WEBVTT 1 00:02:00.330 --> 00:02:02.670 Brooks Harris: Mike we're going to be starting in a few minutes. 2 00:02:03.990 --> 00:02:05.250 Brooks Harris: I want to see if you. 3 00:02:05.520 --> 00:02:07.830 Brooks Harris: your microphone and video work at this point. 4 00:02:10.320 --> 00:02:13.170 Mike Basham: i'm unmuted but my video does not work yet. 5 00:02:14.400 --> 00:02:16.140 Brooks Harris: Okay, we can hear you though. 6 00:02:22.320 --> 00:02:24.060 Mike Basham: I don't need to be staying as long as you. 7 00:02:27.090 --> 00:02:34.830 Brooks Harris: Okay, and as a test to make sure that the attendees can hear Gerry Anderson can you raise your hand if you can hear us. 8 00:02:39.720 --> 00:02:47.640 Brooks Harris: Great okay that's good to know I will assume others can hear us as well we'll get started in just a few minutes, people are still joining. 9 00:02:48.780 --> 00:02:50.010 Brooks Harris: we'll give it a few more minutes. 10 00:03:52.650 --> 00:03:56.760 Brooks Harris: Mike you're now a Co host did you are, you still trying to get your video working. 11 00:04:06.180 --> 00:04:07.170 Brooks Harris: Mike you're muted. 12 00:04:10.080 --> 00:04:10.380 Mike Basham: No. 13 00:04:11.580 --> 00:04:15.210 Mike Basham: I haven't worked on my video wasn't working earlier now it's working. 14 00:04:16.380 --> 00:04:16.680 Okay. 15 00:04:19.950 --> 00:04:25.590 Brooks Harris: Okay, I still see people joining, so why don't we give everyone just another minute or two here. 16 00:04:26.130 --> 00:04:26.940 Brooks Harris: likely, you are. 17 00:04:27.510 --> 00:04:32.790 Brooks Harris: You are co host you can see, the number of attendees when you're happy with the number of attendees. 18 00:06:32.370 --> 00:06:34.470 Mike Basham: another minute we'll see how many people join us. 19 00:07:28.980 --> 00:07:29.460 Mike Basham: Reading up. 20 00:08:02.070 --> 00:08:03.180 Brooks Harris: And you have a question. 21 00:08:04.020 --> 00:08:08.040 dan quigley: just want to make sure you guys get back here in here me I knew I was here. 22 00:08:08.940 --> 00:08:10.200 Brooks Harris: Indeed, yes, we do. 23 00:08:10.980 --> 00:08:11.610 Brooks Harris: So my first. 24 00:08:12.240 --> 00:08:13.590 Brooks Harris: we'll get started momentarily. 25 00:08:14.850 --> 00:08:18.930 Mike Basham: reflect like we're gonna be right around three dozen people at this particular point. 26 00:08:22.770 --> 00:08:24.300 Mike Basham: All right, there we go ahead and start. 27 00:08:25.980 --> 00:08:27.060 Brooks Harris: think that makes sense. 28 00:08:28.140 --> 00:08:38.280 Mike Basham: Okay, all right, good evening everyone and welcome to the rpm finance committee's webinar focused on the town greenwich's fyi 2122 proposed capital budget. 29 00:08:39.600 --> 00:08:48.660 Mike Basham: As well as the 15 year projected capital plan like bash him and i'm Chair of the Finance Committee under our team rules that Finance Committee has abroad. 30 00:08:49.560 --> 00:09:02.580 Mike Basham: Capital budget responsibilities for reviewing the town's quotes capital budget and protected capital plan and reporting to the our team on these plans impact on the tax levy financing needs and overall financial position of town. 31 00:09:03.720 --> 00:09:11.580 Mike Basham: This meeting tonight is that is intended to fulfill those responsibilities, however, before we begin, I want to mention a few things about this presentation. 32 00:09:12.600 --> 00:09:20.730 Mike Basham: First, all the financial information, you will see this evening, can be found in the bts proposed fly 2122 capital budget book. 33 00:09:21.510 --> 00:09:28.830 Mike Basham: your team will consider on May the 10th or in the town's comprehensive annual financial reports prepared by the town's financial department. 34 00:09:29.640 --> 00:09:45.120 Mike Basham: comedians thinking this Dan financial data and try to present it in an unbiased manner in order to help our TEAM members better understand the potential impact of capital budgeting decisions on the power of if the sizing how taxes overall spending and borrowing are interrelated. 35 00:09:46.410 --> 00:09:57.930 Mike Basham: Second presentation focuses on diabetes proposed capital budget upcoming fiscal year, and also the 15 year projection powerful request made available in the budget. 36 00:09:59.160 --> 00:10:05.580 Mike Basham: You should be aware that the 15 year projection does just that the projection the way in our document that. 37 00:10:07.620 --> 00:10:23.160 Mike Basham: represents only the best estimates by town departments and the Bia we have the capital H effective priorities at a given point in time, as we all know, these priorities have a way of changing propriety looking willingness and ability to effectively. 38 00:10:25.410 --> 00:10:34.320 Mike Basham: manage significant increases the capital spending, let me add that religion is one of the few towns that actually prepares a 15 year capital projection. 39 00:10:34.950 --> 00:10:42.120 Mike Basham: However, the town officials financial consultants and rating agencies all agree that, while useful evaluating longer dated cash flows. 40 00:10:42.750 --> 00:10:52.830 Mike Basham: financial projections much beyond six to seven years are subject to too much uncertainty to be the effective forecasting tools we'd like them to be so keep that in mind tonight. 41 00:10:53.760 --> 00:10:59.250 Mike Basham: Finally, while the town's capital budget is the compilation of much discussion thought and advocacy. 42 00:10:59.850 --> 00:11:05.700 Mike Basham: This presentation will not advocate for North pine about the merits of any of the projects presented in the budget. 