200 compared to a total budget of $125,683,945, an 8.07% debt service; in 2025, debt would be $10,258,543 compared to a total budget of $128,197,624, an 8% debt service; and in 2026, debt would be $10,259,496 compared to a total budget of $130,761,576, a 7.85% debt service.

In 2027, debt would be $10,678,903 compared to a total budget of $133,376,808, an 8.01% debt service; in 2028, debt would be $10,391,745 compared to a $136,044,344 budget, a 7.64% debt service; and in 2029, debt would be $10,035,818 compared to a total budget of $138,765,231, a 7.23% debt service.

The debt service forecast is for budget planning around the CIP, and includes estimated debt amounts based on current debt and debt payments in the budget, added debt based on items included in the current CIP, and forecasts of town budgets estimating a 2% growth in spending each year.

Tait said the 2% spending growth was a “conservative estimate” and that if budget spending is higher, then debt service will be correspondingly lower percentages.

Additionally, some forecasted debt currently in the CIP may not end up being borrowed. The current status of the proposed demolition of some buildings on the Fairfield Hills Campus is up in the air while the town applies for Historic Credits to renovate Kent Hall and Shelton Hall.

Gaining the historic credits, which would allow federal funding to assist developer WinnDevelopment in turning the buildings into mixed use retail and residential buildings, would disallow the town from demolishing any other buildings on the campus. If the demolitions do not happen, the town’s debt service will be even lower.

Capital Planning

The Board of Selectmen unanimously approved the CIP, which will go on to face consideration by the Board of Finance and the Legislative Council.

The CIP includes the following projects each year:

In year one, the town will be bonding $600,000 for the bridge replacement program, $200,000 for an HVAC/electrical project at the multi-purpose building, $1.5 million for a roof replacement at the municipal center, $800,000 for an HVAC project at C.H. Booth Library, and $600,000 of the total $1,085,000 cost for replacement of fire apparatus.

The remainder of the fire apparatus cost will be from the Capital Non-Recurring Fund. Additionally, the town is planning $3.05 million in new spending from the General Fund on roads, and $200,000 for grant match from other sources, which will not be bonded. The total planned new bonding for the year is $3.7 million.

In year two, the town will be observing its plan to not do any new bonding every fifth year. While there are no new bonded projects for this year, the town plan still includes $3.1 million in new spending from the General Fund on roads, and $200,000 from other sources for grant matching.

In year three, the town will be bonding $600,000 for the bridge replacement program, $825,000 for replacement of fire apparatus, $2 million for building remediation and demo on the Fairfield Hills campus, $530,000 for Edmond Town Hall building renovations, $600,000 for a parking lot at C.H. Booth Library, and $500,000 for Treadwell Park Playground improvements.

The plan additionally includes $3.15 million in new spending for roads. Other sources including the Capital Non-Recurring Fund will be used for $50,000 for design of a truck washing station, $50,000 for improvements for site and salt storage improvements at the Public Works garage, $500,000 for the sidewalk program, and $500,000 for Lake Lillinonah park improvements.

There is a project for a rail trail at Batchelder Park that will cost $1.4 million, to be paid for with grants. The total planned new bonding for that fiscal year is $5.055 million.

Rosenthal noted that the spending for demolition on the Fairfield Hills campus was originally included in year one, but the entire thing is up in the air currently since the town is trying to get Historic Credits that would allow a developer to develop two Fairfield Hills buildings for mixed use commercial and residential.

If the town receives the Historic Credits, it will not be able to demolish any Fairfield Hills buildings. Even if the town fails to get the Historic Credits, which would put demolition of buildings back on the table, the town would not be able to do it in year one. Spending for demolition included in years four and five are similarly up in the air.

In year four, the town will be bonding $600,000 for the bridge replacement program, $600,000 for site and salt storage improvements at the Public Works garage, $550,000 for a truck washing station, $845,000 for replacement of fire apparatus, $250,000 for artificial turf and lighting at Treadwell Park, $350,000 for maintenance yard improvements, and $2 million for building remediation and demolition at Fairfield Hills.

As with every year in the plan, year four also contains an escalating amount from the General Fund for roads, in this year $3.2 million. There is also $800,000 in additional spending for artificial turf and lighting and $200,000 in grant matching to be taken from other sources including the Capital Non-Recurring Fund. The year contains a total of $5.195 million in planned new bonding.

In year five, the town will be bonding $600,000 for the bridge replacement program, $865,000 for replacement of fire apparatus, $250,000 for trail improvements at Fairfield Hills, $3 million for building remediation and demolition at Fairfield Hills, and $425,000 for Edmond Town Hall building renovations.

Additionally, there is $3.25 million in planned new spending from the general fund for roads, an additional $100,000 for Fairfield Hills trail improvements to be paid for from grants, and $200,000 for grant matching from other sources. The year contains a total of $5.14 million in planned new bonding.

Reach Associate Editor Jim Taylor at jim@thebee.com.