Select Board previews $15M capital plan and proposal to seed a capital stabilization fund

Finance staff outlined a new structure for the town’s capital planning on Jan. 13: a five‑year capital budget, a required five‑year capital plan and a new 10‑year long-range capital outlook. The updated approach adds a catalog of “capital needs” (projects planned to be grant-funded) to improve transparency and guide grant applications and scheduling.

Christine (Finance) told the Select Board the total capital request for Fiscal Year 2027 is “just over $15,000,000,” and the staff proposal shows how individual projects would be funded across enterprise fund retained earnings, grants, free cash and borrowing. She recommended transferring about $250,000 of excess free cash into a capital stabilization fund so the town can begin saving for multi‑million-dollar projects and reduce future borrowing.

Under current projections staff estimated under $9 million in borrowing related to school projects in FY27; the plan includes the community center and library projects later in the forecast and assumes the capital improvement fund (taxes set aside by town meeting from a Pulte developer project) will begin to accrue larger balances around FY35, at which point the capital stabilization fund could be phased out.

Board members broadly praised the transparency of the new schedule and recommended further review with the Finance Advisory Committee. One board member said, “Anything we can do to reduce our borrowing will help save us in the long run.” The board asked staff to finalize policy edits and run the proposal through the advisory process before placing a warrant article to move free cash into the stabilization fund.

If voters approve the proposed transfer at Town Meeting, the change would be governed by the town’s fiscal policies and Town Meeting motions that move money into or out of the stabilization fund.