HomeMy WebLinkAboutCapital Improvements 02/12/2002( @l
Capital Improvements Committee
Minutes of February 12, 200g) ;, �
Present: Roger Achille, Chair, Bernie Dolan; Kenneth Gay, MBC, ch401iIVI, SBoard of
Selectmen; Frank DelVecchio, Finance Committee; Jean Miller IM Michael Trowbridge;
School Committee
Shaun Burke, Director of Planning and Development; John D'Agostino, Town Manager;
Richard Boucher, Treasurer
1. The meeting was called to order at 6:00 p.m.
2. Correspondence
February 7, 2002 Minutes (Mr. Trowbridge is not included in the list of those present and
he would like to be added to the list of attendees.) Motion: To accept the minutes as
amended above (Dolan -Gay) All in favor. PASSES
3. Borrowing to Fund Capital Plan
Mr. D'Agostino distributed spreadsheets prepared for this option, showing the town
borrowing one million dollars a year for three years in a row. He suggested a three-year
bonding program and said he would be seeking authorization to spend $1.7 million, with
$700,000 being Raised and Appropriated and $1 million from borrowing.
Mr. McCue asked if Mr. D'Agostino has projects in mind totaling that much, or was he
suggesting spending to that amount. Muir. D'Agoshrio said that he was suggesting $1
million. Mr. D'Agostino explained the capital projects should have double the life of the
borrowing.
Mi•. Dolan said he was uncomfortable with estimating a number that might be higher than
the town needs; then we may end up spending that much unnecessarily. He recommended
the connaittec review requests before deciding on an amoutit to be borrowed. Mr.
D'Agostino agreed he would like to establish priorities before committing to a dollar
amount also. Mr. McCue said he agreed about the need for setting priorities.
Mr. Gay said he was supportive of Mr. D'Agostino's proposal, as it provides a vehicle for
planning for a capital improvements plan, rather than starting with a fixed number.
Mr. DelVeccluo said the town may not have $700,000 from raise and appropriate, so
borrowing would provide an option to keep funding in the capital plan.
Mrs. Miller said this proposal would require adherence by the committee and staff to the
priorities established in a five-year plan. Mrs. Miller went on to say that in her experience
as a committee member, department priorities often change from year to year, and she was
concerned about the ability to maintain a commitment to priorities.
Richard Boucher, Town Treasurer, joined the committee to discuss the manner and cost of
borrowing to fund the Capital Improvments Plan. Mr. Boucher explained what the state
allows in terms of borrowing; equipment should be borrowed for no more than live years,
buildings and land for 20 years, and sewer for 30 years. He explained that while the town
would borrow in year one, the town would begin repaying in year two following the
borrowing. Mr. Boucher explained that the cost of debt service would be approximately
$240,000 a year on a $1 million debt. Of this, $40,000 is interest and $200,0100
principle. The borrowing from year one would be paid by year six at the above rate. Mt•.
Boucher went on to explain a number of other options provided in the handouts.
Mr. D'Agostino aksed if there was consensus on his proposal and suggested that the
committee may wish to discuss conditions or ground rules for borrowing.
Motion: To procede with funding a capital plan that involves borrowing, bonded debt,
with the following conditions: 1. The capital acquisition must have a usable life of no less
than 10 years; 2. it must be a very high priority.
(Dolan -McCue) Allin favor. PASSES
4. Staff Presentations
The committee decided the staff presentations would begin at the next meeting, February
26, at 6:45 p.m. Presentations shall be no longer than 15 minutes per department. The
committee also requested that staff be advised to establish priorities, highest to lowest, for
each capital request prior to the meeting of the 26'hl and be prepared to discuss same at
their presentation.
Finally, the committee asked that a memo be sent to Public Buildings and Schools asking
about the equipment storage garage behind the highschool. , Specifically, have the two
departments agreed to share one building, and if so, what is the anticipated cost of the
shared building? Does the $300,000 in the School Department capital budget include
storage space for Public Buildings?
5. Adjournment
Motion: To adjourn at 7:40 pm (Dolan-N'IcCue ) All in favor. PASSES
Date of next meeting: February 26, 2002 at 6:30 p.m.
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