Simsbury, CT - BOS Budget Workshop

The meeting was called to order at 8:20 p.m. Present were First Selectman Anita Mielert, Deputy First Selectman Joel Mandell, William Garrity, John Romano, Madeleine Gilkey and Thomas Vincent. Also present were: Kevin Kane, Finance Director, Paul Fetherston, Assistant to the First Selectman and other interested parties.

Mr. Kane stated that currently there is $1.2 million in the Sewer Assessment Fund and $1.5 million in the Sewer Use Fund. He noted that the operating costs for the Sewer Treatment Plant are paid through the Sewer Use Fund. Mr. Kane stated that the Sewer Assessment Fund can be used to pay for the expansion, with an anticipated $4.5 million fund balance by 2004/2005. He noted that the sewer use fee will be $190 per year in 2004/2005, which is still a lower rate than in most communities.

Mr. Mandell stated that Mr. Lange, WPCA Chairman, feels that the expansion and renovation is needed as soon as possible and the Town needs to get in line for funding. He noted that plans are necessary to bring information before the public for a vote on this project.

Mr. Mandell moved to grant the request of the Water Pollution Control Authority to expend $1.5 million from the Sewer Use Fund for the design of plans for the future expansion and renovation of the Sewer Treatment Plant. The motion was seconded by Mr. Garrity.

Mr. Garrity stated that he assumes that Avon and Granby are partners on this project from the start, which includes the design phase. He expressed his feeling that sewer users should pay for the renovation, not the general public.

Mr. Vincent noted that if the entire project is approved at one time, and the DEP approves the project, then payment is not due until completion of the project. He noted that the Town could earn the interest on $1.5 million until the completion of the project if the design phase is included in the referendum for the entire project. He expressed concern if the design portion of the project goes forward and the remainder of the project is defeated at referendum. Ms. Mielert pointed out that Simsbury could fall behind the in the queue and not receive funding. Mr. Vincent questioned whether the state will adopt legislation immediately if only 10 of 169 towns in Connecticut are in compliance for nitrogen removal. Mr. Garrity noted that not all towns in Connecticut have sewers.

Mr. Vincent stated that by waiting and sending the entire project to referendum in the fall, the Town could save $300,000 in interest earned on the $1.5 million requested for the design phase of the project. Mr. Kane explained that if the entire project is approved, the Town sends invoices to the state and the state sends funding to the Town to pay the vendor. He noted that if the design phase is done separately the Town ill not receive reimbursement until the construction is approved. Mr. Kane suggested that there is enough information available to move the entire project forward to referendum. He stated that the only information lacking is agreements with Avon and Granby.

Mr. Garrity stated that if legislation is enacted then all the towns effected will move toward renovating their facilities. He pointed out that the design of the project takes 12-15 months. Mr. Kane stated that currently Simsbury is fourth on the DEP’s list. He noted that New Haven and Matta Bassett are higher on the priority list, but not as far along in the process.

Mr. Vincent noted that delaying the project six months would send it to referendum in November. Ms. Mielert expressed concern with sending the project to referendum at the same time as the high school project. She suggested that the money saved by delaying the project would be lost in the nitrogen credits the Town would need to purchase after legislation is enacted. Ms. Mielert stated that Jim Clifton, WPCA Supervisor, feels that if the design plans begin immediately and the entire project is authorized in a year it is likely that a moratorium will need to be enacted before completion of the plant. Mr. Kane stated that the Sewer Treatment Plant is at 90% capacity. Mr. Mandell expressed concern with economic development activities being effected by the available capacity at the Sewer Treatment Plant.

Mr. Mandell stated that when the funding for the design phase of the project is sent to the taxpayers that will be their opportunity to let the Town know if they support the entire $26 million project. Mr. Garrity pointed out that the Town will have the opportunity to create revenue by selling tax credits if their plant is completed more quickly than others. Members of the BOS agreed that there is not enough time to hold a referendum in May on the entire $26 million project.

Mr. Mandell stated that the BOS recommends to the Board of Finance that the funds for the WPCA renovation and expansion be paid by the sewer users, as demonstrated in the finance model drawn by Mr. Kane. All members of the BOS expressed agreement.

Ms. Mielert reviewed her recommendation for changes to the budget to enable a $10,000 line item for the Simsbury Volunteer Ambulance Association. She noted that the increases for library reference materials and gasoline for the Police Department have been reduced. She stated that the other line item reductions are constant budget items which are not always used. Ms. Mielert stated that these changes to the proposed budget will allow $10,000 to be allocated to the Simsbury Volunteer Ambulance Association.

Mr. Mandell moved to approve the following 2001/2002 budgets: BOS Operating Budget, Debt Service Budget, Sewer Use Budget, Residential Rental Properties Budget, Landfill Budget, Dog Fund, Simsbury Farms/Special Programs Budget and the CNR Fund. The motion was seconded by Mr. Garrity and carried unanimously.

Ms. Mielert reviewed all of the items in the proposed six year CIP. She noted that the projects are prioritized by year, but not within each year. Ms. Mielert stated that BOE computer equipment has not been included in the plan because the Information Technology Advisory Committee has recommended that computer equipment be included in the operating budget. Mr. Garrity noted that the high school project is not included in the plan.

Mr. Kane stated that a 5% debt service budget would result in approximately $21 million in expenditures. He noted that expenditures on capital projects will probably be less over the next two years. Ms. Mielert questioned why bonding should only be authorized every two years, noting that some projects which were authorized last year have not been bonded.. Mr. Garrity suggested that next year the BOS adjust the items for the years following fiscal year 2001/2002.