Voters OK rink repairs amid improved financial outlook

A last-minute infusion of state and local monies helped to push the proposed rebuild of Metropolis Skating Rink over the finish line at a special town meeting held last Wednesday in the CHS auditorium.

A Canton institution since the early 1970s and longtime home to the CHS and Canton Youth Hockey programs, the state-owned and town-operated facility has been closed since the winter of 2015 following a partial collapse of the roof.

Aerial photo of Metropolis Rink following the roof collapse in 2015 (Bill McGonagle photo)

After nearly four years of exploratory discussions, negotiations with insurers, and intense lobbying on the part of state legislators, the town was finally able to arrive at a solution that voters felt made financial sense — one that will enable the project to move forward while staying within the tax levy. As a result, the project will not require a debt exclusion override, which would have cost taxpayers an estimated $20 per year for the next 30 years.

Selectmen Chairman Mark Porter, who had verbally backed the project, said the debt override impact had concerned him to the point that he was undecided about his position leading up to the December 12 meeting, which drew an estimated crowd of 300 residents.

Ultimately, voters felt comfortable enough with the final proposal to secure its passage, clearing the two-thirds threshold by a few percentage points after a counted tally of 197-81.

The total dollar amount appropriated was $10.5 million, which includes a $10 million construction estimate plus $315,261 in cost contingency funds and $150,000 for a new Zamboni. Rink renovations are expected to begin in the spring of 2019 and be completed in 2020. The state Department of Conservation and Recreation has already verbally agreed to extend the town’s lease through 2051 — giving the town 30 years to repay the roughly $1.98 million it will need to borrow in order to complete the project.

The balance of the project costs will be paid for with a combination of insurance proceeds ($4.5M), a recently awarded state grant ($2M), assessors overlay funds ($1.5M), and money from the Municipal Buildings Insurance Fund ($450K).

The insurance proceeds include $2.5 million currently held in the town treasury and another $2 million that was contingent on the project funds being appropriated by February 29. Otherwise, all of the insurance proceeds would have to be transferred to the state.

The other sources of funding, beyond the insurance proceeds and the $1.98 million to be borrowed, were all finalized in the days — or hours — leading up to Wednesday night’s special town meeting, thereby negating the need for an override vote.

On Wednesday afternoon, the state Office of Energy and Environmental Affairs notified Town Administrator Charlie Aspinwall about the $2 million in grant funds, contingent on STM approval and the completion of detailed construction and bonding plans. Canton’s two state legislators, Rep. Bill Galvin and Senator Walter Timilty, had lobbied hard to secure the release of the funds, which were originally included as part of a bond bill approved over the summer. Galvin had also engaged in several discussions with DCR Commisioner Leo Roy to lobby for the Canton location.

Earlier last week, Galvin, who also serves as chairman of the Canton Board of Assessors, announced that the board had released $1.5 million from the Assessors Overlay Surplus Account to help fund the rink project. Galvin explained at STM that the $5 million account is used for large taxpayer abatements and appellate tax cases ruled against assessors.

In addition to the state grant and assessors funds, Finance Director Jim Murgia and his staff found an additional $450,000 in the Municipal Buildings Insurance Fund, a little-known town account that was established in 1980 to fund municipal building repairs not covered by insurance. Murgia said the fund was greatly enhanced by the impact of Hurricane Gloria in 1985. With the release of $450,000, Murgia said the account now has a balance of $20,000.

The remaining $1.983 million will be borrowed with the amount to be repaid from future rink revenues. Murgia said from FY10 to FY14, rink revenues were approximately $425,000 and expenses were around $400,000. Murgia said in some years, the town had surpluses and in other years it met expenses.

Meanwhile, the town could also still be in line for disaster funds from the Federal Emergency Management Agency (FEMA), which could cover up to 75 percent of structural repair costs for damage incurred during the winter of 2015. Porter said that while the grant could still be awarded at a later date, town officials were not as optimistic as they were a few months ago. Any grant money the town does receive would reduce overall …

See this week’s Canton Citizen print edition to continue reading this story. Click here to subscribe today.

Short URL: https://www.thecantoncitizen.com/?p=47738

Posted by Mike Berger on Dec 22 2018. Filed under News, Town Government. Both comments and pings are currently closed.