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Hadley City Hall
staff file photo
HADLEY — Hadley water rates could increase by 10%, with the average household paying a quarterly bill under an initial plan to cover the $9 million cost of replacing water tanks on Mount Warner and Mount Holyoke. You’ll pay about $8 more per cycle.
On Wednesday, a special committee approved a tentative proposal from City Hall’s finance team that would finance the project half with property taxes and half with the reservoir.
Voters at the annual Town Meeting on May 2nd will approve the construction of above-ground glass-fused steel tanks at two locations: one along Mount Warner Road near North Hadley and one along Route 47 in the Hockanum section of town. The project will be considered. This project also relies on the Proposition 2 1/2 debt exclusion vote.
Finance Minister Linda Sanderson has presented a plan that shows there will be no increase in property tax bills. This could be accomplished by replacing the $330,000 annual borrowing for the Callahan Well Treatment Center project, which ends in fiscal year 2027, with an estimated $365,000 annual borrowing for water tank replacement.
The current debt is paid for with $165,000 from property taxes and $165,000 from the water account. In one year of overlapping borrowing for the project, his entire $365,000 contribution was absorbed from his water account, and in subsequent years, $165,000 came from his property taxes and $200,000 came from his water account. It will be covered.
Department of Public Works Director Scott McCarthy said the U.S. Department of Agriculture will provide a low-interest loan with principal forgiveness if the town takes on the project. This is expected to cover 30-40% of the cost.
“You have to have some initial construction costs upfront,” McCarthy said.
If the project moves forward, work is likely to begin in early spring 2025 or September 2025. Because Hadley doesn’t have one water tank at a time, the idea is to do the work during periods of low water demand.
McCarthy said the state Department of Environmental Protection is asking the town to at least renovate and replace the existing tank as a cheaper, long-term solution.
Selectman Molly Keegan said the bottom line is the town couldn’t say no to this project, and that Sanderson from the finance team, Tax Collector Susan Glowacki, Assessor Dan Zdonek, and the town He said he appreciates the efforts of Administrator Carolyn Brennan and others to facilitate payments. taxpayer.
But Keegan said town officials want to move forward with a new Department of Public Works complex on South Middle Street, and construction is slowing even though there are other large capital projects in need of funding. He said there are concerns that this should be done.
Maintaining the town’s water quality is essential, said task force member Joyce Chungro. “Water is something everyone uses,” Chunlo said.
Sanderson said many unknowns and variables remain regarding borrowing costs, including the exact amount the USDA grant will cover. Still, it seems appropriate to use the reservoir to cover the estimated additional borrowing costs of $35,000 per year.
Glowacki said a 10% increase in water rates just to pay off this debt would generate $110,000 a year in revenue, or an $8 increase per billing cycle for the average user. .
“This is what needs to be done, and it’s the easiest way to get it done without imposing more taxes,” Glowacki said.
In other business, the select board approved McCarthy’s plan to remove the deck from a closed bridge in North Hadley known as the Dwyer Bridge on Old River Drive adjacent to Route 47.
“The idea is to take the deck off and put a solid fence on it and secure it properly,” McCarthy said, explaining that this reduces the city’s liability.
Fire Chief Michael Spanknebel supported the project. He observed that despite impending culvert repairs near Route 47, the aging bridge is dangerous and cannot be used by fire engines.
“You wouldn’t be able to drive a vehicle through there right now,” Spanknebel said.
The decision comes after neighboring resident Bill said the town has neglected maintenance for the past 20 years, causing problems on the low-traffic road, such as some vehicles having to make hairpin turns. This was done despite Mr Dwyer’s appeal. “It’s an awkward turn to cross traffic,” Dwyer said.
Contact Scott Merzbach at smerzbach@gazettenet.com.
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