Numbers explained for firehouse plan

FALLS VILLAGE — Members of the Falls Village Volunteer Fire Department made their pitch for bonding for a new firehouse again (this time in the meeting room on the second floor of the current firehouse) on Tuesday, Aug. 2.There is a town meeting on the subject Tuesday, Aug. 16, at 7 p.m. at the Lee H. Kellogg School. The plan is to adjourn the meeting to a referendum vote the following Tuesday, Aug. 23.Becky Seney took the largely receptive audience through the presentation, explaining that the current firehouse, at 35 Railroad St., is inadequate for the town’s future emergency services needs, not to mention increasingly stringent state and federal mandates.(To get to the upstairs meeting room, the audience members had to make their way along a narrow space between the wall of the firehouse and the trucks.)Seney also went through the history of the project, from the initial search for a location beginning in 1995, to the identification of 188 Route 7 South as the site, and the transfer of the property from the town to the fire department; through the design phase, the two Small Town Economic Assistance Program grants from the state and the completed site work.And then she got to the heart of the matter: Even with fundraising, donations and a capital campaign, the department needs to bond for $2.5 million to finish the job.First Selectman Pat Mechare, armed with a handout detailing four possible bonding scenarios, said the Board of Selectmen decided to go the referendum route, with 12 hours of voting ( 6 a.m. to 8 p.m.) and absentee ballots available, in order to ensure maximum voter participation.“You are going to decide if this moves forward or not,” she said.The selectmen have endorsed the project, as has the Board of Finance.“It’s fair, right, appropriate,” Mechare said.The options on Mechare’s handout include borrowing from a local bank — a 20-year loan at 3.96 percent interest, for an annual payment of $181,162.44. This option would require a mill rate increase of .97 and the total amount of the loan would be $3,623,247. That means a homeowner with a $100,000 assessment would face a property tax increase of $97.Also on the table are loans from the U.S. Department of Agriculture (USDA), including a 40-year option that required a special act of the state legislature. The interest rates for USDA 20-year, 30-year and 40-year loans are higher, at 4.25 percent. Mill rate increases would be 1 mill, .79 mills and .70 mills, respectively.But the total amounts would be significantly higher. The USDA 40-year loan would wind up costing more than $5 million.The handout states that all the loan options have no penalty for paying off early.The question on the referendum is limited to borrowing the $2.5 million. Mechare said the selectmen and the finance board “will choose the option that is the most financially beneficial to the town.”During the question-and answer-period, Fred Laser said that the competition for construction jobs in the sluggish economy would work in the town’s favor. “We have the opportunity to realize value.”Asked when any mill rate increases would begin, Mechare said (assuming the referendum vote is positive) that construction would begin in spring 2012, and the full impact to taxpayers would be felt in the 2013-14 fiscal year.Tom Christian said when he had a serious medical problem the Falls Village ambulance squad responded quickly. “I will back this 150 percent.”Asked what would happen if bids came in higher, and if there had been any effort to apply “value engineering” to the plans for the new firehouse, Seney said that the plans started out “bigger and nicer” but have since been altered for a more modest result.“We’ve already gone down to what we think is the bare minimum.”

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