Finance Board Approves $53.7 Million Capital Plan

By Jan Howard

The Board of Finance voted 5-0 on December 8 to approve the five-year Capital Improvement Plan (CIP) for the years 2004–05 to 2008–09 and to send it on to the Legislative Council.

The total of proposed capital projects amounts to $53,704,000 for the five-year period, including $10,274,000 for 2004–05; $9,720,000 for 2005–06; $15,675,000 for 2006–07; $8,403,000 for 2007–08; and $9,632,000 for 2008–09.

The proposed projects, if approved, would be funded through the general fund, $13,285,000; bonding, $32,020,000; school budget, $1,404,000; school grants, $3.3 million; and other grants, $3,695,000.

The Board of Finance has been working on the CIP for several months and completed prioritizing of the proposed projects at its November 20 meeting.

The proposals for each fiscal year in order of priority and the costs are as follows:

2004–05: Middle Gate waterline, $516,000; capital road project, $2 million; revaluation, $225,000; Sandy Hook Center streetscape project, $200,000; pumper truck for Botsford, $385,000; Head O’ Meadow heating and ventilating, $4 million; Hawley School heating and ventilating, $290,000; open space, $1 million; grader replacement, $250,000; high school auditorium repairs, $208,000; Parks and Recreation (P&R) maintenance facility design/renovations, $200,000; and Commerce Technology Park, $1 million.

2005–06: Capital road project, $2 million; revaluation, $225,000; Sandy Hook Center streetscape project, $200,000; pumper truck for Newtown Hook & Ladder, $395,000; Hawley School heating and ventilating, $3,320,000; open space, $1 million; high school auditorium repairs, $260,000; Commerce Technology Park, $1 million; P&R maintenance facility, $400,000; P&R pond renovations, Dickinson Park, $720,000; police building improvements design, $200,000.

2006–07: Capital road project, $2 million; Sandy Hook Center streetscape project, $75,000; high school academy renovation, $10 million; open space, $1 million; Commerce Technology Park, $1.4 million; police building improvements and renovations, $1 million; and P&R recreation center design, $200,000.

2007–08: Capital road project, $2 million; Sandy Hook Center streetscape project, $155,000; middle school heating and ventilating, $300,000; open space, $1 million; Middle Gate window replacement, $208,000; middle school athletic field engineering, $112,000; high school athletic field house improvements, $520,000; school telephone system, $208,000; Commerce Technology Park, $1 million; (Currituck/Obtuse/Route 25 intersection, $200,000; P&R recreation center, $2.4 million; and P&R baseball/softball field lights, $300,000.

2008–09: Capital road project, $2 million; middle school heating and ventilating improvements, $$3,430,000; open space, $1 million; middle school athletic field improvements, $1,232,000; Commerce Technology Park, $1 million; Sandy Hook Center streetscape project, $620,000; and P&R pool dome, Treadwell Park, $350,000.

In regard to the open space proposals, First Selectman Herb Rosenthal said, “I was thinking more in terms of $2 million.” The $2 million amount would be closer to the $10 million that has been previously discussed, he noted.

However, Vice Chairman Jim Gaston said the Board of Finance would feel more comfortable putting a different number on it after a proposed study by The Trust for Public Land is completed.

Mike Portnoy said that the $1 million figure was included as a “placeholder,” which the board would reconsider following completion of the study.

In regard to the high school academy proposal, the Board of Education is in the process of assembling a committee, the Newtown High School Expansion/Academy Study Committee, to look at enrollment projections, review studies, and compare options of a stand-alone building versus an addition to the high school. Once formed, the committee is expected to meet twice a month for six to nine months.

Mr Portnoy volunteered to serve as the finance board’s representative on the committee.

Mr Rosenthal suggested, in regard to the $10 million proposed in the CIP for the academy, that the Board of Finance should tell the Board of Education that this is what the town can afford.

Noting that the Board of Education needs additional space for students, he said if there is a need for another building, it could be designed for the amount of money proposed in the CIP.

Mr Gaston noted that the $10 million number “fits in the parameters of our guidelines.”

However, Peter Giarratano noted, “Things cost what they cost. I feel the number is low. I really want to see hard data.”

Mr Rosenthal explained that a 75,000-square-foot addition could be built for about $8 million while a freestanding academy would be $20 million plus. He added there are areas at the high school where an addition could be constructed.

In regard to the police building improvements and renovations, Mr Rosenthal said the number included in the CIP is a little low.

In other business, Mr Giarratano and Harry Waterbury advised the board they would be spending some time with Ron Bienkowski, the Board of Education’s business manager, in response to his invitation, to better understand the school board’s budget and accounting systems.

Finance Director Ben Spragg informed the board that the town has borrowed $7 million in general obligation bond anticipation notes at an interest rate of 1.06 percent for six months for $1,975,000 for a radio system for public works and $5,025,000 for Fairfield Hills. Interest on the total amount is $37,100.

Board of Finance members also continued their discussion of a tax deferment program for senior citizens 65 and older who would meet income qualifications.

Mr Gaston said his research has shown that several towns in Connecticut have some type of tax deferment plan. The plan, if approved, would be offered as an alternative to the town’s tax credit.

“The object is to give a person an option,” Mr Gaston said.

Mr Rosenthal explained that about 500 seniors receive the tax credit in Newtown, which costs the town about $475,000 in revenue. The program, which has been in place for four years, is capped at $500,000. It cannot exceed ten percent of the total tax revenue of the town.

He noted that some seniors might see a tax deferment program as debt, and would not consider it as an option.

Mr Gaston said he would see the tax credit is maintained while giving people the option of deferring part of their tax. The tax would be paid later, with interest, when the property was sold.

He said the goal of the plan would be to give seniors the ability to stay in their homes and remain in Newtown while not unfairly taxing nonseniors. He noted the deferment amount could be more significant than the tax credit.

He said the tax deferment would have an income threshold similar to the tax credit. In answer to Joseph Kearney’s question as to whether there should also be an asset-based qualification in addition to an income threshold, Mr Gaston said some towns do have an asset base.

Mr Gaston noted that the deferment plan would pay for itself in time because the town would get the money back plus interest, though Mr Giarratano pointed out the program would cost the town money until it became self-funding.

Mr Gaston termed the program a win-win and better than the tax credit because it would bring money back to the town with interest.

Among other issues discussed in regard to the plan were the period of time people need to live in town during the year to qualify for the deferment; years of residency before applying for the tax deferment; and whether people who move from their homes to condominiums would be eligible.

Mr Gaston said that once the Board of Finance had decided on the program, it would be sent on to the Ordinance Committee of the Legislative Council where it would be put in legal language. If the program is approved as a town ordinance, a pamphlet would be developed that would explain it to seniors so they would understand it better.

Mr Gaston is to prepare a draft of the program for discussion at the board’s next meeting.

The board unanimously elected John Kortze as chairman and Jim Gaston as vice chairman. Mr Kortze was not present because of illness. They also voted unanimously to approve a request from the Parks and Recreation Commission for a special appropriation from the surcharge account of $5,000 to install irrigation at the middle school baseball field.