Montville — The town on Election Day will ask voters to back a 10-year, $10 million plan to overhaul many of the town's severely dilapidated roads.

Ballots on Tuesday, Nov. 6, will include a question letting voters decide whether the town should appropriate the spending "for road improvements and pavement projects" and borrow $10 million to finance the work.

By charter, the town must hold a referendum for "any non-budget expenditure which exceeds 5 percent of the tax levy, the amount the town needs to generate in taxes," according to Finance Director Theresa Hart. The town's general tax levy is about $39.8 million for the 2018-19 fiscal year.

Several town councilors support the move, but some officials say it's not a good time to add to the town's debt.

Town Council Chairman Tom McNally said if the bond measure passes, the town would spend less on annual road maintenance and instead perform a mix of milling and paving and total reconstructions over the next several years.

"This bond is a huge investment into the town's infrastructure," McNally said. "I hope the citizens of Montville support this as it will redo, replace or repair approximately one-third of the roads in town that are badly in need of repair."

Town Council Deputy Chairman Wills Pike said the town had deferred major road repairs "for decades," whether it was to support the school system or to avoid higher taxes.

"This is a responsible way to look ahead," Pike said, noting while it's a substantial amount of money, it's used as necessary "so we're not paying this all at once."

Mayor Ron McDaniel on Monday said he believed it was the wrong time to borrow money. He said he traditionally budgets almost $900,000 for paving and drainage projects — $525,000 in town funds and $325,000 in Town Aid Road grants — and argued that finance committees have slashed it in past years, "which causes us to fall behind."

"I have not bonded anything in the seven years I have proposed budgets," McDaniel added. "Bonding costs are expected to easily eclipse $50,000 and I have no doubt the Federal Reserve will raise rates before we go to market. The real answer is a comprehensive transportation plan that includes the lock box and partners the state and federal funding streams more directly with the municipalities."

Councilor Joe Jaskiewicz said he believed the bonding for the long-term road projects was a good idea.

"We're talking about so many roads fixed down to the base," he said Monday. "That hasn't been done a lot over the years. But ultimately, I'm glad it's in the hands of the voters and the people have a say."

Councilor Billy Caron said he's not against bonding in general, but argued the town should be lowering its debt, not adding to it, especially given the state's continued financial crisis.

He cited the town's existing $30-million plus in outstanding bonds, and said even if the bonding "only increases taxes by a small amount, tell that to people on fixed incomes."

Hart said the town has $31.7 million in outstanding bonds for previous projects, including the public safety center and several school projects.

According to an explanatory document released by the town, the bonding's estimated potential impact on property taxes kicks in most significantly between 2023 and 2029. Hart said that period would likely see both interest and principal payments on multiple bonds for road projects, with officials over the next decade planning to borrow between $2 million and $4 million each of the next few years to cover repairs scheduled by Public Works Director Donald Bourdeau.

While added revenues, spending or market conditions could shift property tax rates up or down, the town estimated that 2023 — the costliest year during the 10-year project — could see a homeowner pay about $118 in added taxes on a home is assessed at the median of $123,720. The estimated tax impact of the bond drops every year thereafter.

The estimates assume the town issues 10-year bonds for a total of $10 million in three installments in 2019, 2021 and 2023 at an interest rate of 3 percent.

Bourdeau has already been working on a list of dilapidated roads and will conduct more surveys and engineering work in advance of repairs if the referendum passes.

b.kail@theday.com