Town of Wethersfield

EXPLANATORY TEXT Referendum May 12, 2009 6:00 AM to 8:00 PM

The Town of Wethersfield in accordance with the Town Charter and the Connecticut General Statutes voted on April 6, 2009 to submit the following question to the electors. This explanatory text was authorized by the Town Council in order to provide information to the voters on the question.

Question No. 1 SHALL THE TOWN COUNCILS RESOLUTION AUTHORIZING THE PURCHASE OF THE WILKUS FARM PROPERTY LOCATED ON THE EAST AND WEST SIDE OF WILLOW STREET AND ON THE WEST SIDE OF THORNBUSH ROAD TAKE EFFECT?

The Town has applied for and received approval from the State of Connecticut for an open space grant in the amount of $490,000 to help offset the cost of the purchase. If the grant is accepted by the Town, the land must be preserved as open space in perpetuity. If approved, the Town will pay the balance of the purchase price by using $306,000 from the Towns existing Land Acquisition Fund and by the bonding that was previously authorized in November of 2006. The net amount of the purchase price, together with survey and appraisal fees, to be financed through bonding is estimated at $2,733,600. Once the purchase is concluded, the Town will receive the $490,000 State grant to reimburse the general cash. Pursuant to Section 8-24 of the General Statutes and the terms of the Bond Ordinance, the Wethersfield Town Council referred the proposed purchase of the Wilkus Farm property to the Planning and Zoning Commission for a Report. The Planning and Zoning Commission issued a favorable or positive recommendation to the Town Council on March 3, 2009. Following a public hearing on March 16, 2009, the Wethersfield Town Council voted in favor of purchasing the property. After the Town Council authorized the purchase, a petition to overrule the Town Councils decision was filed pursuant to Section 309 of the Wethersfield Charter. Therefore, the issue of whether to purchase the Wilkus Farm property is to be decided by the voters by this referendum question on May 12, 2009. Estimated Cost of Bonding
Assumptions: Grand List of October 1, 2008 equals $2,308,961,970 Estimated Mill equals $2,308,962 Grand List Remains Constant Amount to be financed through Bonding is $2,733,600 20 Year Graduated Amortization, Principal Deferred 1 year 4.5% Interest Rate Anticipated Issuance is June of 2009 YEAR 2010 2011 2012 ANNUAL DEBT PAYMENT $123,012 $233,212 $228,253 COST PER $1,000 OF ASSESSMENT $.05 $.10 $.10 COST PER $100,000 OFASSESSMENT $ 5.33 $10.09 $ 9.87

The question before the voters is whether the Town of Wethersfield should purchase the Wilkus Farm property. A vote YES is a vote in favor of purchasing the property and a vote NO is a vote against the purchase. BACKGROUND
On November 7, 2006, the voters of Wethersfield approved a $4,000,000 bond authorization to allow the Town Council, after approval from the Planning and Zoning Commission and after a Public Hearing, to purchase privately owned agricultural or open space land up to the amount of the bond authorization. The Wilkus Farm property is made up of three parcels of land totaling approximately 81 acres located on Thornbush Road (34.5 acres), on the west side of Willow Street (22.5 acres), and on the East side of Willow Street (24 acres). The property includes the house and barns located at 138 Willow Street. The purchase price is $3,500,000.

An example of the estimated tax impact of the bond financing on a residential property with a current assessed value of $180,140 is shown below. The assessed value is 70% of the estimated market value. YEAR 2010 2011 2012 ANNUAL DEBT PAYMENT $123,012 $233,212 $228,253 COST PER $180,140 OF ASSESSMENT $ 9.60 $18.18 $17.77

Each succeeding year, the annual debt payment decreases as principal and interest payments are made.