43 00:11:06.480 --> 00:11:21.510 Mike Basham: Our goals are to educate our TEAM members will be better understand the town's capital budgeting process and its impact on taxes spending and borrowing and to better position members to evaluate the current capital budget as well as the capital spending plan presented to them if you. 44 00:11:23.100 --> 00:11:34.800 Mike Basham: want to thank all of you who are able to join us tonight, and I hope you'll find this presentation informative and helpful, there will be time for questions and answers at the end now, I want to tear take. 45 00:11:43.290 --> 00:11:43.650 Brooks Harris: Okay. 46 00:11:43.680 --> 00:11:44.460 Brooks Harris: Thank you Mike. 47 00:11:44.880 --> 00:11:48.570 Brooks Harris: With the legal disclaimers behind us why don't we dig in so. 48 00:11:49.170 --> 00:11:51.210 Brooks Harris: Anybody who hasn't done so already. 49 00:11:51.570 --> 00:11:54.990 Brooks Harris: should take a look at the capital budget it's up on the town website. 50 00:11:55.350 --> 00:12:09.120 Brooks Harris: And you know it's it's it's useful to see we're going to summarize, a lot of data really going to focus on some of the challenges in the budget would want to focus on capital spending over time, both the stork and proposed the sequencing. 51 00:12:09.180 --> 00:12:11.700 Mike Basham: of major capital projects that's pretty important. 52 00:12:12.000 --> 00:12:13.920 Brooks Harris: I mean it's it's really the 9010 rule. 53 00:12:13.920 --> 00:12:14.250 Brooks Harris: here. 54 00:12:14.430 --> 00:12:21.180 Brooks Harris: The big projects are really are really driving the budget and the big projects are really the ones that will. 55 00:12:21.570 --> 00:12:33.180 Brooks Harris: gain the most scrutiny as they become correct and we actually get the vote on them and then we'll talk about the impact on capital spending on that levels mill rate the et policy guidelines and. 56 00:12:33.630 --> 00:12:42.030 Brooks Harris: These things are very important to keep in mind for this year's approval, even though we're not going to recommend material cuts in this year's capital budget. 57 00:12:42.750 --> 00:12:50.430 Brooks Harris: As you look at this year's capital budgeting and vote on it, you need to keep in mind is a lot of projects behind this that we have to fund so. 58 00:12:50.730 --> 00:12:59.430 Brooks Harris: You know if we if we spend too much money too quickly, we have enough for those other projects so tonight we're going to look forward, and just make sure people know what's coming down the pipe. 59 00:13:00.000 --> 00:13:07.950 Brooks Harris: So the capital budget is most of you know, is prepared, because the various departments and Bo we submit capital request to the first selectman. 60 00:13:08.370 --> 00:13:09.750 Brooks Harris: And then he modifies the. 61 00:13:09.750 --> 00:13:12.480 Brooks Harris: request and aggregates them into a capital plan. 62 00:13:12.720 --> 00:13:14.580 Brooks Harris: Which is proposed to the BT that's. 63 00:13:14.580 --> 00:13:25.860 Brooks Harris: been on the town website for months now, the B et ads and removes items after public hearings and private deliberations and then that also is posted on the town website for people to say. 64 00:13:26.430 --> 00:13:36.600 Brooks Harris: At the end of all of this, our team has to approve capital spending, but for the next year only even though we're going to talk about 15 years we only get to approve next year's budget. 65 00:13:37.290 --> 00:13:45.150 Brooks Harris: The the long term budget is not formally presented to the rpm, although I hope everybody avail themselves the opportunity to look at it on the town website. 66 00:13:45.630 --> 00:13:54.000 Brooks Harris: Okay, we talked a little bit about why we need to review the 15 year capital plan and its relationship to this US spending or the spending in any particular year. 67 00:13:54.480 --> 00:14:06.000 Brooks Harris: So what can our team Members do to impact the capital budget well first are explicit a function is to remove line items from the capital budget so we either approve it. 68 00:14:06.330 --> 00:14:14.430 Brooks Harris: Or we remove a line item we can't add any items to the capital budget, we can express our sentiment or our support for issues through a. 69 00:14:14.850 --> 00:14:17.760 Brooks Harris: sense of the meeting resolution and we've done that in years past. 70 00:14:18.150 --> 00:14:28.770 Brooks Harris: to various degrees of success it's non binding and then, finally, obviously, our TEAM members as can any member of the Community can speak with the first selectman in members of the B E T. 71 00:14:29.130 --> 00:14:34.020 Brooks Harris: and express their opinions debate this and I find that that process is very useful. 72 00:14:34.710 --> 00:14:43.380 Brooks Harris: bottom line is the capital, if the capital requests are funded is proposed in the 15 year capital budget there'll be increases in mill rate taxes and death. 73 00:14:43.710 --> 00:14:54.660 Brooks Harris: Even before considering inflation so based on the 15 year capital plan is presented, we didn't do any kind of performance on these numbers, the mill rate one increased by 47%. 74 00:14:55.050 --> 00:14:59.640 Brooks Harris: taxes will increase by 60% and that will increase by 130%. 75 00:15:00.180 --> 00:15:08.130 Brooks Harris: And so you know the reason we highlight these statistics since we're not saying this is set in stone, but rather that the requests. 76 00:15:08.430 --> 00:15:21.420 Brooks Harris: Both from the capital and operating side are large enough that at some point it taxes grow to buy or decadence to high future spending, maybe ration and we have to consider that we approve current spending. 