Bow residents will finally finish paying off one bonded project, only to pick up another bond payment next fiscal year.
The Bow budget committee is currently looking at a 2017-18 operating budget of $10.3 million, about $544,900 higher than this year’s adopted budget. It represents a 5.6 percent increase in year over year spending, according to town documents.
One of the biggest drivers of the increase is due to scheduled payments for the town’s $3.5 million public safety building currently under construction. The first payment on the 15-year bond is slated to be $384,730.
At the same time, residents will no longer be paying for the Bow High School project, which was completed in 1997 and paid for by a 20-year bond, according to school district finance manager Dwanye Ford. It was officially paid off in August. The project’s overall cost was $25.9 million, with $16.2 million in principle and $9.4 million in interest. However, the district also received 30 percent in state building aid each year to offset the bond payments.
Other major factors in the proposed increase include a projected $91,104 hike in town employee health insurance, an increase of 15 percent from this year’s budget. The town switched to a deductible plan this year, and covers about 90 percent of the deductible for employees. The proposal also accounts for switching four part-time positions – two in public works, one carpenter and two administrative assistants – to full-time roles.
Warrant articles are set to total $2.67 million, with the biggest chunk going toward bridges and highway maintenance. The biggest project would be the replacement of the Birchdale Road Bridge, closed since July 2015, at $773,900. General maintenance for road reconstruction and pavement would be $430,000, for a total of $1.3 million in investments. Other-big ticket items include a new salt storage shed, projected to cost $440,000, and a new $210,000 dump truck.
Stack said the budget will be offset by $250,000 from the fund balance, as well as $5.3 million in revenues, $176,250 in war service credits, and $250,000 in overlay.
FY 2015-16 $10,026,016
FY 2016-17 $9,773,576
Prop FY 2017-2018 $10,318,476
(Caitlin Andrews can be reached at 369-3309, candrews@cmonitor.com or on Twitter at @ActualCAndrews.)