Legal Update

The Town has two lawsuits that challenge the undergrounding project’s 1.) financing and 2.) ballot language. The Town’s positon is the ballot language was clear in its intent to bury overhead utility lines through special assessment and cannot be challenged since the referendum was already passed by the voters.

The financing of undergrounding is through general obligation bonds and is paid for by a special assessment. This ensures property owners pay in accordance to the benefits the property receives from the utility burial, based on safety, aesthetics and service reliability. Through the use of general obligation bonds, the Town was able to secure lower interests and save millions of dollars in financing.

This assessment methodology has been used by other communities that have undergrounded, is an equitable method of cost allocation, and has been approved by the courts.