By Chris Frost
Eagle Times News Editor
Claremont — The Claremont City Council stripped a $2.85 million bond for road repairs from its proposed capital budget, approving $657,000 in capital spending.
Councilor Spencer Batchelder made that motion at the June 28 meeting, seconded by Councilor Jonathan Stone.
Mayor Dale Girard questioned the need for the bond. During the last fiscal year, he said the city tried devising a plan to raise $750,000 to pave roads.
“If we turn around and have the $500,000 in our budget, the $250,000 we had for our bond that’s retiring, and add this $349,000 [The city is getting from the state for roads], we’re now at $1.1 million. If you’re adding $700,000 to the paving budget, we’re within $100,000 of each other without having to bond.”
He said many times, there are capital improvement projects that never get done in Claremont.
“We’re not putting out $2.1 million in the 2024 calendar year, from what you’re telling me. Can we find $100,00 over three years? There’s a good chance of it.”
City Manager Yoshi Manale said the money from the state should not be counted because the city gets that money regardless.
“We have to add $349,000 to the budget to be able to spend it,” Finance Director Diane Mulholland said, saying the funds are considered normal revenue.
“City Manager Yoshi Manale has made it clear several times that we’re saving this year’s money and adding it to next year’s money to come up with $1.2 million to do Washington Street,” Girard said.
The approved budget includes multiple upgrades to elevators and numerous other capital projects, said Manale.
Councilor Nicholas Koloski shared reservations, noting that Washington Street is the top location where he hears business complaints.
“I know, overall, we probably have a future plan, but I have a lot of concerns about bonding and doing a bunch of side roads. Yes, they need to be done. Absolutely, 100 percent. I don’t think any of us would say they don’t, but when your main thoroughfare through the community is going to be left to hope and prayer later, that concerns me. If we’re bonding, I’d rather see us bond Washington Street and fix it. I don’t know what the answer is, and I hate using our bonding capacity in this manner.”
Batchelder asked if the bond would outlive the road’s useful life before it needs maintenance again.
“No, I don’t believe so,” replied Manale. “We plan on going out for a ten-year bond. That should be the active life for most of those streets. Especially if it’s the side streets.”
He said most of the target streets have not been paved for 30 to 40 years.
“The city hasn’t invested in infrastructure in almost 20-25 years. I think last year was the first year we made a real investment in infrastructure,” he said.
Manale said he understood Koloski’s concerns and said the city has a plan.
Manale said in addition to using state money that is allocated to Claremont over two years for paving, the plan is also to tap the fund balance for about $1.2 million.
Manale said if the council chose not to do the side streets, they will reduce the total significantly.
“We’ll try to make every effort to target as many streets as we can,” he said. “The current amount of money you have bonding, you don’t have enough to pave a major road. You have enough for side streets.”
He said a new program is in place and they will do as much in-house as possible.
“They’re still learning and not the best yet but, eventually, the more they do, the better they will get.”
Manale asked for the bond because the current interest rate of 4.5 percent for municipalities.
He said private sector borrowers are getting 8%, ”if not more.”
“The only way we are going to be able to handle the main roads is to use a substantial amount of our fund balance, as well as borrow for it directly. Then you’ll see one street done.”
Assistant Mayor Debora Matteau doesn’t like bonding for pavement but said they have a retiring bond.
“We hear from the citizens that we have to fix our roads. It’s expensive. If we don’t do it now and wait a couple of years, what we can buy today, we can only buy half five years from now. The cost of construction is going through the roof. If we try and hit as many of our side roads now and we can borrow at a cheap rate, that’s what we need to do. We can’t keep kicking the can down the road. I agree Washington Street needs to be fixed as well but we don’t have a plan for that. I think this is a good plan.”
Councilor Jonathan Stone said he understood that roads are a big citizen complaint.
“I see bonding as a quick fix, but the problem is it’s not going to get us where we truly need to be at the end of the day.”
“If you’re buying a road on credit, you’re paying an interest rate and you ask yourself if what you’re getting upfront is worth its value.”
Manale said the city is trying to get federal and state money to pave the main roads.
“We have $500,000 we’re dedicating to maintenance. Once you fix the road, you have to continue to keep it in good shape. It’s something they haven’t done in the past. We have a contract for this year’s budget with a firm that’s going to be coming through and doing a lot of the crack sealing. Our hope going forward is to have a plan to extend the roads beyond 10 years.”
Councilor William Limoges said it’s great to do the side streets, but he wants to see what the sealing company does before the city invests all its money.
“I want to see what this maintenance program produces over the next year and possibly bring it back.”
Voting to remove the bond from the budget were Girard, Stone, Limoges Bachelder and Councilor Andrew O’Hearne. Voting to keep the bond in the budget were Matteau, Koloski, Councilor Matthew Mooshian and Councilor James Contois.
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