Simsbury, CT - Board of Finance Workshop

The Board of Finance Budget Workshop Meeting was called to order at 6:05 P.M. in the Main Meeting Room of the Simsbury Town Offices. Present were Chairman Paul Henault, Board Members Kevin North, Peter Askham, Michael Wade and Candace Fitzpatrick, First Selectman Thomas Vincent, Selectmen Anita Mielert and Joel Mandell, Assistant to the First Selectman Brandon Robertson, Finance Director Kevin Kane, Director of Community Planning and Development William Voelker, Town Engineer Richard Sawitzke, Chief of Police Peter Ingvertsen, Director of Public Works Michael Wrabel, Superintendent of Schools Dr. Joseph Townsley, Business Manager David Holden, Board of Education Member Richard Hogan, Public Building Committee Chairman Richard Ostop, Phillip Neuberg of Fletcher Thompson and other interested parties.

In response to Mr. Askham's question, First Selectman Vincent said that the projects being presented are for one year and next year the second year's projects would be presented; Mr. Hogan said that in accordance with the Board of Finance's expectation, the Board of Education Six-Year Plan would meet the needs of the Board of Education barring any unforeseen circumstances.

In response to Mr. Henault's question, First Selectman Vincent said that the shared cost of the Sewer Treatment Plant Renovation and Expansion Project has been agreed to by the towns of Avon and Granby and the contracts have been drafted but not yet signed.

In response to Mr. North's question, Mr. Kane distributed and reviewed his memorandum to the Board of Finance dated March 11, 2002 containing six scenarios to determine the annual cost in nominal dollars to current and future users (if any) of the Sewer Treatment Facility and assumes that taxpayers will not bear any of the burden.

In response to Mr. Askham's questions, Mr. Sawitzke said that the EDU rate is solely determined by the WPCA after public hearing, that the EDU rate applies to residential and commercial users, and that large restaurants, large water users, etc. will have more than one EDU rate.

In response to Mr. Henault's questions regarding state funding for the Sewer Treatment Facility, Mr. Wrabel said that the Town qualifies for Priority Points, which the DEP awards to projects enhancing clean water in the State of Connecticut, if the project is delayed the Town may fall behind other projects in Priority Points, that the Nitrogen Pollution Law went into effect on January 1, 2002 and that next year's operating budget will contain a $26,000 line item to buy credits from other treatment plants.

In response to Mr. North's questions regarding the allocation of funds for the purchase of development rights and economic development, First Selectman Vincent said that the availability of funds allows for negotiating infrastructure improvements for private development projects. Mr. Kane added that the purchase of open space for development rights would need Board of Finance approval.

Mr. Kane informed the Board that if the purchase of development rights is over the one-percent rule it will require a special Town Meeting as well as approval by the Board of Finance and anything over three-percent will require a referendum.

In response to Mr. North's questions, Mr. Hogan distributed and reviewed a memorandum from Dr. Townsley to the Board of Finance outlining the High School Renovation and Expansion Project's impact on the Board of Education Operating Budget, highlighting the increases in custodial positions, sewer assessment, fuel, water, electricity, supplies, insurance, intramural costs and equipment.

In response to Mr. Askham's questions regarding space per student, Mr. Hogan said that for years, space in the high school has been inadequate. Dr. Townsley said that the additional space per student is well within state school facilities guidelines and is not being overbuilt; that problems not being addressed by the project are asbestos tiles, poor ventilation, the locker room, water problems under the stage, etc.; and that scaling down the program will have a domino effect, i.e. if there is no new media center, the old media center cannot be turned into classrooms.

In response to Mr. Henault's questions, Mr. Hogan said that the proposed High School square footage in relation to the student population is well within the norm; and that for years the high school has had inadequate space and the project will remedy this situation.

In response to Mr. Askham's questions, Dr. Townsley said that there are well over 400 children eligible to enter Kindergarten; Mr. Hogan said that Dr. Chung's estimates have been conservative and that the numbers have exceeded estimates five out of the last six years; Dr. Townsley said that every elementary classroom except one will be used next year; Mr. Sawitzke said the average population in new homes is increasing and that resale of older homes to younger families is also increasing population.

In response to Mr. Henault's questions, Mr. Ostop said that O & G, the construction manager for the High School Project, indicated that there are possible small cuts which could be made; Mr. Neuberg said that the building is within the state reimbursable range, that many other districts build an average of 12% over the reimbursable rate, that the design is the most efficient shape possible, and the loop circulation plan will allow for better student traffic flow.

Ms. Fitzpatrick said it would be helpful for the voters to know that separate from the increased operating costs for more space, that enrollment driven operating increase are anticipated and that they should be forecasted; that with regard to open space, dollars must be maximized and forestalling residential development is a fiscally responsible way to proceed.

In response to Ms. Fitzpatrick's question, Mr. Kane said he had looked into bonding the monies for economic development, but since projects could range from $25,000 to $500,000, it is more easily managed from a fund balance.

In response to Mr. Henault's questions, First Selectman Vincent said that the fund will support economic development in the Town and it would be shortsighted not to look at future tax revenues from economic development.

In response to Mr. Wade's questions, Mr. Kane said that the legal language for use of the Economic Development Fund will include approval by the Board of Finance on expenditures from the fund; Mr. Voelker said that there is some interest in building projects and that having the Economic Development Fund would allow acceleration of deals, or perhaps keep them from locating in other municipalities, that having the fund allows the town to be proactive rather than reactive, and that the monies should take the Town through the next two fiscal years.

In response to Mr. Henault's question, First Selectman Vincent said that each case will be evaluated on an individual basis and the monies would be used "when needed" to encourage new businesses or retaining existing businesses.

In response to Mr. Henault's questions, Mr. Ostop said that according to its charter, the Public Building Committee is an advisory committee; and is charged with ensuring that when the building is constructed, it is built to the approved specs, that the Committee feels that the square-foot cost for the High School project is reasonable, and that contingency monies may or may not be spent.

In response to Mr. Askham's question, Mr. Ostop said that once the design phase is complete, the project would go out to bid by package, which is the most competitive way to bid for a project this size.

In response to Mr. Henault's questions, Dr. Townsley said that the project has been reduced to keep within the $34 Million and in his estimation the building will be under prepared; Mr. Ostop said that the original plan was to renovate the building to new; Mr. Holden said that in presenting the project to the Design Review Board and the Planning and Zoning Board, costs were added by way of design, landscaping, aesthetic value, etc.

In response to Mr. Henault's concern regarding the voter's perception of the project, Mr. Hogan said that the project needs the full support of the Board of Finance, Board of Selectmen and Board of Education when presented to the voters.

In response to Mr. Askham's questions, Mr. Neuberg said that the High School project design could be ready to go out for bids in approximately one year; and Mr. Ostop said that the state now reimburses as the project progresses.

In response to Mr. Askham's questions, Mr. Holden said that whether computers are purchased out of the Operating Budget, CNR or purchased as a component of a capital construction project, the cost is included in the net current per pupil calculation.