RUMFORD — Residents at the annual town meeting Monday night decided to defer a vote on a $2 million bond for downtown capital improvements until next week’s referendum.
Polls will be open from 8 a.m. to 8 p.m. Tuesday, June 14, at the Rumford American Legion hall.
The article asks voters to authorize the town to borrow up to $2 million from the Maine Bond Bank for 15 years. The estimated interest rate is 3.5 percent, with interest totaling $560,000.
Resident Jim Windover, who made the motion to defer the vote, said, “There’s not enough people here to vote on a two million dollar bond.”
About 100 people attended the meeting.
Before the vote was taken, it was decided to discuss the bond and the project. That discussion will be shown on local channel WVAC Wednesday afternoon, and will also be shown on YouTube.
The work includes replacement of the sewer and storm drain system under several streets, replacement and/or reconstruction of several streets, and replacement and/or placement of sidewalks in the downtown. Together, with associated tree containment and lighting and other associated improvements, the project is estimated at $4.2 million.
Mia Purcell, program manager for Western Maine Economic Development Council, said the work is vital to the downtown.
Tony Carter, president of Pennacook Falls Investments Ltd., who announced plans last week for a 60-room Hotel near the downtown, said the downtown projects are “so important to Rumford and the River Valley. Please consider this.”
During an earlier meeting with the Finance Committee, Town Manager John Madigan said, “Here’s what I’m thinking. If we borrow $2 million, plan on applying for the $1 million (Community Development Block Grant), which (the application) will be much stronger if we already have preapproval on the money that we’re short. The water district’s portion is going to be about $500,000. That leaves us with about $600,000 that we’d have to come up with, which I think we come up with either out of permanent roads or the sewer account.”
He said the town’s share of the project would be $3.63 million, which includes the $2 million bond and $1 million CDBG grant and $600,000 in town funds. He said the town’s share “would not deplete the money we have available in the different capital funds.”
As far as the impact on taxpayers, Madigan said that between the bond the town is paying off and the proposed bond, it’s almost a wash.
Madigan said he also asked the engineer to come up with a Plan B.
“It encompasses Congress Street and a good portion of Hartford and Exchange streets, but it doesn’t do a whole lot on Canal or River streets. The estimate on that is $1.827 million, with $249,000 being the water district. So the town’s share would be $1.578 million. My recommendation is based upon the whole CDBG. If we get the $1 million grant, we do Plan A, which is the whole project. And we borrow the $2 million.
If we don’t get the CDBG, we start right in next summer with Plan B and at least tackle Congress Street,” he said.
Madigan said the engineering work will be completed this summer. The letter of intent for the CDBG grant would be submitted in December, with a full application put in in January.
The town had earlier submitted a letter of intent for a CDBG grant, but then decided not to do the full application because of the competition for limited funding.
“I think we would have a very strong application. They (the state) know this is a major project so that should score well,” Madigan said.
Construction is slated to begin in the spring of 2017.
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