DIXFIELD — It took only 15 minutes at a Jan. 22 special town meeting for citizens to approve funding for road infrastructure and improvement following flood damage this summer.
Citizens voted 11-1 to secure interim funding through an anticipatory note from Androscoggin Bank, up to $1 million, to pay for contractors and materials for the damages to Averill Hill, Swan Avenue, Coolidge Road, Porter Road, Valley Road, Severy Hill Road and Rollins Ridge Road.
The note will pay these costs until funding is released by the Federal Emergency Management Agency and the Maine Emergency Management Agency.
Town Manager Alicia Conn said the town submitted documentation for potential funding support. Starting on May 1st, Dixfield experienced several damaging storms. However, all damage occurred on the same seven roads.
FEMA is expected to pay for up to 75% for the repairs from the storm damage, with MEMA paying an additional 15%, both to restore these roads to previous conditions.
The remaining 10 percent of the repair costs is through the town. However, Tony Carter of Dixfield, first supervisor of the unorganized territories and the Oxford County Regional Airport in Oxford, said the in-kind work already done by the highway department will take care of the town’s share.
Conn said the rough incurred costs to date, to be paid using interim funding, is $341,205 to contractors, with $22,607 in materials, for a total of $363,812. This does not include any crew labor or vehicle costs, administrative time or mileage.
Interest on the anticipatory note is only paid on the portion of funds that the town requests to be released, up to $1 million. Establishing a six-month CD with Androscoggin Bank of $250,000, the interest of which will be paid towards interest incurred on drawn-down funds.
At an estimate maximum interest rate of 6.55% for a two-year maturity, the estimated cost of this note will be $131,179. The amount of accrued interest is anticipated to be less than this amount due to funds being drawn on an as-needed basis and the anticipated retirement of the note prior to final maturity when grant funds are approved.
Hazard mitigation through the FEMA Public Assistance program could cover 100% of repair costs to mitigate hazards improving road conditions, permanently. Conn said the town is working with FEMA HM representatives to qualify for such assistance, which is a lengthy process.
After the recent Dec. 18 storm, temporary repairs were again made to impacted roads to ensure passable, plowable conditions for this current season. If more extreme weather occurs, Conn said more repairs will likely be needed. She said the town is continuing to work with FEMA following the December storm, as well as other prior storms.
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