Board of Finance approves $150,000 grant for Schoolhouse Apartments repairs

Board of Finance · Meeting of July 28, 2026

New Canaan Board of Finance approves $150,000 rescue grant for Schoolhouse Apartments. The board unanimously backed the grant, drawn from interest earned on American Rescue Plan Act funds, to renovate the 156 South Avenue senior housing complex after board member Steve Hoover detailed three years of mismanagement that left payables at $100,000 and five units vacant. The nonprofit, which houses 39 low-income seniors averaging age 78, has since cut payables to $50,000 and hired new manager West Mount.

"It provides affordable housing today to 39 senior residents... who would otherwise not be able to live probably anywhere in Fairfield County," Hoover said. Separately, the board unanimously approved raising the pension benefit multiplier from 2 percent to 2.25 percent for 15 management employees, requiring roughly $517,000 in retroactive contributions over three years, pending Town Council approval. Fiscal 2026 revenue came in at $179.9 million, 102.6 percent of budget.

In the full story:

• Who Was There
• Organizations And Documents Referenced
• The complete report — 4,472 words

Source: the Board of Finance meeting of July 28, 2026, reported from the official video recording and transcript.

The Full Article

Roll Call and Administrative Matters

The July 28 Board of Finance meeting opened with logistical improvisation: the member normally handling secretarial duties, identified in the meeting as Chris Lee, was recovering from a shoulder injury but chose to retain his note-taking role over a colleague's offer to fill in, while another member, Bob Hamill, appeared by still photo rather than video because of satellite internet bandwidth limits. Roll call recorded members Victor Alvarez, Michael Chen, Bob Hamill, Chris Lee, Crystal Brace, Nick Matraus, Jan Schaefer, Maria Wearten, James Yao and Diana Carlson as present, with Alan Baines and Steve Doa absent. A member identified only as "Labieri" in the transcript audio also answered present; the spelling could not be confirmed. The board approved its June 9 minutes with one substantive correction: a clerical error had attached dollar signs to what were meant to be budget-percentage figures in the general fund section.

Russell Investments Quarterly Performance Report

Background and stakes: Russell Investments manages the town's pension and other post-employment benefit (OPEB) portfolios and reports to the board quarterly on performance and positioning.

The question before the board: how the pension and OPEB funds performed through the quarter ended June 30, 2026, and whether any rebalancing was warranted.

Substantive content: Russell relationship contact Zach O'Grady, joining remotely, walked the board through the executive summary in the quarterly report book. As of June 30, the pension fund carried a roughly 65 percent equities, 35 percent fixed-income allocation when real-asset holdings are grouped with equities — modestly overweight equities relative to long-term targets. The fund returned close to 9 percent for the quarter, driven largely by emerging-market equities; O'Grady noted Korean equities alone gained roughly 34 percent for the quarter on strength in companies such as Samsung and SK Hynix. Large-cap U.S. equities posted 27 percent year-over-year earnings growth through the most recent reporting date, a figure that held at more than 25 percent even when the seven largest S&P 500 companies were excluded. The pension fund ended the quarter valued at $203.2 million, with a one-year return of 15.64 percent that closely tracked its benchmark, and a since-inception annualized return of 14.1 percent against a 13.97 percent blended benchmark. The OPEB portfolio, which carries slightly higher emerging-market exposure, returned 16.35 percent over one year against a 16.04 percent benchmark, and 14.19 percent annualized since its July 2024 inception against a 14.14 percent benchmark.

The deliberation: A board member identified in the transcript only as Todd asked O'Grady to elaborate on what had and hadn't worked in the portfolio and whether any rebalancing was planned. O'Grady said small-cap holdings, long a laggard, had become "a bright spot," while flagging that U.S. large-cap valuations "look quite expensive from a historical standpoint." He raised the possibility of "de-risking the portfolio on the margins" given the town's strong funded status, prompting board pushback on specifics. "Yeah, I think that's a recommendation we'd want to hear about," the chair said, before board members noted any reallocation would need review by the town's Retirement Plan Advisory Committee (RPAC) rather than being decided that night. "We're not gonna we're not going to decide tonight," the chair said. Michael Chen said he wanted "the de-risking conversation" on the agenda for the RPAC's next meeting.

