New Castle Expects to Borrow $18.2M for Downtown, Additional Projects
New Castle officials will draw up the paperwork to borrow as much as $18.2 million to pay for the Chappaqua infrastructure and streetscape project and a series of additional improvements throughout town.
Last week, the Town Board submitted the list of projects with costs to Comptroller Robert Deary, who will forward the list to bond counsel to prepare the required resolutions that would authorize the borrowing.
Deary said the borrowing, of which $13.78 million will be for the ongoing infrastructure and streetscape improvements in downtown Chappaqua, will amount to $18,214,000. He expects the town to be able to borrow before the end of the year or by January.
Supervisor Robert Greenstein said that the expense is in line with what he had anticipated. An overwhelming portion of the cost is needed, he said.
“There’s not too much in there that’s discretionary,” Greenstein said. “There’s $150,000 in there for the Wallace (Auditorium) and a couple hundred (thousand) for the basketball court and playground. It’s stuff that has to get done.”
Of the list of projects and associated costs, only the $1.5 million for heavy equipment purchases, including dump trucks, snowplows and roadside mower for the DPW, and the $143,895 for the Gedney Park playground are final, Deary said.
The breakdown of the expenses for the downtown Chappaqua work lists $11.6 million for the new water and sewer mains and drainage upgrades along with the aesthetic improvements that will be done in 2018 once the new infrastructure is in place. Then there’s $1 million each for Boswell Engineering, which is overseeing the work, and WSP Sells for the design costs, Deary said.
The nearly $1.2 million contingency for the projects bring the cost up to $14.78 million, but the town has already earmarked $1 million from fund balance toward the costs, he said.
Another $1,093,000 of the bonding is for the refurbishment of Minkle Dam, Deary said. That expense would be to repair the dam; however, if the town board decides it prefers to decommission it, that would likely run at least an additional $500,000, he said.
Greenstein said no decision has been made regarding whether the dam will be repaired or demolished.
Officials have earmarked $788,000 for IT infrastructure upgrades, $258,000 toward the basketball court and new playground behind Town Hall and $150,000 for improvements at the Chappaqua Performing Arts Center.
Deary said the replacement of a water tank, that would have run about $2 million, will be put off for two to three years.
“Based on (DPW) Commissioner (Gerry) Moerschell’s recommendations, that was a project that could wait until 2020, at this point at least until 2020,” he said.
Given the current financial climate, Deary has estimated an interest rate of 2.75 percent. Based on that figure, he projects an annual $1,367,000 payment for the first five years. There are no estimates beyond that because the borrowing for different types of projects have varying payback periods, he said. For example, the IT-related expenses are usually repaid in five years while the debt for the downtown work is likely over 20 years.
The town last had a bulk borrowing in 2013, and has usually borrowed every three to four years, Deary said.
Greenstein said the Town Board will hold a public hearing and vote on the resolutions at a future meeting.
Martin has more than 30 years experience covering local news in Westchester and Putnam counties, including a frequent focus on zoning and planning issues. He has been editor-in-chief of The Examiner since its inception in 2007. Read more from Martin’s editor-author bio here. Read Martin’s archived work here: https://www.theexaminernews.com/author/martin-wilbur2007/
