WILLIAMSTOWN, Mass. — The panel charged with looking at the town's future capital needs and finding "opportunities to be thoughtful and creative about future borrowings" met recently to review its work plan and talk about its objectives.
The Finance Committee created the Debt Study Ad Hoc Committee tp to get a better picture of current and coming capital needs both for the town and three other "capital entities," supported by Williamstown residents: the Mount Greylock Regional School District, Hoosic Water Quality District and Williamstown Fire District.
The town and fire district are funded entirely by town residents. Through separate agreements, Williamstown pays about two thirds of the cost of capital needs at Mount Greylock Regional High School and a little more than a third of infrastructure for the water quality district.
Starting next month, the committee, which began meeting in June, will sit down with representatives from all four cost centers, beginning with a presentation from Town Manager Robert Menicocci, who serves on the panel.
On Sept. 21, the Debt Study committee hopes to sit down with a representative from Unibank to talk about financing options that the town might want to consider.
"We have a profile of the existing debt," Suzanne Stinson said. "We are getting a consolidated estimate of capital needs. The debt options are something we will hopefully learn a little more about with Unibank."
Finance Committee members Stinson, Melissa Cragg and Fred Puddester serve on the Debt Study group along with Menicocci, Hugh Daley (the town's representative on the Hoosic Water Quality District Board), Carolyn Greene (Mount Greylock School Committee) and Donald Dubendorf (Williamstown Fire District Building Committee).
At its Aug. 17 meeting, the panel talked about the need to get "buy in" from all four of the independent municipal entities for any policy recommendations that may come out of the committee's deliberations.
"Part of what has to happen here is an intentional transparency, an intentional process to make sure Bob [Menicocci] knows what the Prudential Committee has on its mind on a constant basis, when it comes to capital, what the Hoosic Water Quality District does and the high school, so we're all in sync on these things, with the ultimate goal to be impacts on things like rates for water and sewer, etc.," Dubendorf said. "So we're, if you will, having a consistent, no surprise policy type thing."
The group agreed that its end result won't direct where the capital entities make their investments but rather suggest ways those needs can be addressed long term.
"We can formalize how we're going to collect and report [a capital plan] and then let it change because they'll come to us this year and say, 'We don't think we'll need a truck,' but then something changes and they say, 'It's better for us to do this,' " Daley said. "This is where the balancing has to occur, where the school says, 'It would be great if we could spend $3 million,' and the town says, 'Not right now. In two years … ' or whatever."
Stinson put it another way.
"[The committee's report] would show the pattern of expenditure for the past couple of years," she said. "It would show the budget and then some extrapolation. Not at the level of, 'This is what we're going to fund, this is what we're not going to fund.' It is more the idea of having a consistent cash flow. I do think the emphasis would be on debt policy."
Menicocci indicated that he hopes the group, which is scheduled to wrap up in March, will give him some guidance.
"For me, I get help to get a good, solid, in-depth capital plan for the town but also incorporating the other pieces so we all know all the moving parts," he said. "The main thing is we can have the good, healthy conversation about policy."
The committee members talked about making sure that policy includes a strategic approach to incurring public debt.
"If you save for an expenditure, by the time you get there, it has outrun your ability to save, given its cost," Dubendorf said. "So there's a potentially self-defeating element to that. I think the policy we come up with should force the question, just ask the question: Do we do it … over a four- or five-year period or do it all at once. Those questions should at least be part of the discipline of the decision-making."
Stinson said that the idea of saving up for a capital expenditure as Dubendorf expressed it, "speaks to the hidden costs of deferred maintenance."
"If you don't use debt as a tool, that's where you're automatically forced," Stinson said. "And because we have the ability to use debt as a tool, we can manage that better and get some economies of scale for the effort."
If you would like to contribute information on this article, contact us at info@iberkshires.com.
Your Comments
iBerkshires.com welcomes critical, respectful dialogue. Name-calling, personal attacks, libel, slander or foul language is not allowed. All comments are reviewed before posting and will be deleted or edited as necessary.
No Comments
Concerns Over PFAS Spark Sewage Debate in Williamstown
By Stephen DravisiBerkshires Staff
The composting facility at the intermunicipal wastewater plant is operating at about two-thirds capacity.
WILLIAMSTOWN, Mass. — Forever chemicals are the source of a protracted debate for the Select Board.
Out of 15 fiscal articles on the warrant for the annual town meeting in May, the board last Monday voted to recommend passage of 14.
It delayed its decision on Article 5, which concerns the budget for the sewer department, more specifically the town's share of operating costs for the Hoosac Water Quality District.
Some members of the community, including a member of the Select Board, say the district is choosing a course of action that is at odds with the environmental principles that the town espouses.
The HWQD is a 55-year-old intermunicipal entity shared by Williamstown and the city of North Adams.
Residents of both communities on public sewer service send their wastewater to a treatment facility in Williamstown off Simonds Road (Route 7).
The facility cleans and treats the wastewater and discharges it into the nearby Hoosic River.
Some members of the community, including a member of the Select Board, say the district is choosing a course of action that is at odds with the environmental principles that the town espouses.
click for more
Mount Greylock graduate Noah Greenfield said participation in team sports continued to provide the benefits it offers tens of millions of kids across the country.
click for more
The Prudential Committee on Wednesday took a first look at a draft fiscal year 2026 budget that would increase the operating budget by 27 percent from the year that ends on June 30. click for more
The board decided to put off a decision on its recommendation for an article related to the sewer department, and the panel split on whether to support a series of appropriations of Community Preservation Act funds.
click for more
Valerie Jarrett, CEO and a member of the board of directors of The Obama Foundation, will be the principal speaker at Williams College's 236th commencement exercise on Sunday, June 8. click for more