Simsbury, CT - Board of Finance Minutes-12/21/04

The Regular meeting of the Board of Finance was called to order at 6:05 PM in the Main Meeting Room of the Simsbury Town Offices. In attendance were Chairman Paul Henault; members Candace Fitzpatrick, Michael Wade, Kevin North and Nicholas Mason. Others in attendance included First Selectman Thomas Vincent, Board of Selectmen members, John Hampton, Madelei ne Gilkey, Bill Garrity, and Joel Mandell; Brandon Robertson, Richard Sawitzke, Kevin Kane, David Holden, Sue Bullock, Carol Bingham, Rich Hogan and Diane Ullman.

Mr. Henault said the capital projects for 2005/06 are part of the capital projects discussion looking at the six year capital plan. The projects are looked at very closely for the impact in that particular year.

Mr. Henault said the high school modernization project absorbed a lot of attention of the Boards. As we look forward, we try to look for that project, additional funding for that project, and our Town's debt policy. Mr. Henault said they will also look at new projects and what they will do to the long term capital debt of the Town.

Mr. Henault said the Board of Selectmen have a current six year capital plan and 05/06 budget. There is a development rights of one million dollars; mapping system upgrades for $320,000; GIS implementation for $228,000; economic development for $500,0000; Greenway for $750,000; Town offices for renovations $150,000; Simsbury Farms improvements for $525,000; and the Library expansion for $7,360,000.00. This totals $10,833,000.00.

Mr. Henault said the Board of Education projects have not been adopted by the Board of Selectmen yet. They include Tootin' Hills roof replacement for $508,750 and HVAC systems for $500,000. This total is $1,008,750.00.

Mr. Hogan, Board of Education said they just started looking at their projects. They have moved the Tootin' Hills project down two years, for replacement in 2007/08. The only 05/06 capital project they now have is the HVAC system for $500,000.

Mr. Vincent said the development rights project for one million dollars was something that was taken off the 04/05 capital budget. Mr. Sawitzke said the computerized mapping system was last upgraded some 15 years ago. They are a good time saver/money saver for planning. The GIS system is a data system which is also needed now.

Mr. Sawitzke said the section of Greenway is from Sand Hill Road to Drake Hill is the last section in Simsbury on the rail right-of-way. It's about 2-1/2 miles long. This is the total dollar amount, but the actual amount needed net is 20% of that. The other 80% is paid for under the Federal Transportation program.

Ms. Bullock said the Library expansion is 7.3 million dollars. This is a project that would double the size of the building and carry them through the next 20 years of library services. This process started in 1998 and was supposed to be done in 2002.

The Board had some questions on the capital items. There is approximately $435,000 left in the economic development fund. Mr. Vincent said Fiddler's might need some use of this fund. There are other projects that might need to tap into this fund as well.

Mr. Henault asked about the funding for Eno. Mr. Sawitzke said the funding is in place for the air conditioning for the auditorium and make provision for extending that system in to the front of the building. If they want to do the front of the building they would have to ask for additional funding. There would also be funding needed for code issues.

Mr. Henault said the Board of Finance has a guideline that says 7% of the operating budget is for debt and retirement. There was a special exception for the high school. This was allowed to float up and they went to a 20 year bond. The six year capital plan as presented now holds significant challenges to the Board. In the year through '06 the debt services will be approximately 7.8%. This capital plan raises debt in '08 to 8%, '09 to 8.3%, in '10 to 8.6% and then 8.5% and then dropping down.

Mr. Henault is concerned with other things coming down the road. What happens with Meadowood and if a new elementary school is needed. The Library project is a very big project with a very large number. The Board of Selectmen, Library Board and Board of Education need to look at their plans again. Could the Library Board get private funding? Could the Library plan be scaled back and still fit?

Mr. North said there are opportunities here to come closer to the 7%. The capital budget doesn't stand on it's own. The resulting tax increase would be intolerable.

Ms. Fitzpatrick said there was a discussion with the Library Board at the November Board of Finance meeting, and they discussed a capital campaign and longer bonding time period. The Library is an important part of the Capital Plan to get done for the Town. The Board has made a concerted effort to build up Reserves. The lowest was 6.99% and now it is 9.66% and that takes a lot of work. The Town has been well served by being conservative in its approach. She feels the Board of Selectmen's request needs to be reduced.

Ms. Bullock said they met again with Mary Louise Jansen, consultant, and she said a fewer square foot project would be unacceptable. They could look at the same amount of square footage, but done cheaper. Ms. Bingham, President of the Library Board, said they would go back to the Public Building Committee and look at the architectural structure. Ms. Bullock said they could go to referendum and get funding from the State.

After further discussion the Board asked the Board of Selectmen to prioritize the Town's projects further to get within the guideline. They also asked the Library Board to look into their project again.

Mr. Henault said the Board received a letter from Dick Ostop, Chairman of Public Building Committee. They are asking for additional funds. (Addendum I)

Mr. Holden said there are four major categories for the appropriation of funds. The Board of Education and High School Administration and some Department Heads attended the last Public Building Committee meeting to answer some questions. Item V is included a 10% contingency of funds. In section II acid waste included the cost of $345,000 which is being contested by the Town and may be unexpended.

Mr. North said the items in red initially were going to cost one million dollars, but now it seems it will be two million dollars. The blue section represents a construction claim, which we can hope we will prevail on. Mr. North is in favor of completing the red section while the building is opened up.

Mr. North said the orange section seems to be projects that the Board of Finance said they did not want to consider at this time. The vast majority of them seem to be scope changes and inappropriate at this time.

Mr. Henault was surprised with the additional architectural fees. Mr. North said the architect's fees were based on a scope budget of 43 million, but it was converted to a hard dollar fee before the construction costs were known. Once the construction costs were known the architect had a set fee for that scope of work. Any work outside the scope, items in red and orange, the architect is entitled to an additional fee on.

After further discussion, Kevin North made motion to approve an additional $1,750,000.00 for the High School project. Mr. Wade seconded the motion. He would like the Public Building Committee and Board of Education to work together to see what goes into the remainder of the project. After further discussion, the vote passed three to two.

Mr. Hogan talked about what drives the education budget. The labor contracts are three quarter of the budget. The new superintendent is being very creative with the budget.

Ms. Ullman said there will be no new staff this year. She would like class size to be a priority. The State only gives them 68% now and it will probably be 60% next year.

After some discussion, a budget number will not be set for Education tonight. Mr. Kane suggested that the Board set a cap or at least give directions at the January meeting. Ms. Fitzpatrick stated that she felt they should be working toward a 4.5% or less tax increase.

Mr. Kane it is in proofing at the auditors and they would like to come in to meet with the Board in January. This needs to be out by December 31st.

The place of the meetings will be looked at further. Mr. Holden will look to see if the meetings can be held at the High School conference room. Mr. North made motion to approve the dates, times as adjusted. Mr. Wade seconded. All were in favor and the motion passed. Mr. Kane and Mr. Holden will confirm the High School conference room D172.