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Finance director: Fisher Drive purchase would likely require taxable bonds but tenant rents help offset costs
Summary
Town finance staff told the council any bond for 200 Fisher Drive may be taxable because private tenants occupy part of the building; projected FY2026 revenues from tenants and BOE contributions roughly match operating cost estimates, and staff outlined use of a Special Revenue Fund.
Tom DiStasio, Avon’s finance director, presented debt-modeling considerations for the proposed acquisition of 200 Fisher Drive and said the town expects part of any issuance to be taxable because the building houses private tenants. He presented a FY2026 projection estimating $153,910 in expenditures and a similar total in projected revenues from gross lease payments and a BOE contribution.
"Proposed debt for 200 Fisher Drive is anticipated to be, in part, a taxable bond issuance, due to part of the building being occupied by private tenants," DiStasio said. Council and staff discussed assignment of fund balance to smooth debt-service spikes and the possibility that bond rates at issuance will affect long‑term costs. Robertson said staff modeled a 15‑year bond issuance and proposed accounting in a special revenue fund to segregate tenant rents and operating expenses.
