CAPITAL IMPROVEMENT PLAN (FY2018 - FY2022) - Town of Monson
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CAPITAL IMPROVEMENT PLAN
(FY2018 – FY2022)
Town of Monson
Draft prepared for the Town of Monson by the
Edward J. Collins, Jr. Center for Public Management
Submitted for Review
at the University January
of Massachusetts, 2017
Boston
January 2017
THIS PAGE IS INTENTIONALLY BLANK
Prepared for the Town of Monson by the
Edward J. Collins, Jr. Center for Public Management
at the University of Massachusetts, Boston
Table of Contents
Introduction ............................................................................................................................................................ 1
CIP Overview ....................................................................................................................................................... 2
About the Town of Monson .................................................................................................................................... 3
Town Facilities ................................................................................................................................................. 3
Information Technology .................................................................................................................................. 4
Parks and Open Space ..................................................................................................................................... 4
Roadways and Sidewalks................................................................................................................................. 5
School Facilities ............................................................................................................................................... 6
Water System .................................................................................................................................................. 6
Sewer System .................................................................................................................................................. 7
Stormwater Collection System ........................................................................................................................ 7
Vehicles and Equipment.................................................................................................................................. 7
Possible Funding Sources ........................................................................................................................................ 9
Local Resources ................................................................................................................................................... 9
Federal, State, and Private Grants and Loans ................................................................................................... 10
Monson Capital Planning Process (FY2018-FY2022) ............................................................................................. 13
Project Requests ............................................................................................................................................... 13
Resources Available .......................................................................................................................................... 14
General Fund Debt and Pay-as-You-Go......................................................................................................... 14
Water and Sewer Debt and Pay-as-You-Go .................................................................................................. 16
Other Available Funds ................................................................................................................................... 17
Capital Planning Evaluation Criteria .................................................................................................................. 17
FY2018-FY2022 Capital Plan detail ........................................................................................................................ 19
Appendices ............................................................................................................................................................ 31
Appendix 1: Monson at a Glance ...................................................................................................................... 32
Appendix 2: New Growth History ..................................................................................................................... 34
Appendix 3: General Fund Capital Investment Plan ......................................................................................... 35
Appendix 4: Water Enterprise Fund Debt and Pay-As-You-Go ......................................................................... 36
Appendix 5: Select DLS Municipal Finance Glossary ......................................................................................... 37
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INTRODUCTION
The Town of Monson’s $8.4 million five-year capital improvement plan (CIP) for FY2018-FY2022 will make
major inroads into addressing significant infrastructure needs that exist in Monson today and will start the
Town on a path of making a regular and sizeable investments in the maintenance and improvement of its
capital assets. Across the community, residents and businesses will begin to feel the positive impact of the CIP
through high visibility projects such as: street and landscape improvements on Main Street, replacing
ambulances, and the demolition of the closed Hillside School. Less visibly – but also with great impact – are
projects such as replacing dump trucks and pickup trucks, replacing water meters, and replacing inefficient
heating systems to ensure the comfort, health, and safety of residents and Town employees alike.
By looking out across multiple years, Town officials will able to carefully schedule projects to so that they
capture declines in existing debt service and use those same dollars to fund new investments. At the same
time, department directors will be able plan in advance for upgrades of equipment and infrastructure so as to
reduce emergency repairs and purchases which inevitably drive up costs. Departments will also be able to plan
for multi-year projects such as the design and construction of a major roadway project or a new building, while
knowing that their efforts will be tracked as part of regular updates to the CIP.
In this rolling five-year plan, funding for first year will be included the Town’s FY2018 budget, while years two
to five will provide a plan for the future that takes into account the best information currently available. During
the FY2018 fiscal year, another plan — building upon this one— will be developed for the subsequent five
years e.g., FY2019 - FY2023. Should more funding become available than is currently anticipated, projects
could be moved forward in time and/or additional projects could be added. Should finances be more
constrained than currently anticipated, projects could be moved back in time or taken off the list. Further,
other projects not yet conceived of can be added if they advance the Town’s goals better than those included
in the current version of the plan.
What is a capital budget? What is a capital project?
A capital budget is distinct from an operating budget in that the items included in a capital budget are typically
large or infrequent expenses, such as construction of a new building or acquisition of a new dump truck,
whereas an operating budget includes expenses that occur each year or are more modest in what expenses go
toward capital, such as salaries or the replacement of a couple computers. A capital budget identifies the
array of resources to be used to fund a series of capital projects. In many instances, municipalities establish
minimum dollar thresholds for projects to be included in a CIP.
The Massachusetts Association of Town Finance Committees defines capital projects as “major, non-recurring
expenditures, for one of the following purposes:
acquisition of land for a public purpose;
• construction of a new facility or external expansion or major rehabilitation of an existing one.
Examples of such town facilities include public buildings, water and sewer lines, roads and playing
fields;
• purchase of vehicles or major equipment items;
• any planning, feasibility, engineering or design study related to a capital project or to a capital
improvement program consisting of individual projects.
Monson Capital Improvement Plan (FY2018-FY2022) 1
• equipment for public improvements when they are first constructed such as furniture, office
equipment, or playground equipment;
• major equipment which is expensive and has a relatively long life such as a fire apparatus, garbage
trucks, and construction equipment.”
The Association goes on to indicate that, “typically capital projects do not include:
• equipment such as furniture or police or public works vehicles which are replaced annually in
approximately the same quantity;
• equipment with a useful life of five years or less.”
What is a capital plan?
According to the Massachusetts Department of Revenue (DOR), a capital plan is a blueprint for planning a
community’s capital expenditure and “one of most important responsibilities of local government officials.”
Putting together multiple years of capital spending into a plan, instead of looking at each year in isolation, has
multiple benefits including:
• impacts on the operating budget can be minimized through thoughtful debt management;
• high-cost repairs and emergency acquisitions can be reduced by implementing regular vehicle and
equipment replacement schedules, and by undertaking major facilities improvements, such as
replacing roofs, before a problem becomes chronic and damage occurs;
• large scale, ambitious public improvements can be phased over multiple years;
• critical parcels of land can be purchased before costs increase;
• costly mistakes created by lack of coordination - such as paving a street one year and then cutting into
it the next year to install a sewer line – can be avoided; and,
• methodical progress can be made toward meeting community goals.
