Elizabethtown street paving project, $2 million worth, goes in front of Town Council on Monday

ELIZABETHTOWN — A presentation on Monday night in a Town Council meeting is expected to be followed by a recommendation to move aggressively to resurface a number of streets in Elizabethtown.

The project’s price tag of $2 million is significant for a town of just over 3,000. But the climate for interest rates and a favorable position with Powell Bill funding have Town Manager Eddie Madden, a recognized leader in finding grants and fiscal resources, believing there is no better time to move forward.

“For a number of years, we’ve done some patchwork to keep them passable, but not much for long-term repair,” said the 13th-year leader who departs for Columbus County at the end of March, “Many have fallen into significant disrepair.”

SEPI, a woman-owned business and recognized by the state as a Historically Underutilized Business according to its website, is a pavement expert company that involves a number of retired workers from the Department of Transportation. Its website lists a number of successful projects, and it’ll be making the presentation on Monday.

“Their plan is a $2 million project, piggybacking off DOT bidding and contracting agreements so that we get better pricing,” Madden said. “If we do a project of that magnitude, we will get better pricing this year.”

A big part of that is the impact of the coronavirus on interest rates for loans.

Madden said the plan is to borrow $2 million from the U.S. Department of Agriculture, where rates are 2.125 percent. The town gets an average of $115,000 annually through Powell Bill funding, and maintains an active account balance for its Powell Bill funds of an estimated $500,000.

Powell Bill is another name for State Street Aid to Municipalities. The fund is named for Junius K. Powell, a former state senator and mayor of Whiteville who was a primary sponsor of the 1951 bill to help the state’s cities with urban road problems. The amount each municipality receives is based on a formula set by the General Assembly, with 75 percent of the funds based on population, and 25 percent based on the number of locally maintained street miles, the state website says.

The debt for the loan would be about $120,000, Madden said. Thus, a net of about $5,000 covers the loan year to year.

“Instead of taking that $115,000 and patching a few streets year to year, I propose a $2 million project and use that to pay the debt,” Madden said. “With interest rates what they are, I will recommend the board move forward with an aggressive payment program.”

The Town Council’s agenda packet for Monday night shows the options. Streets are listed in categories for preservation; patching and preservation; leveling and preservation; mill and overlay; overlay and spot milling; and patching, mill and overlay.

There are roughly 18 miles of streets, broken into 102 segments.

All of the streets for repair are town-owned, meaning they do not have a N.C. or U.S. designation at any point.

SEPI is headquartered in Raleigh, boasts more than 350 employees, and has offices in Wilmington, Charlotte, the South Carolina cities of Charleston and Beaufort, and the Florida cities of Fort Lauderdale and Palmetto.