Jaffrey seeks new funding sources for cost overruns at planned water treatment plant

  • Town of Jaffrey Staff photo by Nicholas Handy

Monadnock Ledger-Transcript
Published: 1/12/2022 11:45:18 AM
Modified: 1/12/2022 11:44:26 AM

Jaffrey is seeking new sources of funding for the construction of a water treatment plant, after the anticipated cost came in several million dollars over the original budget.

At Jaffrey’s 2020 Town Meeting, voters approved a $12.6 million project to develop the site known as Cold Stone Springs, in a partnership with Peterborough. The site, located on the Sharon-Jaffrey town line, has three wells already dug and rated as drinking water. This summer, the towns planned to start construction on a water treatment plant and delivery system to tie the wells into both town’s water systems.

Jaffrey Town Manager Jon Frederick said Tuesday that those costs anticipated in the spring of 2020 have increased about $4.3 million since the water treatment plant has undergone the design phase.

“The new total cost of the project is anticipated to by $16.9 million,” he said. 

Originally, Peterborough was slated to pay $7.1 million of the cost, and Jaffrey $5.5 million. The new anticipated costs are $9.88 million for Peterborough and $7.02 million for Jaffrey. Both towns are relying heavily on federal and state grants to cover a large portion of the costs.

Frederick said the town already secured a number of loans and grants for the original price of Jaffrey’s portion of the project, and has now applied for others to make up the difference. The town has applied for a $2.62 million grant from the U.S. Economic Development Administration, as well as a $1.69 million grant from the state’s Drinking Water and Groundwater Trust Fund.

Frederick said the town only needs to secure one of the grants to be able to move forward. Jaffrey has already secured $5.3 million in grants and loan forgiveness programs from various other sources, including a Community Development Block Grant, the Northern Borders Regional Commission, the state’s Drinking Water and Groundwater Trust Fund, the state revolving fund and grant funds from the American Rescue Plan Act.

The plan remains to start construction on the site this year, Frederick said.

“It remains scheduled to start this year, and slated for completion in 2023, and that timeline still holds,” Frederick said. 

The Jaffrey Select Board has scheduled a public hearing for all bond and loan requests planned for this year’s Town Meeting warrant, which will include additional funding for the water treatment plant project, for Jan. 24. 

Ashley Saari can be reached at 924-7172 ext. 244 or asaari@ledgertranscript.com. She’s on Twitter @AshleySaariMLT. 

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