CIP Overview
In the FY2018-FY2022 Capital Improvement Plan, the Town of Monson will expend approximately $8.4 million
in funds for 69 capital projects ranging in size from $1,000 for landscaping equipment in the Cemetery
Department to $750,000 for an overhaul of the public safety radio system infrastructure.
Funding for the entire CIP will be provided from an array of sources, including, but not limited to:
$1.73 million in general fund debt;
Just over $1.35 million in pay-as-you-go projects funded by the general fund;
$465,000 funded through water and sewer enterprise fund debt and pay-as-you-go sources; and,
More than $700,000 from ambulance receipts.
The Town also anticipates receiving more than $3.8 million in grant funds for capital projects. This includes the
annual Chapter 90 roadway allocation, which is projected to total more than $2.3 million over the course of
the next five years, $750,000 from the State for regional 911, and $600,000 from the State’s MassWorks
infrastructure grant program. While the figures known today are substantial, grant funding will certainly
increase in upcoming years as new grant opportunities are identified and secured. The plan also identifies
projects to be considered for Community Preservation Act funding totaling approximately $260,000 over the
five year period.
Monson Capital Improvement Plan (FY2018-FY2022) 2ABOUT THE TOWN OF MONSON
Within the Town of Monson’s 44 square miles of land area can be found many significant infrastructure
systems that must be maintained each year, including town and school facilities, information technology (IT)
systems, parks and open space, roadways and sidewalks, the sewer system, storm drainage system, and the
water system. In addition, the many vehicles and pieces of equipment used by Town and School staff to
perform their duties must also be maintained and replaced over time.
The maintenance of the Town’s infrastructure systems is critically important to the health and safety of
Monson’s approximately 8,5601 residents and the vitality of the more than 1002 businesses in the town. Town
officials face a significant challenge as they strive to keep these systems and equipment in good working
condition while using the public resources available to them wisely and with the greatest impact.
Infrastructure components for which the Town of Monson is responsible include:
Town Facilities
The Town manages a series of buildings and building complexes that serve a multitude of purposes from Town
offices and the Monson Free Library to the Fire Station. Each of these facilities must be maintained on a
regular basis to ensure the safety and effectiveness of the working environment. At the same time new
initiatives such as land acquisition or building replacements may also be necessary or advantageous.
MONSON TOWN FACILITIES*
(*Partial List. See later tables for school, recreation, and water/sewer facilities)
Town Facility Location
Cemeteries (3) Bethany Road, Main Street, Moulton Hill Road
Cemetery Department 32 Wilbraham Road
Fire Station 200 Main Street
Highway Department and Town Garage 198/200 Main Street
Hillside Elementary School (Closed) 29 Thompson Street
Keep Homestead Museum 35 Ely Street
Memorial Town Hall 198 Main Street
Monson Free Library 2 High Street
Police Radio/Repeater Hovey Road
Police Station 110 Main Street
Senior Center 106 Main Street
Town Hall 21 Thompson Street
Town Offices 110 Main Street
Water and Sewer Department 198 Main Street
Altogether, the Town’s insurance provider has placed a replacement value on the buildings (including public
schools) and the equipment within them, at more than $90 million3.
1
U.S. Census 2010 figures, retrieved from https://www.sec.state.ma.us/census/hampden.htm, December 30, 2016
2
2012 Economic Census of the U.S., retrieved from
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF, December 30, 2016
3
“Statement of Values,” Town of Monson, as of 6/16/2016, obtained from M. Lauria, Town Accountant
Monson Capital Improvement Plan (FY2018-FY2022) 3Recent and ongoing maintenance and improvement projects include renovations to Memorial Hall, a new
Town Offices/Police Station complex, and landscaping along Main Street. The Town Offices/Police Station
complex and work on Main Street was completed as part of the rebuilding after the devastating 2011 tornado.
As a participant in the State’s Green Communities program, Monson has undertaken a number of energy
efficiency projects, such as weatherization and lighting retrofits. These projects were funded through two
grants totaling more than $350,000 received in FY2011 and FY2016.
Information Technology
The Town’s information technology (IT) infrastructure supports approximately 300 users across Town and
School departments, using a wide-area network that connects all Town-owned buildings. Software applications
used town-wide include the VADAR financial system and the Firstclass email system. The data center
supporting the Town network is located on 110 Main Street.
The Town of Monson hosts public WiFi locations at the Town Office Building, Monson Free Library, and
Monson Senior Center. The Town supports one main server at 110 Main, several police servers (also at 110
Main Street), and one server at Monson Fire Department. Cisco wireless access points are located in the Town
offices, Monson Senior Center, Police Department, Highway Department, Fire Department, and Cemetery
Department. All locations within the Town infrastructure are protected by SonicWall firewalls and are updated
regularly. The Town also hosts a failover phone system, a camera server for 30 cameras within the Town
Office/Police Department, and additional 911 infrastructure.
The Town utilizes VADAR for all of its accounting, collections, and ancillary financial functions. All assessing for
the Town is done with software from “Vision” and all Building Department functions run on Geo TMS. The
Monson Council on Aging is utilizing “My Senior Center” to streamline processes and increase data collection.
The Fire Department utilizes “Image Trend” for most functions and the Police Department utilizes IMC for the
majority of its functions. The Town is currently reviewing other software efficiencies.
Parks and Open Space
Town residents and visitors have access to hundreds of acres of recreational areas including sports fields,
parks, playgrounds, ponds, woodlands, passive recreation areas, and walking trails.
