With the town of Bow completing its final payment to the Merrimack Station power plant this year to settle an old tax dispute, the town’s operating budget is set to decrease next year.

The operating budget now stands at $11.4 million, reflecting a 5.2% decrease from the previous year’s $12 million, which led to smooth sailing at the budget hearing on Monday.

After the town overestimated the power plant’s assessed property value, Bow reached a settlement deal with the utility in 2018 to pay $1.4 million spread out over five years. Those payments were included in past operating budgets.

Despite two dozen town warrant articles and a discussion of the proposed school budget, the public hearing at the Bow High School auditorium ended within 35 minutes.

Most of the projects spelled out in warrant articles, such as replacing a drainage culvert on Bow Bog Road, safety improvements at intersections, purchasing a dump truck for the public works department, purchasing a K9 police cruiser and procuring vehicles for the fire department, are all planned capital expenses funded from existing reserve funds that the town has saved over the years.

One of the warrant articles proposes adding $500,000 to the Community Building Capital Reserve Fund to help pay for the future expansion or renovation of the building on Bow Center Road.

If the town budget is approved, it will lower the tax rate to $6.57, a 36-cent decrease, according to figures presented Monday night.

However, on the school side, the tax rate is expected to increase by $1.01, resulting in a new rate of $17.61.

The school operating budget is proposed to increase by about $2 million to $35.7 million, in part due to a bond payment of $1.1 million for the Bow Elementary School renovation.

Other increases include a 4% salary raise and the inclusion of a coordinator of equity and wellness position that was formerly financed by grant funds but is now reliant on the school district.