Council approves reappropriation of $8.16 million in leftover school bond proceeds after debate over scope and term

The Gardner City Council on Feb. 18 approved an order to reappropriate $8,161,000 of unspent bond proceeds from the Waterford/Squire Street (new elementary school) borrowing to other capital projects, voting 9–1 in a roll-call after extensive discussion of priorities and debt term.

Councilor Mack, who made the motion and was seconded by Councilor Durnalowicz, told the council the funds would cover a range of capital items listed in the packet, from school improvements to City Hall repairs and other public facilities. The motion requires a two‑thirds majority; the roll-call produced nine yeas and one no and the order passed.

Proponents said using the money now addresses long‑deferred maintenance and avoids higher future costs. “We should be fixing things proactively, not waiting for things to break to a point where they have to be completely replaced,” Councilor Harder said. Supporters noted the funds were borrowed in June 2022 and became available because the school project finished under budget and contingency funds were not fully used.

Opponents, led by Councilor Brooks, said large-scale borrowing for small maintenance items raised policy questions: should the city use 30‑year debt for $50,000 or $80,000 repairs that could be covered from annual budgets or free cash? Brooks also asked whether the new high‑school auditorium funding was replacing money the School Committee had already earmarked and whether the elementary school project was fully closed.

Mayor Nicholson and city staff responded: bond counsel and the city’s engineers identified which capital items qualify for 30‑year reappropriation under state rules, and the mayor said the school project is complete, with two open purchase orders pending final contractor closeout. The mayor explained the allocation process and said the final available balance was close to $8.5 million and that engineers and bond counsel narrowed the list to items with the necessary 30‑year useful life. He said the available funds were reviewed against capital improvement priorities and grant eligibility.

The packet included a list of projects but the council debate showed differing views on scale and prioritization: some councilors stressed school and community‑center projects that would serve many residents, while others asked that smaller items be financed from annual budgets rather than long‑term debt. The mayor also explained that certain projects (for example, paving or equipment) are not eligible for 30‑year debt under state rules and were therefore excluded.

The motion passed (moved by Councilor Mack; seconded by Councilor Durnalowicz) by roll call: 9 yeas, 1 no. The council approved the reappropriation and directed staff to proceed with the projects prioritized in the packet.