FAYETTE — During a special meeting held before the regularly scheduled Select Board session Aug. 6, the Fayette Select Board  approved a measure to correct language related to a previously approved road bond article.

“Welcome all to the special town meeting devoted to the correction of an article that was approved at the regular town meeting June 13, related to the road bond,” said Mark Robinson, town manager.

The town had initially approved the borrowing of funds for road work through a bond, but concerns arose during the bond counsel interview process. According to Robinson, the original wording in Article 40 included restrictive language that could potentially hinder the borrowing process. The recommendations from those consulted, including bond counsel advised against using the restrictive “not to exceed” language in Article 40’s cost estimate section, suggesting that the term “estimated” be used instead.

“In the interview process of the bond counsel, two attorneys suggested we hold a special meeting due to the wording,” Robinson explained. “They asked for a new format to be approved by the town. This is a formal process provided the town is accepting of this change, correcting this measure.”

The corrected Article 2, which was passed during the special meeting, authorizes the town to borrow up to $1,500,000 to finance the reclamation, reconstruction and paving of town roads. The article allows the town treasurer and the chair of the Select Board to issue general obligation bonds and notes not exceeding $1,500,000, including setting the terms for interest rates, maturities and other related details.

As of June 30, 2023, Fayette’s outstanding bonds totaled $370,000. If this new measure is fully enacted, the town’s total bond indebtedness will increase by $1,500,000. The estimated annual debt service is $325,000 with an interest rate of 4% over five years.

It was noted that any variances in the actual debt service amount will not affect the validity of the bonds or the voter ratification of the measure.

The next Fayette Select Board will be held 7 p.m. Aug. 20 at the Fayette Central School in Fayette.