TOWN-OWNED OPEN SPACE AND RECREATIONAL FACILTIES4
Town Facility Acres Description
Cushman Field 8 Baseball, softball, and soccer fields
Flynt Park 100+ Hiking trails, soccer and baseball fields
Flynt Quarry Lands 165 Trails
Keep Homestead Site 75 Open meadow and woodlands with trails
Monson Brimfield Wales Trail Rail trail spanning 14.5 miles
Quinlan Memorial Conservation Lands
Silver Street Conservation Area/
40 Trails, conservation area
Skorupski Property
Veterans Field 8 Soccer, baseball and softball fields, tennis courts, playground
4
2014 Open Space and Recreation Plan, Town of Monson
Monson Capital Improvement Plan (FY2018-FY2022) 4TOWN-OWNED OPEN SPACE AND RECREATIONAL FACILTIES4
Town Facility Acres Description
School Properties
Granite Valley Middle School ¼ mile outdoor track, soccer field, indoor basketball courts
Monson High School Soccer and baseball fields, indoor basketball courts
Quarry Hill Community School Soccer, baseball, and softball fields, playgrounds, basketball court
Many acres in Monson are owned by the State or private owners as open space. Major sites include:
Brimfield State Forest- Managed by the State Division of Conservation Resources, the land may be
used for hiking, biking, and other recreational pursuits by the general public; includes Dean Pond, a
public swimming area;
Norcross Wildlife Sanctuary- Approximately 8,000-acre sanctuary, a portion of which is located in
Monson, owned by the Norcross Wildlife Foundation;
Peaked Mountain Reservation- A 500-acre site for hiking owned by the Trustees of Reservation; and,
Conant Brook Dam- A 300-acre flood control facility managed by the federal Army Corps of Engineers
that offers opportunities for recreation including fishing, hiking, cross-country skiing, horseback riding,
and hunting with a permit.
In addition, there are three watershed areas in Monson: the Chicopee, the Connecticut, and the Quinebaug.
There are multiple streams and brooks throughout town, but the major water body is Chicopee Brook, which
flows into the Quaboag River. The Quaboag forms the northern border between Monson and Palmer. While
recreational activities such as swimming and canoeing on that river are possible, public access is limited. There
are also several small ponds and lakes that are privately owned.
There are also numerous properties in town, estimated to encompass more than 3,000 acres, which fall under
the Agricultural Preservation Restriction or Chapter 61 State programs.
Roadways and Sidewalks
A network of approximately 110 miles of road crosses Monson. This includes approximately 100 miles of locally
accepted roads, eight miles of State roadway maintained by various agencies, and two miles of unaccepted
(private) roadway.
Roads are typically classified into three categories:
Local streets provide direct access to residential properties and serve the transportation needs within a
particular neighborhood. Approximately 69% of all roads in Monson are local streets.
Collector streets primarily collect traffic off of local streets and lead such traffic to and from arterial roadways.
They comprise approximately 16% of the roads in town.
Arterial roadways are typically numbered and serve regional as well as local automobile and truck traffic.
Route 32 is one example of an arterial roadway in Monson. These roadways are often owned and maintained
Monson Capital Improvement Plan (FY2018-FY2022) 5by the state, and function as part of regional highway system. Arterial roads make up approximately 15% of
the road network in town.
School Facilities
The Monson Public School District operates three school facilities including an elementary school (K-5), a
middle school (6-8), and a high school altogether serving 1,042 students.5 Each school facility has associated
play equipment and/or fields.
MONSON PUBLIC SCHOOL FACILITIES
School Facilities Location
Granite Valley Middle School 21 Thompson Street
Monson High School 55 Margaret Street
Quarry Hill Community School and School Administration Offices 43 Margaret Street
Monson Public Schools operates transportation services for students in-house. The District owns buses, vans,
and other specialty vehicles and has its own fueling station.
Water System
Monson’s water supply system services approximately 3,400 people, or slightly less than half of the
population, as of 2014. The source of water is four wells on Bunyan Road, Palmer Road, and Bethany Road. The
Palmer Road well is the town’s primary source, supplying the vast majority of water consumed in Monson. The
water is treated to comply with drinking water regulations. Water is stored in two tanks on Ely Road. Tank #1
has a capacity of 1,000,000 gallons while tank #2 can store up to 500,000 gallons.
Water is distributed to households, businesses, and other locations through more than 30 miles of water main
ranging in diameter from 4” to 16”, which require continual maintenance and occasional upgrades6. The Water
Department is responsible for maintenance that includes repairing water main breaks, replacing broken
hydrants and gate valves, winterizing hydrants, annual flushing, leak detection, maintaining pumping stations,
cleaning and relining pipes, and maintaining the water storage tanks. Upgrades include replacing undersized
pipes and connecting dead end lines.
MONSON WATER FACILITIES
Description Location
Meter Vault Bunyan Road
Pump Stations (3) Palmer Road, Bethany Road, Bunyan Road
1 Million Gallon Water Tower Ely Road
½ Million Gallon Water Tank Ely Road
5
Massachusetts DESE District Profiles.
6
“Sanitary Survey Report: Monson Water and Sewer Department,” MassDEP, November 2014, retrieved from http://www.monson-
ma.gov/sites/monsonma/files/uploads/2014_drinking_water.pdf, January 3, 2017
Monson Capital Improvement Plan (FY2018-FY2022) 6Conservation efforts over the last 5 to 10 years continued a trend that dates back to 1988 when 256 million
gallons (MG) was treated and pumped to the community, but gradually decreased to 119 MG in 2013; a
reduction of 53%. Subsequent consumption as of last year (2016), was recorded up 26 MG to 145MG.
Amount of Water Pumped
280 Annually
255.9
260
248.2
237.2 235.1
240 227.1
220.7
Millions of Gallons
232.0
220 210.9
223.9
219.1 206.1
196.5
200 207.0 195.7 190.7
205.5
181.5
180 172.9 172.2 175.9
183.5
176.8
155.5
160 167.0
145.2
156.6 155.2 136.2 137.3
140
120 129.2
123.2
119.1
100
Sewer System
Slightly less than half the population in Monson (~3,000) is served by a municipal sewer system located in the
central part of the town. The town’s topography creates severe limitations of the expansion capabilities of the
system.
The current system consists of approximately 27.5 miles of sewer lines. There is one wastewater pumping
station that can handle up to 1.4 million gallons per day on average and a peak flow of 2.2 million gallons per
day. The wastewater is sent to a treatment plant in neighboring Palmer7.
