Incumbent First Selectman Janet McCarty and her challenger Michael Freda were seated  in front of an audience of several dozen in a conference room for a debate hosted by the Quinnipiac Chamber of Commerce this morning. The debate’s agenda focused on town finances and economic development.

The candidates were allowed a short introduction before the moderator, Christine Mansfield, CEO of Discovery Training Services in Wallingford, asked them four questions. A coin flip decided that Freda would introduce himself and answer all QCC questions first.

In his introduction, Freda said that his lifetime background in business, including 16 years as a CEO and president of several companies, would allow him to “identify with the business community.” He added that his economic development goals would begin with growing top line revenue, and would include developing the Pratt and Whitney site and revitalizing businesses on Washington Avenue.

McCarty said that her tenure as the town’s CEO “brought change to the government” in that “the town is stable, taxes are low, and the government is accessible to everyone.” She added that during her term, the town ended the last fiscal year with a surplus and finished this year without a tax increase. Additionally, McCarty said that her future economic plans included elongating Valley Service Road and “looking out for the interests of all of the town.”

Although the candidates were previously informed of the agenda’s theme, they were unaware of its exact questions, according to QCC President Robin Wilson. Accordingly, the questions were handed out to the audience only after the debate had begun.

First, the candidates were asked for three specific examples of how they would fund future budgets in light of increasing expenses, should they serve as first selectman.

Freda answered that he would work to grow top line revenue, rejuvenate Washington Avenue, and utilize the first selectman position to “lead the charge for economic development to minimize the tax increase for the future.” Freda predicted future tax increases, as he believed that the use of one-time revenue sources in the current budget would leave a $5.5 million revenue gap in next year’s budget.

McCarty agreed that growing the grand list was essential, and added that she would continue to work to reduce town expenses. McCarty said that the town has saved on power costs by becoming more energy efficient, and has benefited from successful grant applications. She vowed to continue to pursue both cost saving measures. McCarty also pointed out that the town has purchased many necessary capital items in the last few years, such as new police cruisers, and that those items would not need to be purchased again in the future, freeing up funds.

The second question asked how the candidates would seek future business relationships with the QCC.

Freda said that he would like to work with the QCC in both developing the Pratt and Whitney site and populating empty buildings on northern Washington Avenue. In light of the QCC’s makeup, Freda said that he would like to divide North Haven into small business districts, which he would meet with regularly. Additionally, he said that as the first selectman, he would act as a catalyst with the QCC in arranging meetings between the parties in an effort to revitalize the town’s empty business buildings.

McCarty replied that she would pursue the QCC’s assistance in forming a North Haven economic development foundation. She also believed that the QCC could be of help in future “regionalization” projects. For example, McCarty cited North Haven’s participation in the Wallingford Project, a multiple-town trash collection contract that she said has saved money over the past use of the Connecticut Resources Recovery Authority.

Next, Mansfield asked each candidate what two specific issues they viewed as threats to the local economy.

Freda answered that he feared the town lacked a solid relationship with its top grand list members. “We run the risk of not knowing what is going on behind the scenes,” he said. For example, Freda said that he was disappointed that when Covidien consolidated its Norwich branch, North Haven was not in a better position to take on the workers. Freda added that the same personable relationship must be formed with the town’s small businesses as with the top grand list members, as he believed that “they feed off of each other.”

McCarty said that she believed that North Haven already has a strong relationship with its top grand list members. The original question was led with the statement that North Haven was “not doing as poorly as other towns.” McCarty responded that she “was not as pessimistic as the question. I think we’re doing quite well,” she said. McCarty stated that North Haven did not receive Covidien’s workers because the town lacked an available 155,000 square foot building, as was required. Additionally, she said that she would continue to keep taxes low to avoid any future threats to local businesses.

The final question focused on the threat that impending national health care reform could pose to North Haven’s two largest taxpayers, the health care-based businesses Anthem and Covidien.

Freda said that he would stay close to the two grand list members so that together they would consult with health care experts on what affects reform would have on a local level.

McCarty said that although health care reform “was certainly going to happen,” she did not see it as a threat to either company. “I don’t think the end result of this legislation would bankrupt any health care businesses,” she said. “It’s supposed to be setup to promote competition, and I think that both companies are willing to compete.”

After the QCC questions portion, the floor was opened to the audience for a question-and-answer session.

