Date: Fri 19-Jun-1998

Publication: Bee

Author: STEVEB

Quick Words:

finance-Spragg-debt

Full Text:

Looming Capital Projects Bring Town's Rising Debt Into Focus

BY STEVE BIGHAM

The town of Newtown has its share of debt, but Finance Director Ben Spragg

says things are well in hand -- for now.

In recent years, the town has bonded about $65 million to pay for high-cost

capital construction, including schools, sewers and other major projects.

Sixty-three percent of that debt is expected to be paid off over the next 10

years.

This is a good thing, Mr Spragg said, especially since a normal debt payoff

for a municipality over a ten-year period would be just 50 percent.

Additionally, Newtown's debt comes to less than two percent of the overall

grand list, which is further evidence of the town's financial standing.

While Newtown's fiscal picture is bright today, the future remains uncertain,

and uncertainty is the devil in the detailed columns of cost projections that

financial directors thrive on.

Mr Spragg said his projections were upset recently by the Board of Education's

proposal for a new fifth- and sixth-grade school at an estimated cost to the

town, after state grants, of $15 million. Other town officials are also

talking openly about other multi-million dollar projects, including a major

overhaul of the town's municipal buildings.

Last week, the Legislative Council's finance committee met with the Board of

Education to discuss the proposed new school. The ongoing theme of the meeting

was the committee's concern over increased spending. One list of possible

projects, compiled by council member Karen Blawie, showed an estimated $40

million worth of capital expenditures.

"There's clearly a need for further analysis and planning for the projects.

The problem is: What are these projects? Do we need a million dollars or do we

need $100 million?" Mr Spragg wondered earlier this week.

A Lack Of Communication

Mr Spragg said he's been aware of many of those items listed on the so-called

"Blawie List" of projects. This is a growing town and costs continue to rise.

There is one item that has taken the finance director by surprise, though. His

recent financial analysis says nothing about a new school.

"I thought we had addressed all our school needs," he said, referring to the

recent multi-million expansion projects at Newtown High School and Hawley

School.

Mr Spragg pointed to a 1995 space needs study by Bruce Bothwell which

indicated that the town would not need another school until the year 2004-2005

-- two years later than what the school board is now projecting.

So what's a couple of years? A lot when you're trying to plan capital

projects, town officials say.

There appears to be a problem in the way the town's agencies communicate with

one another. According to Mr Spragg, it has been a continuing problem, one

that has left him out of the loop when it comes to the spending plans of the

Board of Education.

"Typically, I'm not on their distribution list," he said. "My job is to manage

the finances of the town, but why is all this going on out here? It's like the

Great Wall of China. I don't know what's going on on the other side of the

wall."

School board chairman Amy Dent said the immediate need for a new school should

come as no surprise to the town's finance director.

"We have had a new school as a potential item on our capital improvement plan

every year. We just kept moving the year ahead," Mrs Dent said. "Any

information he wants, he can get. What is important to Ben is something he has

to tell us."

As for the Bothwell report Spragg referred to, that particular study is

outdated, according to Mrs Dent. Several new studies, including one completed

by a committee of Newtown residents, showed a more urgent need for another

school as the town continues to grow.

Mr Spragg never got those reports.

First Selectman Herb Rosenthal, the former school board chairman, is familiar

with the terrain on both sides of the "wall." He agreed that there is

sometimes a communication breakdown between town and school officials. He

expressed surprise that Mr Spragg was not receiving all the latest information

from the school board as a matter of course.