Chairman's View: Picking Priorities (Dec. 6, 2018)

Chairman’s View: Picking priorities

DECEMBER 6, 2018 BY JOHN ENGEL. CHAIRMAN, TOWN COUNCIL

“I do have to pick my priorities. Nobody can do everything.” — Ray Kurzweil

We held the first joint offsite meeting among the four funding bodies (Board of Selectmen, Town Council, Board of Education, Board of Finance) in over 10 years, an important step toward approaching our town and school budgets with a spirit of cooperation.

Critical takeaways: 10 of us think that the budget is driven by the Board of Finance, 10 believe we all share it, and nine votes were scattered among Town Council, Board of Education and Board of Selectmen. It’s a shared responsibility but clearly, the BOF is driving the bus. Most of us believe that the budget should come in at an increase of between 0% and 1% this year, a big change since last year’s debates between 2% and 3.5%. We agreed a joint meeting should bookend the budget process every year: November and May. And, support was nearly unanimous for conducting a professional town-wide survey.

We had our last forum on town buildings in April. It is time to listen again. The Town Council is scheduling a public hearing for Wednesday, Jan. 9, to solicit input from the public and discuss our buildings within the context of the 5-year Capital Plan. Why is it necessary and why now? In April the focus was on preservation of important buildings and the need to decrease building expenses. There have been several articles over the last six months floating different possibilities for the Library, the repurposing or demolishing of Irwin House, purchasing the Covia Building, renovating the old Police Station (or repurposing it as housing), selling the Vine Cottage and renting the Outback. These options are interrelated and now we know the costs. Some of these initiatives should be put in the Capital Plan and others removed. We need to get serious and specific about our priorities and make sure they are accurately reflected in the Capital Plan and this year’s budget, reflecting the towns people’s appetite.

The Library was put in the 5-Year Capital Plan for $5 million by First Selectman Robert Mallozzi. It would help the Library board secure additional private funding and allow them to “think big” if we put the Library in the plan for $10 million. That is incredibly hard to do during the revaluation, but if we were to plan for a matching gift, 2-1 behind private donations, and stretch that commitment from three years to potentially five years it works within current Board of Finance guidance. I believe a $10 million earmark has the support from the majority of the selectmen and Town Council. If the Library cannot raise $20 million then Town Hall is not committed. But, by signaling a cap of $5 million in the capital plan, the Board of Finance is essentially killing the project. If you feel strongly that a new library will be transformational to the health of our downtown, let the Town Council and Board of Finance know.

Chairman's View: Not to Eliminate Buildings, But to Eliminate Expense (Jan. 22, 2019)

Chairman’s View: ‘Not to eliminate buildings, but to eliminate expense’

JANUARY 22, 2019 BY JOHN ENGEL, CHAIRMAN, TOWN COUNCIL

In the fourth week of a federal government shutdown it’s a good time to reflect on the state of Connecticut and town government. There is cause for optimism.

Newly elected State Sen. Alex Bergstein announced the State is pursuing a policy of “shared risk.” I asked “Shared between whom?” because last year’s plan was to add a $4 million burden onto New Canaan.  The senator clarified she meant shared between the union workers and the State. If Gov. Ned Lamont agrees and the renegotiation and restructuring is finally underway, then this is great news.

Our grand list went down 7%: First Selectman Kevin Moynihan says he can bring in a town budget growing 0% to 1%. Is this because of a 1-year anomaly in the debt service? Does this assume only 5% rise in health care costs? Or, are we making the hard choices? It should be 0%. 

The Brick Barn: A relatively minor building in our portfolio, it has taken on outsized proportions for our citizens. We cannot ignore the fact that Town Council and two selectmen demanded to see alternatives to demolition. We owe it to the electorate to explain why we must spend $65,000 on demolition when the New Canaan Preservation Alliance says it is fully funded and ready to restore now at no cost to the town. The Board of Selectmen is at a stalemate until the first selectman convinces his fellow selectmen or they convince him. If a stalemate then the demo money is returned.

