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Sprague voters approve six borrowing measures totaling capital appropriations of $800,667
Summary
At a July 10, 2012 Special Town Meeting in Baltic, voters adopted six resolutions authorizing bonds or notes for road, building, vehicle, water/sewer and housing accessibility projects and an $80,000 issuance-cost appropriation; all measures passed by voice vote.
Moderator Catherine A. Osten opened a Special Town Meeting of the Town of Sprague on July 10, 2012, and, with the meeting clerk Claire B. Glaude, presented six resolutions authorizing the issuance of bonds, notes and temporary notes for the town’s FY2012/13 capital program.
The most consequential measure authorized up to $489,000 in borrowing for the Fiscal Year 2012/13 Road Management Program, including a $400,000 appropriation for pavement overlays on Franklin Road, Amber Road, Cydylo Drive, Kendall Road and Pautipaug Hill Road; $64,000 for pavement grinding and chip sealing on Parkwood Road and Potash Hill Road; $10,000 for installation of ribbon guardrail on Bay Street and Hanover-Versailles Road; and $15,000 for drainage improvements on Hanover-Versailles Road. Claude Pellegrino moved the resolution and Denise Dembinski seconded; the resolution was adopted by voice vote.
The meeting also approved a $196,667 borrowing authorization to fund improvements to town buildings, itemized as $26,667 to replace three Town Hall boilers, $100,000 for ventilation system and oil separator improvements at the Town Garage, $45,000 for window/sill/column work at the Grist Mill, and $25,000 for exterior painting and vestibule repair at the Baltic Fire Station. The motion was moved by Claude Pellegrino, seconded by Denise Dembinski, and adopted by voice vote.
A $15,000 authorization was adopted to acquire a bus for use by the Sprague Community Center; a $50,000 authorization was approved for infrastructure work on the town’s water and sanitary sewer systems — including rehabilitation of Pump Station No. 1 off Main Street and the Hanover Pump Station (Pump Station No. 2) — and a $50,000 authorization was approved as a grant to the Sprague Housing Authority for Phase 2 ADA upgrades at the Shetucket Village elderly complex. The water/sewer resolution was moved by Dennison Allen and seconded by Denise Dembinski; the ADA grant resolution was moved by Denise Dembinski and seconded by Dennison Allen. Each motion was adopted by voice vote.
Finally, voters appropriated $80,000 to cover costs associated with issuing the bonds or notes and to pay all or a portion of the net interest cost on the Town’s $2,300,000 bond anticipation notes due Nov. 16, 2012; that resolution authorized up to $80,000 in borrowing for those issuance and interest costs. Claude Pellegrino moved the motion, Denise Dembinski seconded, and the motion was adopted by voice vote. The meeting adjourned at 7:13 P.M.
Why this matters: the measures together finance a set of capital projects and short-term borrowing costs included in the town’s FY2012/13 capital budget; the road and water/sewer projects are direct infrastructure repairs while the housing grant targets ADA accessibility improvements for elderly residents. The resolutions delegate authority to the First Selectman and the Treasurer to determine bond terms, issue temporary notes in anticipation of sale, and to take necessary administrative steps including entering required tax-exempt covenants and secondary-market disclosure agreements. The law firm Day Pitney LLP is named as bond counsel in the resolutions.
Next steps: the First Selectman and the Treasurer are authorized to set final terms, designate agents and proceed with issuance; the resolutions also permit the town to issue temporary notes while awaiting permanent financing.
