Town of Peru’s Debt Burden to Increase and Summer Paving Plans Outlined
By John T. Ryan
Unplanned expenses, debt and concern about cost estimates were the primary topics at the April 14th Peru Town Board meeting. In the not too distant future, the Town of Peru will be incurring in excess of $1,000,000 in debt. Supervisor Peter Glushko said he would research borrowing costs prior to the next Board meeting. Bonds are typically paid over a 25, 30 or 35 year period. Current interest rates range between 3 and 4%.
General Town Bonds (Debt)
Walking Trail – $210,400
Town Hall Entrance Steps – $95,800
Total General Bonds – $306,200
Highway Department Bonds (Debt)
Fuller Road Culvert Repairs – $301,225
Highway Garage Roof (Estimated) – $150,000
Hurricane Irene Related Road Repairs – $330,336
Total Highway Department – $781,561
Overall Total Bonding – $1,087,761
The Town Hall entrance steps upgrade project will cost $31,000 more than anticipated. The Town Board initially placed a $60,000 limit on the project and asked the Town’s contract engineer to design a project within that limit. When the bids were opened on April 19th, Northern Snow and Dirt of Plattsburgh submitted the low bid of $91,000. At this meeting the Board decided that pavers would enhance the Town Hall’s appearance more than concrete steps bringing the total project cost to $95,800. Engineers said their $60,000 estimate was based on an understanding that the Town would demolish the existing steps; however, several weeks ago counselors decided to not use Town personnel citing concerns about buried utilities, liability and other matters.
The Heyworth/Mason Park to Sullivan Park Walking Trail will cost the Town $210,400. The total project cost is $860,000 including engineering and inspection. Federal and NYS grants total $649,600 and the Town will bond for $210,400. Depending on when the cost estimates were made, the Walking Trail cost exceeded estimates by between $100,000 and $200,000.
The Highway Department will be incurring debt for its garage roof repairs, Fuller Road culvert repairs and Hurricane Irene road repairs that were not reimbursed by the Federal Emergency Management Agency (FEMA).
While the garage roof bid specifications have not been finalized, the cost is estimated at between $150,000 and $200,000. Engineers determined that wood beams, rather than steel beams would be sufficient, significantly reducing the cost from initial estimates. Counselor Kregg Bruno, a contractor (not an engineer) by trade, had consistently stated that wood beams would be sufficient.
The Fuller Road culvert replacement project will result in a debt of $301,000. Initial estimates for that project totaled $250,000. Modifications required to satisfy U.S. Fish and Wildlife regulations were a factor in that cost increase.
Counselor Jim Douglas expressed concern about the accuracy of cost estimates saying any future estimates must be more accurate. Counselor Kregg Bruno has often expressed frustration about engineers not responding to his inquiries.
In other actions:
On a positive note, Highway Superintendent Michael Farrell informed the Board that an additional $20,000 from New York State C.H.I.P.S. monies would enable his staff to pave an extra quarter-mile of highway this summer. Unfortunately, the escalating cost of asphalt will limit paving to approximately 2.5 highway miles, down from the desired 4 or 5 miles. The Highway Department’s budget has been severely affected by the cold, stormy winter and a significant increase in the cost of asphalt. Farrell said the old section of the Sullivan Road would have top priority followed by Buttonwood and Woodland Drives in the hamlet.
The Town Board is seeking volunteers for a Main Street Planning Committee. The Town recently received a 100% funded grant to develop a plan for Main Street enhancements. Supervisor Peter Glushko emphasized that plan would not be implemented until the Town has the necessary funds in hand. The plan could be shelved indefinitely pending funding availability.
The Board adjourned for a 25-minute Executive Session to discuss an employee’s work history.
Posted: April 22nd, 2014 under General News, Peru News, Peru/Regional History, Town Board News.
Comment from JANET ALEXANDER
Time April 23, 2014 at 2:08 pm
This is totally unacceptable. Where does the expense end? Could not some of costs be put off to next year??
There is great need for paving of Woodland Drive so don’t consider putting that off.