06/15/2026
Good morning, a few updates. We are in the process of and being in the process of having some storm drain work done, as well as talking with some different folks about misc. Street work like I have told many of you as we seek to find insured contractors to do the work.
Since I was asked about paving, new drains etc. I have also been, and I am working on cost, bonds, and what it might do to local property taxes, since this work would need to be borrowed for and bonded and would for the best result be attached to property taxes as a local tax. I have been looking at researching costs for some time, but up to now, the reality has been more than we could afford. The street process, storm drains, curbs and more require grinding down streets and, at that same point, redoing storm drains so we do not have to go back and tear up what you just did. In our early numbers, on 2.4 miles of streets in town we are in the neighborhood of about 2 million dollars. Drains, since there would be less mileage or footage involved, would be around $4 million dollars or $1100 a foot material and labor for about 4000 ln ft. but might require more. These are all based on an estimated current cost standard, not exact. In many cases, for federal help in these times, it would probably need to be through INDOT but not 100% sure on the pass-through.
In speaking with our local CDC, the work could probably be done that way. Now not knowing at this point in time what we could get or not get, let's work off the 6 million figures stand alone.
I would think that the town's credit rating would be good to get if we could a 4% bond rate.
In 20 years, the payback would be 8.83 million or a payment of $441 thousand a year added to property taxes locally. Now some grant money and other things could maybe (and maybe be the operative word) get and this could reduce those numbers as far as the borrowing/bonding part. As I have been told, there is no free lunch, just a reduced one.
The next question would be, would local residents want to see this added to their property taxes? Most I have spoken to say no.
So there lies the problem. To borrow money or to bond money does require a repayment.
So, we keep working on affordable solutions to our problems. This is the thing we have been working on for many years and keep working on. There are many other pieces that also come into play in this. We feel the numbers are modest and conservative. To leverage your position without a good repayment solution would be reckless. All figures are approximate and not exact at this point due to inflation and other factors that are ever-changing.
Town Council.
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