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Municipal Infrastructure Stewardship Plan 2011-2021 components:
12/18/09
(updated 12/21/09)
Funds lacking for long-term maintenance, replacement of current Town-owned infrastructure
An expanded, comprehensive maintenance plan for town roads, equipment and properties was submitted to the Town Council on Dec. 14, 2009, but the bottom line is discouraging.
"This is not sustainable, it's not sustainable," said Town Manager Michael McGovern.
What is typically referred to as an annual capital improvement plan this year goes beyond the usual format to more of an analysis of everything the town owns, from buildings to equipment to roads. The council voted to acknowledge receipt of the "Municipal Infrastructure Stewardship Plan 2011-2021" and to use it to help plan future budgets.
In short, the plan says that the $400,000 investment in capital improvements that the town has been making annually is not enough to maintain the $30-$40 million worth of capital and infrastructure the town is responsible for.
"This is a situation we're not just in for a year or two, it's been a chronic problem in Cape Elizabeth in terms of the extent to which we are making investments," McGovern said at the Dec. 14 meeting.
"A number of things have to give," he said. The town could "re-engineer" so that certain pieces of equipment are no longer purchased, or it could decrease the amount of property that needs to be maintained, or, simply not take care of the infrastructure, McGovern said. "Or, we look at a gradual increase of the amount we are spending each year on capital improvements."
Even increasing appropriations by $100,000 each year, as suggested in the plan, and adding a suggested $2.5 million bond in 2016, will leave the town $2.4 million short of the $15 million necessary to maintain roadways, drainage and building infrastructure, and to replace current equipment, the report says.
The estimate assumes maintenance and replacement of current capital and does not allow for inflation, or for any new projects such as the Thomas Memorial Library replacement proposal, the Shore Road pathway, Cape Cottage Fire Station replacement, or any other project other than routine road and drainage work.
"Next year alone, our capital needs are $1.4 million more than the amount provided in the current budget," the report says. "Significant changes will need to be made to find a way forward," it says.
Highlights of the report:
- The total proposed for the 10-year period is $15,173,000
- $9.6 million is proposed to be funded with annual appropriations increasing from fiscal 2010’s $400,000 to $450,000 in fiscal 2011 and an increase of $100,000 each year thereafter.
- $2.5 million is proposed to be funded through bonded indebtedness in fiscal 2016.
- $350,000 is proposed to be funded for new rescue units through the rescue fund.
- $250,000 is proposed to be funded with unexpended proceeds from the fiscal 2008 bond.
- $96,000 is for replacement mowers proposed to be funded through the Fort Williams Park Fund.
- $2,379,500 is not funded and reductions will need to be made or other revenue sources obtained.
- Every piece of major equipment is listed and currently has a replacement cost of $7.365 million, of which $5,153,000 is due to be replaced in the next 10 years.
In answer to a question from one of the councilors, McGovern said he knew of no other community that had done as comprehensive an analysis of its infrastructure. "There's a reason they probably don't do it, it's scary when you look at the numbers," McGovern said.
McGovern ended the cover letter portion of the report by saying he looks forward to working with the council, citizens and staff in reviewing priorities for the coming decade.
Components of the report are available on this website. The full report is available in the town manager's office, 320 Ocean House Road, 799-5251.
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