New Hampshire board approves $2.5M bond for fire station construction

The Swanzey Select Board convened on March 26, 2025, to discuss critical financial decisions regarding the construction of a new fire station. The meeting focused on the implications of bond financing, specifically the choice between 20-year and 30-year bonds, and the associated costs.

The discussion began with an analysis of the financial impact of extending the bond term. It was noted that opting for a 30-year bond could result in an additional cost of over $700,000 compared to a 20-year bond. The board examined the present value of this income stream, determining that the immediate financial requirement to cover the added debt service would be approximately $367,000 at a 4% interest rate.

A significant point raised was the potential to borrow an additional $500,000 if the longer bond term was chosen, which could provide more flexibility in funding the project. However, concerns about inflation and the time value of money were also discussed, emphasizing the need for careful financial planning.

The board was urged to proceed with the capital program, which includes not only the fire station but also improvements to the town hall and the Department of Public Works (DPW). The importance of maintaining modern equipment for the fire department was highlighted, with a call for timely decisions to avoid delays in project execution.

The meeting concluded with a motion to authorize the board chair to sign the New Hampshire Municipal Bond Bank application for a bond of $2,500,000 to partially fund the fire station construction. The board unanimously approved the motion, setting the stage for upcoming bond hearings and further financial discussions.

Overall, the meeting underscored the board's commitment to advancing essential infrastructure projects while navigating the complexities of municipal financing. The next steps will involve finalizing the bond application and monitoring market conditions to ensure favorable terms for the town.