DERBY – Voters in Derby are being asked whether to approve $6.5 million in borrowing for several capital improvement projects.
Here is the list scheduled to go to voters on Election Day (Nov. 4, 2025).
- $3 million for two Derby Fire Department pumper trucks
- $1.5 million for a rescue truck for the Storm Engine Co.
- $560,000 for two Department of Public Works trucks
- $550,000 to replace the public safety radio system
- $400,000 to replace the HVAC system at Derby Public Library
- $358,000 to replace a chiller at Derby Middle School
- $132,000 as contingency
On Sept. 12, The Valley Indy interviewed Derby Finance Director Brian Hall about the borrowing during a live ‘Navel Gazing Podcast.’
The following is an edited summary of the questions and answers.
The original video is embedded at the bottom of this article.
Valley Independent Sentinel: The reaction to this proposed borrowing on social media was “My taxes went up last year, I can’t afford to pay another dime in taxes. Now you’re going to hit me with another mill rate increase.”
So that is the first question: what will this borrowing do to the mill rate?
Brian Hall: The short answer – it’s not going to do anything to the mill rate.
I expect that this borrowing is going to occur over multiple years. We’re going to stagger it. I have many levers at at my disposal when it comes to debt.
As far as the duration, we’re going to try to spread this out over 20 years; again, minimize any potential impact again, which I expect to be zero.
We can refinance a lot of the existing debt to make sure that no impact to the mill rate occurs. So, it’s not going to do anything to the mill rate.
We’re spending over $100,000 a year in maintenance fees on these 30 plus year old vehicles.
So between those costs coming down, existing debt rolling off, and then some of the levers that I can pull when it comes to debt refinancing or financing of this debt over the period, there will be no impact to the mill rate.
(Note to readers: Hall is not saying there will never be another mill rate increase in Derby. He’s saying the borrowing here won’t have a direct impact that raises the mill rate)
VIS: There’s been two economic recovery plans issued in the City of Derby to deal with financial problems in less than 10 years. Both included mill rate increases. One plan was by a Republican mayor, one was by a Democratic mayor (Joseph DiMartino).
When you talk about no mill rate increase, can you explain a little more? You have existing debt now. I guess you’re saying some of that debt comes off and this new debt goes on? I’m not sure I understand this.
Hall: When you borrow the money, you’re going to spread out those payments over likely 20 years before you’re going to pay it down.
Derby has around 18 million right now in debt on its books that it’s paying off each year. That amount, if you don’t add new debt to it, goes down. That’s where I’m talking about having some additional financial flexibility. Your existing debt will cost less over time.
As far as mill rate increases and what’s happened in the past, part of the problem historically is when you do no mill rate increase for so many years, you’re almost forced to do a big mill rate increase in the years when you finally bite the bullet and address the problem.
Mayor DiMartino had to do that from previous years of no changes, no expense cutting or anything else to address the fact that revenues were far less than the expenses. Year after year it was creating deficits.
When I talk about no mill rate increase for this particular referendum, I believe we do not have to do anything specifically for this referendum. I think over time, Derby has to get back to normal financial practices of small, inflation-type (mill rate) increases over time.
It won’t be anything that spikes because of this referendum. You had asked me what the impact would be if we tried to fund all this out of the operating budget. That would cost a huge mill rate increase, maybe six to eight mills.
Obviously that is not what we’re looking to do. We’re going to have to spread this $6.5 million over a 20-year period. Like I said, I’m very confident we can absorb the impact.
VIS: How did the city arrive at $6.5 million and who chose what made the list of projects?
Hall: Mayor DiMartino and myself reached out to all our department heads throughout the city about their near-term and long-term capital needs. That allowed us to develop a five-year capital plan that we shared with the capital planning committee.
They reviewed requests and discussed it with the department heads. The mayor made a recommendation on the pieces of equipment that he thought was most needed based on the feedback he received.
At the end of the day it was up to the capital planning committee to see if they agreed with the recommendations, and then make their own recommendations to the Board of Aldermen, who ultimately decided what the final number was.
VIS: This is very much an emergency services referendum.
You’ve got two Derby Fire Department pumper trucks, a rescue truck for Storm Engine, and an emergency service radio system replacement.
Please click here for a separate story on those potential purchases.
There are other items, too, such as a new chiller for Derby Middle School. I think one of the first stories we covered in 2009 or 2010 was the opening of Derby Middle School (note: it was 2010).
How come they need a new chiller already, and what is a chiller?
Hall: A chiller is really your HVAC system, and the initial one that was installed was not sufficient for the size of the building.
The one we’re proposing is almost double the size of the existing one, which also means that a lot of the pipes that were connected to the HVAC system will need to be replaced.
This is just an unfortunate situation where there wasn’t enough diligence done initially on what the needs were.
I wasn’t part of that initial process but unfortunately it’s not working. It’s not getting the job done and we need something correct this time around.
VIS: How do the problems with the chiller at Derby Middle School manifest?
Hall: The problem is with the equipment that regulates temperatures at the middle school, whether it is hot or cold. Right now neither is working properly. This is something that has to be done to fix that temperature so that folks aren’t freezing in the winter and boiling in the summer.
VIS: I know last year, at least on one occasion, Derby Middle School had to dismiss early because it was too hot. I know that because my daughter came out dripping with sweat when I went to pick her up.
Please click the play button on the video below to watch the full interview with Hall.