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OTISFIELD — The Road Committee has unveiled its plan to request a $1.65 million five-year bond to repair segments of Powhanton, Rayville, Bell Hill, Peaco and Gore roads over a two-year period.

More than 40 people attended the committee’s nearly 2½-hour public hearing Thursday night, April 23, at the Town Office Annex to hear the details of how much it will cost and which roads will be addressed if annual town meeting voters approve the authorization of the town’s first bond issue in June.

If approved, the bond would have an estimated tax impact of an additional $102 per $100,000 of property value.

The committee’s recommendation was tempered by two selectmen who warned taxpayers that the request comes at a time when the board is seeking funds to repair Cobb Hill Road, that Pleasant Lake Dam may need a $200,000 overhaul or the town could face stiff daily fines, and that the impact is yet unknown of the SAD 17 school budget.

“I don’t want someone having the difficult choice of staying warm or having something to eat,” said Board of Selectmen Chairman Hal Ferguson who, along with Selectman Len Adler, expressed concern about the escalating cost to taxpayers.

But Road Committee members David Hyer, Herb Olsen and Dan Peaco said the road repairs would become more expensive as time goes by. 

Hyer said the committee hopes to create a Road Capital Reserve Fund that will be supported with the bond and to use the money for the high-priority road repairs. The road commissioner’s annual budget will be left intact to use for pavement preservation and maintenance until money is available for proper repairs to other roads.

The first-year plan is to rehabilitate 1.37 miles of Powhanton Road from Forrest Edwards to Route 121 for a cost of $511,990 which would include top coating from the Seeds of Peace Camp to Route 121.

Rayville Road from near Route 121 to Hidden Lake Road — a total of 1.43 miles — would be rehabilitated for $317,668.

In the second year, the money would be used for rehabilitating 1.77 miles of Bell Hill Road from East Swampville Road to the Old Town House for $398,190; 0.98 miles of Peaco Road from Rayville Road to Bell Hill Road for $246,360 and Gore Road near Bonney Hill Road, a total of of 0.53 miles for $173,840.

If the bond is not approved, the committee will ask voters to support the same road work through an annual appropriation using $180,000 from the pavement and construction annual budget line items and asking for an additional $332,000 appropriation to do as much road work as possible.

The impact of that request would be an additional $98 per $100,000 valuation.

Hyer said the hope is that taxpayers will continue to support five-year bonds so the roads can be improved on a sustainable basis.

Voters will decide on the bond at the annual town meeting Saturday, June 27.

ldixon@sunmediagroup.net

Town officials face tough calls on bonding for roads

OTISFIELD — Voters will have the opportunity at the June annual town meeting to approve its first bond issue.

It will not be an easy sell, some officials said.

“Debt is always a tough sell at town meeting even when economies of scale prove otherwise,” Harrison Town Manager George “Bud” Finch said.

Finch said bonding can be a complex process for towns that historically resist debt except when absolutely necessary. Many towns, he said, do not consider road work absolutely necessary.

“Harrison considered bonding last fall when the significant and unexpected drop in oil prices began,” Finch said. “With lower prices expected for pavement, typically lower prices for larger projects, low interest rates and the need to catch up on paving issues, the time is right.

“Unfortunately,” he said, “at this same time, Harrison was facing the continued increases in education, county taxes, unknowns of Augusta politics and the concept of creating debt.

“Faced with the risk at of losing a bond issue at the June town meeting versus continuing Harrison’s already greatly improved road maintenance and funding program led to the decision to not go to bonding this year,” he said.

While many area towns try to avoid bonding, Norway has found it to be the most cost-effective method to pay for major road work.

Norway Town Manager David Holt said that, historically, voters have approved taking out bonds because the town’s roads were so bad it was necessary to put a large amount of money into them as “a way to catch up.”

The key to successful financing this way was to make sure the current bond is paid off before another one is issued, Holt said.

“We get better prices and more done,” Holt said. “We still try to raise a quarter of a million or so each year even with the bond. Even with the bonding and the yearly effort, there is still a lot to do”

With almost 90 miles of roads and the knowledge that a rehabilitated road may only last eight to 10 years, the effort can sometimes be discouraging, he said.

“Every town is different,” Holt said of the bonding issue.

ldixon@sunmediagroup.net

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