Fairfield Trying to Get a Handle on its Debt

Fairfield's debt is becoming a hot topic - and not just for residents who forced an Aug. 12 referendum on the town's plan to bond $350,000 for a girls' Little League and infrastructure for a park on Hoyden's Lane.

The town's annual debt service exceeded 10 percent of its annual budget in the fiscal year that ended June 30, Board of Education members recently gave First Selectman Ken Flatto a "wish list" of school projects totaling $73 million over eight years, and Flatto's financial capital plans, going back to at least 2004, have underestimated the cost of bonded projects by millions of dollars.

The town's Board of Finance is hoping to address all of that through a "capital planning workshop" with Flatto, Supt. of Schools David G. Title and members of the Board of Selectmen and Representative Town Meeting at 7:30 p.m. Aug. 30 in the Education Center, 501 Kings Highway East.

What will likely be most at issue is the amount of money sought by the school district's Central Office for school projects over the next eight years vs. the amount of money Flatto allocated for school projects in the four-year capital financial plan that he gave to the Board of Finance in February.

Flatto envisioned bonding an overall $43.9 million from 2009-10 to 2013-14, assuming, and not including, state reimbursements totaling $6.8 million. Of that $43.9 million, Flatto figured on bonding $4 million for elementary school improvements and $3.3 million for school roof replacements.

But the school district envisions $47 million worth of projects during that timeframe, not including state reimbursements - about five times the $9.5 million listed by Flatto without state reimbursements. The school district's list includes projects not included by Flatto, such as replacing windows at Fairfield Ludlowe High School ($3 million) and Fairfield Warde High School ($3 million) and expanding the high schools' cafeterias and kitchens to accommodate a high school enrollment expected to peak at 3,357 in 2015-16 (a combined $3.3 million.)

Fairfield's annual debt service climbed from $12 million, or 7.3 percent of its annual budget, in 2002-03 to $26.6 million, or 10.8 percent of its annual budget in 2009-10, according to documents Flatto gave the Board of Finance Wednesday night.

After breaking the 10-percent threshold in 2009-10, annual debt service dropped to 9.5 percent in this fiscal year - the town budget is $251.5 million and annual debt service is $23.8 million.

But that dip is only temporary - even without any new bonded projects. Annual debt service is scheduled to rise to $24.9 million in the next fiscal year and to peak at $28.1 million in the 2014-15 fiscal year, according to documents given to the Board of Finance Wednesday night.

Board of Finance members and Flatto said Wednesday night that they would like annual debt service not to exceed 10 percent of the town's annual operating budget.

One of the problems with financial capital plans is that estimated costs for projects don't always fall within the amount earmarked for them.

The largest expense on Flatto's capital financial plan from 2009-10 to 2013-14 - the expansion and renovation of Fairfield Woods Middle School - was listed on the plan as $19 million, while the actual cost approved by town boards was $24.2 million. Reconstructing the rest of Penfield Pavilion was identified on Flatto's plan at $2.3 million, with that cost partially offset by a $450,000 grant. The low bid on the project was $2.534 million, not including "add alternates" that total $80,900 or a $121,270 expense to supply and install kitchen equipment. Grant money available for Penfield was identified a few weeks ago as $200,000.

Earlier capital financial plans envisioned $18 million for the renovation of Tomlinson Middle School (the actual cost was $32 million), $7.5 million for the renovation of Fairfield Public Library (the actual cost was $12 million) and $9.5 million for the renovation and expansion of Stratfield School (the actual cost was $17.6 million.)

Flatto's four-year capital plan also envisioned bonding $8 million for repaving town roads and rehabilitating bridges, $5.7 million to renovate Fairfield Woods Branch Library (assumes a $500,000 reimbursement), $2.2 million for improvements at H. Smith Richardson Golf Course, $1.15 million to buy open space (assumes a $350,000 reimbursement), $1.5 million for firehouse improvements and $500,000 for recreation field improvements.