By Michelle L. Santoro

Sherman – Just two days after the Board of Education (BOE) held a special meeting and public hearing, at which they voted to recommend a “renovate-to-new” (RTN) option for the Sherman School building project, the Board of Selectmen (“BOS” or “Board”), in person and on Zoom, unanimously voted to accept their recommendation at the BOS’s regular monthly meeting on July 25.

BOE Chair Matt Vogt recapped for the Board the crux of the special meeting and hearing, which was the two viable options for the Sherman School – a Renovate-to-New (“RTN”) plan with a two-year timeline and a Capital Improvement Plan (“CIP”) to fix the ex isting building over approximately six years, and the BOE’s reasoning behind its recommendation.  The RTN plan results in a like-new condition for the school and a lower cost to taxpayers thanks to state reimbursement, which reimbursement is a lower percentage of the total cost if the CIP is chosen. Discussion ensued regarding an additional $400,000 factored into the cost now for a potential move to solar energy for the proposed project.  Selectman Joel Bruzinski noted the project proposal moves the main source of heat off fossil fuel and back to the grid; solar reimbursement would offset some of the added cost.

Prior to First Selectman Don Lowe making the motion to accept the RTN plan recommended by the BOE, discussion was had regarding readying the matter for presentation to the public and possible dates for warning, town meeting, and referendum.  The plan is for all information, wording and the like to be ready one day prior to the next BOS meeting, with a possible referendum October 5, a Town Meeting two weeks prior thereto and the Warning noticed eight days prior to that.  All agreed that communications, public forums, and informational sessions will occur in between.  Mr. Vogt reminded the Board that the BOE’s application to the State must be submitted by October 1.    

Once the Board voted to accept the BOE’s recommendation to move forward with the RTN plan, they listened to a detailed presentation, with a comprehensive visual package, on different bonding strategies by Barry Bernabe of Phoenix Advisors, LLC, the Town’s bond advisor.  Mr. Bernabe said, three concepts to look at before getting into “the numbers” are: where interest rates are, what the Town’s bond rating is and the Town’s existing debt service situation.  T he 10-year US Treasury Bond, and what it costs the US government to borrow over 10-years, is the benchmark used for long-term borrowing.  Bernabe discussed the difference between long-term and short-term borrowing.  He used a 3.65% borrowing rate for his analysis.  He noted the Town’s “very strong” bond rating, due in part to its reserve levels, but indicated it could possibly achieve a higher rating.  He said five major factors are considered when determining a municipality’s rating.  The first is its management practices.  Next, economic demographics.  Then, the Town’s financial performance, its existing debt and lastly, long-term liabilities.  Bernabe discussed a few different borrowing scenarios.

The question on everyone’s mind – what is the tax impact on residents for a project of this magnitude?  Because the Town carries relatively low debt, its debt drops off each year and that makes the “layering” of new debt felt more by taxpayers.  Bond premiums can be used to mitigate the tax impact, which is a pro, but the cost of multiple premiums (rather than just once) is a con.  The moral of the story – for the least amount of impact felt by taxpayers layering the debt over time, i.e., borrowing the funds for the project in pieces, keeping the overall debt as flat as possible, is optimal.  Selectman Robert Ostrosky noted that the analysis is “just a point in time” and because other unknowns can happen, there can be a greater tax impact to residents.  The Board would like to see an analysis using zero growth for the Town’s Grand List.

The above represents a snippet of the presentation, which was quite comprehensive and informative, as well as the discussion throughout.  This portion of the meeting consumed much of the 2-hour plus evening.  A Special Meeting of the BOS was tentatively set for August 6 – time and place to be determined, to discuss bond options further.        

In other news, Mr. Lowe read correspondence from Sherman Volunteer Fire Department Chief (“SVFD”) Chris Fuchs, who was unable to attend.  To date, the SVFD has responded to two hundred and twenty-four (224) emergency calls, including a recent six-hour drowning call on Candlewood Lake and numerous emergency medical service calls.  During the past month, one member completed his Fire I certification and another member completed his Firefighting II certification.  Fuchs advised that the newly installed air conditioning unit for the fitness and classrooms was “up and running,” and the recently approved ambulance was ordered with production expected to begin soon.  The SVFD Annual Ball is planned for August 3 from 6-10pm.  Tickets are $40 and can be purchased at the door or online at: ShermanVFD.org.

In his usual fashion, Public Works (“PW”) supervisor Kris Fazzone commenced the delivery of his department’s report jokingly saying his goal was to kick the SVFD out of the number one spot on the Board’s agenda. He advised that the truck that was ordered in January 2023 has just arrived, keeping with its estimated eighteen-month turnaround time.  More tree work will begin in August, as will milling, and a catch basin lids project began on three roads, two of which are complete.  Discussion was renewed regarding an auction to sell older PW equipment and possibly moving toward a vote for the purchase of two items that were approved in the capital plan – the replacement of the plow on Truck 3 and the purchase of a mini-excavator. 

The First Selectman discussed Your Speed signs, noting feedback received was positive.  The signs will return to locations in the Town Center.  The Town may be the recipient of two more signs from the State.  The Board voted to bring to a town meeting a request not to exceed $15,000, which includes the annual web hosting cost, out of the capital, non-recurring fund, for an Online Assessor’s Field Card system provided by J.F. Ryan Associates Inc.  Liz L aVia discussed a policy change regarding holiday pay for part-time employees.   Site preparations for the pickleball courts is expected to begin in mid-August  

With respect to additional Town Beach dock slips on Candlewood Lake, the next step, after August 1, is to go to First Light; if they agre e, the Town’s application is ready for submission to the FERC.  The application will cost the Town $10,000.  Mr. Lowe also advised that a Short-term Rental Ordinance Committee was established.

The next Board of Selectmen’s meeting is scheduled for August 22 at 7pm in Mallory Town Hall.