Editor’s note: This article is by Keith Whitcomb Jr., of the Bennington Banner, in which it was first published Oct. 29, 2015.
BENNINGTON — The town budget will likely be feeling the pain this year from 2011’s Tropical Storm Irene.
The Select Board voted Monday to allow town administrators to explore options on taking out a bond to cover the remaining debt incurred from work done in the immediate aftermath of the storm, in which Bennington spent about $4 million removing sediment from the Roaring Branch and armoring its banks to prevent more damage.
The town thought the Federal Emergency Management Agency would reimburse it for the expenses, but FEMA refused, kicking off years of appeals. In the end, the town is still on the hook for about $1.34 million.
Town Manager Stuart Hurd said he and Finance Director Melissa Currier have considered obtaining bond financing from the Vermont Bond Bank and People’s United Bank. The Bond Bank offers options for 10-, 15- and 30-year bonds. People’s had said it will go as long as 15 years and will offer a proposal once it sees the town’s annual audit information.
Currier is recommending a 15-year bond as the best option. Any longer and the interest rates go up; any shorter and the payments are higher.
According to a memo given to board members, the annual payment on the bond is estimated at $100,000 plus $40,000 in interest.
“I think this amount is doable, however I don’t think the town can swallow this with a level-funded budget or even a minimal increase as we have done for the past several years in the General, Highway, and Fire funds,” Hurd wrote in the memo. “This was caused by a disaster and unfortunately it is going to cause a pinch for everyone.”
He wrote that to reduce the impact on taxpayers, the board should take a hard look at any capital expenditures for this budget season.
He said interest rates for bonds are low now, and he hopes to bring proposals for the board’s approval in the spring.
