Lauds New CIP Forms—

Council Vows Change

For FFH Lease Process

By John Voket

The Legislative Council reacted strongly, vowing by consensus to do whatever is necessary, including initiating a charter revision, to prevent using the kind of “operational lease” that legally circumvents taxpayer endorsement, and is similar to a hybrid arrangement the former Board of Selectmen previously approved to demolish a building and complete permanent parking at Fairfield Hills.

At the same time, the council unanimously recognized converting the hybrid leaseback arrangement with Newtown Youth Academy developer Peter D’Amico to bonding would ultimately save taxpayers about $1.1 million by substantially reducing interest on borrowing the developer underwrote to complete the demolition and improvements.

Council members John Aurelia, Kevin Fitzgerald, Chris LaRocque, Ben Spragg, co-chair Mary Ann Jacob, and Chairman Jeff Capeci all voiced their disapproval of how the original leaseback payments were authorized as part of the annual Fairfield Hills operating budget, with the intent to shift the expense to bonding at some point in the future.

This unusual arrangement shifted approval to the Board of Selectmen, instead of ultimately leaving it up to taxpayers, who would have had the opportunity to endorse or kill the plan at a town meeting.

Mr Spragg also made a strong appeal to provide the council’s Finance Committee the first pass at reviewing the process, with an eye on closing the loophole that legally permitted the transaction to be completed without public approval.

In three motions, the council unanimously approved the $3.5 million expenditure to pay off the obligation, a separate resolution supporting the bonding for that payoff, and the third resolution directing the board of selectmen to call a town meeting on the initiative. The broken out resolution process was recognized by First Selectman Pat Llodra as being as much of a hybrid as the original leaseback transaction that prompted it.

When asked by Mr Fitzgerald how taxpayers could be made to understand the original arrangement resulting in this week’s multistage resolution, Mrs Llodra replied that the entire situation was “problematic because this is an event that has already occurred in terms of the expenditure already taking place.”

“I’m hoping that the community...understands the connection between this special town meeting, the purpose and role of this refunding, and its connection to the $3.5 million loan that was created with the Newtown Youth Academy for the establishment of the permanent parking lot,” Mrs Llodra said. “What we’re trying to do, as awkward as it is, is to try and create all the opportunities that would have been in place had this gone through the regular process.”

Mrs Llodra said she was hopeful that taxpayers who had concerns about the operational leaseback from its origin would come out and be heard during the authorized town meeting, which is expected to be set and scheduled by selectmen at their next meeting.

“We’ll listen to those comments and affirm our mutual commitment that we never go down this path again,” Ms Llodra said, adding that she believes the intention and motivation of those involved was honest, but was nonetheless uncomfortable that the decision was made to circumvent direct taxpayer oversight at the onset.

During Wednesday’s council meeting, Mrs Llodra and Finance Director Bob Tait also presented and received high praise for a new packaging of Capital Improvement Plan (CIP) documentation that breaks down proposed capital spending by departments as well as breaking out proposed spending amounts in each of the CIP’s five years.

The new documentation summarizes a comprehensive overview of all proposed capital spending for Parks and Recreation, Public Works, economic development, Fairfield Hills, public safety, and open space acquisitions.

Mrs Llodra also presented a ranked package of municipal-side capital spending that was accepted by selectmen, and passed to the Board of Finance for deliberation next week. The CIP will eventually go back to the council for final deliberation, possible adjustments, and approval.

Councilman Spragg, who was recently voted to chair the council’s Finance Committee, complimented the new documentation, saying the new format went far toward helping the council understand proposed capital spending by function.

“If we could contact the school board to get something similar, then we’d have a complete picture at this point — that would be great,” Mr Spragg said. Councilman James Belden added that the new documentation was very helpful in regard to understanding the many components in play as the town moves forward to enhance its long-range planning practices.

Mr Capeci noted the comments, indicating he would bring Mr Spragg’s request forward as the school board was still deliberating the CIP ahead of its planned presentation to the finance board January 25.