77 00:15:22.770 --> 00:15:36.330 Brooks Harris: Okay, we took a little bit of time to look at how taxes that mill rate taxes debt and mill rate have moved in the past versus the present and, for instance, over the past five years, taxes have been up 7%. 78 00:15:37.290 --> 00:15:40.890 Brooks Harris: Over the next five years they're projected to write rise 19%. 79 00:15:41.310 --> 00:15:50.850 Brooks Harris: or looking at a different statistic over the past five years that has remained fairly flat and stout 8% but over the next five years it's projected to more than double. 80 00:15:51.210 --> 00:15:56.970 Brooks Harris: Based on this current plan and, similarly, the mill rate is expected to go up more than it has in the past and. 81 00:15:57.630 --> 00:16:08.610 Brooks Harris: that's kind of to be expected as we'll discuss, we have a lot of capital projects that are priorities for the town, but that in taxes will have to go up if we increase our capital spending. 82 00:16:09.300 --> 00:16:15.900 Brooks Harris: Okay, so review of some of the challenges we talked about death and taxes have to rise to fund the proposed Program. 83 00:16:17.640 --> 00:16:27.570 Brooks Harris: You know, some people have suggested that you know part of this should be borrowing more against this program and what we'll see a little bit is that the the levels of debt already. 84 00:16:27.570 --> 00:16:29.100 Brooks Harris: rise pretty significantly. 85 00:16:29.430 --> 00:16:36.780 Brooks Harris: And borrowing only delays paying for spending it doesn't get rid of the need to pay for it obviously okay so there'll be. 86 00:16:36.900 --> 00:16:39.720 Brooks Harris: choices between spending and taxes and borrowing. 87 00:16:40.710 --> 00:16:42.960 Brooks Harris: choices between current and future spending. 88 00:16:43.200 --> 00:16:44.730 Brooks Harris: And operating versus capital. 89 00:16:44.730 --> 00:16:46.200 Mike Basham: expenditures okay. 90 00:16:47.220 --> 00:16:50.220 Brooks Harris: Final point i'll make here is that many of the projects. 91 00:16:50.460 --> 00:16:51.420 Mike Basham: That are in. 92 00:16:51.480 --> 00:16:52.410 Brooks Harris: The Bo is. 93 00:16:52.440 --> 00:16:53.520 Brooks Harris: master plan and. 94 00:16:53.520 --> 00:16:55.320 Brooks Harris: Indeed, many projects that the town is. 95 00:16:55.320 --> 00:16:59.550 Brooks Harris: Debating investing in are not in the 15 year capital plan so far. 96 00:16:59.730 --> 00:17:01.680 Brooks Harris: So, if we add some of those. 97 00:17:01.680 --> 00:17:03.810 Brooks Harris: into the 15 year capital plan, the numbers, we. 98 00:17:03.810 --> 00:17:04.530 Mike Basham: See will be. 99 00:17:05.250 --> 00:17:05.970 Brooks Harris: extenuating. 100 00:17:06.000 --> 00:17:07.710 Mike Basham: even further okay. 101 00:17:07.980 --> 00:17:09.600 Brooks Harris: So what are we talking about in terms of. 102 00:17:09.600 --> 00:17:12.210 Brooks Harris: Catholics spending, if we look back over the last. 103 00:17:12.540 --> 00:17:15.720 Brooks Harris: 11 years we spent about $48 million. 104 00:17:15.750 --> 00:17:16.110 Mike Basham: Or we. 105 00:17:16.320 --> 00:17:17.640 Brooks Harris: We proposed $48. 106 00:17:17.640 --> 00:17:21.090 Brooks Harris: million and approved $48 million of capital expenditures. 107 00:17:21.360 --> 00:17:27.540 Brooks Harris: per year historically going forward that number is expected to increase at 3 million. 108 00:17:27.780 --> 00:17:29.550 Brooks Harris: And indeed, because that number has no. 109 00:17:29.550 --> 00:17:30.480 Brooks Harris: inflation and it. 110 00:17:30.630 --> 00:17:31.500 Mike Basham: If we were to. 111 00:17:31.710 --> 00:17:36.270 Brooks Harris: Add say 3% inflation factor we'd be spending on average about 100 and. 112 00:17:36.270 --> 00:17:43.080 Brooks Harris: $4 million per year, this is even more challenging because if you look at this plan in 35 and 36. 113 00:17:43.590 --> 00:17:52.080 Brooks Harris: The plan basically says capital expenditures is falling away to levels that are even lower than we're spending today and as we'll discuss in a moment that's probably. 114 00:17:52.170 --> 00:17:52.800 unlikely. 115 00:17:54.270 --> 00:17:54.900 Brooks Harris: Okay, so. 116 00:17:54.960 --> 00:18:00.300 Brooks Harris: What are the capital projects that are coming our way the major capital projects, most of them are related to schools. 117 00:18:00.570 --> 00:18:06.810 Brooks Harris: And they've been prioritized in the Bo ease master plan and now they're you know the numbers are here. 118 00:18:07.020 --> 00:18:08.700 Brooks Harris: In our 15 year capital plan. 119 00:18:08.700 --> 00:18:09.150 Brooks Harris: So. 120 00:18:09.390 --> 00:18:11.250 Brooks Harris: You know the current most. 121 00:18:11.550 --> 00:18:13.020 Brooks Harris: Critical ones are obviously. 122 00:18:13.230 --> 00:18:14.250 Brooks Harris: Julian curtis. 123 00:18:14.520 --> 00:18:23.460 Brooks Harris: All Greenwich and riverside and then after you get out a little bit farther most of the schools have some neat or other in some of the needs are quite major. 124 00:18:23.520 --> 00:18:25.890 Brooks Harris: Central middle school at some point. 125 00:18:26.370 --> 00:18:28.530 Brooks Harris: is likely to be completely overhauled. 126 00:18:28.560 --> 00:18:29.970 Brooks Harris: may be completely rebuilt. 127 00:18:30.240 --> 00:18:33.390 Brooks Harris: And indeed, we may even bring that number forward. 128 00:18:33.630 --> 00:18:36.480 Brooks Harris: If we find the schools useful life is starting to. 129 00:18:36.900 --> 00:18:44.070 Brooks Harris: expire and maintenance becomes prohibitive, we may have to bring that forward So these are from the facilities master plan. 130 00:18:44.070 --> 00:18:44.340 Mike Basham: But. 131 00:18:45.330 --> 00:18:53.160 Brooks Harris: What the facility master plan has included, but is not included our budget right now, our projects at Glenville Hamilton avenue parkway. 