Stormwater Collection System
The stormwater collection system consists of a variety of drains, catch basins, pipes, and other components
designed to collect and convey stormwater to the Chicopee Brook. The Town’s system is separated from its
sewer system. Effective stormwater management is an important function for the protection of water quality
and public health, since stagnant water creates breeding grounds for mosquitos.
Vehicles and Equipment
7
2014 Open Space and Recreation Plan, Town of Monson
Monson Capital Improvement Plan (FY2018-FY2022) 7Many Town departments, such as the Highway Department, Fire Department, Police Department, School
District, and Parks and Recreation Department use small and large vehicles and equipment on a daily basis.
Town-wide, the auto fleet includes 190 vehicles, trailers, and motorized pieces of equipment (e.g. mowers and
trailers). Employees also use countless small and handheld pieces of equipment (e.g., asphalt compactors,
shovels, and other grounds maintenance tools as well as hand tools) which typically have short lifespans. All of
these vehicles and equipment must be replaced periodically to prevent negative impacts to operations.
The Town’s commitment to cost effective energy efficiency means that “green” replacements, such as electric
and hybrid vehicles, are considered whenever possible.
MONSON VEHICLE INVENTORY SUMMARY
Department Vehicle Count Example Vehicles/Equipment
Highway Department 21 Dump truck, loader, tractor
Fire Department 13 Engine, ambulance, SUV
Police Department 11 Sedan/SUV cruiser
School Department 32 Bus, van
Water/Sewer Department 8 Pick-up truck, trailer
Other 18 Sedan, van
Town wide, the fleet is valued at more than $6 million8.
8 “Auto Fleet Schedule,” Town of Monson, as of 6/16/2016, obtained from M. Lauria, Town Accountant
Monson Capital Improvement Plan (FY2018-FY2022) 8POSSIBLE FUNDING SOURCES
There are a number of ways to finance municipal capital improvement projects. Some of the most common
methods are:
Local Resources
• Municipal Indebtedness: The most commonly used method of financing large capital projects is general
obligation bonds (aka, “GO Bonds”). They are issued for a period of time ranging from 5 to 30 years, during
which time principal and interest payments are made. Making payments over time has the advantage of
allowing the capital expenditures to be amortized over the life of the project. Funding sources used to pay
back the debt can include:
o Bonds funded within the tax limits of Proposition 2 ½: Debt service for these bonds must be paid
within the tax levy limitations of proposition 2 ½. Funds used for this debt must be carefully planned in
order to not impact the annual operating budget.
o Bonds funded outside the tax limits of Proposition 2 ½ : Debt service for these bonds is paid by
increasing local property taxes in an amount needed to pay the annual debt service. Known as a Debt
Exclusion or Exempt Debt, this type of funding requires approval by 2/3 vote of the local appropriating
authority (e.g., town council or town meeting) and approval of the majority of voters participating in a
ballot vote. Prior to the vote, the impact on the tax rate must be determined so voters can understand
the financial implications.9
o Bonds funded with Enterprise Funds: Debt service for these bonds is typically paid by user fees, such
as water and sewer revenue. Depending upon the type of project, interest costs may be subsidized by
the Commonwealth and at times partial grant funds may be available (see below). Enterprise funds do
not affect the general operating budget unless general funds are needed to subsidize revenues from
the enterprise. Prior to the issuance of debt, the projects must be analyzed for their impact on rates.
Capital Outlay / Pay As You Go: Pay as You Go capital projects are funded with current revenues and the
entire cost is paid off within one year so no borrowing takes place. Projects funded with current revenues
are customarily lower in cost than those funded by general obligation bonds because there are no interest
costs. However, funds to be used for this purpose must be carefully planned in order to not impact the
annual operating budget. For this reason, Pay as You Go capital projects are typically lower in value than
projects funded by borrowing.
• Capital Outlay / Expenditure Exclusion: Expenditure Exclusion projects are similar to Pay as You Go,
above, except taxes are raised outside the limits of Proposition 2 ½ and are added to the tax levy only
during the year in which the project is being funded. As with a Debt Exclusion, Expenditure Exclusion
funding requires approval by 2/3 vote of the local appropriating authority (e.g., town council or town
meeting) and approval of the majority of voters participating in a ballot vote. Prior to the vote, the impact
on the tax rate must be determined so voters can understand the financial implications. Capital outlay
expenditures may be authorized for any municipal purpose for which the town or town would be
authorized to borrow money.
9
A debt exclusion is different from a property tax override in that a debt exclusion is only in place until the incurred debt has been paid
off. An override becomes a permanent part of the levy limit base.
Monson Capital Improvement Plan (FY2018-FY2022) 9• Capital Stabilization Fund: Local officials can set aside money in a stabilization fund – outside of the
general fund - to pay for all or a portion of future capital projects. A 2/3 vote of town council is required to
appropriate money into and out of this fund. Lawrence has a State Mandated Capital Reserve Fund which
requires the annual investment of 1.5% of the amount of property taxes committed for the preceding fiscal
year. These funds can be used by the School Department for purposes for which the Town could borrow
for 10 years or longer under chapter 44 of the Massachusetts General Laws.
Sale of Surplus Real Property: Pursuant to Massachusetts General Laws, when real estate is sold, the
proceeds must first be used to pay any debt incurred in the purchase of the property. If no debt is
outstanding, the funds “may be used for any purpose or purposes for which the town, town or district is
authorized to incur debt for a period of five years or more…except that the proceeds of a sale in excess of
five hundred dollars of any park land by a town, town, or district shall be used only by said town, town, or
district for acquisition of land for park purposes or for capital improvements to park land” (MGL Chapter
44, Sec. 63).
Enterprise Retained Earnings / Stabilization Fund: Enterprise operations, such as water and sewer, are
able to maintain an operating surplus that can be utilized for future enterprise fund costs. These funds can
be used to stabilize the user rates, apply to annual budget needs, and/or invest in capital replacement and
expansion. Lawrence presently manages three such enterprise funds including the Water/Sewer Fund, the
Airport Fund, and the Parking Garage and Lots Fund.