The Police Station: It feels reckless of us to talk about a new $16 million to $20 million police station between Saxe and the YMCA when there is only $7.8 million in our capital budget. And, that is the absolute worst location. Where is the money coming from? What other locations are being considered? Will this spending come at the expense of library or Waveny renovations? How far does $7.8 million get us?

Irwin House: First, it was to be a museum. Then, offices for nonprofits. Then Board of Finance members asked for demolition costs. The Town Council was understandably anxious to hear that we were talking about amendments to the deed with no explanation. Russ Kimes made an excellent case that it be repurposed as the school administration building, saving us $300,000 per year.

Vine Cottage: Make this charming building part of the historic district. Put out a Request for Proposals by May 1. There are businesses that will sign a long-term ground lease and fix it up. Any proposal that preserves Town Hall parking and which transfers restoration responsibility to the tenant should be considered.

Keep these buildings at no expense and with benefit to the public. The most important thing is not to eliminate buildings, but to eliminate expense.

Chairman's View: Council Faces Cost of Debt, Capital Projects and Lower Property Values (Oct 4, 2018)

Chairman’s View: Council faces cost of debt, capital projects and lower property values

OCTOBER 4, 2018 BY NEW CANAAN ADVERTISER

A guest column from New Canaan Town Council Chairman John Engel.

New Canaan has the highest per-capita debt in Connecticut at $5,800, double that of Darien because we are a larger town with many more miles of roads and dozens more buildings. Therefore the Board of Finance has presented to the Town Council their recommendation that we reduce our debt service as a percentage of expenses over the next five years from 12% to 10%.

Capital Plan

The Town Council, Board of Education and Board of Finance agreed last year to work on common budget guidance in the fall. Those meetings are still needed. There is a disconnect between current Board of Finance guidance to reduce Town debt service to 10% levels and the new public-private initiatives we read about each week. Your town government needs to have an honest conversation about priorities and scrub the five-year capital plan.

State and local

High net worth taxpayers are continuing to leave Connecticut. The election will have an impact on our budget thinking. We need to vote for a change in our taxes that will have an impact on our budget planning. The latest poll shows Lamont leads Stefanowski by 6 points with a margin of error of 4 points. 40% of Connecticut voters are independent. Stefanowski has gained 6% with unaffiliated this month, but he trails among women by 22%. This race is too close to call.

Congressional elections, transportation  

New Canaan tax base is largely dependent on Wall Street, and it benefited from recent deregulation of the financial sector, federal stimulation and the bull market. But, the latest polls predict a Republican Senate and a Democratic House in Washington. We should anticipate gridlock from a balanced Congress at a time when what New Canaan needs is federal attention on our infrastructure. New Canaan needs multiple good commuting options, particularly faster and more trains. Town leaders are working on the affordable expansion of Talmadge Hill to make more parking available for commuters. This should shorten the waiting lists. I am surprised at how few people are taking advantage of newly available “Boxcar” parking in the St. Aloysius lot. Parking habits are equally slow to change.

2019 Revaluation

The property tax change is a concern for budget planning. In January we will learn that many tax bills will rise between 10% and 20%. Why? The Grand List is predicted to shrink 8% reflecting a reset at the top end of our market and subsequent compression as top tier prices fell and put price pressure throughout the system on lower-priced homes. Those homes will make up the deficit. 

Therefore, the Board of Finance and Town Council must re-evaluate our Tax Relief for Seniors program and its means-testing in light of the coming property tax volatility. We want to retain our seniors as we explore new senior housing options. It’s a small line item but deserves a fresh look.

Chairman's View: With Compliments and Thanks

By John Engel

Town Council Chairman

Christmas is behind us. Before the New Year’s excitement I’ll take this opportunity to thank some volunteers.

