Fact sheet The FYE 2020 bond and debt service articles on the Killington ballot explained

February 27, 2019
Mountain TimesBy Chet Hagenbarth, Killington town manager
This year’s Town Meeting warning includes several articles related to the town’s financial position, facilities, and road conditions.  The articles and details are offered as follows:
Article 4. Shall general obligation bonds or notes of the Town of Killington in an amount not to exceed $1 million subject to reduction from available state and federal grants-in-aid and the application of available reserves, be issued for the purpose of reconstructing and rehabilitating Town Highway No. 15  (East Mountain Road) and Town Highway No. 44  (Dean Hill Road), the estimated cost of such improvements being $1 million.
East Mountain Road
Includes section from Fosters Farm Road to the Grand Hotel
Existing conditions include significant sub base failure
Proposal is for a reclaim (existing pavement ground up as part of sub base)
Includes several culvert replacements and ditch reconstruction
Dean Hill Road
Includes entire paved section of road
Existing conditions include significant sub base failure
Proposal is for a reclaim (existing pavement ground up as part of sub base) as well as some road base reconstruction
Includes ditch reconstruction
Article 5. Shall general obligation bonds or notes of the Town of Killington in an amount not to exceed Four Million Seven Hundred Seventy Five Thousand Dollars ($4,775,000), subject to reduction from available state and federal grants-in-aid and the application of available reserves, be issued for the purpose of constructing a public safety building on land owned by the Town and located on Killington Road, the estimated cost of such improvements being $4.7 million?
Existing Facility
Not enough land for even the existing building as the southerly access and parking area are not on the Fire Dept parcel.
Building does not meet life safety or building codes.
Does not allow for expansion.
Cannot accommodate Police Department.
Not a Town owned facility.
Proposed Facility
Provides one story building with expandability
Includes Police Department with sally port and holding cell
Includes water storage for fire suppression as well as truck refill
Cost similar to other comparable facilities.
Ensures continued function of a town-owned Emergency Services Facility including all departments.
Article 6. Shall general obligation bonds or notes of the Town of Killington in an amount not to exceed Five Hundred Eighty-Eight Thousand Dollars ($588,000), be issued for the purpose of funding Tropical Storm Irene bridge replacement projects?
Bridge Replacements as part of Tropical Storm Irene
Ravine Road and Stage Road Bridge replacements included.
Partial funding received from FEMA but resulted in a $588,000 shortfall
Auditor recommended funding shortfall to complete Irene project funding in 2014 but funding held off while attempting further funding from FEMA
Vermont Municipal Bond Bank and the Town’s Bank insist we stop carrying Irene debts on the books.
Article 7.  Shall the Town, pursuant to law 24 V.S.A. § 2804, establish a new Reserve Fund in an amount not to exceed 25 percent of the general and highway fund budget to cover revenue shortfalls and to pay non-recurring and unanticipated general and highway fund expenses, to be funded by future general fund balances?
Creates a Restricted Fund to hold undesignated funds
No funds Required to create fund.
Will use future carryover monies to fund
Tax Rate Implications:
Article 5: The proposed sustainable budget tax rate of .47 will remain stable inclusive of the financing requirements for the public safety building as it replaces other retired debt service.
Articles 4  and  6:  The proposed increase for fiscal year 2021 of approximately .02 percent will be the result of refinancing the $588,000 Irene Projects deficit and the proposed $1 million Roadway Construction Bond.
Article 8: Creating a restricted reserve fund will not impact the tax rate.
The FYE 2020 bond and debt service articles on the Killington ballot explained
By Chet Hagenbarth, Killington town manager
This year’s Town Meeting warning includes several articles related to the town’s financial position, facilities, and road conditions.  The articles and details are offered as follows:
Article 4. Shall general obligation bonds or notes of the Town of Killington in an amount not to exceed $1 million subject to reduction from available state and federal grants-in-aid and the application of available reserves, be issued for the purpose of reconstructing and rehabilitating Town Highway No. 15  (East Mountain Road) and Town Highway No. 44  (Dean Hill Road), the estimated cost of such improvements being $1 million.
East Mountain Road
Includes section from Fosters Farm Road to the Grand Hotel
Existing conditions include significant sub base failure
Proposal is for a reclaim (existing pavement ground up as part of sub base)
Includes several culvert replacements and ditch reconstruction
Dean Hill Road
Includes entire paved section of road
Existing conditions include significant sub base failure
Proposal is for a reclaim (existing pavement ground up as part of sub base) as well as some road base reconstruction
Includes ditch reconstruction
Article 5. Shall general obligation bonds or notes of the Town of Killington in an amount not to exceed Four Million Seven Hundred Seventy Five Thousand Dollars ($4,775,000), subject to reduction from available state and federal grants-in-aid and the application of available reserves, be issued for the purpose of constructing a public safety building on land owned by the Town and located on Killington Road, the estimated cost of such improvements being $4.7 million?
Existing Facility
Not enough land for even the existing building as the southerly access and parking area are not on the Fire Dept parcel.
Building does not meet life safety or building codes.
Does not allow for expansion.
Cannot accommodate Police Department.
Not a Town owned facility.
Proposed Facility
Provides one story building with expandability
Includes Police Department with sally port and holding cell
Includes water storage for fire suppression as well as truck refill
Cost similar to other comparable facilities.
Ensures continued function of a town-owned Emergency Services Facility including all departments.
Article 6. Shall general obligation bonds or notes of the Town of Killington in an amount not to exceed Five Hundred Eighty-Eight Thousand Dollars ($588,000), be issued for the purpose of funding Tropical Storm Irene bridge replacement projects?
Bridge Replacements as part of Tropical Storm Irene
Ravine Road and Stage Road Bridge replacements included.
Partial funding received from FEMA but resulted in a $588,000 shortfall
Auditor recommended funding shortfall to complete Irene project funding in 2014 but funding held off while attempting further funding from FEMA
Vermont Municipal Bond Bank and the Town’s Bank insist we stop carrying Irene debts on the books.
Article 7.  Shall the Town, pursuant to law 24 V.S.A. § 2804, establish a new Reserve Fund in an amount not to exceed 25 percent of the general and highway fund budget to cover revenue shortfalls and to pay non-recurring and unanticipated general and highway fund expenses, to be funded by future general fund balances?
Creates a Restricted Fund to hold undesignated funds
No funds Required to create fund.
Will use future carryover monies to fund
Tax Rate Implications:
Article 5: The proposed sustainable budget tax rate of .47 will remain stable inclusive of the financing requirements for the public safety building as it replaces other retired debt service.
Articles 4  and  6:  The proposed increase for fiscal year 2021 of approximately .02 percent will be the result of refinancing the $588,000 Irene Projects deficit and the proposed $1 million Roadway Construction Bond.
Article 8: Creating a restricted reserve fund will not impact the tax rate.