An Aroostook County town is recommending voters approve a referendum to secure a $750,000 bond for the reconstruction of an aging, weather-beaten road.
On May 6, Houlton voters will decide whether the town can proceed with the much-needed $894,450 Reservoir Hill Road project.
In March, the Houlton Board of Budget Review voted in favor of bond financing for the project that extends from the base at Hillview Avenue to the top of Reservoir Hill.
Although many of the town’s roadways are pocked with potholes, there are also extensive drainage problems on Reservoir Hill, often causing flooding in the area during storms.
Houlton has fallen behind on ongoing road maintenance, primarily due to repair costs that have risen over time without a corresponding increase in the roads budget, according to Town Manager Cameron Clark. For the past several years, the town’s director of public works has shared with officials his concerns about the road’s deteriorating condition.
But because of budgetary constraints, the town could not support a nearly $1 million hit without raising taxes.
“Our public works director and his crew do an excellent job with the resources allocated to them, but ultimately, this is a funding issue,” Clark said. “That’s why we’ve chosen to bond the Reservoir Hill Road project and contract it out to a private company to complete this extensive work.”
This year, the town budgeted $150,000 for the nearly $900,000 project, while the bond would cover the rest.
“Undertaking a large project like this through borrowed funds allows for repayment over time, spreading out the cost and reducing the immediate financial impact on taxpayers,” Clark said. “Without borrowing, the project would need to be fully funded within a single fiscal year, resulting in a higher mil rate for all taxpayers.”
If voters approve the bond issue, the Reservoir Hill Road project can be completed this summer without hurting taxpayers, he added.
The project will completely rebuild the road and also add new features designed by Bangor-based Sewell Engineering, including deeper ditches and culverts to more effectively manage the stormwater.
The project includes the excavation of existing materials; installation of ditches, culverts, and associated riprap; installation of gravel subbase and base materials; and placement of bituminous pavement.
“It’s also important to note that Houlton Water Company is using this opportunity to update their infrastructure under the road so there will be no need to dig up the new road anytime soon,” Clark said.
During Monday’s Town Council meeting, councilors approved the referendum question: Shall the town be authorized to commit and borrow up to $750,000 to reconstruct Reservoir Hill Road?
Separate from the May 6 vote, Clark has also proposed securing a $744,450 bond anticipation note that will provide the funds to move forward with the project this summer. When the municipal bond is secured in the fall, the town can repay the note, Clark said.
“This infrastructure project is critical for the town’s long-term development and economic vitality, and the [budget review] board demonstrated strong support for moving forward with financing in a responsible manner,” said Johanna Johnston, executive director of the Southern Aroostook Development Corp.
According to Clark, the total estimated lifetime cost of the bond would be $924,682, representing $750,000 in principal and $174,682 in interest, assuming interest at 5 percent over 10 years.
The Houlton firm Brown Construction, Inc. was the low bidder out of two bids.
The municipal referendum election is scheduled for May 6, 2025 at the Gentle Memorial Building, 128 Main St. Polls will be open from 7 a.m. to 8 p.m.
Absentee ballots are also available by calling the town office.