Procedural steps and outcome: No vote was required; the board directed staff to schedule an RPAC meeting to consider rebalancing options.

Implications and what is next: The board will revisit potential shifts away from equities at a future RPAC meeting, with members noting the fund's long time horizon argues against reacting to short-term market strength.

Russell Investments Ownership Change

Background and stakes: The chair asked O'Grady to brief the board on a recent change in Russell's corporate ownership, which O'Grady said had been disclosed to the town within 12 hours of his own notification.

Substantive content: Russell has been majority-owned for nearly 10 years by private equity firm TA Associates. O'Grady told the board a consortium including B Capital, a growth-equity firm founded by Facebook co-founder Eduardo Saverin, and the California Public Employees' Retirement System (CalPERS) — which O'Grady said manages roughly half a trillion dollars in assets — has now taken ownership. O'Grady said B Capital typically invests in healthcare-technology and artificial-intelligence companies and is providing permanent, on-balance-sheet capital rather than fund-vehicle capital, meaning Russell will not be folded into a venture fund. He said CalPERS's presence in the consortium signaled a "doubling down" on Russell's public pension business.

The deliberation: A board member pressed O'Grady on whether this board had been briefed earlier on the transaction; O'Grady confirmed he had already spoken with Diana Carlson about the change before the meeting. "All the things sort of special sauce that makes Russell continue to be Russell is not changing," O'Grady said, citing unchanged leadership, investment philosophy and client-service staffing. He also credited Lindy Freeman, Russell's global head of investor relations, with keeping the town informed throughout the transition, contrasting the communication with a prior ownership sale involving Mercer that had left clients "super concerned."

Procedural steps and outcome: Informational only; no vote was taken.

Implications and what is next: The board will continue monitoring the transition but took no action, with O'Grady available for follow-up questions.

Schoolhouse Apartments Capital Improvement Grant

Background and stakes: Schoolhouse Apartments, Inc., a nonprofit operating in a town-owned building under a 99-year ground lease, provides HUD-subsidized senior housing at 156 South Avenue. The town's finance leadership identified more than $150,000 in interest earned on unspent American Rescue Plan Act (ARPA) funds that, under federal treasury guidance, did not have to be tied to a specific ARPA project and could be redirected.

The question before the board: whether to approve up to $150,000 in ARPA interest earnings as a grant to fund capital improvements at the property.

Substantive content: Steve Hoover, a commercial real estate investor who joined the Schoolhouse board in March, presented alongside treasurer Bob Spangler — a former 16-year member of the Board of Finance — and vice president Roger Williams, who joined the Schoolhouse board about a year earlier. Hoover said the complex, converted from the former Henry W. Sachs Junior High School through a 1993 renovation financed in part by $2.75 million from HUD, now houses 39 residents, roughly 75 percent women, with an average age of 78 (one resident is 105). The property has 30 one-bedroom units and 10 efficiencies, with a former superintendent's unit being converted into a 41st rental unit pending HUD approval.

Hoover said the 2026 operating budget assumed 100 percent occupancy despite vacancies, producing a shortfall: of $948,000 in budgeted revenue, 86 percent of expenses go to mortgage, third-party property management and utilities, leaving only about $130,000 for all other operations across 40 units. He said the board found roughly $16,000 in unrecorded payables when it began reviewing finances in March, on top of already-listed debts, and that the property's auditor had stopped work months earlier because it hadn't been paid. In 2025, the property posted a $100,000 operating loss with five vacant units; the complex went through three on-site property managers and three superintendents in three years, two of whom were fired and one evicted.

Since March, the new board issued a request for proposals to four property management companies, ultimately selecting West Mount, which manages other properties in New Canaan and was set to begin the following Monday. The board also rebuilt a working relationship with HUD, without which Hoover said "nothing that we do can be done." Payables fell from a peak near $100,000 to about $50,000, and the board raised $200,000 in private donations in 45 days, with support from the New Canaan Board of Realtors and volunteer labor for landscaping and repairs.