132 00:18:53.490 --> 00:19:03.510 Brooks Harris: Eastern middle school Western middle school and a majority of the renovation suggested accredited high school so My point is that there are hundreds of millions of dollars of. 133 00:19:03.510 --> 00:19:06.090 Brooks Harris: projects identified in the Bo a master plan now. 134 00:19:06.450 --> 00:19:15.180 Brooks Harris: You know, obviously some of these schools have been renovated, more recently, than others, but none of these are in there for the next 15 years and suffice to say given. 135 00:19:15.210 --> 00:19:16.920 Brooks Harris: There in the facilities masterplan. 136 00:19:17.190 --> 00:19:30.210 Brooks Harris: It appears that still likely that these projects will be requested if non the next 15 years thereafter, and my point is that means we probably can assume capital spending is going to go through. 137 00:19:30.480 --> 00:19:32.220 Brooks Harris: A big hump over the next. 138 00:19:32.220 --> 00:19:33.240 Brooks Harris: 15 years and then it's. 139 00:19:33.240 --> 00:19:35.280 Brooks Harris: going to fall off, there will still be. 140 00:19:35.430 --> 00:19:37.170 Brooks Harris: considerable number of projects out there. 141 00:19:37.500 --> 00:19:39.480 Brooks Harris: Also, not included in the in the. 142 00:19:40.260 --> 00:19:41.310 Current capital plan. 143 00:19:42.420 --> 00:19:48.450 Brooks Harris: Is the Northwest fire station now obviously there's going to be a debate on that maybe it'll happen, maybe it won't but. 144 00:19:48.480 --> 00:19:50.640 Mike Basham: You know i'm just saying that you know. 145 00:19:50.880 --> 00:19:54.030 Brooks Harris: Not everything is in the capital plan, right now, so I don't. 146 00:19:54.030 --> 00:19:55.170 Brooks Harris: think the capital plan. 147 00:19:55.350 --> 00:19:58.650 Brooks Harris: Is overstated, I think, if anything, will probably end up. 148 00:19:58.800 --> 00:20:03.870 Brooks Harris: You know, having more request over what time period, you know that that's subject to more debate. 149 00:20:05.280 --> 00:20:05.670 Mike Basham: Okay. 150 00:20:05.790 --> 00:20:06.330 So. 151 00:20:07.830 --> 00:20:10.320 Brooks Harris: So what what's the impact on deck going to. 152 00:20:10.320 --> 00:20:11.190 Brooks Harris: be well. 153 00:20:12.240 --> 00:20:21.450 Brooks Harris: You know if we're going to spend this increased money, a lot of it's going to be funded with debt and our debt balances are going to grow over time what you can see in this chart is. 154 00:20:21.690 --> 00:20:26.700 Brooks Harris: You know, back in oh nine we had just started funding capital projects with debt. 155 00:20:27.060 --> 00:20:39.600 Brooks Harris: And debt built up fairly quickly to about 150 million dollars it's been pretty stable over the last number of years, but if we embark on this more accelerated capital plan debt will grow and in the current. 156 00:20:40.170 --> 00:20:48.750 Brooks Harris: Capital plan debt is projected to grow from 187 million to 431 million and that's a very significant increase. 157 00:20:49.110 --> 00:20:53.850 Brooks Harris: And I should also highlight that it's growing that way, even though the plan assumes that. 158 00:20:54.180 --> 00:21:01.020 Brooks Harris: Almost $200 million of capital expenditures are going to be fun that are $200 million dollars of expenses. 159 00:21:01.260 --> 00:21:14.340 Brooks Harris: are going to be funded through the use of fund balance so that means that you know that rainy day fund or however you want to refer to it, which is our buffer is expected to generate excesses that can be used to offset some of these. 160 00:21:14.730 --> 00:21:15.930 Brooks Harris: capital costs so. 161 00:21:16.230 --> 00:21:20.850 Brooks Harris: it's quite possible that that will rise even more quickly if we stay on this plan. 162 00:21:22.380 --> 00:21:41.160 Brooks Harris: Okay, and then what happens to the mill rate well the mill rate is projected to increase by 47% from 11.6 to 17 point out and again that's not paying for all the projects we have because we're also building up our dad at the same time, and so taxes which. 163 00:21:42.960 --> 00:21:43.410 Brooks Harris: don't. 164 00:21:43.620 --> 00:21:45.240 Brooks Harris: Tax the mill rate. 165 00:21:46.290 --> 00:21:54.630 Brooks Harris: is dependent on the grand list and the grand list is projected to grow somewhat over time taxes are going to increase by even more than mill rate under these. 166 00:21:54.630 --> 00:21:55.650 Brooks Harris: projections that's. 167 00:21:55.740 --> 00:22:00.090 Mike Basham: A growth that 60% over 15 years okay so. 168 00:22:00.270 --> 00:22:02.910 Brooks Harris: The BT looks at several guidelines. 169 00:22:02.970 --> 00:22:04.320 Brooks Harris: In assessing. 170 00:22:04.920 --> 00:22:15.840 Brooks Harris: The soundness of our finances and three of the policy guidelines they've outlined our capital expenditures, the capital expenditure percentage funded by taxes. 171 00:22:17.130 --> 00:22:26.940 Brooks Harris: The second one is debt is a percentage of grand list and the third one is dead service to as a percentage of our budget so in the first one. 172 00:22:27.960 --> 00:22:41.040 Brooks Harris: tap ex funded by taxes What that means is if I spend $100 million of tax the BT policy guidelines says we should spend at least 10 million of taxes, we can borrow the other 90 million in on this graph. 