North Brookfield selectmen approve 20‑year level‑principal financing for fire and highway projects

At the Jan. 20 meeting, the Town of North Brookfield selectmen voted to convert interim borrowing for the town’s recent fire and highway projects into a 20‑year permanent loan using a level‑principal schedule.

The town accountant (Speaker 2) told the board the financial adviser offered multiple options — including a 27‑year level‑debt service option and a 20‑year level‑principal option — and that the permanent financing will be sought in April. Speaker 2 said the adviser used FY26 assessed valuations for impact estimates.

Selectmen members debated the tradeoffs. Speaker 3 summarized the financial case for level principal, saying that paying somewhat more in the early years would result in “we end up paying $415,000 less on interest,” over the life of the loan. Board members noted the biggest household impact occurs when the new payment begins in fiscal 2027: several speakers gave examples, including an initial increase of roughly $70 for an average household in the first year under the faster‑paydown option, tapering to smaller differences in later years. Speaker 6 noted that $70 equates to about $15 per household per quarter.

Opponents of a longer amortization argued that a 27‑year schedule would add nearly $1 million in interest over time and leave the town paying for projects longer than the expected useful life of some upgrades.

Speaker 1 called for a motion to accept the 20‑year level‑principal plan; the motion was made and seconded (movers not recorded on the transcript). The selectmen voted by voice and the motion passed unanimously.

The accountant said the town will pursue permanent financing in April; board members asked staff to continue monitoring operating costs and insurance projections that could affect future budgets.