The $150,000 request, outlined on a project list, covers a heavy renovation of Unit 108, vacant 18 months at a cost of roughly $32,000 in lost revenue; conversion of the former superintendent's unit; renovation of hallways, common rooms and the entrance; a new security system; and testing of two replacement apartment air-conditioning units — original 1992-93 equipment — ahead of eventually replacing all 40. The board asked to hold an additional $15,000 in contingency for unanticipated costs.

The deliberation: Board members questioned how the funds would be protected from affecting HUD's rent calculations. Hoover and Spangler explained the money would flow through a separate board account, not the operating account, with the town reimbursing invoices as they are submitted — amounts under $10,000 approved directly by the finance director, larger amounts routed through the Board of Selectmen. "That's how against Yes," a board member said, confirming HUD reviews operating funds, not capital accounts, minimizing the risk of a rent offset.

Chris Lee asked about the complex's corporate structure; Spangler confirmed Schoolhouse Apartments, Inc. is a 501(c)(3) nonprofit that leases the building from the town and holds a $2.6 million mortgage. Members also asked about affordability: the average resident pays about $600 of a roughly $2,000 monthly rent, with HUD covering the remainder based on 30 percent of a resident's gross income; residents typically earn about $25,000 a year from Social Security and other income. A waiting list of more than 60 households exists and cannot be restricted to New Canaan residents under program rules.

Asked what he expected to request in future years, Hoover cited roughly $1.3 million in deferred capital needs over the next three years, including a hallway air-conditioning project with an early bid north of $400,000, though he noted most of that spending has historically come from Schoolhouse's own funds and a state grant rather than the town. Spangler added that the current mortgage, while callable and potentially refinanceable, carries a low rate that makes refinancing to cover capital costs less attractive than it might otherwise be.

"It provides affordable housing today to 39 senior residents, many with parents and children in town who would otherwise not be able to live probably anywhere in Fairfield County, let alone New Canaan," Hoover told the board.

"I was really disturbed by what I saw. And it is amazing to see what this new board has done in a very short period of time with a lot of focus," the chair said, describing an earlier visit to the property.

Procedural steps and outcome: Nick Matraus moved to approve the grant; Maria Wearten seconded. The board voted unanimously in favor. The approved motion authorized "up to $150,000" in ARPA interest earnings to Schoolhouse Apartments, Inc. for capital improvements, reimbursed against eligible project costs.

Implications and what is next: Board members signaled openness to future requests as the deferred maintenance list is addressed, while cautioning that the property's status as a HUD-regulated asset limits how quickly some capital work, including a possible refinancing, can proceed.

Management Employee Pension Plan Amendment

Background and stakes: Item five on the agenda addressed a request, first raised last fall by a group of town management employees, to align their pension benefits with multipliers already secured by police, fire and public works employees through collective bargaining.

The question before the board: whether to approve amending the town's management pension plan to raise the benefit multiplier, cap contribution years, and add a supplemental savings option — before sending the change to the Town Council for final approval.

Substantive content: The finance director told the board management employee retirement benefits had "largely remained unchanged" for roughly 15 years, while other union groups negotiated increases in both benefit multipliers and their own contribution rates over that period. Management employees, by contrast, continued contributing at a 0.5 percent rate even as comparable union positions rose to 3.25 percent, according to town staff. The proposed amendment would raise the multiplier from 2 percent to 2.25 percent for 15 eligible management employees, require each to repay retroactive contributions reflecting years they underpaid relative to the higher multiplier, and cap pensionable service at 30 years so that employees working beyond three decades no longer contribute without added benefit — instead gaining the option to contribute to a 457 or 401(a) plan with a 7 percent town match. Town Human Resources staff member Cheryl, joining by phone, said individual repayment amounts range from $19,000 to $46,000 depending on years of service and salary, with a combined total of roughly $517,000 if all 15 participate. Only four of the 15 employees have more than 30 years of service.

