The Community Preservation Committee last Wednesday postponed until next month a decision on the Municipal Building Committee's application for a 20-year, $1 million bond to partially pay for what is expected to be a $3 to 3.4 million Town Hall renovation project.
Although a bond of that size would commit a significant portion of the Community Preservation Fund's annual receipts for 20 years, the idea is not without precedent. The Municipal Building Committee's application lists several towns, including Chelmsford, Westford, and Sturbridge, that used Community Preservation Act funds for Town Hall restorations.
According to committee vice-chair Debbie Ricci, cost to the taxpayer would be less than through a town excluded-debt bond. Member Michelle Catalina agreed, adding that if the renovation is the town's highest historic preservation priority, it makes sense to take it from already collected funds.
Projections provided by Ricci estimated the annual cost of a $1 million bond at 4.5 percent interest at $95,000 the first year and declining to about $55,000 by the twentieth year, because the principal would be paid off first.
The committee estimated the 1.1 percent town fiscal year 2013 tax surcharge would bring in $190,000, with an estimated 25 percent state match.
Including its existing balance, the expected Community Preservation Fund total is about $455,000. The Massachusetts Community Preservation Act allows towns to use up to 75 percent of the surcharge-generated funds on bonds, but none of the state matching funds. The act also requires annual awards for open space, historic preservation, and affordable housing. A minimum of 10 percent of a fund's collections must go to each purpose.
But, asked member Deb Thomson, would the building committee's request fit the Community Preservation philosophy? Parks and Recreation representative John Lee suggested the committee consider a variation of the funding request: a lower bond amount or combining a bond with a grant from the existing preservation fund reserves.
"I need to sit with this," he said.
The meeting was long, the hour was late, and committee members agreed to take the matter up again in February.
Earlier in the evening, the committee agreed to recommend the other five funding requests, which will appear as warrant articles for the April 28 Annual Town Meeting:
- $50,000 to the Conservation Commission for invasive species eradication and control,
- $2,500 to repair the Congregational Church historic columns,
- $11,500 to the Cemetery Commission to remove pines in the Shaker Burial Ground,
- $24,000 for restoration and preservation of Town Hall documents, and
- $34,395 to the Municipal Affordable Housing Trust.
The housing trust is seeking $11,600 to cover two mortgage payments and taxes for the mortgage jointly held on The Inn and Great Elms. The $34,395 recommended amount includes the required annual minimum for affordable housing.
Lee questioned why the housing trust was applying for the mortgage money if it already had $300,000 in reserve.
"Having a plan for what you're going to do with [the reserve] would be a more persuasive argument," said Catalina, which led to a further discussion about the loss of The Inn and, according to Rhonda Sprague, eventually Great Elms.
"Harvard will be asked for a plan to replace the lost units," Sprague said. "They have to be affordable family units."
"Our funds could have been used to supplement rents – to subsidize rents," Affordable Housing Trust representative Chris Ready said.
Sprague agreed, "That's a less expensive way to help people."
"I do want to support the request," Catalina said. "I just hope the trust can make some progress and deal with this proactively."