173 00:22:41.640 --> 00:22:54.720 Brooks Harris: That you see on your screen the bars that are blue were spending at least 10% of our capital expenditures through tax and so we're paying for those in the current year Okay, now the problem here is. 174 00:22:55.350 --> 00:23:01.200 Brooks Harris: You know it's fine you can fund up to 100% of your capital expenditure but you're not allowed to fund more than. 175 00:23:01.200 --> 00:23:03.240 Brooks Harris: 100% of your capital expenditure but. 176 00:23:03.240 --> 00:23:04.860 Brooks Harris: By State law you're not allowed to. 177 00:23:04.860 --> 00:23:14.790 Brooks Harris: bow to make operating expenses and you know our current capital plan needs to be tweaked a little bit because you can see, you know 2829 30 and then out years. 178 00:23:15.300 --> 00:23:16.680 Brooks Harris: we're actually assuming that we're. 179 00:23:16.680 --> 00:23:18.210 Brooks Harris: Borrowing more than we're spending in. 180 00:23:18.210 --> 00:23:19.680 Brooks Harris: capital which we can't do. 181 00:23:20.250 --> 00:23:33.210 Brooks Harris: And now we could fix that but what that means is taxes will have to grow, a little bit faster and or or or that's probably the primary way we fix that Okay, that is a percentage of grand list. 182 00:23:33.690 --> 00:23:33.960 Mike Basham: You know. 183 00:23:33.990 --> 00:23:44.580 Brooks Harris: i'm old enough to remember when this limit was much lower than it is today we've raised this a couple times, this is not a very aggressive target, I mean we have a triple A rating and. 184 00:23:46.170 --> 00:23:56.340 Brooks Harris: You know it's not going to be threatened by these levels of debt, at least in my opinion, but we are going to violate the policy guideline under the capital plan if we borrow like this. 185 00:23:56.490 --> 00:23:57.540 Brooks Harris: And, obviously. 186 00:23:58.170 --> 00:24:02.610 Brooks Harris: You know if we if we borrow more it's going to be even more exacerbated for what that's worth. 187 00:24:03.300 --> 00:24:09.960 Brooks Harris: And then finally debt services and percentage of budgets, so this is when we have to pay back the principal and the interest payments. 188 00:24:10.200 --> 00:24:15.990 Brooks Harris: And in today's interest rate environment interest rates are very low, so our interest expense is not very high. 189 00:24:16.350 --> 00:24:31.710 Brooks Harris: But that's going to grow over time, both is our debt balance grows and potentially as interest rates start to rise again and as summer suspecting but even under the plan is stated our debt service grows pretty materially particularly out of years of these projections. 190 00:24:32.970 --> 00:24:43.200 Brooks Harris: So how do we deal with the policy guidelines well well one way, we can do it is by spreading capital spending over a longer period of time and that seems to happen fairly organically around here. 191 00:24:44.250 --> 00:24:49.590 Brooks Harris: You know you have a budget, it says certain capital projects will happen over a certain period of time. 192 00:24:49.740 --> 00:24:57.600 Brooks Harris: And they end up getting extended out there's a bit of debate as to whether they're getting extended out because of our capacity to do them. 193 00:24:57.900 --> 00:25:09.300 Brooks Harris: Because you can't do multiple school projects at once, because you have no place to put the kids or because you know people aren't going to allocate the money for them so there's a bit of debate, but one way or another. 194 00:25:09.540 --> 00:25:21.750 Brooks Harris: We seen over time that projects do get extended out and that could make the pressures implied in this plan, a lot less but but it'll take a longer time. 195 00:25:21.750 --> 00:25:37.170 Brooks Harris: For us to achieve our objectives, so the other thing we could do is prioritize and refine our proposal so some people have said, if you look at the Bo a master plan, some of those projects have things that are needed and some of those projects. 196 00:25:37.530 --> 00:25:38.400 Brooks Harris: have things that. 197 00:25:38.430 --> 00:25:46.590 Brooks Harris: are nice to have not needed well that's a debate, we could have, and you know if we could cut down the capital projects. 198 00:25:47.580 --> 00:25:59.820 Brooks Harris: A bit that would also alleviate some of the pressure we see under this plan, obviously we could increase taxes we increase taxes faster than the plan projects than some of these statistics will be under less pressure. 199 00:26:01.050 --> 00:26:12.300 Brooks Harris: Some have suggested that we can fund capital projects with debt mature with extended debt maturities and it's true that certain metrics will be easier to to accommodate with. 200 00:26:12.300 --> 00:26:14.520 Brooks Harris: longer term debt, but other metrics will be hurt. 201 00:26:14.520 --> 00:26:17.010 Brooks Harris: So you know our our. 202 00:26:18.030 --> 00:26:29.820 Brooks Harris: debt service budget will be easier to accommodate with long term debt, but our debt as a percentage of grand list will grow significantly higher so there's no free lunch here, but some people are advocating for that. 203 00:26:30.450 --> 00:26:41.730 Brooks Harris: We could change the bts policy guidelines so we're not we're not in compliance in the out years we could just loosen those up a bit and some of those we can do we can't change the state mandates. 204 00:26:42.210 --> 00:26:51.780 Brooks Harris: With respective borrowing its capital, but most of the others, we can, or you know the last alternative is ignore the bts policy guidelines so. 205 00:26:52.230 --> 00:27:04.530 Brooks Harris: You know it doesn't really matter you know these are things that we're striving for if we don't exactly hit them, you know it's not going to be the end of the world, I would suggest that I would much rather figure out a way for us to. 206 00:27:05.460 --> 00:27:07.770 Brooks Harris: change the policy guidelines to place we're. 207 00:27:07.770 --> 00:27:08.490 Brooks Harris: comfortable. 