Free Cash: Free Cash is the difference between annual revenues and expenditures and is certified by the
Commonwealth each year. After certification, free cash is available for appropriation for any municipal
purpose, including capital projects.
Special Purpose Funds: Communities also have established numerous “Special Purpose Accounts” for
which the use is restricted for a specific purpose, such as investment in department facilities and
equipment. There are numerous state statutes that govern the establishment and use of these separate
accounts. Examples include the sale of cemetery lots and ambulance receipts accounts.
Federal, State, and Private Grants and Loans
Special revenue sources include grants or loans from federal, state, or private sources. Examples include:
• Federal Community Development Block Grant (CDBG): The U.S. Department of Housing & Urban
Development (HUD) “provides communities with resources to address a wide range of unique community
development needs.”10 Funds are granted directly to “entitlement” communities which are cities with a
population of at least 50,000 or counties with a population of at least 200,000. To secure entitle funds,
each town must prepare a Consolidated Plan every five years outlining the town’s goals for use of the
funds, and an annual plan must be prepared each year. Funding for smaller communities flow through
State administered CDBG programs. As it relates to capital projects, HUD funds can be used for: acquisition
of real property; relocation and demolition of housing; rehabilitation of residential and non-residential
structures; construction of public facilities and improvements, such as water and sewer facilities, streets,
10
U.S. Department of Housing and Urban Development (HUD), “Community Development Block Grant (CDBG) Program”, retrieved
December 3, 2015 from
http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/programs.
Monson Capital Improvement Plan (FY2018-FY2022) 10neighborhood centers, and the conversion of school buildings for eligible purposes; activities relating to
energy conservation and renewable energy resources.
• Massachusetts Chapter 90 Roadway Funds: Each year, the Massachusetts Department of Transportation
(MassDOT) allocates funds to cities and towns for roadway construction, maintenance, or improvement.
Funds may also be used for other work incidental to roadway work, such as the construction of a garage to
house related vehicles, or the purchase of related vehicles, equipment, and tools. Chapter 90 is a 100%
reimbursable program. Funding is accomplished through the issuance of transportation bonds and
apportioned to municipalities based on three factors: 1) accepted road miles, 2) population, and 3) total
employment within the municipal borders. Road miles is the most heavily weighted factor at 58.33%; the
others are each weighted at 20.83%.
Massachusetts Department of Environmental Protection’s State Revolving Loan Funds (SRF): The Clean
Water State Revolving Loan Fund (CWSRF) provides financing for sewer and drainage projects intended to
reduce sewer overflows and the Drinking Water State Revolving Loan Fund (DWSRF) provides financing to
improve the quality of the drinking water system. The CWSRF and DWSRF programs typically offer a mix of
low interest (2%) loans and grant funds. Repayment does not begin until two years after the monies have
been borrowed.
Massachusetts School Building Authority (MSBA) – The MSBA provides funding for school repair and
construction via a series of programs. In the School Building Program, projects must be accepted into the
process in response to the submission of a Statement of Interest which identifies a facility problem to be
solved. Subsequently, the community must appropriate funding for schematic design and later for
construction before the MSBA will commit to its share of the project. If accepted, the MSBA determines
the amount of reimbursement it will offer based upon community need, with a minimum base rate of 31%.
The percent of reimbursement can then be increased based upon three factors: community income factor,
community property wealth factor, and community poverty factor. Through the Accelerated Repair
Program, the MSBA will fund roof, window, and boiler projects with an expected 18-month completion
date. Funding can be provided for multiple projects in a single district in a year. The Major Repair Program
includes roofs, windows, and boilers, but can also include other significant building renovations. Districts
are limited to one project per year under the Major Repair Program, but work can be more substantial
than the Accelerated Repair Program.
Many state departments also offer annual grant opportunities that are available to municipalities typically
through a competitive application process. State grant programs including, but not limited to: Green
Community grants (project to improve sustainability), Parkland Acquisitions and Renovations for Communities
grants (PARC), and the MassWorks Infrastructure Program.
For additional definitions, please refer to the Glossary in the appendices.
Monson Capital Improvement Plan (FY2018-FY2022) 11THIS PAGE IS INTENTIONALLY BLANK Monson Capital Improvement Plan (FY2018-FY2022) 12
MONSON CAPITAL PLANNING PROCESS (FY2018-FY2022)
The Town of Monson hired the Edward J. Collins, Jr. Center for Public Management at the University of
Massachusetts Boston to facilitate preparation of the Town’s five-year Capital Improvement Plan (CIP) for
FY2018 to FY2022. The project team met with leadership of all Town departments to explain the process to be
followed and discuss the types of projects that would be eligible for funding in the capital plan. Departments
were provided with a Capital Improvement Project Request Form asking them to describe their proposed
project(s), the justification for why each project was needed, the priority placed on the project by the
department, and the fiscal year or years in which the funds were needed. In addition, departments were asked
to indicate if outside funds might be available to support the project and to anticipate the impact of the
project on the Town’s operating budget. In particular, departments were asked if any savings could be realized,
for example, if the purchase of new equipment could reduce the cost of annual repairs. Department directors
were encouraged to contemplate needs over multiple years and to be ambitious with their proposals.
Particular attention was paid to equipment needs with a goal of developing a regular replacement schedule
that would reduce, if not eliminate, emergency replacement and costly repairs.
The project team also met with the Town’s financial staff and contacted the Town’s financial advisor and bond
counsel to gain an understanding of the current debt service profile and the revenues available that could be
used for capital projects. Information gathered included official financial statements, bond rating agency
reports, the debt schedule for existing debt, and present and proposed borrowings, among other sources.
Various capital funding alternatives were explored until one was selected, as will be discussed under the
“Resources Available” section below.
