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Coeymans board faces $944,000 shortfall on $3.3M sewer project; options include full bond or scaled borrowing
Summary
Town officials reported the wastewater project estimate rose to $3.3 million. The town has $2.5 million in grants (USDA and CDBG) but still faces a roughly $944,000 gap and must decide whether to approve a full bond to preserve 0% state loan eligibility or take a smaller borrowing that could forfeit favorable financing.
Coeymans officials told the town board that a wastewater infrastructure project — intended to replace lift stations and repair trunk lines — now carries an estimated price tag of about $3.3 million, up from an earlier $2.5 million estimate.
The financial picture: The town has been awarded approximately $2 million from a Community Development Block Grant (CDBG) and $500,000 from the U.S. Department of Agriculture for the project, but the cost increase leaves an estimated shortfall of about $944,000.
"If you want to pursue the 0% financing through the state revolving fund, you need the full $3.3 million bond," one board member summarized during the meeting. Engineers and grant advisors told the board that approving the full bond and matching funds preserves eligibility for the state revolving loan program (potentially 0% financing) and for WEIA (25% grant support). Approving only a smaller $1 million bond or borrowing could forfeit those options and increase long-term interest costs.
Scope, phases and grant rules: Engineers noted the project was divided into phases in the original engineering report. The board asked whether the town could begin with discrete work (for example, lift-station repairs) using the $2 million already awarded while pursuing the remainder later. Grant staff cautioned that the CDBG award was made against the proposed scope; changing the scope without prior approval could reduce or void awarded funds.
Next steps and oversight: Board members asked for more detailed, line-item estimates and requested that the board invite both Ben (the grant manager) and Carrie Douly of MJ Engineering to upcoming meetings for clarifications on scope, drawdown timing, and possible phasing. The town scheduled Ben to address the board at an upcoming meeting and requested MJ Engineering’s participation on a later date so the board can decide whether to adopt a full bond resolution.
What it means for residents: Board members noted that the wastewater project affects a defined sewer district and therefore some repayment obligation falls to that district’s ratepayers. Several members warned that declining to secure matching funds now could jeopardize the town’s ability to secure low-interest or forgivable financing in the future.
Next scheduled actions: The town will follow up with Ben and MJ Engineering for detailed estimates, pursue internal discussions about the bond resolution, and prepare public information about how different financing options would affect ratepayers and special-district charges.
