Explanation of Increases in Highway Department Budget – FY08

The Highway Department is requesting support for the municipal override to help cover significant increases in the cost of diesel fuel, paving materials, and road salt, and to provide a replacement for the current 1992 one-ton truck, which currently costs approximately $6,000 to maintain due to its age. Also, the budget for winter road maintenance has been under budgeted for the past several years, with the expectation that extra funding would come from Free Cash, if needed. The Finance Committee has recommended that the line item for winter road maintenance be increased to a level that more closely relates to actual expenditures. The following information is intended to provide additional background on each of these areas.

Cost Increases:

Over the past number of years, we have taken numerous steps to control costs in the areas of Road and Equipment Maintenance. Despite cost increases, funding in these areas has remained flat. When it comes to items such as line painting and brush cutting, we have been forced to reduce the amount of work being performed.

Funding associated with road paving has declined considerably over the past several years to $11,000. Most of the funds now come from the state under Chapter 90. These state funds are intended to supplement town funding, not provide the only source of paving funds.

The cost of materials has increased significantly. Three prime examples are diesel fuel, bituminous concrete (pavement), and road salt. The following provides some background related to the cost increases experienced over the past 4 years.

Note: Diesel fuel price per gallon obtained from the Energy Information Administration for the Northeast.
Bituminous Concrete (pavement) and salt prices based on bid results.

Need for new Small Truck:

The current truck is a 1992 One Ton truck that has provided over 15 years of service. Maintenance costs to keep this vehicle operational continue to escalate as it continues to age. Due to the age and condition of the truck, we are unable to utilize it for plowing.

The proposed truck is a similar type of truck, but will have a larger engine and body for durability purposes. The availability of this vehicle will minimize the need to use the large trucks, except for plowing. This smaller vehicle is more economical to operate.

Winter Road Maintenance:

With the unpredictability of New England winters, plowing and salt costs have always been a difficult area for budgeting. Cost increases previously discussed have continued to make this even more difficult. Through the use of Ice Ban, we are working to reduce the amount of materials utilized to treat the roads, while maintaining safe conditions. During the current year we reduced salt use by approximately 25%. While this year did not seem like a difficult winter as it relates to snow accumulation, we were called out to treat the roads 30 times during the season. This is slightly more than the number of times we were called out the previous year. We have reduced the amount of sand use significantly.

The Board of Road Commissioners has actively worked to provide the highest level of benefit to the town with available resources. Being forced to reduce the current funding level would require decisions which could create safety issues for our residents.