Project Requests
Altogether, 77 project requests were submitted, totaling more than $9 million across all five years of the plan
and across all funds. Among the most significant requests were:
$750,000 for a radio systems overhaul for public safety agencies;
$740,000 to demolish the closed Hillside School; and,
$640,026 for street and landscape improvements on Main Street
The greatest dollar amount of capital requests was from the Highway Department. In addition to the more
than $2.4 million in anticipated investment in the Town’s roadways, the department requested $626,000 for
vehicle and equipment replacements. Fire and Emergency Services was the next highest department with
requests totaling $1.8 million.
When analyzing project requests by fund, it is clear that significant resources can be made available through
funding sources other than the general fund. These sources include the water and sewer enterprise funds, the
Town’s annual allocation of roadway funds from the State (i.e., Chapter 90), special-purpose funds, and other
State or Federal loan or grant programs as shown in the following table. Altogether Town departments and the
project team identified non-general fund resources that could potentially cover up to 35% of total project
requests.
Monson Capital Improvement Plan (FY2018-FY2022) 13DEPARTMENT REQUESTS BY FUND (ALL YEARS)
Department GF Debt PayGo Water/Sewer Chp 90 MSBA Fed / State Other Total
Building/Assessor 40,000 40,000
Cemetery Dept. 100,000 302,700 402,700
Council on Aging 27,250 52,000 4,750 84,000
Fire & Emergency Services 1,751,615 50,000 1,801,615
Highway 560,000 66,000 1,817,936 600,000 3,043,936
Parks and Recreation 400,000 295,000 695,000
Police Department 750,000 80,000 830,000
School Department 488,600 122,400 611,000
Town Administrator 700,000 110,200 810,200
Town Clerk 210,000 21,000 231,000
Water & Sewer Dept. 5,000 465,000 470,000
Total 4,471,615 1,375,550 465,000 1,817,936 122,400 652,000 114,950 9,019,451
% of Total 49.6% 15.3% 5.2% 20.2% 1.4% 7.2% 1.3% 100.0%
Resources Available
The funding available to the Town of Monson has been broken down into four broad categories, each of which
will be discussed below:
General fund debt and pay-as-you-go
General fund debt exclusions
Water/sewer debt and pay-as-you go
Other Funds (Chapter 90, Community Preservation Act, etc.)
General Fund Debt and Pay-as-You-Go
Utilizing the Town of Monson’s FY2017 authorized budget, projections were made using reasonable
assumptions about revenue and expenditure growth over a five-year period. This projection was used to
determine the total amount of funding available for capital investment from FY2018 to FY2022.
The FY2017 Monson capital budget authorization is $474,130. This consists of $223,640 in existing non-
excluded debt service, $250,490 of pay-as-you-go, of which $43,000 is provided from the operating budget and
$207,490 in free cash. A comparison of the amount of FY2017 capital investments to the total general fund
operating budget indicates that 2.10% of the annual budget is presently dedicated to capital improvement
funding.
On a positive note, the existing non-excluded debt service (e.g., funded through the current tax levy and not
via a debt exclusion) is rapidly declining and will be fully retired at the end of FY2020. By capturing the
decrease in debt service and using it as a source of future capital funding, the Town’s commitment to capital
funding will remain at 2.10% over the next five-year period. However, in order to address a greater share of
Monson Capital Improvement Plan (FY2018-FY2022) 14the Town’s capital needs each year, the FY2018-FY2022 will begin a process to gradually increase the
percentage of capital commitment from 2.1% to 2.5% over an eight-year period, and will reduce the use of
Free Cash as a primary revenue source for Capital Improvements over the same period. Both of these are best
practices in capital planning and the rationale and change is described more fully below:
1. The percentage of capital funding to the overall annual budget is generally low in comparison to other
communities and could be increased over time. In order to accomplish this while not putting strain on
the direct services portion of the future annual budgets, this increase has been projected to phase up
to 2.5% over a period of eight years at a rate of five basis points (.05%) per year.
2. A significant portion of the FY2017 capital plan is shown to be supported by non-recurring funds (i.e.
free cash). The best practice is for a community to support its capital plan with a consistent and
dependable revenue stream (i.e. tax levy). This places the proper emphasis on the need to support
ongoing capital improvements and can provide stability to capital investment. To accomplish this while
not putting strain on the direct services portion of the future annual budgets, it is proposed to phase
out the use of free cash as a source for funding capital improvements over a period of twenty years,
reducing this source by $10,000 per year. The Town may accelerate this phase down, if it feels that it
can accept increased budgetary pressure on direct services.
The implementation of these practices will strengthen the Town’s commitment to the development and
implementation of a long-range capital plan. The Town will then have the opportunity to use free cash for a
number of other purposes such as increasing strategic reserves, funding long term unfunded liabilities (e.g.
OPEB or “Other Post-Employment Benefits”), or supplementing the capital plan.
This combination of declining debt service and increasing revenues provide a timely opportunity for Monson to
stabilize its capital budget and make a regular investment in capital improvements, without adversely
impacting to the operating budget. The proposed FY2018 – FY2022 CIP increases the Town’s annual capital
spending until the total capital investment reaches 2.5% of prior year net operating revenues. Under the
proposed plan, this threshold will be reached in FY2025.
TOWN OF MONSON
CAPITAL INVESTMENT PLAN (FY2018-FY2026)
Proposed Capital Invest
Fiscal Existing Free Cash Total Capital
Additional as % of GF Op
Year Debt Investment Investment
Investment Budget
2017 223,640 43,000 207,490 474,130 2.10%
2018 218,540 68,210 200,000 486,750 2.15%
2019 83,440 226,938 190,000 500,378 2.20%
2020 81,720 251,016 180,000 512,736 2.25%
2021 0 356,057 170,000 526,057 2.30%
2022 0 378,299 160,000 538,299 2.35%
2023 0 401,431 150,000 551,431 2.40%
2024 0 425,488 140,000 565,488 2.45%
2025 0 448,508 130,000 578,508 2.50%
2026 0 460,448 120,000 580,448 2.50%
As can be seen from the graphic below, not only does existing debt service decline significantly between
FY2017 and FY2020, the use of free cash for capital will also be phased down in each year. At the same time,
Monson Capital Improvement Plan (FY2018-FY2022) 15tax-supported capital investment will increase to replace debt service and free cash, and increase the total
commitment to 2.5% of the operating budget by 2025.