Michael Mele mentioned that Freda had unsuccessfully voted against several town contracts during the candidate’s past term on the Board of Finance. Mele said that the contracts that had become successful, included health insurance and janitorial contracts.

Freda responded by asking Mele if he had taken into account the grievances filed by the town’s unions in response to the contracts. “I’d like to see the numbers when you factor in the litigation against the town,” he said.

Christopher Peterson asked McCarty her strategy should another large business close in town, referencing the 2008 loss of the Quebecor plant.

McCarty replied that her administration had successfully extended the former Quebecor workers’ ability to collect unemployment by three months. She added that she would continue to hold job fairs for the unemployed.

Board of Finance member, and Freda’s campaign manager, Richard Monico feared that the current budget was balanced with $4.5 million in one-time revenues and $1 million from Upjohn, funding that would not be available next year. He asked McCarty how she would replace the lost funds.

McCarty reiterated her earlier statements that future grants, a continued lowering of the town’s expenses, and a dip in capital expenses would help cover any revenue gap. Additionally, McCarty pointed out that the town’s fund balance has been increased from 7.5 percent to 7.7 percent, which could provide safety. “That money is there if we need to use it,” she said, “although, that’s not the plan.”

QCC member Jeff Donofrio, owner of the Ciulla and Donofrio law firm in North Haven, asked each candidate how they would interact with small businesses. Donofrio also mentioned the recent absence of a North Haven “show and sell” business exposition.

McCarty said that she would be interested in reinstating the show and sell program. She said that the exposition’s absence was due to the great amount of things she had to do to “get the town up and running” during her term as first selectman.

Freda responded that he was also in favor of restoring the exposition. Additionally, he reiterated that he would form small business council districts, and seek business connections to fill vacant buildings.

In rebuttal, McCarty said that the North Haven Economic Development Commission has already divided the town into business zones. As an example of the zoning’s success, she said that when the former tenants of the Montowese Rite Aide plaza wanted to relocate within the same area, the commission was able to find new and nearby site’s for most of the businesses.

Freda said that he was pleased to hear of the commission’s success, but proposed that the role of economic development should “fall in the first selectman’s office.”

QCC member Fred Ulbrich, owner of the event’s sponsor, Ulbrich Stainless Steels, asked whether each candidate would consider converting the Pratt and Whitney site into a wind, solar, or geothermal energy plant, or a business that produces energy.

McCarty thought that Ulbrich’s idea was wise, noting that Wallingford’s electric rates were lower because the town’s electric plant. She added that the Rabina group, owner of the Pratt and Whitney site, had spoken recently of a lithium battery plant they operated in Boston. “I think that’s a terrific idea,” she said.

Freda said that he had already scouted North Haven for elevated areas that could serve wind power, and that although he had not considered the Pratt and Whitney site, he thought it an excellent idea. “I would support it 100 percent,” he said.

McCarty added that the town nearly constructed a windmill on its landfill property, but the operational costs were too great.

The next public question related to the business of the town’s education system.

Freda replied that he would improve the town’s relationship with the education system, regardless of peoples’ political affiliations. He said that as first selectman, he would set high goals for student test scores. Freda added that he would bring career days to the schools.

McCarty answered that she had been involved in education councils for 16 years. She said that North Haven had a great school system, and that “parents and grandparents told [her] that they were very pleased with the school services with no tax increase.” McCarty added that she would stress that the Board of Education put the bulk of its funding into the classrooms. Additionally, she said that she was the most concerned that funding continue to benefit preschool education and the promotion of the students’ educational focus.

Lastly, Mele asked why Freda was critical of Town Hall’s switch of health insurance providers, as Mele believed the move saved hundreds of thousands of dollars.

Freda responded that he had spent a decade working with health insurance companies, and that it was “unheard of” that a company would switch providers without alerting employees. He also disapproved that the switch was presented as no change in service, as he believed it had changed Town Hall’s health services.

McCarty restated that the she believed that the switch had saved hundreds of thousands of dollars, adding “and that’s what North Haven wanted to hear.” She added that she regretted that town employees were not better alerted beforehand. Additionally, McCarty said that the switch spawned few grievances.

The QCC is a non-profit organization dedicated to business development in North Haven and Wallingford, according to its Web site. The QCC serves over 800 member companies.