The deliberation: Michael Chen asked why contribution amounts varied so widely and whether the range reflected employees who had gone uncovered at different points. Staff explained the spread reflects years of service and salary level, not gaps in coverage — a "true-up" calculation applied retroactively for each year a comparable union multiplier exceeded management's. "We didn't ask for the two and a quarter. They don't owe this," a board member said, underscoring that participation is optional; employees who decline the true-up simply retain the 2 percent multiplier. Victor Alvarez asked whether the change would bring all town pension participants to the same 2.25 percent multiplier; staff said police and fire maintain separate, higher multipliers and contribution structures negotiated independently, and that management employees had historically been excluded from union-style step negotiations because they are non-union. Alvarez also asked whether the 15 employees were satisfied with the proposed terms; the finance director said, "I believe that they are satisfied with this recommendation," noting several were present in the audience.

Board members also clarified timing: employees will have three years to complete their true-up payments once details are finalized by Human Resources, but only 15 days after Town Council approval to decide whether to participate at all. Cheryl said she had requested a Town Council meeting date, tentatively targeting mid-August, to allow enough time for a final payment recalculation before an August 31 deadline; if the Town Council cannot meet in time, the process would slip to the end of September. Staff also confirmed employees who leave town service before completing their three-year payment plan will not receive the enhanced multiplier.

Procedural steps and outcome: Bob Hamill moved to approve the amendment; Chris Lee seconded. The motion, as read into the record, authorized raising the multiplier to 2.25 percent for eligible management employees, ending required contributions after 30 years of service with an option to shift to a 457/401(a) plan, and establishing the three-year repayment window with a 15-day post-Town Council decision period. The board approved it unanimously. The finance director noted the vote does not constitute a binding contract; a formal letter explaining true-up figures will go to each employee once Human Resources finalizes calculations.

Implications and what is next: The amendment now moves to the Town Council, whose scheduling will determine whether affected employees can complete recalculated true-up decisions by an internally targeted August 31 date or a fallback date in late September.

Fiscal Year 2026 Year-End Financial Summary

Background and stakes: The board received a near-final look at fiscal 2026 finances, ahead of the books formally closing in September.

The question before the board: how actual revenue and expenditures compared with the adopted fiscal 2026 budget.

Substantive content: Total revenue reached $179.9 million, or 102.6 percent of budget, roughly $20,000 above the projection given to the board a month and a half earlier. Current tax collections totaled $166 million, up 3.7 percent from the prior year and 101.2 percent of budget. Other notable lines included building permits at $1.2 million (134.4 percent of budget), conveyance fees at $2.2 million (140.5 percent of budget), parking permits at $1.1 million (119.7 percent of budget) and interest on investments at $2.4 million (130.8 percent of budget). Transfer station tipping fees came in low, at $280,000, or 67.5 percent of budget, a trend staff said had held throughout the year and would be reassessed, though offsetting expenses were correspondingly reduced. Total expenditures were reported at approximately $179.2 million to $179.3 million, or 98.8 percent of budget.

The deliberation: Staff estimated the year-over-year fund balance change at roughly $722,553 as currently booked, with an expectation that reduced encumbrances — including an anticipated $200,000 reduction tied to garbage hauling costs — would push the total increase closer to $900,000. A board member asked about the town's committed $575,000 incremental expenditure to pay down the mill rate, which staff said had been revised to $611,000 after a late addition of $360,000 related to a Board of Education playground project.

Procedural steps and outcome: No vote was required; the report was informational.

Implications and what is next: Final numbers are expected once the books close in September.

Fire Department Capital Fund Reallocation

Background and stakes: Interim Fire Chief Bill Parrot, introducing himself to the board, said he had reviewed the department's capital accounts and identified line items where the originally budgeted purpose no longer matched current operational priorities.

The question before the board: whether the department could redirect funds without a formal transfer.

Substantive content: Parrot identified two water-supply improvement lines from fiscal 2024 and 2026, totaling $17,589, budgeted for dry hydrant repair, which he wants to redirect toward replacement valves needed to prevent single points of failure in the department's water-supply system. He also identified $10,000 remaining in a training props and equipment line that he wants to use for thermal imaging cameras, after one aging unit went out of service, and funds originally earmarked for $5,000 in rope equipment that he wants redirected to other priority gear.

