Town Manager Libby Gibson and Finance Director Brian Turbot told the Advisory Committee of Non‑Voting Taxpayers on Feb. 15 that the town’s proposed replacement of the Our Island Home skilled‑nursing facility at the Sherburne Commons site now carries an estimated construction price of $105,000,000 and would be funded via a debt exclusion subject to town meeting authorization and a subsequent ballot vote.

Why it matters: Gibson and Turbot described the project as the largest capital undertaking the town has proposed. If approved by voters and permanently borrowed on the assumed schedule, debt service for the facility would add materially to the general‑fund contribution toward the nursing facility and to the town’s overall debt profile, producing measurable tax‑rate impacts for property owners.

Gibson summarized the project history and procurement steps that led to the current estimate. She said voters earlier approved design funding and that the construction manager‑at‑risk delivery method is in use: "The construction manager is contracted to deliver the project at a guaranteed maximum price based on an agreed upon set of construction documents and specifications," Gibson said. She noted the town selected the construction manager/contractor and that trade bids remain outstanding, meaning the $105 million figure could change as bids arrive.

Turbot explained how the town treats debt exclusions under Massachusetts law and cautioned that tax‑impact tools are provisional. "A debt exclusion is raised for a particular project... and that is only for the life of that debt. Once the debt is paid off, then the authority to raise that is extinguished upon the repayment of the debt," Turbot said. He also explained the town’s online tax‑rate calculator and warned the output is an estimate that depends on final borrowing amounts, interest rates and assessed values.

Committee members pressed for specifics. A committee member asked whether the finance committee had recommended the project; Gibson said the Capital Program Committee did not recommend it, while the Finance Committee did recommend it but not unanimously and after extensive discussion. On prior spending and design costs, participants gave two figures: one committee member said "a little over $6,000,000" had been spent to date, and Gibson said $4,200,000 had been spent on contracts with an additional roughly $800,000 previously authorized in 2015 for planning, which she said has been largely expended.

On operations, Gibson said a town‑requested five‑year projection shows the facility’s operating shortfall would remain roughly in the $5.6 million to $5.8 million range annually, similar to current levels, with the new facility adding debt service. Turbot said the debt service estimate added on a level‑debt basis would be about $8,500,000 and that, combined with operations, the general fund contribution toward the facility would total roughly $14,500,000 in the modeled year once debt service begins. He said the borrowing was modeled on 25‑year amortization and a conservative 4.5% interest assumption for planning purposes.

Gibson and Turbot also addressed fundraising and governance questions. Gibson said the town generally does not run major fundraising campaigns and that a nonprofit (Friends of Our Island Home) had an advocacy role; she warned that town‑led fundraising can raise legal and campaign‑finance issues. The town is negotiating a lease amendment with Sherburne Commons because the replacement facility would be built on town property adjacent to Sherburne.

Next steps and community process: Gibson and Turbot said trade bids, lease negotiations and final construction pricing will continue through March and April, and that if guaranteed maximum price (GMP) figures change materially the town would seek revised approvals. If the GMP increases after the printed warrant, Turbot said staff would return to the Finance Committee to ask it to reopen or amend its recommendation so updated figures are publicly available ahead of any town meeting vote.

Committee members noted the project’s moral as well as fiscal elements — several speakers described the island’s need for on‑island skilled nursing and urged voters to weigh the human need alongside tax impacts. Turbot said Moody’s (the credit rater) has been briefed but would not give a definitive rating impact in advance; he said any change in rating would depend on final borrowing amounts, market interest rates and timing.

Ending note: Gibson and Turbot encouraged residents to use the town’s tax‑impact calculator to estimate household effects and said staff will publish updated figures as bids and GMPs are finalized.