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Road bond update: staff warns cash shortfall; board told to prepare for additional borrowing
Summary
Town staff told the selectmen that projects funded by the 2022 voter-approved road bond will require an additional borrowing tranche to maintain momentum, and staff recommended proceeding quickly to close the funding gap to avoid interrupting construction.
Town public works and finance staff told the Board of Selectmen the town faces a cash shortfall for bond-funded road and drainage projects and recommended authorizing the next tranche of borrowing tied to the 2022 voter-approved road-and-bridge bond.
Public Works Director Jim Rollins summarized project status and sequencing and said several projects are underway while others remain dormant because of coordination needs (for example, road work tied to future water-main replacements). Finance staff presented a numerical snapshot: the town has authority to borrow a gross $23.3 million under the 2022 referendum; projects budgeted through fiscal 2026 total roughly $18.0 million. After accounting for budgeted projects and anticipated grant reimbursements, staff reported a cash shortfall of roughly $8.8 million to finish the work planned through fiscal 2026. Rollins and finance staff said that some projects carry reimbursement grants that must be fronted by the town and that the timing of those reimbursements affects cash flow.
Staff recommended the board authorize the town to proceed with another borrowing tranche in the coming weeks to preserve project schedules. Rollins emphasized the practical sequencing: some streets must await additional water-main work; others require drainage fixes before paving. Finance staff said the town has already drawn the first tranche (about $5.0 million for roads plus smaller amounts for drainage and sidewalks) and is drawing on operating cash to advance contracts while awaiting bond proceeds.
Board members asked follow-up questions about timing, interest costs and whether the town should borrow the gross gap ($8.8 million) or the net amount after an expected $1.2 million reimbursement on one bridge project. Staff advised borrowing to cover the gross shortfall to avoid cash interruption, then accounting later for reimbursements. No final board vote to borrow was recorded; selectmen asked staff to prepare a formal recommendation and debt-service schedule for the next meeting.
Ending: Town staff said they will return with a bonding recommendation and projected debt-service impacts for the board to consider at the next scheduled meeting so the town can meet construction timelines and publication/notice requirements.
