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Health & Fitness

The Financial Facts About Powder Ridge (Part 2)

Purchase of Powder Ridge   

  • The town voted by 1,097 to 151 to bond $2.85 million for the purchase of Powder Ridge based on a $3 million independent appraisal.
  • At auction, Middlefield Holdings outbid the town. The town later purchased the property from Middlefield Holdings. Had the town purchased the property at auction it would not have been able to collect the taxes owed on the property ($400,000). Once the town gained ownership, the taxes due became moot, because the town can’t pay taxes to itself.

Sale of Powder Ridge

  • Town voted 1,132 to 446 to sell the property without development and subdivision rights; preserving open space and recreational use.
  • The property (without development rights) was appraised at $1 million, and the town sold it for $1 million. (Ski area to Brownstone for $700,000, front acreage to Lori Vogel-Brown for $300,000).

Ongoing Expenses

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  • Discouraged buyers delayed the sale of the property increasing the town’s ownership costs.

  • Now that the property has been sold all ongoing expenses have ceased, and the property is now generating $18,547 in tax revenue to the town.

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  • As Powder Ridge becomes successful and Brownstone invests more into the property tax revenue will increase.

Powder Ridge Bonding

From time of purchase until paid in full, the town is still obligated to pay the debt.

  • The total debt obligation was $2.85 million.
  • The current balance on the debt is $2.06 million
  • The town has paid down $790,000 of the Debt
  • The current interest rate is 1.65%, and has been under 3% since 2008.

Long Term (Bond) vs. Short term (Ban) Funding

The town saved between $250,000 and $350,000 in interest payments over the last four years by financing powder ridge with short term BANs as op- posed to long term Bond.

  • In the future, the permanent vs. short term bonding decision will be based on the interest rate environment. Our next bond renewal is in March, 2014, and we should evaluate our options then.

Your Vote Matters!

Your town’s finances are in very good shape with a strengthened Rainy Day Fund, limited spending on needed services, and open and honest discussions about funding. 

There have been no smoking-guns, or shady dealings. The only thing that can change the town’s character and finances is how you vote on Election Day.

There are challenges to be met:

  • Short-term (BAN) vs. Long-term (Bond) decisions for Powder Ridge.
  • Making the long-term capital plan more comprehensive: extending it to all big ticket purchases (We remain underfunded in some areas such as road improvement and repair).
  • Rising Health Insurance costs for town employees.
  • Preserving and maintaining the health of Lake Besek as a resource for the whole town.
  • Making the long-term capital plan more comprehensive: extending it to all big ticket purchases (We remain underfunded in some areas such as road improvement and repair).
A Town Financial Plan can meet the challenges:

Dave Lowry, Joel Nick and I are committed to working with the Board of Selectman to implement a financial plan operating on three solid Financial Pillars:
  • Rainy Day Fund – Grow / Maintain a strong rainy day fund to enhance the town’s credit rating
  • Further strengthen the Capital Plan to a town-wide multi-year plan 
  • Exercise strict financial restraint while providing vital services to all town citizens
What can the voters do to maintain and improve fiscal oversight?

Cast your vote for Jon Brayshaw, First Selectman

Cast you vote for Ed Bailey, Selectman

Cast Your Three Board of Finance votes for Bob Yamartino, Dave Lowry and Joel Nick 

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