Public works warns of $23.5M road backlog; council weighs fee, bonding and program options

Wes Anderson, Laconia’s director of public works, told the City Council that the department’s capital and operating budgets must grapple with an expanding road maintenance backlog, equipment aging and staffing shortages during the FY26 budget presentation.

Anderson said the city’s estimated backlog for reclaiming/ reconstruction is $12.3 million and another $11.2 million for overlays and shims, for a total backlog of about $23.5 million. He told the council the annual funding needed “to keep good roads good,” measured as milling and overlay cycles, is roughly $2.5 million to $2.8 million a year; the city manager’s recommended annual road program for the coming year is $1 million.

Anderson summarized project and funding needs and potential responses: increase the annual road program, develop a multi‑year bond program, consider charter exemptions for a more aggressive funding approach, decline to accept additional private roads in current condition, convert selected low‑use roads to gravel, or a combination of these options. He told councilors the practical impact of deferring work is visible in roads such as Hilliard Road, whose condition deteriorated during winter and required a more extensive reclamation when the bridge work is performed nearby.

On winter operations and materials, Anderson said the city’s salt purchase last year was $78.15 per ton, and the recent cooperative bid low was $80 per ton with a high of $160 per ton. He described a winter stipend program (November 1–March 31) of $100 per week to keep staff available for on‑call winter duties and said recruiting remains difficult: he had been short several positions but recently hired one high‑school graduate who sought CDL training funded by the city.

Anderson also described solid waste and recycling challenges at the transfer station. He said the city currently receives about $105 per ton from fees while paying about $111.53 per ton for disposal, creating an “optic problem” where haulers may be paying less than the actual disposal cost. For construction and demolition debris, Anderson said the city is charging $170 per ton while disposal costs were about $128.14 per ton; he said construction and demolition tonnage is projected to finish the year between 7,100 and 7,300 tons. Household waste and recycling totals through the facility were presented at roughly 13,500 tons and about 1,000 tons of recycling year‑to‑date.

Anderson said single‑stream recycling costs fluctuate with commodity markets; processing costs rose to approximately $150 per ton at one point and have recently been about $113 per ton. He noted that municipalities’ recycling loads typically go to regional materials recovery facilities in Massachusetts.

Councilors and the mayor framed the problem as both local and structural. A councilor described Laconia as “a tourist economy” that does not receive proportional state funding to cover infrastructure wear tied to visitors, and urged prioritizing impact fee policy and other revenue options. Another councilor asked for a revisit of transfer‑station pricing and suggested adjusting fees so hauling and disposal do not operate at a loss; Anderson recommended holding a $10 per ton under‑100‑pound exemption steady for multiple years while raising hauler rates and making fees automatic adjustments tied to disposal cost.

Anderson also reviewed capital equipment needs, noting new emissions and upfitting costs for vehicles and a likely need for a larger equipment bond (he estimated around $900,000 at some point to replace aging fleet components) to replace older units that are becoming unsafe.

No formal votes were taken at the presentation. Councilors asked staff to return with comparative historical road funding, and several signaled support for a more formal plan to address the backlog and for beginning discussions on fee policy changes.