In my column for the October issue of the Drummer, I explained how Granby practices direct democracy. This means you, the voters through the ballot box, choose your elected officials, approve the town’s annual budget, and periodically are asked to go to the polls to approve spending and funding for large capital projects. The process where voters approve spending and funding for large capital projects is called “bonding.”
Simply put, bonding is borrowing for a municipal capital project costing over $250,000—as a resident does when buying a home—they take out a mortgage.
Granby bonds (issues debt) for 20 years on a tax-exempt basis and in such a way that any new debt replaces older, paid off/retired debt. To say it another way, taxes property owners pay annually to the town pay for debt service on the bonds and that borrowing is done in such a way that taxes are not increased by the new debt, through at least 2032.
This financial technique is called “debt replacement stabilization” and is practiced by the Town of Granby and is an example of just one of the many prudent fiscal practices that other towns would do well to emulate.
The Granby Charter-prescribed bonding process that will unfold in the coming months starts with Board of Selectmen approval, then Board of Finance approval, an Open House for Q&A, a town meeting and then the voters make the final decision on each question at a bonding referendum vote on Sept. 22, at Town Hall from 8 a.m. to 8 p.m.
The following draft questions were presented to the Board of Selectmen on May 4. The board will edit the questions in the coming weeks for eventual voter consideration.
- Appropriation and Bond Authorization not to exceed $3,520,000 for the Baseball/Softball Fields at the High School Complex Project
- Appropriation and Bond Authorization not to exceed $6,930,000 for Stadium Field, Track, and Field Two at the High School Complex Project
- Appropriation and Bond Authorization not to exceed $3,000,000 for the Granby Memorial Middle School Repairs and Design/Scoping Work Project
- Appropriation and Bond Authorization not to exceed $500,000 for Salmon Brook Park Pickleball Courts and Year-Round Bathroom Project
- Appropriation in an Amount not to exceed $12,000,000 for the Granby Public Library Renovation and Expansion Project and Bond Authorization in an Amount Not to Exceed $6,000,000 to Fund a Portion of the Appropriation with the Balance of the Appropriation to be Funded by Private Contributions and Grants
- Appropriation and Bond Authorization not to exceed $1,500,000 for Sewer Pumps Maintenance Project
Hopefully, the process I’ve described gives you a better understanding of the capital prioritization and funding process that is now underway, over which you have direct input and approval.
If you have any questions on the information presented here, please reach out to me at 860-844-5302 or Mwalsh@Granby-CT.gov as I always welcome the opportunity to discuss town issues.