CANTON – The relocation of families out of the flood plain will “put the water district under,” selectmen were told last week by district member Debbie Hutchins.
Careful management of the Canton Water District in recent years has finally gotten it to the point where it was not losing money, although it remains heavily in debt, Hutchins told selectmen last Wednesday.
Now, the loss of the customers being relocated, combined with the closing of the school in Canton, will prove to be financially disastrous for the district, she said.
However, there will be a net increase in customers for the district once the new town center is fully developed. It is anticipated that within two years revenue will rebound to present levels. During 2006, the district could face a shortfall of $30,000, or more than one-third of its annual budget. The district serves 122 customers.
The town and the water district will work together to find ways to keep the district solvent in the interim, including investigating the possibility of using existing grant money, new grants and loans.
Most of the homes and businesses in the town center, located within the Androscoggin River flood plain, sustained serious damage when the river crested its banks in December 2003.
Diane Ray, who is heading up the relocation effort, told selectmen last week that the first 20 families have received appraisals for their property. Ten more families will soon be given their appraisals. Eight of the first 10 have accepted their offer, two indicate they intend to stay in their homes.
About $4 million have already been secured to buy flood plain homes, demolish old structures, and assist in moving at-risk persons. Grant applications are being developed for the additional funds needed, Ray said.
The new village center, on higher ground, will contain 40 housing units, 10 commercial units and a future library and community center. Land acquisitions, infrastructure and other up-front expenses will cost about $3 million. Several financing options are under consideration, according to officials.
Community Concepts will serve as developers for the low- and medium-income homes, while a commercial developer will be used for high-end structures.
Selectman Donald Hutchins addressed the concern expressed by several townspeople, that it seemed unfair that those in the flood plain were receiving so much tax money while others with even worse houses got no help at all.
Hutchins pointed out that the town was responsible for the rescue of people in danger and for clean-up after floods. Most of the funds being spent on the relocation were not local tax dollars and the town will be collecting more tax revenue from the homes in the new village center than it did from those in the flood plain.
In other business, selectmen addressed cleanup of the Edward Libby property, which includes an illegal junkyard. The town has been trying to get Libby to clean up the junkyard since 1988. On two occasions the court ordered him to clean up his property.
His attorney has told the town that Libby will not meet with selectmen to inspect his property. The board agreed to seek a warrant to permit them to inspect the property and get photographs, then proceed with legal steps to get the problem resolved.
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