HOULTON, Maine — Houlton officials are free to secure a $750,000 road reconstruction bond following a municipal referendum vote on Tuesday.
Of the 424 votes cast, 365 said yes to the question, “Shall the town be authorized to commit and borrow up to $750,000 to reconstruct Reservoir Hill Road?”
In March, the Houlton Board of Budget Review voted in favor of bond financing for the project that extends from the base at Hillview Avenue to the top of Reservoir Hill.
In recent years, the town has fallen behind on ongoing road maintenance, primarily due to rising repair costs and budgetary restraints. But newly appointed Town Manager Cameron Clark brought the bond issue forward as a potential solution for the road’s deteriorating condition.
“Our public works director and his crew do an excellent job with the resources allocated to them, but ultimately, this is a funding issue,” Clark said in a previous interview. “That’s why we’ve chosen to bond the Reservoir Hill Road project and contract it out to a private company to complete this extensive work.”
This year the town budgeted $150,000 for the $894,450 Reservoir Hill Road Project and the bond will cover the rest. According to Clark, the total estimated lifetime cost of the bond would be $924,682, representing $750,000 in principal and $174,682 in interest, assuming interest at 5 percent over 10 years.
“Undertaking a large project like this through borrowed funds allows for repayment over time, spreading out the cost and reducing the immediate financial impact on taxpayers,” Clark said. “Without borrowing, the project would need to be fully funded within a single fiscal year, resulting in a higher mill rate for all taxpayers.”
Designed by Bangor-based Sewell Engineering, the reconstruction includes the excavation of existing materials; installation of ditches, culverts, and associated riprap; installation of gravel subbase and base materials; and placement of bituminous pavement.
Brown Construction Inc. of Houlton submitted the lower of two bids for the project.
Clark also proposed securing a $744,450 bond anticipation note that will provide the funds to move forward with the project this summer. When the municipal bond is secured in the fall, the town can repay the note, Clark said.
“This infrastructure project is critical for the town’s long-term development and economic vitality, and the [budget review] board demonstrated strong support for moving forward with financing in a responsible manner,” said Johanna Johnston, executive director of the Southern Aroostook Development Corp.