208 00:27:08.640 --> 00:27:09.810 Mike Basham: And then stick to them. 209 00:27:10.080 --> 00:27:14.970 Brooks Harris: I think the idea of either changing the guidelines every year or kind of just. 210 00:27:15.000 --> 00:27:16.530 Brooks Harris: Not being too concerned if we don't. 211 00:27:16.530 --> 00:27:19.620 Brooks Harris: meet the guidelines or less. 212 00:27:20.640 --> 00:27:32.820 Brooks Harris: Optimal ways to run the capital project but, above all, education and debate will be needed, because at some point we are going to have to prioritize and refine proposals and. 213 00:27:34.110 --> 00:27:37.950 Brooks Harris: It would be great for that debate to be as informed as possible. 214 00:27:39.660 --> 00:27:50.820 Brooks Harris: Okay, so with all That being said, most of that stuff we don't even get to vote on, we just need to keep that in the back of our minds when we come to vote, because those things are coming to us in the future, and hopefully. 215 00:27:51.000 --> 00:27:52.590 Brooks Harris: there'll be a spirited debate when they do. 216 00:27:52.590 --> 00:27:52.920 Mike Basham: Come. 217 00:27:53.130 --> 00:27:56.040 Brooks Harris: But for this coming year, what we get to vote on. 218 00:27:56.280 --> 00:27:56.850 Is. 219 00:27:57.900 --> 00:28:11.790 Brooks Harris: These 91 projects 18 of which are above $500,000 or 500 above $500,000 and there are numerous here, and then there are 73 small projects, so I encourage you guys to go look on the website and. 220 00:28:11.790 --> 00:28:13.260 Brooks Harris: see what all the projects are. 221 00:28:13.470 --> 00:28:20.610 Brooks Harris: This anything you don't like I can tell you that the Boc has identified three projects that they are recommending. 222 00:28:21.090 --> 00:28:23.040 Brooks Harris: That we caught one is. 223 00:28:23.160 --> 00:28:27.660 Brooks Harris: The brookside road project that was 170 5000. 224 00:28:29.100 --> 00:28:31.740 Brooks Harris: Greenwich avenue 500,000. 225 00:28:32.010 --> 00:28:32.820 Brooks Harris: And they're. 226 00:28:32.880 --> 00:28:42.390 Brooks Harris: recommending reducing Hamilton Hamilton rank which is on here from 950,000 to 50,000 that's still in planning it's not clear that. 227 00:28:43.020 --> 00:28:57.360 Brooks Harris: That that that money could even be spent if it were appropriate, but more planning is needed before we really get going on, that the total capital approvals for fiscal year 22 or 65.3 million just to put that in context. 228 00:28:58.770 --> 00:29:04.020 Brooks Harris: that's versus you know our historical average of 48 so we're spending this year, where we're. 229 00:29:04.350 --> 00:29:17.010 Brooks Harris: we're we're approving this year significantly more capital than we have in years past, and you know that that includes you know a lot of a lot of scrutiny that's taking place on the beat etc so. 230 00:29:17.310 --> 00:29:19.710 Brooks Harris: You know we're still we still got a fairly robust spin. 231 00:29:19.710 --> 00:29:24.090 Brooks Harris: Here, although you know, some people obviously want to spend more so. 232 00:29:24.600 --> 00:29:32.790 Brooks Harris: that's that's really the overview of the capital plan you know before we get into Q amp a we will reiterate what we say at all these meetings which is. 233 00:29:33.150 --> 00:29:42.450 Brooks Harris: You know, if you want to spend $1 you either have to raise dollar taxes or you have to borrow it, but if you borrow it eventually you're going to have to pay that back so really. 234 00:29:42.630 --> 00:29:46.500 Brooks Harris: For every dollar spending your prove you're really improving and dollar of taxes. 235 00:29:46.830 --> 00:29:47.280 Mike Basham: and 236 00:29:48.210 --> 00:29:58.110 Brooks Harris: You know that always should be in the back of our minds as stewards of the town's finances so with that i'd like to open it up to Q amp a just raise your hand if you have questions. 237 00:30:19.020 --> 00:30:27.180 Brooks Harris: Okay, either either we've answered every possible question available or people are a bit reticent, but if anybody has a question raise your hand and. 238 00:30:28.590 --> 00:30:29.430 Brooks Harris: damn quickly. 239 00:30:30.840 --> 00:30:31.890 dan quigley: hey guys, can you hear me. 240 00:30:32.250 --> 00:30:33.060 Brooks Harris: We can hear you. 241 00:30:37.710 --> 00:30:39.150 Brooks Harris: Yes, what's your question, Dan. 242 00:30:52.050 --> 00:30:53.100 Brooks Harris: I think we lost that. 243 00:31:01.170 --> 00:31:01.530 Mike Basham: Right. 244 00:31:04.860 --> 00:31:06.030 Brooks Harris: He might have been muted. 245 00:31:06.330 --> 00:31:07.560 Brooks Harris: Dan did you have a question. 246 00:31:13.770 --> 00:31:14.430 dan quigley: Here me now. 247 00:31:14.880 --> 00:31:15.600 Brooks Harris: We can hear you. 248 00:31:15.630 --> 00:31:25.980 dan quigley: Yes, I, what is the net effect of the capital planning projects are moved around so, for instance, a lot of people talk about central that was brought up in a league of women voters. 249 00:31:26.610 --> 00:31:44.130 dan quigley: forum, they had central being the most expensive of the of the projects and the capital plan that being moved forward, and maybe pushing other projects back how much does that factor into the structure of the capital plan and and your guys analysis. 250 00:31:45.330 --> 00:31:57.090 Brooks Harris: yeah I mean that's that's one of the largest projects in the capital plan, I mean that's 111 million dollars damn from a higher number that was in the Bo a master plan if we move that up. 251 00:31:57.330 --> 00:31:59.400 Brooks Harris: That will put more pressure on. 252 00:31:59.430 --> 00:32:01.470 Brooks Harris: These statistics and that will. 253 00:32:01.470 --> 00:32:13.620 Brooks Harris: say I mean obviously will borrow more so that will rise faster, it will probably put more pressure on us to increase the capital tax levy which will put pressure on. 254 00:32:13.620 --> 00:32:14.550 Mike Basham: us to. 255 00:32:14.850 --> 00:32:16.560 Brooks Harris: increase the mill rate in general. 