BY CRAIG FREILICH
North Country This Week

POTSDAM -- The village delayed its plan to open bids for work on its East Dam power plant so they could make sure the project wouldn’t put the village over its state constitutional debt limit (CDL).

The village has been preparing for the beginning of work to restart the two electric generators in the East Dam powerhouse, which could be completed in the spring.

Two bids for the work to restore the generators and replace aging electrical controls were under review by the New York Power Authority (NYPA), which will recommend one of them to the village Board of Trustees for their approval.

A bid vote by the board had been tentatively scheduled for Nov. 18, but was postponed so the village could check with financial advisors on the chance the project would put the village over its CDL.

Since then, Village Administrator Greg Thompson said, financial advisors have told the village the resolution the Board of Trustees approved Nov. 4 setting a bonding limit of $4.5 million for the work would not push the village beyond its debt limit. If the CDL is exceeded, the village would lose out on much of what is routine state aid, such as the annual CHIPS roadwork funding, and much more.

“Now that we’re comfortable, the bids will be back on the agenda. We’ll probably see some bids this month,” Thompson said.

At last word there were two bidders on generator gearbox restoration and electrical work. While the gearbox repair is the main aim of the work, engineers added to the project replacement of the electrical controls, which date from the 1970s.

Once a bidder is chosen, the mayor will execute the financing agreement and work can begin.

For counties, cities, towns and villages, the debt limit is a percentage of the five-year average full valuation of taxable property within a municipality.

A report from the state Office of the Comptroller last April warned of a trend that more municipalities in the state were approaching the limit.

Potsdam stood at 86.65% of the limit in 2018.