Discussion at Tuesday night’s Select Board and Budget Committee public hearing on the Peterborough fire station and municipal campus bond proposals centered on the pros and cons of using $1.1 million of the fund balance to lower the cost of the total amount the town would bond. 

Town Administrator Nicole MacStay reported that the total estimated cost of the project is $12,150,863, and that the fund balance available to offset the amount to be borrowed is $1.1 million. After Finance Director Lilli Gilligan and elected Treasurer Mandy Sliver both spoke in favor of using the fund balance, Select Board member Bill Taylor expressed concerns, citing the town’s potential need to use the fund given fiscal emergencies in the past.

“I have a really big concern about using the full $1.1 million, and saying ‘really big’ doesn’t even scratch the surface. This past fall, we used $1.4 million to buy down our tax rate so there was only a modest increase,” Taylor said. “I know we will maybe have $600,000 more by the end if this fiscal year, but in the fall, if we do this (use the fund balance), not only would we be eating that $1.4 million that we used this year, as an increase, but with all the additional increases for the town and the school. If we don’t have a bunch of money to offset the tax rate increases, there is going to be a really big tax rate increase that is going to hurt the most-vulnerable of our population: renters, people on fixed income, people who are barely scraping by. That is going to be a big increase.”

Select Board Chairman Tyler Ward responded that he felt using the $1.1 million to offset the bond amount was prudent. 

“This is how we plan for the future,” Ward said. 

Budget Committee member Andrew Osterman agreed, stating that Peterborough has kicked the can down the road for far too long.

“If you’re not comfortable spending the money, then you shouldn’t vote for this bond. We can’t make future generations pay for this fire station,” Osterman said. 

Budget Committee member Leslie Lewis agreed with Taylor, saying that it was worth considering not using the fund balance. 

“It’s a big deal to take away the safety net that we have used historically to fix the tax rate,” Lewis said. “It makes you a little nervous.”

Sliver said that she had run the idea of using the fund balance by other treasurers and finance officials, and that they all felt it was financially sound. Taylor clarified  that while he disagreed with using the fund balance to offset the bond, he would not vote against the overall fire station bond proposal. 

“I’m not going tell the voters I voted this down after working on this project for all these years,” Taylor said. “We are looking at spending $1.1 million now to save $434,000 over 20 years. I don’t think that justifies getting rid if $1.1 million today.”

Ward said Taylor’s objection was noted and that his point was well taken. 

The Select Board and Budget Committee voted to accept all proposed warrant articles reviewed at the hearing, including the municipal campus bond. 

The next public design forum for the proposed fire station and municipal campus, located on Elm Street, adjacent to Peterborough Community Center, is scheduled for March 27 at 6 p.m. in the 1833 Room at Peterborough Town Library.