256 00:32:17.790 --> 00:32:19.980 Brooks Harris: and, possibly, I mean, as you can see. 257 00:32:19.980 --> 00:32:21.510 Brooks Harris: That there's a little bit of a gap year. 258 00:32:21.510 --> 00:32:23.460 Brooks Harris: Between 25 and 27. 259 00:32:23.850 --> 00:32:32.100 Brooks Harris: there's not a lot of projects getting going so if they moved it there, you know you know that that is going to go up and there'll be pressure on taxes, probably. 260 00:32:35.850 --> 00:32:36.570 dan quigley: Thanks brooks. 261 00:32:37.050 --> 00:32:40.800 Brooks Harris: Sure okay Peter Berg you had your hand up. 262 00:32:44.220 --> 00:32:45.210 Peter Berg: Am I unmuted. 263 00:32:46.140 --> 00:32:47.640 Brooks Harris: We can hear you yes. 264 00:32:48.270 --> 00:32:58.680 Peter Berg: So yep so first of all brooke Thank you so much for this presentation, I really appreciate your articulate grasp of all of this. 265 00:32:59.880 --> 00:33:01.350 Peter Berg: Good, I just wanted to. 266 00:33:02.550 --> 00:33:08.790 Peter Berg: understand your comment about the hamill rink could you just repeat that, for us sure. 267 00:33:09.000 --> 00:33:18.990 Brooks Harris: uh and I don't want to put words in the mouth of the Boc but originally the hammer wreck was in the budget at 950,000. 268 00:33:19.620 --> 00:33:26.790 Brooks Harris: And the Boc is recommending it be cut to 50,000, and that is that is not. 269 00:33:27.180 --> 00:33:36.600 Brooks Harris: currently under construction, I mean it's a question of completing the planning for it, I believe they have to present to planning and zoning. 270 00:33:36.960 --> 00:33:48.060 Brooks Harris: I don't claim to be an expert on this, but I think the idea behind that proposal is that they get further in the process before they come back and ask for the money they'll need for. 271 00:33:48.450 --> 00:33:55.800 Brooks Harris: Actually, actually starting to execute the project which will obviously be a much bigger number it's in the budget right. 272 00:33:55.800 --> 00:33:56.430 Now. 273 00:33:58.110 --> 00:33:59.820 Brooks Harris: For $18 million total. 274 00:34:01.410 --> 00:34:01.680 Brooks Harris: So. 275 00:34:01.740 --> 00:34:04.980 Peter Berg: So this is a proposed cut by budget overview. 276 00:34:05.790 --> 00:34:06.570 Brooks Harris: that's correct. 277 00:34:07.350 --> 00:34:08.040 Peter Berg: Okay, thank you. 278 00:34:10.740 --> 00:34:16.320 Mike Basham: If I could add weight to my understanding and talk talking with members of the Boc. 279 00:34:17.220 --> 00:34:30.540 Mike Basham: The town officials, they were saying they actually had adequate funds to accomplish a lot of what they needed to accomplish the turtles be budgeted for and they really didn't mind having a lot of the lot of the funds to further phone year. 280 00:34:32.070 --> 00:34:37.020 Brooks Harris: Henry you Henry oarfish you have your hand up, you should be able to speak. 281 00:34:37.920 --> 00:34:39.330 Henry Orphys: Yes, you can hear me now. 282 00:34:40.110 --> 00:34:41.430 Brooks Harris: Yes, excellent. 283 00:34:41.610 --> 00:34:50.490 Henry Orphys: In terms of the capital spending in the projection brooks is Am I correct in assuming that those exclude any sort of maintenance costs, and if so. 284 00:34:51.000 --> 00:35:01.920 Henry Orphys: How rigorous has the process been to identify what constitutes maintenance of our existing structures which I think is extremely important versus capital expenditures to. 285 00:35:01.920 --> 00:35:03.030 Henry Orphys: build you know. 286 00:35:03.570 --> 00:35:05.010 Henry Orphys: or rebuild things. 287 00:35:05.520 --> 00:35:16.590 Brooks Harris: yeah theoretically the capital budget should include maintenance and they do break it out it's a little bit hard in some circumstances, to really understand. 288 00:35:17.370 --> 00:35:28.860 Brooks Harris: You know the difference between maintenance and and investment or new investment but maintenance is included in the count there's quite a bit of maintenance included in the capital budget, yes, absolutely. 289 00:35:30.300 --> 00:35:33.810 Brooks Harris: And we've been we've encouraged them in finance we've encouraged them. 290 00:35:34.140 --> 00:35:35.100 Mike Basham: That you know. 291 00:35:35.190 --> 00:35:44.520 Brooks Harris: If they need if they need to spend money on maintenance for safety, you know, to prevent things like I know they say they couldn't have anticipated them, but at. 292 00:35:45.150 --> 00:35:57.090 Brooks Harris: The pack or in North by an s you know you know I don't think there's anybody that i've run into anywhere that would be opposed to any kind of maintenance spending to. 293 00:35:58.140 --> 00:36:00.000 Brooks Harris: upkeep the safety of our schools. 294 00:36:05.160 --> 00:36:15.270 Mike Basham: me this is Mike in the big presentation league of women voters tonight, they mentioned that initial post budget there's $12 million dollar scheduled for maintenance, but. 295 00:36:16.530 --> 00:36:16.890 Thank you. 296 00:36:21.630 --> 00:36:25.620 Brooks Harris: Great let's see Brian Mayer has his hand up Brian go ahead. 297 00:36:29.430 --> 00:36:34.800 Brian Maher: The are the the PowerPoint slides that you had here are they available someplace. 