By Tracy F. Seelye, Express editor
editor@whitmanhansonexpress.com
WHITMAN – The town will not need to place a debt exclusion question for the proposed DPW building project on the Saturday, Nov. 4 special Town Election ballot.
Town Counsel had been waiting on a call from the Commonwealth’s Municipal Finance Bureau on whether or not the town could use sewer rates to fund the portion of the $2.2 million in additional debt on the project.
“They did say today that, yes, we could do that,” Town Administrator Mary Beth Carter said during a remote special meeting on Friday, Sept. 29 with DPW Commission Chair Kevin Cleary, DPW Building Committee Chair Frank Lynam and Assistant Town Administrator Kathleen Keefe.
“We do have to set up a document sort of to memorialize exactly what we’re doing and what percentage we will be using, but that could be done after the special Town Meeting as long as everything goes through for that borrowing,” Carter said. “We don’t need to put a ballot [question] on, which I think, is great news today.”
“That is perfect news, actually,” Select Board Chair Dr. Carl Kowalski said. “The DPW bulding’s progress is not going to be halted and it will allow us to clear the way for a consideration of the school issue at special Town Meeting and at the ballot box, so things don’t have to get complicated, things don’t have to get confusing, and I think that was great work that was begun by you and Justin [Evans, Select Board clerk].”
Kowalski also lauded the great work done at the DPW.
“I think this is a great ending to this week,” he said.
Cleary agreed, thanking the efforts of Carter and Evans as well as Lynam and Dennis Smith for finding the funding sources that allowed the project to be funded without a debt exclusion.
“I will give all of them credit,” he said.
“A lot of work has been done by the people Kevin just mentioned,” Kowalski agreed. “I think we have a lot to be thankful for, and hopefully the special Town Meeting and the ballot [question for Whitman Middle School] will go smoothly.”
Select Board member Shawn Kain asked if the funding arrangement would still require a rate increase to the average ratepayer.
“We looked at all the numbers, and to put it very simply, already the DPW raised sewer rates $1.50 last year, and planned on raising the sewer rates an additional $1.25 this year,” Carter said. “That is just for the sewer force main project, however, I calculate with Ken [Lytel, the town accountant], that we’re going to be able to accomplish the sewer force main and this $2.2 million in debt for an overall cost, which comes in less than the $2.75 increase that was projected and the reason for that is the sewer force main project has a lot of breaks and that came in under budget to start with.”
The town’s use of $2.2 million in ARPA for the sewer project and $1.18 million in ARPA forgiveness on a $12.8 million loan authorization on the sewer force main project, drops the loan authorization to a lower amount and the trust is saying the ARPA amount will not change on the reimbursement factor, she explained.
“So, for many reasons, that debt is coming much lower,” she said. “We’re figuring approximately – and these are rough numbers – about an 80- to 90-cent increase, when it was going to be $1.25 anyway this year.”
Lynam said some of the enterprise funds would be directed toward water and this is a whole project.
“Sewer rates will be coming down in proportion to what’s going up on the water,” he said.
Kain suggested that stabilization funds could be used to address soil contamination issues at the DPW site.
“Anything that we can do to lessen the burden that’s going to be put on the taxpayer with the rate increases or a debt exclusion, I think that could be a potential option that could help, as well,” he said.
Lynam suggested that be looked at when they see what the actual costs are, so it could be an option if needed later.