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Capital Planning chair explains debt exclusion reasoning

By Courtney Llewellyn

Reminder Assistant Editor



LONGMEADOW Hal Haberman's last meeting as chair of the Select Board included the discussion of two very important topics for the town the water and sewer rates and the possibility of debt exclusion for the work that needs to be done to the roofs of the Greenwood Center and the high school.

Before the meeting began, Haberman thanked the residents for allowing him to serve them for the past 12 years and said the experience was both "rewarding and challenging." The Select Board presented him with a certificate of appreciation and Town Manager Robin Crosbie presented him a "retirement package" put together by the town's various department heads.

Suzie Altman spoke during the visitor comment period on the oft-debated water and sewer rates, saying, "The water and sewer program is still in limbo." She addressed the topic of wells in town and her reasoning as to why they would be a boon to Longmeadow: residents who dug wells would means less revenue went to the town, but there would be an overall savings for the town because less water from Springfield would be used and the town would not have to pay for as much maintenance on the water/sewer systems.

"It's a win-win situation," Altman concluded.

Curt Freedman suggested a new water and sewer rate system because "the flat rate from the task force is not suitable and the tiered rate was not suitable."

"We need a new system that is seasonally adjusted ... with rewards for conservation," Freedman explained. He added that the town needs to upgrade its long-term plans, host more public hearings and promote new policies and rates with a master plan in place by July 2009.

Once the visitor comment period ended, Mark Gold, chair of the Capital Planning Committee, discussed the topic of debt exclusion when it came to the necessary roof repairs in Longmeadow.

Proposition 2 1/2 allows a community to raise funds for certain purposes above the amount of its levy limit, according to the www.mass.gov. A community can assess taxes in excess of its levy limit for the payment of certain capital projects and for the payment of specified debt service costs. An exclusion for the purpose of raising funds for debt service costs is referred to as a debt exclusion. The exclusion requires voter approval; the Greenwood Center roof project was approved at the Annual Town Meeting with Article 21 and the high school roof project was approved with Article 20.

"The need [for these projects] was long since identified, and that made it critical we fund the roofs this way," Gold told the Select Board.

The leaks in the Greenwood Center roof are primarily in the daycare area, Gold explained, with some in the Council on Aging area. The roof on the center is the original roof from the late 1970s.

The cost for the Greenwood Center repair will be $375,000.

Crosbie explained at the Annual Town Meeting that the $100,000 needed for the high school roof repair is for labor only, not the materials, because they are covered by a manufacturer warranty.

"In an ideal situation, these would be funded by the Capital Stabilization Fund," Gold said. "We realized there was alternative funding. This would be a one time debt exclusion, and we did that recognizing that $375,000 is about one percent of the $37 million tax base."

"We wanted people to know this wasn't a way to circumvent the capital planning process," Select Board member Paul Santaniello said.

Paul Pasterczyk, finance director, said the effect on the tax rate for the average home valued at $350,000 would be just under $19 a year, and that the debt exclusion would help fill in a 17-cent drop in the debt exclusion rate that will be taking place this fiscal year.

Select Board vice-chair Kathleen Grady noted the rate would still drop from 66 cents to 49 cents in FY10.