298 00:36:35.610 --> 00:36:44.130 Brooks Harris: Yes, they are there on the RTA Finance Committee website, if you look at our documents it's the one. 299 00:36:45.120 --> 00:36:56.820 Brooks Harris: that's titled review of capital budget and review of capital budget 2021 2022 so we have a number of things up there, but that's that's the one that's that's it's on our website. 300 00:36:57.420 --> 00:36:58.590 Brian Maher: Great Thank you very much. 301 00:37:04.860 --> 00:37:09.030 Brooks Harris: Okay does anybody else have a question on capital budget. 302 00:37:14.370 --> 00:37:21.060 Mike Basham: We we we promised people have two minutes and I think we're just about there unless there any other questions. 303 00:37:23.940 --> 00:37:30.330 Brooks Harris: Great a replay of this will be available shortly all our meetings our hostess. 304 00:37:38.580 --> 00:37:40.080 Brooks Harris: Okay well well. 305 00:37:42.210 --> 00:37:42.780 Wilma Nacinovich: Can you hear me. 306 00:37:45.630 --> 00:37:46.440 Brooks Harris: Yes. 307 00:37:48.870 --> 00:37:57.240 Wilma Nacinovich: If a town department decides to leave stuff rather than buy it, they have to go through the same capital budgeting. 308 00:37:59.850 --> 00:38:00.870 Brooks Harris: This procedure. 309 00:38:03.120 --> 00:38:09.120 Wilma Nacinovich: And, in particular, I used to be to the school system is least in hell out of computer hardware. 310 00:38:10.200 --> 00:38:13.170 Wilma Nacinovich: And I went, I wonder if you guys ever get a crack at that. 311 00:38:14.100 --> 00:38:28.710 Brooks Harris: yeah it's a it's a good question honestly I don't know the answer to that we do see a lot of computer equipment in the capital budget but i'm not sure if thats related to lisa's that's something we'll have to look into we get back to you on. 312 00:38:29.490 --> 00:38:31.230 Wilma Nacinovich: That kind of logically equivalent. 313 00:38:32.580 --> 00:38:33.420 Brooks Harris: Yes, they are. 314 00:38:33.720 --> 00:38:34.680 Brooks Harris: Absolutely, we. 315 00:38:34.770 --> 00:38:35.130 Mike Basham: We. 316 00:38:35.160 --> 00:38:36.870 Brooks Harris: We agree with that assessment, it is. 317 00:38:37.830 --> 00:38:51.150 Mike Basham: it's just another way of financing My guess is without knowing specifics and i'm sure, maybe, maybe somebody from the BT on the call, but my guess is that probably would be referred to as operating expenses ELISE. 318 00:38:52.500 --> 00:38:52.860 yeah. 319 00:38:54.150 --> 00:38:54.570 Wilma Nacinovich: If it's. 320 00:38:54.660 --> 00:39:01.230 Wilma Nacinovich: If the lease is effectively, you know, the equivalent of capital expenditure you guys should be resilient. 321 00:39:03.030 --> 00:39:05.910 Mike Basham: Well, it is part of our remit is under the Rules. 322 00:39:07.020 --> 00:39:11.910 Mike Basham: Here we do review all these details outside. 323 00:39:15.000 --> 00:39:15.570 Wilma Nacinovich: Thank you. 324 00:39:16.620 --> 00:39:19.290 Brooks Harris: hector I think you had a question welcome. 325 00:39:27.840 --> 00:39:30.420 Brooks Harris: yeah hector hector arsenio has his hand up. 326 00:39:37.530 --> 00:39:39.300 Brooks Harris: hector you can unmute if you wish. 327 00:39:39.750 --> 00:39:41.730 hector arzeno: Okay, I am trying to seek out. 328 00:39:43.200 --> 00:39:43.770 Mike Basham: Very where. 329 00:39:43.800 --> 00:39:44.760 Brooks Harris: we're hearing here yep. 330 00:39:45.510 --> 00:39:53.550 hector arzeno: Can you hear me if we question could you send me an email I missed the presentation, I was at the League of women voters presentation. 331 00:39:54.600 --> 00:40:03.660 hector arzeno: just finish it two minutes ago, and then, could you send me an email in how to access their presentation and books, please. 332 00:40:04.140 --> 00:40:09.870 Brooks Harris: Yes, yes, I will it's going to be on our website, in the very near future it's going to be on the rts. 333 00:40:09.900 --> 00:40:11.220 Brooks Harris: Finance Committee website. 334 00:40:11.310 --> 00:40:11.790 hector arzeno: But we know. 335 00:40:12.180 --> 00:40:15.960 hector arzeno: More specificity excellent, thank you very much. 336 00:40:16.560 --> 00:40:19.770 Mike Basham: Sure, oh folk or for mine to you this evening. 337 00:40:20.790 --> 00:40:21.060 hector arzeno: Thanks. 338 00:40:21.090 --> 00:40:23.010 Brooks Harris: Leslie moriarty has her hand up. 339 00:40:24.600 --> 00:40:33.300 Leslie Moriarty: Yes, I just wanted to clarify the prior question about the board of ED leases first of all, and this year's capital budget the BT did move. 340 00:40:33.870 --> 00:40:52.260 Leslie Moriarty: The digital learning, which is the equipment they use or for the instruction from the capital budget into the operating budget, so it will no longer be tied into that capital budget going forward, but the board advance current policy is to purchase their equipment and not to lease. 341 00:40:54.570 --> 00:40:55.050 Leslie Moriarty: Hopefully that. 342 00:40:55.290 --> 00:40:56.790 Brooks Harris: Thank you that's helpful. 343 00:41:00.270 --> 00:41:00.630 Mike Basham: Okay. 344 00:41:02.370 --> 00:41:17.430 Brooks Harris: Okay, unless they're more questions from the audience, we appreciate your joining us tonight, and please go take a look at the budget as outlined on on on the town's website, and you know if you guys have any questions feel free to email. 345 00:41:17.430 --> 00:41:21.300 Brooks Harris: Mike or myself and we'll follow up with you Mike did you have anything else. 346 00:41:22.200 --> 00:41:34.710 Mike Basham: No just thanking everybody for joining us tonight, I hope, it was helpful and again to reiterate the presentation is will be on the rpm finance website and also, if you can't find it, we can always support you. 347 00:41:40.890 --> 00:41:42.180 Brooks Harris: Thanks very much everybody. 348 00:41:44.250 --> 00:41:46.170 Mike Basham: Thank you everyone have a good evening.