Newburgh board eyes up to $750,000 in OCRA funds to tackle failing stormwater pipes; income survey, bond or fee may be needed

The Town of Newburgh’s Storm Water Management Board on March 30 agreed to pursue investigative work to determine whether parts of the town qualify for state Office of Community and Rural Affairs (OCRA) grant funding that could provide up to $750,000 for stormwater projects.

Drew Flamion, the town engineer, told the board that recent mapping and camera work identified roughly five target areas around Third and Fillmore with significant drainage problems and that the adjacent census tract now appears to qualify for OCRA support if an income survey confirms eligibility. Flamion said the town could use an income survey to extend the eligible area and “potentially get up to $750,000” per project area through the program.

Why it matters: one of the highlighted sites — area one, shown in yellow on the board’s map — includes a 54-inch storm pipe that blew out during last year’s April storm. Flamion described the pipe as "blown out" and said FEMA has declined reimbursement; repair estimates discussed in the meeting ranged from roughly $750,000 up to $900,000 for that site alone. Without outside funding, Flamion warned, the town’s only near-term option is repeated temporary repairs.

Flamion described the OCRA option as a “buy one get potentially four free scenario,” because a successful application for the adjacent wastewater project could position Newburgh to apply for additional OCRA funding for multiple stormwater fixes. To improve competitiveness, the town would need match funding; Flamion estimated the town would need to assemble roughly $700,000 in matching funds to strengthen an application and move higher on the award list.

Board members discussed several match options. Staff said leftover funds from a wastewater bond might be available but would require review because stormwater and wastewater funds are typically kept separate. Consultants and bond scenarios were presented as an alternative: staff gave example debt-service figures that showed a $2.60 monthly stormwater fee increase could support a $500,000 bond (20 years at 5%); a $5.25 monthly increase could support about a $1 million bond under the same assumptions. Flamion cautioned that most existing stormwater fee revenue is currently absorbed by required MS4 work and salaries, so the board would need to weigh the burden on the town’s roughly 1,500 households.

The board did not commit to a fee or bond. Instead members unanimously agreed to give staff verbal support to investigate further: the immediate next steps are to complete the income survey, secure any required land acquisitions/easements, firm up cost estimates for each priority area, and return to the board with a recommendation. Flamion stressed the work required prior to an application — environmental clearances, easement acquisition and match funding — and said realistic timing would likely put the town in a position to apply in early 2027 rather than this year.

Other funding sources discussed included federal programs and Community Development Block Grants (CDBG); the town council liaison said he would check EPA programs such as the Stormwater Local Assistance Program. Members also discussed using grant administrators to prepare competitive packets and asked staff to model bond capacity with accounting firm Baker Tilly.

The board’s action: the board agreed to continue investigative work (income survey, cost estimates, easement outreach and coordination with wastewater) and asked staff to return with the survey results and a financing plan. No formal vote was taken on bonding or fees at the meeting.

Next steps and timeline: staff will proceed with the income survey and follow up with a detailed cost and funding analysis for the board. Any bonding or fee changes would require separate public hearings and town council approval.

Sources and verification: statements and figures in this report are drawn from the board presentation and discussion on March 30, 2026, as recorded in the meeting transcript. Cost ranges and the $750,000 OCRA cap were stated by the town engineer and discussed by board members during the meeting.