Derby Aldermen may decide this month how to prioritize several multi-million dollar investments that will eventually be put to residents to approve or reject at a referendum.
The city’s treasurer told them at a meeting Thursday (April 11) that he’s confident in numbers being prepared for two of those projects — repairs to the city’s sewer system and the replacement of roofs at three schools.
Still up in the air is whether cost estimates for two other ideas — repairing the parking garage on Thompson Place and the purchase of downtown properties for redevelopment — can be ready in time.
A vote by residents could occur within a couple of months of officials approving the ballot questions.
The bonding will also need the approval of the Board of Apportionment and Taxation.
Derby Treasurer Keith McLiverty said during a presentation to Aldermen that while city shouldn’t burden itself with too much borrowing, there has never been a better time to — interest rates are low, and the city has a good credit rating and just refinanced its debt.
“We don’t like to see debt exceed 15 percent of our operating budget. We are currently at 5 percent of our operating budget,” he said.
Derby will pay about $1.9 million next year in payments on $13 million in outstanding debt, he said.
By that math, the city could theoretically borrow up to about $26 million more and still be below that 15 percent threshold.
But while some of the estimates are still being compiled, even that entire amount would not cover all of the projects.
For example, the city’s Water Pollution Control Authority, which has been preparing potential costs for fixing Derby’s ailing sewers, wants to ask voters for $24 million.
And that’s $10 million less than they had originally planned — WPCA Chairman John Saccu said at Thursday’s meeting that the WPCA took two of the upgrades off the table because they are planned too far into the future.
Click here, here and here for more information on the WPCA issues.
Meanwhile, roof repairs at Irving School, the Bradley School and Derby High School could cost as much as $4 million, according to preliminary estimates.
An architect will analyze the roofs and provide more precise numbers by the time Aldermen meet April 25, Superintendent Matthew Conway said.
Click here for a previous story about the school roofs.
Regarding repairs needed at the parking garage on Thompson Place, McLiverty and Corporation Counsel Joseph Coppola expressed doubts over the estimates received by the city’s parking authority thus far.
Click here and here for previous stories about the parking garage.
McLiverty said he was concerned because the estimates provided have fluctuated over time.
“The probability that those numbers are accurate are much lower than the WPCA,” he said.
But he said Aldermen can decide for themselves when they have more information later in the month.
“They’re going to come in front of you and defend their number,” he said.
Doubtful is whether the city can move fast enough to get a question on the ballot on buying up downtown properties to spur redevelopment.
Aldermen Ron Sill and Carmen DiCenso said in March Derby should look into the possibility.
Click here to read more.
Coppola said he would talk to the city’s bond counsel to “get the parameters” of what the ballot question would require and report back to Aldermen.
Sill said Thursday the redevelopment money “should be the most important question we go through.”
“If we don’t bond for that money, we’re never going to get that project going,” he said. “And if people turn it down, then people turn it down. But that’s the biggest issue every campaign, and it’s an eyesore and there’s nothing going on there.”
