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NORWALK -- Finance Director Thomas Hamilton yesterday recommended a $12.5 million capital budget, trimming $17.7 million from the $30.2 million in requests by department heads.
The recommendation is nearly 24 percent increase in capital spending over this fiscal year, and includes funds to design a new central fire station and begin upgrading infrastructure.
But the proposal also continues the policy of the past three years of holding down the amount of capital spending paid for through general obligation bonds in order to continue to finance the city's school reconstruction project, Hamilton said.
The amount of new debt that would be bonded and paid for through property taxes would be $5.2 million, Hamilton said.
The Planning Commission will hold a 7 p.m. hearing today in City Hall on the budget. The Planning Commission will make recommendations next month on the capital budget for the fiscal year that begins July 1.
The Fire Department is one of the big winners in the proposed capital budget. Hamilton recommends funding a controversial $1.7 million request by fire Chief Denis McCarthy to design a new fire headquarters and tear down the Charles A. Volk Central Fire Station on Connecticut Avenue.
Mayor Richard Moccia said last night that the money may not be spent if an evaluation of a newly proposed $14 million fire station at the former Wheels bus barn on Fairfield Avenue doesn't recommend that a new station be built.
"Everybody is making this a fait accompli that a new facility will be built. All we are trying to do is put the numbers together to see if we can make the Fairfield Avenue location work," Moccia said, adding that a hold has been put on all appropriations until the evaluation on a new building is done.
But there is no guarantee that the evaluation will be done before the Common Council votes on the capital budget, Moccia said.
Democratic Council President Michael Coffey, who crossed swords last week with the mayor on a $5,000 appropriation for an appraisal of the Volk station, said he believed the money could be better spent elsewhere.
"We have to determine what the priorities are for the city. Those of us in the Democratic caucus are dedicated to completing the school renovation project, and we he have to determine how much money we have to put into the upkeep of the roads in the city, which are in terrible shape," Coffey said.
Under Hamilton's budget, the Fire Department would also receive more than $500,000 for a new rescue vehicle and building repairs at other station houses.
Moccia agreed with Coffey that roads were an issue. The mayor pointed to Hamilton's recommendation that the city spend $2.55 million on road reconstruction and paving -- an amount which is $250,000 less than the Common Council allocated for roads last year.
In Hamilton's budget, the Department of Public Works would get the largest chunk -- $5.4 million. Public Works Director Harold Alvord requested $13.5 million.
In addition to road reconstruction and repaving, $100,000 would be spent for sidewalk and curb repair, $350,000 to repair the Perry Avenue Bridge over the Silvermine River and $350,000 to upgrade the city's storm water management infrastructure, among other items.
Alvord said he wasn't sure what to make of the recommendations until his staff reviews them over the next few days.
The Water Pollution Control Authority would only get $2.4 million of its $7.5 million request -- a request to begin funding an anticipated $39.5 million plant and sewer line upgrade.
Hamilton said that the city should wait for a WPCA consultant's long-range financial model before providing more money.
In his 10-page recommendation, Hamilton wrote that $5.2 million of the proposed $12.5 million capital budget would have to be bonded and repaid through annual property taxes.
The remainder would come from city revenue and $3.7 million would be withdrawn from the city's capital fund balance -- more than double the $1.75 million that was taken out of the fund to finance $10.1 million in capital expenditures this year.
Hamilton justified the nearly 24 percent capital spending increase: "It is short-sighted to allow vital city infrastructure to deteriorate or to fail to invest in projects that have a demonstrable economic payback or which promote the city's long-term economic vitality."
After seven hours of meetings with Hamilton over the past month, Moccia said: "I'm in total agreement. I think it is responsive to the needs of the city, but it also is responsible as far as taxes are concerned. . . .It strikes a good balance."
Over the past four years during the administration of former Mayor Alex Knopp, the finance manager's recommendations closely mirrored what the Common Council eventually approved.
But this year, with a Republican mayor and a Democrat-controlled Common Council, all bets may be off.
"I don't know what to expect," Moccia said. "I hope they accept what the finance manager says and what the mayor says."
Coffey said Hamilton's proposed budget might endanger the city's AAA bond rating, which allows Norwalk to borrow money at the lowest interest rates.
"I don't think it makes financial sense to extend ourselves to the point where we have no flexibility should any crisis or catastrophe arise. We should not do things that place the AAA bond rating on the verge," Coffey said.
Hamilton said bonding $5 million to $6 million over the next two years, with an increase to $8 million for the next five, would be the "maximum amount of additional debt the city can safely assume, while maintaining debt ratio benchmarks within the range acceptable to the bond rating agencies."
Parks and Recreation Director Mike Mocciae said he was pleased with Hamilton's decisions.
Hamilton said Mocciae should receive $710,000 of his $2.9 million request. Of that, $110,000 would be to improve lighting at Veterans Memorial Park; $250,000 would be allocated for a project to light the Brien McMahon baseball field; $100,000 would be to finish a renovation of the Calf Pasture Beach bathrooms and $100,000 would be spent to replace and add playground equipment to Veterans Memorial Park, Marvin School and Meadow Gardens.
Hamilton recommended $600,000, or about 70 percent, of the Board of Education's request for technology funding.
Hamilton recommended the library system receive less than half its request of $521,000. Hamilton's budget allocates $125,000 for a new entrance to the Main Library on Belden Avenue as well as $85,000 on new air conditioners and $26,000 for bathroom renovations.
Hamilton recommended allocating $295,000 of the Redevelopment Agency's request of $995,000. He recommended spending $175,000 for affordable housing and $120,000 for intersection improvements to make the Washington Street side of the Stroffolino Bridge more pedestrian-friendly.
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