By Josh O’Gorman
Staff Writer | October 04,2013
Staff Writer | October 04,2013
Rutland Herald
KILLINGTON — Town officials are looking at taking out a loan to pay for bridge, culvert and road repairs.
Chet Hagenbarth, director of the highway department, discussed the need to fund urgent projects during a meeting of the Select Board this week.
Hagenbarth noted that the highway department’s capital budget has dropped over the years, from $339,000 in the 1980s to $261,000 in 2013-14. In addition, he said, his department had to defer some projects in order to complete repairs following Tropical Storm Irene without raising taxes.
In 2014, the town is looking to repave Killington Road, from Route 4 up to West Hill Road, as well as West Hill Road itself. Other projects on the immediate horizon include bridge repairs on River Road, and bridge and culvert work on Thundering Brook Road.
In addition to the work itself, town officials would like more money in reserve funds for future bridge, culvert and road repairs.
Such funding would be difficult to accomplish without “making the tax rate go crazy,” said Town Manager Seth Webb, who suggested taking out a loan in an effort to keep the tax rate stable.
The town could borrow $1.4 million over a 10-year period at an interest rate of 3.25 percent from People’s United Bank, Webb told the Board.
In 2014, the first year of the loan, there would be no impact to the tax rate. During the second year, the loan would add 1.1 cents to the tax rate.
Beginning in 2016, declining annual payments on the debt for the Green Mountain National Golf Course would offset increases to the tax rate.
There is a significant drop in the annual debt payments on the golf course, from $609,298 in 2015 to $394,660 in 2016. From 2016 until 2025, annual debt payments range from $310,000 to $394,000.
Selectman Bernard Rome expressed support for the loan, saying it is common for cities and towns to borrow money for capital improvements such as road and bridge repairs.
Webb told the board he would plan the 2014-15 budget with the loan in mind. The Select Board is expected to receive a preliminary draft budget in November.
josh.ogorman@rutlandherald.com
Chet Hagenbarth, director of the highway department, discussed the need to fund urgent projects during a meeting of the Select Board this week.
Hagenbarth noted that the highway department’s capital budget has dropped over the years, from $339,000 in the 1980s to $261,000 in 2013-14. In addition, he said, his department had to defer some projects in order to complete repairs following Tropical Storm Irene without raising taxes.
In 2014, the town is looking to repave Killington Road, from Route 4 up to West Hill Road, as well as West Hill Road itself. Other projects on the immediate horizon include bridge repairs on River Road, and bridge and culvert work on Thundering Brook Road.
In addition to the work itself, town officials would like more money in reserve funds for future bridge, culvert and road repairs.
Such funding would be difficult to accomplish without “making the tax rate go crazy,” said Town Manager Seth Webb, who suggested taking out a loan in an effort to keep the tax rate stable.
The town could borrow $1.4 million over a 10-year period at an interest rate of 3.25 percent from People’s United Bank, Webb told the Board.
In 2014, the first year of the loan, there would be no impact to the tax rate. During the second year, the loan would add 1.1 cents to the tax rate.
Beginning in 2016, declining annual payments on the debt for the Green Mountain National Golf Course would offset increases to the tax rate.
There is a significant drop in the annual debt payments on the golf course, from $609,298 in 2015 to $394,660 in 2016. From 2016 until 2025, annual debt payments range from $310,000 to $394,000.
Selectman Bernard Rome expressed support for the loan, saying it is common for cities and towns to borrow money for capital improvements such as road and bridge repairs.
Webb told the board he would plan the 2014-15 budget with the loan in mind. The Select Board is expected to receive a preliminary draft budget in November.
josh.ogorman@rutlandherald.com
Comment: What the article doesn't say is that the town had other priorities like the golf course and hay bales, thus let what should have been it's primary responsibilities, like roads and building maintenance, take a back seat. Now all that neglect needs to be addressed.
The question remains do we need to incur interest charges on a loan versus accumulating the funds over time.
Vito
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