By Jean Perry, Neighb News Correspondent
While discussing the fiscal year 2021 Capital Budget on 9/24, not all Fairhaven Finance Committee members saw the value in adding debt for a synthetic turf football field amidst the economic uncertainty of the coronavirus pandemic.
There are eight capital projects totaling $2.9 million slated for FY21, with only the $1.2 million high school turf field project being financed through debt service. The $1.4 million project has $200,000 in “gift”s ources.
“I can’t for the life of me understand why the Fairhaven High School stadium athletic turf is still on there,” said FinCom member Lisa Plante. “I think this is a frivolous expense at this point in time. Borrowing right now, I think, is absolutely crazy. I mean, I wouldn’t go out and spend $1,000 on a credit card right now because, I mean, the way things are… to spend over 1 million dollars on a turf field, that’s absolutely absurd to me and I don’t understand why that’s still there. I think that could hold off, and I really think that should be held off, and I really can’t even imagine people in this town going for that, to be perfectly honest with you.”
FinCom Chairperson Padraic Elliott asked Town Administrator Mark Rees what the annual debt payment for the turf field would be, which was reflected in Rees’s debt service funding plan. Over the 10-year life of the loan, the first payment would come in FY22 at $171,000; year two rises to $332,625 and then up to $423,585 in year three. As other debt from other projects is paid off, the turf project annual payments would begin to decrease to $410,499 and $397,414 in years four and five, respectively.
The town’s debt service ratio is currently 0.55% of the budget
“Which is extremely low,” said Mr. Rees. In FY22 that would rise to 0.83% and 1.8% in FY23, then dip slightly to 1.19% in FY24 and 1.11% in FY25, still “extremely low,” he said.
Mr. Rees said that by funding the other seven projects through free cash, combined with the town’s policy of placing free cash equivalent to 4% of the operating budget directly into reserve “demonstrates sound fiscal conservatism,” allowing the town to borrow for capital projects such as the turf project without seeking Proposition 2 ½ overrides.
“But aren’t you still borrowing $1.2 million for the fields though?” Ms. Plante asked.
Furthermore, the town has other high-ticket capital items like a new public safety facility in the works, which will require a voter-approved Prop 2 ½ override. One FinCom member noted that the turf project is not related to public safety, and although the imminent wastewater treatment plant upgrades will be funded through the Sewer Enterprise Fund through sewer consumer fees, Fairhaven taxpayers are looking at significant costs.
As Ms. Plante saw it, taxes will go up for a new public safety facility, fire truck replacement, new grader, and sewer user fees will go up for the wastewater treatment project.
“So I think this [turf] debt is really not necessary at this time, in my opinion, for a football field,” she said.
Perhaps $1.2 million might not seem like much juxtaposed with a $51 million town budget, “But it is a lot of money,” said Ms. Plante.
“These are major dollar projects,’ said Mr. Elliott, “and to expect free cash to be available in those years to be pay for a [$500,000] fire truck or a grader, that’s not a realistic expectation.”
But, “You can competently fund those projects,” said Mr. Rees as the debt service rolls over into subsequent years as projects are paid down,
“Obviously, the voters are going to be the ones who are going to vote to increase their taxes if they determine a public facility is necessary for the town,” said Mr. Rees. “You’ve got to convince the electorate that it’s something that benefits the town and them.”
According to Mr. Rees, the town can stabilize debt and maintain a capital replacement budget that “prevents surprises and allows you to plan ahead for appropriate things that you need in a systematic way that maintains fiscal solvency.”
As FinCom member Bernie Roderick saw it, regardless of whether the funding comes from sewer user fees or through a tax override, “[The funding] is coming out of the left pocket of the taxpayer … [and then] the right pocket. So it’s all coming out of the taxpayer one way or another … and even the borrowing, we’re going to have to pay off that debt.”
Mr. Roderick said he would prefer holding off for six months on some capital spending, “And we’re going to have a better idea of this pandemic issue and the economic impact it’s going to have on this town.”
Ms. Plante said that seeing $200,000 being cut from the school budget while a $1.4 million turf field is being considered, “It just confounds me.”
Although Mr. Rees described it all as “good economics,” Mr. Eliot said: “By increasing debt service, that is tugging at the general fund operating budget. For every dollar on debt service, that’s one less you can spend on salaries….”
