Brattleboro Water Projects to Seek Larger Loan as Costs Rise

The combined estimate for the two projects is about $2.3 million.

The town is moving ahead with Phase 1 water system upgrades, but higher construction prices have pushed the financing package well beyond its original size.

The Select Board has approved a contract with Zaluzny Excavating Inc. for $1,880,990 to rebuild the Signal Hill Pump Station. At the same meeting, members backed an amendment to an existing Drinking Water State Revolving Fund loan that would raise the total borrowing from $1.98 million to $3.17 million so the town can finish the full slate of work.

Town voters had already authorized the financing in 2023 through Representative Town Meeting. The plan calls for replacing the Signal Hill Pump Station, adding a backup generator at the Black Mountain Pump Station and upgrading the undersized water main on Bridge and Depot streets.

According to town staff, the project was originally expected to cost $1.855 million when the loan commitment was first secured. That financing came with a 40-year repayment schedule, 0 percent interest and 50 percent principal forgiveness. Officials now say delays in state review, along with widespread increases in construction costs, have made the earlier estimate outdated.

The Signal Hill job drew a single responsive bid, while the generator project at Black Mountain received no bids during the formal bidding process. Staff later obtained a proposal from a local electrical contractor for $181,135.

DPW Director Dan Tyler said the town cannot negotiate with that contractor until the work is formally awarded, though he expects some savings may still be realized through change orders.

With engineering, permitting, construction oversight and contingency costs included, the combined estimate for the two projects is about $2.3 million. Town documents say both items were identified as problems during the state sanitary survey of Brattleboro’s water system.

Officials say the Signal Hill replacement will improve an aging and undersized facility, increase fire flow, add standby power and update system controls. The Black Mountain generator is intended to keep water service running during outages and resolve a long-standing regulatory issue.

The Bridge and Depot streets water main was not listed as a sanitary survey deficiency, but town staff said it remains an important part of the original Phase 1 work. They noted that the line has broken several times and does not provide enough capacity for fire protection.

By folding that work into the loan now, town officials said Brattleboro can take advantage of one of the most favorable financing programs available. The amendment would add about $595,000 to the town’s repayment obligation if the 50 percent principal forgiveness remains in place, while still keeping the total within the $2 million bond authority approved by voters.

Tyler said the town does not expect an immediate increase in utility rates to cover the revised borrowing, and staff said the added debt service can be built into long-range utility planning over time.