Budget committee recommends up to $2.2 million bond to rebuild Ashland electric substation

The Ashland Budget Committee voted to recommend a ballot measure for a municipal bond not to exceed $2,200,000 to rebuild the town’s electric substation after an equipment failure.

Chair Campbell Hughes opened the bond hearing, described materials and sample bills posted on the town website and said the committee’s planning estimate shows a roughly $3.75 monthly increase for an average household using about 750 kilowatt-hours. "We are looking to rebuild the entire substation," Hughes said, adding that the replacement will include a new grounding system while three existing transformers that tested as sound will be retained.

The presenter for the electric department told the committee the project has been designed and that the lowest bid submitted was about $1.5 million; staff marked the request at $1.5–$1.8 million as the working estimate and proposed the $2.2 million cap to allow for contingencies. The presenter cautioned that contractors sometimes reprice refined parts and recommended including a contingency (discussed in the hearing as roughly 10% but noted by the contractor as possibly 15–20%).

Committee members and a resident questioned service impacts during the work. The presenter said outages would be periodic and brief during transfers, and the town will provide advance notice when planned switching is required. "625 text messages were sent out" during a recent outage, the chair said, noting the town's new notification system and urging residents to sign up on the town website.

Members pressed staff on financing details: whether the emergency repair already paid or anticipated insurance and grant proceeds would alter bond needs, and how the bond would affect future rate increases. The presenter said the town has submitted an insurance claim for damaged components and will pursue grants, but outside funders have been "pessimistic" about grants covering pure repair/maintenance without a tied development plan. When asked how long the rebuilt substation should last, the presenter estimated "40, 50 years."

The committee discussed the electric fund's current cash position and budget context. Members noted the electric operating budget cited in the hearing is roughly $3 million with about $600,000 in cash on hand (figures discussed during committee questioning); staff said they expect to cover emergency repairs with available receipts and insurance proceeds where possible but recommended the bond to avoid leaving critical work undone.

Chair Hughes moved the budget committee recommend the proposed bond article; the motion was seconded and approved by voice vote. The chair closed the bond hearing, said the school budget will be discussed at the next meeting, and adjourned the committee at 06:27.

The committee did not set a final bond interest rate — the chair said rates will be negotiated with the municipal bond authority and the estimate used in public materials was intentionally conservative. Staff agreed to post a layman's diagram and the technical drawings online and to share bid documents with committee members.