Bond projects result in savings
Bonded Projects-1-2019 (1) (1)
There is good financial news for the town of Wilton on the bonding front.
Seven bonding projects were recently completed under budget, for a combined savings of $6,298,166. For details, click on the link above.
As a result, the planned bond sale in March to fund approved projects for fiscal year 2019 will be reduced by $590,103, due to savings.
These findings as well as an update on the town’s bonding status were presented to the Board of Selectmen on Tuesday, Jan. 22, by Anne Kelly-Lenz, the town’s chief financial officer.
Kelly-Lenz’s report provided details about the bonding status of 12 town and school projects. Seven projects have been completed:
- Fire truck purchase.
- Turf stadium.
- Tennis courts.
- Middlebrook School elevator.
- Lilly Field.
- Bus Barn.
- Miller-Driscoll School renovation.
- Five projects are still in progress:
- School security.
- Fire station 2.
- Town hall campus.
- Board of Education roof engineering.
- Roads 2018.
The most significant bonding savings for completed projects was for the Miller-Driscoll School renovation, which came in $6,049,724 less than the $50,022,000 amount bonded for the project.
“We never borrowed the full cost of the Miller-Driscoll cost, as we received reimbursement from the state and we had savings from previously completed projects, including Comstock, which reduced our required Miller-Driscoll borrowings,” said First Selectwoman Lynne Vanderslice.
If and when the town receives additional reimbursement from the state related to Miller-Driscoll, it will use those savings to reduce the bond sale for any approved bonded projects for fiscal year 2020, she added.
Another significant savings came from the bus barn project.
The town approved $400,000 in bonding for the project, but it came in at $199,435, under budget by $200,565. The town saved money on the project using the same paver as used for town roads, Vanderslice said.
So although Wilton taxpayers approved $4,100,000 for upcoming bonding projects, due to these savings, the town only needs to apply for $3,509,897 in bonding Kelly-Lenz said.
She proposed using the $590,103 in bond savings to offset other bonding projects, and will make a formal presentation to the board about this at an upcoming meeting.
There is another possible use for the unexpended bond savings under the town charter, Vanderslice said.
The savings could also be used to reduce the town’s debt service. But she was not in favor of using the savings that way. “I do not believe borrowed money should be used to reduce current expenditures,” she said.