A Blueprint For Financial Planning

To the Editor:

What is the Capital Improvement Plan? It is a blueprint for planning the financing of capital expenditures that are proposed over the next five years. The CIP gives the Board of Finance the ability to determine how to best stabilize debt and consolidate projects to reduce borrowing costs. In addition, having a five-year CIP increases the town’s opportunities for obtaining federal and state aid.

The development of the CIP requires the involvement and cooperation of all town departments and the schools. For that reason, the responsibility for overseeing the development process should be and is with the Board of Selectmen and the Board of Education.

When departments submit their needs and recommendations for capital projects within the next five years, it is important that a cost estimate is included. Not having a cost figure to work with was a major problem for the Board of Finance when the high school expansion was requested in the CIP.

The debt service for projects scheduled for the upcoming year are then incorporated as a proposed expenditure in the budget. One change that I would like to see in the budget process is for each capital project proposed for that fiscal year to be approved by voters, separately, at the annual budget referendum. This gives the voters a better opportunity to fully realize the impact of all of the proposed projects and is more convenient than having to go to multiple meetings and votes. It would also save money since referendums and special town meetings cost money (legal advertising, etc).

Jan Andras

Republican Candidate for

Legislative Council-District 1

16 Poverty Hollow Road, Newtown                  September 18, 2009