Council Is Assembling A $50 Million Capital Package

By Steve Bigham

The Legislative Council plans to present Newtown’s taxpayers with an estimated $50 million spending package later this year. Members are hoping that, for once, “putting all your eggs in one basket” won’t be such a bad thing.

And while the council’s financial strategists hope to get all the projects approved at one time, the actual spending would probably take place over a five-year period.

“It’s important to get everything on one ballot and to get it approved in one shot because we need everything, but the school is most important right now,” explained John Kortze, the council’s finance committee chair. “If we do it all at once it lets the town know what we’re in for. We can stagger the projects over time to allow us to stay below the debt ceilings that we’re worried about.”

That $50 million package would include a new 5/6 school, the purchase of Fairfield Hills, municipal space needs, major renovations to Edmond Town Hall and various other needed projects, such as a new Hook & Ladder firehouse and repairs to Town Hall South.

Mr Kortze said that by approving all projects at once, the town is encumbered to that level of spending. If the economy remains strong, then all projects can be done on schedule. If the market turns sour, the projects are simply postponed, he said.

By wrapping all capital improvement projects up into one package the council hopes to bring together enough special interests to assure passage of the entire spending plan. The proposed 5/6 school, which accounts for the largest portion of spending at $21 million, has received much support from parents and would be expected to draw many of these supporters to a town meeting or referendum to assure its passage.

“One of the realities is that if you want to get all projects passed, you might want to bundle them with one that is sure to get passed,” noted council chairman Pierre Rochman. “Individually proposed projects may be in jeopardy. It would be totally unfair of us to propose things piecemeal. Voters need to know the impact of everything that’s being proposed. We can not spoon feed this project-by-project.”

Packaging everything together goes along with what the council has been saying all along: “We need to consider the 5/6 school in the context of municipal space and Fairfield Hills.” And the council is now feeling pressure from the school board, which wants to have its 5/6 school open by September 2002. In response, the council is expediting the process, as well. The slow moving Fairfield Hills issue has suddenly been shifted into high gear.

The council’s budget makers have been challenged by the community’s unprecedented growth, by the impending purchase of Fairfield Hills, and now by the school system’s proposed operating budget for 2000-2001, which Superintendent of Schools John R. Reed unveiled last week. The school budget plan represents a 17.5 percent increase or a jump of 3.5 mills.

“I was blown over by the superintendent’s request. It created a problem right off the bat,” noted council chairman Pierre Rochman, pointing out that the town’s grand list growth may be no more than four percent. “I thought last year was supposed to be a catch up year. The phrase ‘catch up’ is being used a little too routinely.”

Last week, the council also approved $1.6 million worth of architect’s fees for a new school, which will also have an impact on the mill rate.

Newtown’s debt as a percentage of the overall operating budget runs the risk of going above the 10 percent threshold established by Moody’s Investment Services.

“We’re right at the saturation point,” admitted Mr Kortze.

Finance Director Ben Spragg is crunching numbers these days trying to determine if the town can afford to do all these projects. The town has considered floating five $10 million bond issues over five years.

Mr Kortze said Fairfield Hills, by the council’s own definition, is not an “urgent” expenditure right now. However, it has been placed on the front burner because the state has given the town a deadline to decide whether or not it wants to buy the property. In addition, the Fairfield Hills issue has been complicating debates on many other much-needed projects.

“The crunch had to come, so we were not surprised,” Mr Rochman said. “We’ve decided that we need to make a decision of Fairfield Hills. We need to know now so we can plan ahead. We need to move along on the assumption that we are going to buy it.”