General Fund Capital Investment by Source
Debt Cash or Debt Free Cash
600,000
500,000
400,000
300,000
200,000
100,000
-
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
The FY2018-FY2022 CIP will make $3,080,700 available for general fund capital projects over the next five
years (see FY2018-FY2022 Capital Plan Detail below.)
Water and Sewer Debt and Pay-as-You-Go
The Town of Monson currently has debt service supported by water and sewer revenue. The FY2017 Water
Enterprise budget includes debt service of $105,577. The amount will decline over a sixteen-year period, until
all existing water debt service is retired in FY2032. The FY2018-FY2022 CIP will make $465,000 available for
capital projects over the next five years.
200,000
Water Enterprise Investment by Type
180,000 Pay Go
Future Debt Svc
160,000
Existing Debt Svc
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
2018 2019 2020 2021 2022 2023 2024 2025 2026
The Sewer Enterprise budget includes debt service in the amount of $60,000 which will decline and be fully
retired in FY2038. No sewer infrastructure capital projects are identified the FY2018-FY2022 CIP.
Monson Capital Improvement Plan (FY2018-FY2022) 16Other Available Funds
There are numerous other funding sources available to the Town of Monson that can support capital
investment. Below, the CIP identifies other sources that could become available. These include:
o Community Preservation Act – Monson has accepted the provisions of the Community Preservation
Act at 0.75% and is currently raising approximately $95,000 in additional levy for FY2017. Assuming the
Town increases its annual levy by 2.5% (excluding “New Growth”), CPA funding will increase to
approximately $156,000 by FY2037. Decisions on expenditure of these funds are granted to the
Community Preservation Committee (CPC). Town projects which qualify can be considered by the CPC
for funding.
o Chapter 90 Funds – All municipalities in Massachusetts receive an annual allotment of funds from
MassDOT for roadway construction, maintenance, or improvement. In the FY2017, the Town received
$467,319 from the State. The CIP uses this figure as an estimate for Chapter 90 funds available in each
year of the plan. This is a conservative approach, but the Town may receive more or less money in
future years.
o Existing Debt Exclusions – The Town has authorized debt exclusions in the amount of $1,121,450 in
FY2017. This debt service declines and is permanently retired at the end of FY2024.
o Authorized but Unissued Debt Exclusions – The Town has authorized funding for the Town Hall, but
has not as yet borrowed for this project. However, it is anticipated that this debt service will begin in
FY2018 in the amount of approximately $321,000, a figure that will be added to the tax levy. The debt
service will decline over a twenty-year period to the end of FY2037, when it will be fully retired.
Capital Planning Evaluation Criteria
After reviewing each project request to determine if it was complete and CIP-eligible, the project team then
evaluated the proposed projects based upon a series of criteria. The categories included:
Preserve or enhance Town assets – Does the proposed project maintain or improve an existing facility?
What is the anticipated useful life of the investment? Does the proposed project replace a piece of
equipment needed to provide public services? Is the vehicle beyond its reasonable life? Is the
acquisition part of a scheduled replacement plan that will keep vehicles operational and preclude
major repair costs?
Increase efficiency and effectiveness of government – Does the project reduce operating costs (e.g.,
eliminate costly repairs) or increase the effectiveness of government? Does the project reduce
potential legal liability (e.g. repair of a broken sidewalk) or threats to operations (e.g., replacement of
a needed street sweeper before it breaks down completely)? Does it improve customer service or
provide a new, needed service?
Good steward of public resources – Does the project increase revenues? Are outside grant funds
available to cover a portion or all of the cost?
Monson Capital Improvement Plan (FY2018-FY2022) 17 Specific impacts on operating budget – What types of ongoing savings might be realized from the
project? Does the project increase operating costs?
In addition, each project was evaluated to see how it would influence a series of key policy areas. These
included:
Aesthetics / Historic Preservation
Cultural and Recreational Opportunities
Economic Growth
Education
Environmental Sustainability
Public Health
Public Safety
While these criteria were used to differentiate between the merits of the 71 project requests, it should be
noted that they were not used rigidly in developing the FY2018-FY2022 CIP. At times, projects that received
modest scores, predominantly because they did not contribute to the policy areas, but are critically needed –
for example the demolition of a vacant school – was elevated for consideration in the plan based upon need
and resource availability.
Monson Capital Improvement Plan (FY2018-FY2022) 18FY2018-FY2022 CAPITAL PLAN DETAIL
Projects by Department
The FY2018-FY2022 CIP funds the vast majority of project requests from department heads (approximately
90%). However, strategic decisions were made to align the projects costs with the Town’s projected available
resources across each year of the five year plan, and the timing or scope of some projects was changed to
accommodate the CIP’s spending plan. In addition, the plan identifies eight projects that will be exclusively
funded through federal, state, or other grant programs.
These capital investments will have a direct impact on the lives of Monson residents, students, businesses, and
visitors. The plan prioritizes public safety and public health, and many projects will have significant impacts in
these areas. Projects will ensure road infrastructure is safe, improve the school environment for student
learning, increase recreational opportunities for residents, and look to upgrade public safety facilities, while
improving the safety of staff and the residents they serve. As shown in the table below, significant investments
will be made via the highway department, fire department, police department, school district, and parks and
recreation department. More modest investments will be made in other departments as well.
INVESTMENT BY DEPARTMENT
All Projects, All Funding Sources
(FY2018-FY2022)
Project
Department Count Amount
Building/Assessors 1 25,000
Cemetery Dept. 15 240,700
Council on Aging 2 84,000
Fire Department 5 1,376,615
Highway Department 14 3,362,595
Police Department 2 790,000
Parks & Recreation 12 683,000
School District 12 571,000
Town Administrator 4 850,200
Water & Sewer Dept 2 465,000
Total 69 8,448,110
Projects by Asset Type
As shown in the table below, across all asset types, the most significant capital investment is on road and
sidewalk projects (nearly $3 million); projects that constitute about 35% of the total expenditure over five
years. These will be funded almost entirely by Monson’s Chapter 90 allocation and a MassWorks
infrastructure grant from the State. However a few smaller improvements will be made to cemetery roadways
utilizing local funds. Investments in vehicles and equipment represent the second most significant asset
category at $2.8 million, or about 34% of the total. Water infrastructure projects represent less than 6% of the
Monson Capital Improvement Plan (FY2018-FY2022) 19total investment and there are no anticipated sewer projects, which is a reflection of significant capital
investments made recently in the water and sewer systems.
