Wilbraham selectmen authorize borrowing to pay tornado cleanup costs

So far the town has run up $3.5 million in bills for cleanup of the tornado.

File photo by John Suchocki / The RepublicanDamage to homes and trees in Wilbraham is seen in this aerial photo shot the day after three tornadoes hit Western and Central Massachusetts June 1.

WILBRAHAM ##dask The Board of Selectmen has authorized Town Treasurer Thomas P. Sullivan to borrow $3.5 million to pay tornado cleanup costs.

So far the town has bills totaling $3.5 million for cleanup of the June 1 tornado. Town officials expect at least 75 percent of the costs to be reimbursed by the Federal Emergency Management Agency.

“So far, we have adequate cash flow to manage the bills,” Sullivan said. He said the authorization of borrowing was needed so bills can be paid while the town waits for FEMA reimbursement.

Department of Public Works Director Edmond Miga told selectmen it will cost another $1 million to clean up drainage areas in town of downed trees and stumps to prevent future flooding.

Town Administrator Robert A. Weitz told the Board of Selectmen the town could have $1 million in outstanding bills after all state and federal reimbursement is exhausted. Sullivan said it is not clear yet the extent of state reimbursement of cleanup costs from the tornado.

The town has $1.5 million in its stabilization account.

If the town is left with $1 million in outstanding bills from the tornado it could decide to pay some from the stabilization account and to borrow to pay the rest, Sullivan said.

There is a chance the town will know the full extent of its cleanup costs and the state and federal reimbursement by July 1, 2012, the beginning of the next fiscal year, Sullivan said.