The deliberation: A board member asked whether the funds were tax-supported (they are) and whether there was still a dry-hydrant need; Parrot said an assessment is ongoing and that, in the interim, the valve purchases would have a more immediate operational impact. "For these types of dollars, you have a budget," the chair said. "If you need to move something around to get something done and something came, you find this is a more urgent need. I mean, who are we to debate that?"

Procedural steps and outcome: No standalone vote; the reallocations were folded into the broader capital rollover vote covering the Fire Department's authorizations.

Implications and what is next: Parrot said he would return with further budget requests, including for a planned drainage and piping project not yet on the board's list.

Capital Project Rollover Requests

Background and stakes: Tax-supported capital projects are automatically authorized for two years; departments must request board approval to carry unspent authorizations forward, in this case into fiscal 2027.

The question before the board: whether to approve rollover requests from six departments, several with authorizations dating back as far as 2020-2022.

Substantive content: The board reviewed line items department by department. It approved rollovers for the Fire Department (the reallocations described above, plus encumbered funds for air bottles and radio equipment), the Office of Emergency Management, the Department of Public Works' ADA self-evaluation and transition plan ($10,550 remaining of an original $75,000 consultant contract, with completion expected in fiscal 2027), the Transfer Station, and the Recreation Department. For the Transfer Station, new superintendent Lou requested $2,611.50 in carried-over funds to continue addressing a main gate on Lake View Avenue that a 2022 authorization of $25,000 (of which $9,255 was spent) had not fully resolved; board members expressed some skepticism given the age of the original request but ultimately deferred to the new superintendent's assessment. For Recreation, the board approved carrying forward funds tied to a parking-lot repaving project near the pickle ball courts, a prerequisite to purchasing a replacement shed; officials said paving work is planned this fall.

The deliberation: Town Buildings and Parks items drew sustained pushback. A roughly $30,000 line for bride-and-groom room furniture at Waveny House drew objections from a board member who said "I thought we were done with this" and recalled the furniture had already been purchased; staff could not answer for the line because it originated with the recreation department, and the board directed it removed from consideration. An $8,500 signage line was left in place after staff explained it depends on completion of an elevator project that has been delayed roughly two years. A tennis-building and shed request, tied to a parking area near the pickle ball courts, drew a broader critique from the chair about too many aging, unprioritized capital requests sitting unspent for years: "We have too many projects... at some point, something's not trueing up." Board of Education items were pulled from consideration after board members questioned whether the district could actually complete listed projects within its roughly 30-40 day summer window before students return.

Procedural steps and outcome: Nick Matraus moved to approve rollovers for the Fire Department, OEM, DPW, Transfer Station and Recreation Department; Michael Chen seconded. The board approved the motion unanimously. Town Buildings, Parks and Board of Education items were tabled to the September meeting for further review.

Implications and what is next: Staff said the finance office will begin sending departments monthly reports on capital and special-project fund balances, rather than annual reports, to prevent old authorizations from sitting unaddressed for years.

Resolution Closing Out Capital Projects and Bond Proceeds Transfer

Background and stakes: Completed capital projects sometimes leave unspent bond proceeds that must be formally reallocated or the projects formally closed.

The question before the board: whether to adopt a resolution closing out a set of completed projects (Schedule A), transferring unexpended bond proceeds from other completed projects (Schedule B) to authorized-but-unbonded projects (Schedule C), and closing out the recipient projects.

Substantive content: The resolution transferred $1,556,380.23 in unexpended bond proceeds in the aggregate. The largest single component came from the fiscal 2024 police station project, from which $1.449 million was released; staff noted the project is not yet formally closed because of ongoing work on an additional room, and the department is retaining roughly $150,000 in reserve for related costs that could later be released as well.

The deliberation: A board member asked whether the released police station funds represented the roughly $1.5 million to $1.6 million "contingency" the board had referenced in prior budget discussions; staff clarified the funds were bonded amounts coming under budget, not a discretionary contingency, and that the released funds must legally be redirected to other authorized-but-unbonded capital projects rather than returned to the general fund for other use.

Procedural steps and outcome: Maria Wearten moved to approve the resolution; Nick Matraus seconded. The board approved it unanimously.

Implications and what is next: The transfer closes out the underlying projects except those marked for continued tracking, freeing bonded capacity for other authorized capital work.