INVESTMENT BY ASSET TYPE
(FY2018-FY2022)
Asset Type Total Investment % of Total
Facilities 985,500 11.7%
Parks & Open Space 613,200 7.3%
Roads/Sidewalks 2,936,595 34.8%
Schools 571,000 6.8%
Vehicles/Equipment 2,876,815 34.1%
Water Infrastructure 465,000 5.5%
Grand Total 8,448,110 100.0%
Projects by Funding Sources
The projects included in the CIP will be funded through a composite of funding sources, including general fund
debt and pay-as-you-go, water enterprise funds, and state grants. A total of 36% of projects will be paid for
through the Town’s general fund, either as a result of borrowing or as a pay as you go project, and 6% of
projects will be funded by the water/sewer enterprise fund. The balance of projects (58% of total) will be
funded from non-local sources including state, federal, and other sources amounting to nearly $5 million over
five years.
Capital Investment by Funding Source
Total Investment: $8,448,110
Gen Fund (Debt)
$1,725,000 , 20%
GF (PayGo)
$2,565,815 , 30%
Water / Sewer Enterprise
Chapter 90
Fed/State/Other
$1,355,700 , 16%
$465,000 , 6%
$2,336,595 , 28%
Monson Capital Improvement Plan (FY2018-FY2022) 20Impact on Annual Debt Projected annual debt service from the new projects is expected to be relatively low. Estimated total general fund debt service will be $38,188 in FY2018, rising to a high of $173,156 by FY2022. There are five debt-funded general fund projects, totaling $1.725 million. Only one debt-funded project is planned for the water enterprise fund, which may be funded through a State loan program that delays payments for two years and carries a 2% interest rate. The annual debt service for the enterprise fund is projected to be $27,681 for FY2020 through FY2022. Depending on when the Town authorizes the borrowing and the type of financial vehicle used, actual payments can be lower than presently estimated. Monson Capital Improvement Plan (FY2018-FY2022) 21
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Project Description and Cost by Department
Total
Project # Project Title Project Description
Cost
Building Department/Assessor
Replace vehicle shared by building Replace the pick-up truck shared by the assessor and building
BLDG/AS1 25,000
department/assessor department.
Cemetery Department
Replace the 30-year old tractor with a new compact utility
CEM10 Replace tractor and attachments tractor with loader, backhoe, two stage snow blower, and 30,000
rotary cutter.
Replace the inefficient oil burning furnace at the cemetery
CEM11 Replace oil furnace 3,000
garage.
CEM12 Replace backpack blowers Replace backpack blowers with new models. 1,200
Replace the generator with a new portable generator with
CEM13 Replace generator 3,000
17,500 running watts.
Replace the air compressor with a new 80-100 gallon
CEM14 Replace air compressor 3,000
stationary air compressor with 7.5 horsepower.
CEM15 Replace Mayhill Cemetery fencing Replace failing wooden fence with white vinyl picket fence. 2,500
Replace the old split rail fence with new pressure treated split
CEM16 Replace Butler Road Cemetery fencing 3,000
rail fence
Purchase a commercial walk-behind mower with weight kit
CEM2 Replace walk-behind mower 5,000
and sulky to replace nearly 20 year old walk-behind model.
New post frame addition to cemetery Add a 30’ x 40’ x 10’ post frame addition to existing cemetery
CEM3 60,000
building building to alleviate storage issues.
Purchase 3 new string trimmers to replace 3 10-year old
CEM4 Replace 3 string trimmers 1,500
trimmers.
Purchase new multi-function handheld Purchase new combination tool with blade, hedge trimmer,
CEM5 1,000
landscaping equipment with 3 attachments and shaft extension attachments.
CEM7A Hillside Cemetery road overlay Add overlay to prolong life of road at Hillside Cemetery. 30,000
CEM7B Hillcrest Cemetery road improvements Make improvements to failing road at Hillcrest Cemetery. 20,000
Complete the next phase of Hillcrest Cemetery expansion,
including: survey, land clearing, section and lot grid layout,
CEM8 Hillcrest Cemetery Expansion 75,000
road, drainage, and waterline construction, map design and
metal pins for lot layout.
CEM9 Purchase new 3-stage snow blower Purchase new 3-stage snow blower. 2,500
Council on Aging/Senior Center
Replace kitchen appliances at Senior Replace kitchen appliances at Senior Center, including:
COA1 19,000
Center commercial gas stove, 2 freezers, and refrigerator.
Purchase 1 ADA-accessible van for transportation of elderly
COA2 Purchase new transportation van 65,000
and disabled residents
Fire & Emergency Services Department
FD1 Replace Ambulance 1 Replace Ambulance 1, a 2006 Ford E456 Class 1 Ambulance. 275,000
FD2 Replace Ambulance 2 Replace Ambulance 2. 426,615
Conduct a feasibility study to determine whether to build a
FD3 Capital assessment of Fire Station 50,000
new fire station or remodel current, outdated station.
FD4 Replace Engine 1 Replace Engine 1, a 1995 E-One Freightliner FL 80. 425,000
Replace all self-contained breathing apparatus (SCBAs) which
FD6 Replace SCBAs are necessary personal protective equipment for firefighters to 200,000
be able to perform interior firefighting operations.
Highway Department
Replace 3 cubic yard front-end loader, which is used on a daily
HWY1 Replace front-end loader 160,000
basis in the department.
Complete improvements to Upper Hampden Road from
HWY10 Improve Upper Hampden Road Wilbraham Road to the Town line, including reclamation and 304,472
resurfacing.
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