The Board of Selectmen opened its annual process of reviewing the Capital Improvement Plan (CIP) for the next five years during its September 19 meeting.

This was a first chance for the BOS to review the plan. No vote was taken to approve. The BOS needs to get the plan to the Board of Finance by its first meeting in October.

First Selectman Dan Rosenthal said the plan is meant to be organic and changes over time. The plan under review now goes from fiscal year 2023-24 to fiscal year 2027-28. The main focuses in the plan are the “year one” items, in this case the 2023-24 fiscal year, as the borrowing for those items will be included as part of the next budget year.

“Year one items are almost upon us and are as real as it gets,” said the first selectman.

Rosenthal expressed concerns at rising costs from inflation and rising interest rates. While the town’s “perfect” AAA bond rating combined with some amount of luck in picking a day to go out to bonding resulted in a 2.25% interest rate for the 2022-23 fiscal year bonding, Rosenthal said that a nearby town with only a slightly worse bond rating got 3.25% interest on a recent bond. Rosenthal estimated that the town might get a 3.25% interest rate next time it goes out to bonding. Finance Director Robert Tait in the CIP planning, planned for a 3.5% interest rate in year one, and 4% in year three, the next year the town will be bonding.

“We’re not whistling past the graveyard here,” said Rosenthal, who also noted that if interest rates go up too much, or costs increase too much, the town could adjust the plan and wait on some projects to keep costs within budget. “There is lots of volatility in the market now and rates have gone high.”

The plan is a “forecast of the town’s needs,” according to Rosenthal, and having such a plan is part of the reason why the town’s bond rating is so high.

“We’re still looking good in keeping growth in our debt down,” said Rosenthal.

The plan includes the following projects each year:

In year one, the town will be bonding $600,000 for the bridge replacement program, $200,000 for an HVAC/electrical project at the multi-purpose building, $1.5 million for a roof replacement at the municipal center, $800,000 for an HVAC project at C.H. Booth Library, and $600,000 of the total $1,085,000 cost for replacement of fire apparatus.

The remainder of the fire apparatus cost will be from the Capital Non-Recurring Fund. Additionally, the town is planning $3.05 million in new spending from the General Fund on roads, and $200,000 for grant match from other sources, which will not be bonded. The total planned new bonding for the year is $3.7 million.

In year two, the town will be observing its plan to not do any new bonding every fifth year. While there are no new bonded projects for this year, the town plan still includes $3.1 million in new spending from the General Fund on roads, and $200,000 from other sources for grant matching.

In year three, the town will be bonding $600,000 for the bridge replacement program, $825,000 for replacement of fire apparatus, $2 million for building remediation and demo on the Fairfield Hills campus, $530,000 for Edmond Town Hall building renovations, $600,000 for a parking lot at C.H. Booth Library, and $500,000 for Treadwell Park Playground improvements.

The plan additionally includes $3.15 million in new spending for roads. Other sources including the Capital Non-Recurring Fund will be used for $50,000 for design of a truck washing station, $50,000 for improvements for site and salt storage improvements at the Public Works garage, $500,000 for the sidewalk program, and $500,000 for Lake Lillinonah park improvements. There is a project for a rail trail at Batchelder Park that will cost $1.4 million, to be paid for with grants. The total planned new bonding for that fiscal year is $5.055 million.

Rosenthal noted that the spending for demolition on the Fairfield Hills campus was originally included in year one, but the entire thing is up in the air currently since the town is trying to get Historic Credits that would allow a developer to develop two Fairfield Hills buildings for mixed use commercial and residential. If the town receives the Historic Credits, it will not be able to demolish any Fairfield Hills buildings. Even if the town fails to get the Historic Credits, which would put demolition of buildings back on the table, the town would not be able to do it in year one. Spending for demolition included in year four and five are similarly up in the air.

In year four, the town will be bonding $600,000 for the bridge replacement program, $600,000 for site and salt storage improvements at the Public Works garage, $550,000 for a truck washing station, $845,000 for replacement of fire apparatus, $250,000 for artificial turf and lighting at Treadwell Park, $350,000 for maintenance yard improvements, and $2 million for building remediation and demolition at Fairfield Hills.

As with every year in the plan, year four also contains an escalating amount from the General Fund for roads, in this year $3.2 million. There is also $800,000 in additional spending for artificial turf and lighting and $200,000 in grant matching to be taken from other sources including the Capital Non-Recurring Fund. The year contains a total of $5.195 million in planned new bonding.

In year five, the town will be bonding $600,000 for the bridge replacement program, $865,000 for replacement of fire apparatus, $250,000 for trail improvements at Fairfield Hills, $3 million for building remediation and demolition at Fairfield Hills, and $425,000 for Edmond Town Hall building renovations.

Additionally, there is $3.25 million in planned new spending from the general fund for roads, an additional $100,000 for Fairfield Hills trail improvements to be paid for from grants, and $200,000 for grant matching from other sources. The year contains a total of $5.14 million in planned new bonding.

Associate Editor Jim Taylor can be reached at jim@thebee.com.