Budget Transfers

Background and stakes: The finance office periodically brings routine budget transfers to the board for review, and larger reallocations for formal approval.

Substantive content: Staff presented 46 routine transfers totaling $73,213.36 for informational review, including a $10,000 reclassification separating a Human Services Department fund into distinct "warm-up fund" (for emergency needs such as electric bills) and general human services categories to match a new donation website. Separately, the board considered two items requiring approval: a $75,000 transfer from the general fund's external audit line to a special projects fund, allowing the audit committee to carry forward residual funds from a completed internal purchasing audit toward future audits; and a contingency transfer to cover a regional agency invoice from Darien that came in $213 above budget.

Procedural steps and outcome: Victor Alvarez moved to approve both transfers; Nick Matraus seconded. The board approved them unanimously.

Storm Response and WPCA Update

Background and stakes: New Canaan recorded what officials described as a 200-year storm event during a stretch of heavy July rainfall, prompting a board member to ask the town's public works official, referred to in the meeting only as Tiger, for an update on the wastewater treatment plant's performance.

Substantive content: Tiger said the town's water pollution control plant came close to being overwhelmed at one point Tuesday afternoon, when flow rose from about 5 million gallons to roughly 7 million gallons before dropping back to about 2 million gallons. He said the plant avoided any failure, which he said would have meant releasing non-disinfected, though not raw, effluent into the Five Mile River. Board members referenced widely shared video of manhole covers dislodging on Forest Street during the storm.

Procedural steps and outcome: Informational only; no vote was taken.

Implications and what is next: The board thanked public works, fire and other town crews for handling what one member called back-to-back "unbelievable winter" and "unbelievable summer" weather extremes.

Board of Finance members present: Victor Alvarez; Michael Chen; Bob Hamill (attending by phone/photo only); Chris Lee (serving as secretary/clerk while recovering from a shoulder injury); a member identified in the transcript as "Labieri" (spelling unconfirmed); Crystal Brace (spelling unconfirmed); Nick Matraus; Jan Schaefer; Maria Wearten; James Yao; Diana Carlson.

Board of Finance members absent: Alan Baines; Steve Doa (spelling unconfirmed).

A member identified only as Todd participated in discussion of the Russell Investments report; his status as a board member versus staff could not be confirmed from the transcript.

Town staff in attendance: the town's finance director (name not confirmed in transcript); Cheryl, town Human Resources staff; Ryan, described as normally overseeing monthly departmental budget reporting; Tiger, a Department of Public Works official overseeing parks, transfer station and town buildings capital items and the water pollution control plant; interim Fire Chief Bill Parrot.

Outside parties: Zach O'Grady, relationship contact for Russell Investments, the town's pension and OPEB investment manager, presenting the quarterly performance report and briefing the board on Russell's ownership change; Steve Hoover, Bob Spangler and Roger Williams, board members of Schoolhouse Apartments, Inc., presenting the capital improvement grant request.

Russell Investments — the town's pension and OPEB fund manager, presented Q2 2026 performance and disclosed its ownership transition. TA Associates — private equity firm that has majority-owned Russell Investments for roughly a decade and is selling its stake. B Capital — growth-equity firm, founded by Eduardo Saverin, joining the new ownership consortium for Russell Investments. CalPERS (California Public Employees' Retirement System) — the nation's largest public pension fund, joining the Russell Investments ownership consortium. Schoolhouse Apartments, Inc. — 501(c)(3) nonprofit operator of the town's senior housing complex at 156 South Avenue, requesting and receiving the $150,000 capital grant. U.S. Department of Housing and Urban Development (HUD) — provided original financing for Schoolhouse Apartments and continues to regulate its rent and operating structure. West Mount — new property management company hired to manage Schoolhouse Apartments beginning the week after the meeting. New Canaan Board of Realtors — cited as a major volunteer and fundraising partner supporting the Schoolhouse Apartments turnaround. Town Council — must approve the management employee pension plan amendment before it takes effect. Retirement Plan Advisory Committee (RPAC) — the town body that would need to meet before any pension portfolio rebalancing recommended by Russell Investments could proceed.