Shall the Town of Hampton vote to raise and appropriate the sum of $1,100,000 for the purpose of replacing the sewer main in Lafayette Road from High Street to Winnacunnet Road then to Towle Avenue. The current main is composed of vitrified clay pipes 10 and 12 inches in size that were installed in 1934 and 1982 and are in failing condition. Various pieces are missing from the pipe making it impossible to properly clean and inspect the pipe or to reline the pipe; therefore, replacement is necessary before complete failure occurs. In the course of replacement, it will be necessary to excavate the eastern side of the highway that will require partial reconstruction of the roadway and patching and repairs; and
Such sum to be raised by the issuance of municipal bonds or notes for a period not to exceed thirty (30) years under and in accordance with the Municipal Finance Act (RSA 33); and
To authorize the Board of Selectmen and the Town Treasurer to issue and negotiate such bonds or notes and to determine the rate of interest thereon in accordance with Municipal Finance Act (RSA 33); and
To authorize the Board of Selectmen to apply for, contract for, accept and expend any Federal, State or other available funds towards the project in accordance with the terms and conditions under which they are received and to borrow in anticipation of the receipt of such funds and or the issuance of such bonds or notes as provided in the Municipal Finance Act (RSA 33); and
To authorize participation in the State Revolving Fund (SRF) (RSA 486:14) established for the purpose, and to authorize the Board of Selectmen to apply for, accept, and expend such monies as they become available from the Federal and State Governments; and
To authorize the Board of Selectmen to implement such cost effective solutions as are presented in the future that they deem to be in the best interests of the Town that may result in a lesser amount of expenditure than is authorized by this warrant article; and
To authorize the Board of Selectmen to take any and all actions necessary to carry out the project in the best interests of the Town of Hampton? (3/5ths vote required)
Fiscal Impact Note (Finance Dept.) Since the above bond would not be issued until later in 2017, the first, estimated, principal/interest payment of $90,775.69 will not occur until 2018. The total of the bond’s principal and interest payments over the 30-year period are estimated to be $1,807,400.69.
What it means: These sewer pipes are clogged with grease that has solidified, and are very old, and are cracked with some sections of pipe missing. Attempting to clean them could result in a complete failure, and may cause sinkholes. This article proposes to replace the line with newer, larger pipe before a complete failure occurs.
Those in favor say: This is long overdue, and should have been dealt with in the 1980s when several sewer bonds were proposed, but not all were put up to a vote. The key phrase is that replacement is necessary before there is a complete failure.
Those opposed say: Can Hampton’s undesignated fund balance be used to pay for this project? (According to the Town Manager, reducing the amount in the undesignated fund balance may negatively impact the Town’s bond rating, making future borrowing more expensive.)
Fiscal Impact: The average Hampton home valued at $404,000 would bear an increased tax cost of $10.91 per year starting in 2018 without consideration for possible offsets. The funding for this Article will impact future budgets, as a 30-year bond is planned.