Fayette residents will vote on both school and municipal budget items when they gather at the Town Meeting 9 a.m. Saturday at Fayette Central School.

Their decisions on whether to bond for road improvements and for the purchase of a new plow vehicle will impact the bottom line for the town.

“What really is going to govern the change in tax rate, in my opinion, is the question of whether or not to borrow money to do two things: refinance an existing bond and take on additional debt to address deficiencies in our road surfaces,” said Town Manager Mark Robinson.

Property owners in Fayette currently pay $15 for each $1,000 of taxable property value.

The proposals are to refinance a 2010 bond that has 3.99 percent interest.

“We’re hoping to secure a much lower interest rate and refinance that existing debt and borrow another $600,000 to invest in roads,” Robinson said, adding that voters will decide “how much debt do we want to take on to deal with our roads and whether we take on debt to buy a new piece of plow equipment.”

The roadwork would be done on Moose Hill, North Lovejoy Pond and Richmond Mills roads and Lovejoy Pond Drive.

Some $384,000 remaining from the 2010 road bond would be refinanced in the new bond which would total $984,000. With interest at 2 percent over the six-year term, the town would pay an estimated $56,500 in interest.

The town budget would be $895,377 if the road bond is approved or $988,466 if the road bond is defeated.

Robinson said it is likely the tax rate will see a small increase, but the increase will be less if the road bond is approved.

“If the road bond is declined by the voters, then the current debt service of $93,089 will need to be added back in to be paid in 2015-16,” Robinson said.

The bond would include some $180,000 to finance a new wheeler plow truck with new plow equipment and a sander as well as a used utility truck with quick switch plow.

That purchase too is up for approval by voters. According to the warrant, a 2004 and a 1995 truck and a sander would be traded in to save on cost.

The school budget is just over $1.6 million, some $15,486 less than the current year. All the articles proposed in the school budget have unanimous support from the school and budget committees as well as selectmen.

The charge to Fayette for the Kennebec County budget is $153,660, which is $6,433 less than the current year.

Betty Adams — 621-5631

[email protected]

Twitter: @betadams

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