Government

To Bill Walbert and John Sheffield, departing chairmen of the Town Council and Board of Finance. Neither asked for the job of chairman. John is a fiscal conservative: voted against an appropriation for land acquisition, an increase in the treasurer’s salary, and in the tax collection rate. It’s hard to say no, but you were tough. We will consider ourselves privileged to have a similarly involved leader in our next Board of Finance chair. Bill Walbert managed to lead the Town Council without ever saying a cross word. He told me the best part of the chairman’s job was thanking the incredible volunteers who serve this town everyday. Bill inspired this column.

The New Canaan Library

To Bob Butman and his Library board, the greatest example we have of a public-private partnership: The town pays only a fraction of your budget, far less than surrounding towns, and we recognize how deficient your current space is. We’ll ask you to build us a spectacular new library and tell us how you’ll pay for most of it privately (please!). All of New Canaan needs you to succeed. What you propose will last for generations.

The Waveny Park Conservancy

Thank you Bob Seelert and the Conservancy Board for exceeding all expectations in the 50th year of the Lapham gift, polishing the jewel of New Canaan. Trails are done, the cornfield is being renovated, gardens are planned, and restoration of the pond is a certainty after an outstanding gala earlier this month. Bravo.

The New Canaan Land Trust

To Art Berry and the Land Trust Board: Thank you for adding not just six acres in Fowler purchase but a vital public park in a neighborhood that had none. Thank you for linking the Nature Center to Irwin Park, pushing for a Land Acquisition Fund, and making us more appreciative of open space.

The Historical Society

To Mark Markiewicz and the other Historical Society board members working overtime to move beyond your revolutionary roots: Besides the Ice Cream Social, “House of Cars”, “Waveny, Then and Now”, “Art America,” and “New Canaan Modern Architects” in the Carriage Barn, you’re planning an art show on Orientalism, a belly-dancing performance, the Mad for Moderns gala, and the bi-annual Modern house Day Tour (Oct. 20, 2018). There’s a reason to go to 13 Oenoke besides the Advertiser Coffee.

"New Canaan Made Plain" (my column for the New Canaan Advertiser)

This column is making good on a promise of transparency. As your bow-tie wearing Town Council Chairman, rarely accused of being shy, it’s my charge to let people know what is going on in New Canaan.

Bankwell is quitting the residential mortgage business. Based on Bankwell’s tremendous history and visibility here in New Canaan (sponsoring just about every non-profit event in town) this is a shock. It reflects how competitive the residential mortgage business has become. It’s a funny time to leave the business, just as rates are about to tick up and the business could become more profitable.

The Town Council confirmed Board of Finance nominees: Colleen Baldwin returns; Todd Lavieri is new. When the BOF issued their guidance last month setting a cap of 2% on all budgets and the First Selectman reaffirmed that guidance we set the expectation for a tough budget season.

Town Council announced subcommittees last night. We had huge interest in the Infrastructure and Utilities Subcommittee where we will review potential cell tower sites on town properties (note new cell tower P&Z regulations are in draft for private properties), the roll out of gas service and the newly released Buildings Committee recommendations. Penny Young and Cristina Ross chair our subcommittee with Sven Englund, Joe Palladino, Tom Butterworth and Liz Donovan. New Canaan signaled low appetite for school and park sites. Private cell sites may now emerge.

The Town Council is beginning a new tradition: start each meeting with the Pledge of Allegiance led by local Boy Scouts, Girl Scouts and Cub Scouts. Good for the scouts, doubly good for the adults. We will stand.

People keep asking me what is happening in our real estate market and how will it affect our budget. As of December 1 the number of single-family home sales is up 36%. The median sale price is exactly $1.5 million. Sales below $1.5mm are up 41% while sales above $1.5mm are up 32%. The bottom half took off early this year, sales under $1mm were up 147% in October. Now, we see strength at the higher end as confidence moves up-market. Four sales this year over $5 million with another 2 sales pending is a good sign for the New Canaan market.

All 4 performances of the NEAD Nutcracker sold out last (snowy) weekend, 3000 tickets, the first ever with a live orchestra. Bravo. There’s one (charity) show this Saturday.

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