Finance Officials Nudge CIP To Debt Cap Limits

By John Voket

Holding true to a commitment made in previous weeks, the Board of Finance and town Finance Director Benjamin Spragg crafted a Capital Improvement Plan (CIP) that will flirt with, but not measurably exceed, a ten percent debt cap limit recommended by Newtown’s bond counsel and Moody’s bond rating officials. In a 5-1 vote, the finance board passed a CIP Monday that will now go to the Legislative Council for consideration.

The proposal incorporates every prioritized expenditure submitted by both municipal and education leaders, including $40.8 million in bonds to fund a high school expansion to accommodate approximately 2,022 students. Michael Portnoy was the sole dissenting vote, insisting that demographic projections and other economic indicators do not support a facility that will reach that capacity in the foreseeable future.

In a last-ditch attempt to further reel in spending for the high school, Mr Portnoy attempted to amend a motion to approve the $40.8 million, countering with a proposal to fund $38.8 million. But his amendment failed by a 5-1 margin.

Mr Portnoy appeared to grow more intent on further limiting the high school funding after a school board member who appeared at the meeting suggested that they would build to the highest number affordable with whatever budget is provided, even though a joint meeting with the Legislative Council one week earlier recommended funding to a maximum projected student population of 2,022.

School board Chair Elaine McClure told the finance board that, provided the $40.8 million is delivered for the project, “…the Board of Education will end up with tough choices, but we’ll make the tough decisions.”

School board member Paul Mangiafico, who recently announced he was considering running for the first selectman’s office, told the finance board that the Board of Education would get as much as they possibly could for the $40 million, suggesting prudent design and construction management might yield a facility for more students than anticipated from the approved expenditure.

“We’re going to try to get as much square footage and increase the capacity of the school to the numbers that we really wanted to begin with,” Mr Mangiafico said. “When push comes to shove, we will take a very active role in making sure we get everything we possibly can for that money.”

Mr Portnoy asked Mr Mangiafico if he was suggesting, despite the Legislative Council’s directive, the school board would try to build for a 2,137 student capacity.

“I think that by taking a strong look and an active involvement in what’s being proposed for the money that we’ve got, I think maybe we can make some inroads into getting more than if we didn’t. That doesn’t mean we’ll be back up to a capacity of 2,137,” Mr Mangiafico said.

Ms McClure interrupted saying the school board will have to hold a meeting on the latest proposal before any further concrete answers could be provided.

Finance Board member John Torok, who previously served as Newtown school district’s business manager, said “nothing is solid” about construction specifics or the ultimate capacity an addition might accommodate, and noting generous contingencies in the architect’s proposal for the build out.

“The Board of Education can get a lot more out of this number,” Mr Torok said, adding the high school proposal was fraught with “wet-finger guesses…cushioned six ways to Sunday.”

Mr Torok advised the school board to hire a top-notch construction management firm, and contractually insist that firm brings in its “A-Team” to manage the expansion.

“This should be an up-front decision, get it in writing,” Mr Torok advised, reminding school officials that an advanced management team helped bring Reed Intermediate School in under deadline after a less skilled management team caused the project to lag.

Mr Spragg then detailed the specifics of the CIP as proposed, reminding the finance board that if any new necessary or emergency expenditures develop, items in the current plan could be eliminated or pushed out further in time to make room, and still keep at or under the ten percent debt to spending ratio.

The approved CIP has the town financing $6.5 million in projects next fiscal year including $2.75 million for the high school expansion and stadium turfing design phase, $600,000 for designs for a Park & Recreation Community Center, pool, and Senior Center, a $425,000 pumper truck for the Dodgingtown Fire District, a half-million dollars for the proposed Technology Park, and $250,000 for the local revaluation program.

The 2008-2009 fiscal year jumps up to $36,086,000 in spending accommodating the second phase of the high school build at $24.6 million, $6.2 million for the Community/Senior Center and pool build, and $725,000 for artificial turf at Treadwell Park’s Tilson soccer field.

The $17.5 million approved for 2009 includes the final high school installment of $14.2 million, with $1 million for the Tech Park and $325,000 for design plans for a police department facility expansion and the design phase of a Parks and Recreation maintenance facility renovation.

In 2010, the spending drops slightly to $16.9 million and incorporates $7.7 million for the Hawley School heating and air conditioning renovation, $2 million for the town’s approved open space conservation initiative, and the building phases of the police and Parks and Rec building proposals.

By 2011, spending drops to $13.3 million with $3.5 million proposed for a Sandy Hook School heating and ventilation project, and $2.8 million for the design phase of a middle school cafeteria and auditorium renovation.

In each year, $2 million for capital road projects is financed through the town’s general fund, and over the entire CIP, Mr Spragg anticipates a minimum of $15.7 million to be offset by various grants, with $62 million being bonded.

The Legislative Council is scheduled to officially receive the CIP for consideration at its January 3 meeting.