Mr. Rees said Superintendent of Schools Dr. Robert Baldwin would appear at the next FinCom meeting
Other capital projects totalling $1,118,900 include: COA/Recreation HVAC replacement, $250,000; Information Technology (IT) computer hardware equipment replacement, $30,000; Police/Harbormaster radio upgrade, $205,000; BPW-Highway one-ton truck replacement, $75,000; BPW-Highway roadwork, $375,000; Fire Department response staff vehicle replacement, $52,000; Police Department cruisers, $131,900.
Mr. Roderick again recommended holding off another six months on many of the projects because, he said, “We are on thin ice and we don’t know how long this is going to last – six months, a year, a year and a half.”
He said they should waut until the annual town meeting.
In other budget news, there were significant changes to projected new growth revenue since the earlier introduction to the budget. New growth has increased from $250,000 up to $300,000, and Mr. Rees said that the Assessors have suggested that amount could ultimately exceed $400,000.
“That’s’ phenomenal,” Mr. Rees said, commenting that he is confident in the new growth revenue projection. “That’s the highest it’s ever been in Fairhaven.”
It means the anticipated deficit for the FY21 budget has fallen by 1.7%, lowering it to $877,575.
Also during the meeting, the Tourism Department budget was decreased by $2,600 despite Tourism Director Christopher Richard’s request to add an additional $7,500 instead of cutting his budget by 10%.
Mr. Elliott said he was “stuck” on the Tourism budget for two reasons: first, all other departments were asked to cut 10% from their budgets; second, he said, the Tourism Department’s main objective is to entice tourists to visit Fairhaven and increase revenue for the town.
“But we’re in a state of emergency with a pandemic,” said Mr. Elliott. “Do we really want tourists coming into town? Is that something that should be a priority? Do we really want people from Texas and the Midwest and Florida staying in our hotels and going into our town?”
Mr. Elliott said Mr. Richard asked for an increase of $7,500 for his advertising line item, but was only granted $2,500. “And, again, I’m like, why would we even increase advertisement? In a normal year it might make sense to me, but I don’t know why we’re giving — if someone could explain to me why tourism is getting a bunch of money to bring tourism in, I’m all ears.”
Finance Director/Treasurer/Collector Wendy Graves said she spoke with Mr. Richard, who said that even though there is a pandemic he is still advertising at the same level “to keep Fairhaven out there” and to maintain a presence in various printed media. He also still operates the Huttleston Marketplace that still ran during the pandemic.
Mr. Rees then suggested just cutting that budget by $2,600 to make it comparable to other departments and have Mr. Richard use funds from a gift account if needed.
As for other changes, the 1.4% cost of living adjustments (COLA) were not included earlier in the remaining eight months of the FY21 budget because the Selectboard had not yet voted for the COLA increases until June, according to Ms. Graves.
“So, what we’re seeing is small increases in each departments’ salaries for the COLA,” she stated. It was, however, included in the 1/12 and 1/3 FY21 budgets that were approved during the Annual Town Meeting in July.
The Selectboard, during its most recent meeting, also increased the Zoning Board of Appeals budget by $4,000 for added clerical support, and another $15,000 was reintroduced to the Fire Department’s overtime line item, which will be funded by ambulance receipts.
Another $10,000 for vehicle maintenance and $3,000 for uniforms was restored to the Department of Public Works’ budget at the request of the superintendent.
A prior $7,000 cut to the Beautification Committee’s budget was later added back into the Parks Department budget to cover the cost of repairs to the leaking septic tank at the West Island Town Beach. The beach trailer, which has public restrooms, ties into the tank.
The Recreation Department budget was reduced by $55,000 due to a reduction in expenses during the COVID-19 pandemic.
The committee took an informal vote to accept the numbers as presented with the proposed changes that night in order to allow Mr. Rees to prepare the Special Town Meeting warrant, but it will take a formal vote on the remaining eight-month FY21 budget during its next meeting, and will also vote on its recommendations on the warrant articles.
•••
Support local journalism, donate to the Neighb News with PayPal.
Click here to download the entire 10/1/20 issue: 10-01-20 Pirates
