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Colebrook flags Main Street cash-flow risk as capital projects, equipment leases advance
Summary
Selectboard members outlined several capital items including paving, a backhoe lease-purchase, a Bobcat funded from reserves, and a $40,000 SCADA replacement for water and sewer; the board warned that the Main Street project’s invoice timing could prompt short-term borrowing.
At the Feb. 4 budget hearing the Colebrook Selectboard described multiple capital projects and equipment plans that the board said residents will vote on at town meeting.
The board proposed increasing annual paving funding from $50,000 to $75,000 and recommended $247,500 in total capital-reserve appropriations (Article 3). For heavy equipment, Article 6 would withdraw $47,000 from the Heavy Equipment Capital Reserve Fund to buy a new Bobcat Loader with no tax impact.
Article 7 would authorize a five-year lease-purchase for a backhoe with a stated purchase price of $228,500 less a $30,000 trade-in, leaving $198,500 as the base. The first-year payment of $43,800 would be raised; each of three departments would withdraw $14,600 from their respective capital reserve funds to cover the payment so the Selectboard said there would be no direct tax impact. The board reported it received a proposal from Tax Exempt Leasing Inc. at 4.99% for the lease, which it compared to bank loan quotes above 5%.
The water and sewer departments requested $40,000 to replace a SCADA (Supervisory Control And Data Acquisition) system that "completely failed," according to Selectboard commentary. The Selectboard said $20,000 would come from Water Short-Lived Assets and $20,000 from Sewer Short-Lived Assets (Article 8), with no tax impact.
Selectboard members warned that the Main Street construction project, with contractor bids above $6 million, may create cash-flow timing challenges: the town may have to pay contractors and then seek state reimbursement, which could require short-term borrowing and interest — the Selectboard has budgeted $10,000 to cover potential short-term interest costs.
