An Open Letter to Monroe Residents on Honeywell

To the Editor:

The Honeywell contract gets paid through an interest free loan from CL&P and through a 10 year tax exempt municipal lease all of which is completely funded by utility rebate dollars and guaranteed energy savings at no extra cost to the tax payers. The scope of the Honeywell project is $3,803,204. $655,417 of this is being paid by utility rebate dollars at no extra cost to the tax payers.

Four-hundred-thousand dollars ($400,000) of this is being paid through a 4 year interest free loan from CL&P and the remaining balance is being paid through a 10 year tax exempt municipal lease at an effective interest rate of 1.45%.

The annual Board of Education debt from these two items is being covered in full by annual energy savings guaranteed by Honeywell. If the savings aren’t achieved then Honeywell has a contractual obligation to make up the shortfall.

The BOE utility budget is $1,321,523 and the guaranteed energy savings are $411,289 which covers in full the annual debt on the CL&P loan and the tax exempt municipal lease at no extra cost to the tax payers.

There is no bond issuance for this work at no extra cost to the tax payers. The scope of work includes necessary exterior and interior door security work at all of the schools, converting Masuk from oil to natural gas, and a full boiler replacement at Stepney, necessary infrastructure improvements to the lighting, insulation, motors, boiler controls, and temperature control systems at Masuk, Jockey Hollow, Stepney, and Fawn Hollow.

In addition to this energy work, security improvements will be made to all the schools. This will include interior classroom locks and exterior door locks. It should be noted that Honeywell is making a corporate donation of the interior locks.

The BOE utility budget stays exactly as it is today and all of the work highlighted above gets completed with no extra cost to the taxpayers. If you vote no you still have the same utility budget to pay for ($1,321,523) yet none of this needed work gets completed.

In summary, the project is paid for in whole by utility rebates and Honeywell guaranteed energy savings (NOT through any increased tax burden). We hope you will support this project with a YES vote on April 23^rd.

First Selectman Steve Vavrek

Mark Antinozzi (BOE)

Lee Crouch (BOE)

Jeff Guttman (BOE)

Mark Hughes (BOE)

George King III (BOE)

Donna Lane (BOE)

Kelly Plunkett (BOE)

Darrell Trump (BOE)

Alan Vaglivelo (BOE)