East Hartford may ask voters to OK $13.2 million in bonds

May 5—EAST HARTFORD — Town officials are considering asking voters to approve borrowing $13.2 million for a youth sports facility and renovation projects — and are starting to have some hard conversations about how to fund current and future debt obligations.

POSSIBLE REFERENDUM

WHAT: The Town Council is considering $13.2 million in potential referendum questions intended for the November election.

WHEN: Town Council must approve questions by Sept. 1 to put them on the ballot, and it must hold a public hearing before that.

The new bonding would be split between two referendum questions, one for the $7 million sports facility and the other covering $6.2 million for overhauls of town facilities.

A draft plan for the youth sports facility envisions a roughly 60,000-square-foot indoor facility with courts, turf, and a track, as well as outdoor synthetic turf fields for multiple uses and dedicated parking.

The $6.2 million for renovations would be divided among three funds: $2.7 million for renovations to the Veteran's Memorial Clubhouse on Sunset Ridge Drive, $2.4 million for upgrades to Public Works facilities, and $1 million to help fund unplanned building issues.

The Town Council discussed the two referendum questions at its meeting Tuesday but took no action.

For a referendum question to be on the November election ballot, the Town Council must approve it by Sept. 1 after a public hearing.

Mayor Mike Walsh said the administration believes a youth sports facility could generate more than $500,000 in surplus income annually, benefiting children in town without a major impact on debt.

Walsh said there was consideration of locating the sports facility at the Pratt & Whitney Aircraft Club on Clement Road, which is near Silver Lane.

"We received word today that Pratt & Whitney is not in a position to provide us the Aircraft Club," Walsh said, adding that the town would explore other sites.

A draft presentation about the project lists McAuliffe and Prestige parks as other potential locations.

McAuliffe Park on Remington Road has infrastructure in place and is owned by the town, but is located in a residential area and wouldn't increase the amount of fields in town.

Prestige Park on Christopher Court is at a central location in town but far from any interstate highway and may not fit the proposed project well.

Walsh said a previous $5.4 million renovation plan for the Veteran's Memorial Clubhouse, funded in part by a $4 million in state bond money in 2021, was "troubling," as handicapped access would be limited and the lower level wouldn't be fully functional.

The Town Council also discussed management of the town's debt at the meeting Tuesday.

Finance Director Melissa McCaw said the town will start with $44.5 million in outstanding debt in the fiscal year that starts July 1 and expects to take on $25 million more during the year for roadwork, redevelopment of the Silver Lane corridor, and other items.

Taking existing and new debt into account, McCaw said, the Town Council approved debt payments of $9.7 million for fiscal year 2023-24, $1.6 million more than this year.

McCaw said payments would peak in the following fiscal year at $10.4 million with no extra debt — but another $15 million to $20 million in debt would be needed in 2024 or 2025.

"It appears you put off significant investments that are important to the growth and health of the town, and now they're all coming due, and you have some hard decisions," she said.

McCaw said the town should receive more revenue as major development projects continue. That money could directly cover debt payments or be placed in a reserve fund during years with debt payment decreases.

"There is a path to making this work that doesn't significantly increase the mill rate," McCaw said, adding that the goal would be to hold annual tax increases to a third of a mill.

Council Chairman Richard Kehoe said previous annual debt payments weren't funding the town's needs, and the result is an additional $25 million in bonds this year.

Council member Harry Amadasun Jr. said he was surprised at the cost of deferred projects and questioned whether the town might need to do more to grow its revenue.

Walsh said the ultimate goal of the discussion is to have a "formulaic solution" to paying the town's debts in order to help him and future mayors prepare budgets and manage projects.

"Give me marching orders," Walsh said. "If the decision is status quo, I make decisions very differently."

Joseph covers Manchester and Bolton for the Journal Inquirer.