The Select Board and members of the Finance Committee voted 6–3 on Feb. 11 to support a warrant article to proceed with design and construction of a new Our Island Home skilled‑nursing facility at Sherburne Commons, moving the question to the town meeting ballot and a subsequent debt authorization vote.

The town manager, Libby (Town Manager), and the town finance director, Brian (Finance Director), presented a town pro forma and said the project budget request before the board is for borrowing authorization that the pro forma models at up to about $112 million in total project costs (the article request itself is listed at $105 million) and that the town’s five‑year operating forecast shows an increasing annual operating subsidy. Brian summarized that, under the assumptions in the pro forma, annual net cash shortfalls could rise to roughly $14.5 million by year five and that principal and interest on a 25‑year borrowing for the modeled amount would be on the order of $170 million in total debt service.

Why it matters: Select Board and committee members described the project as a community decision about whether the town will continue to provide local skilled nursing care. Supporters said maintaining an on‑island nursing facility preserves family access and continuity of care in a remote island community; opponents warned that the town would be locking in long‑term, large deficits and higher taxes.

Discussion highlights

- Joe (Finance Committee member) voiced a primary fiscal concern: "we're locking in basically a 14 and a half million dollar negative cash flow," and said voters should understand the full projected subsidy rather than only the amount of the previously approved override. He said the pro forma showed a large, sustained annual deficit that the town would have to cover year after year.

- Don Holgate (Select Board member) said the choice was “moral” and argued the town has a responsibility to provide local care so residents and their families do not have to move off island; Dawn (Select Board member) and other supporters echoed the importance of local access and noted turnover and nonresident visitors connected to each bed.

- John Lemieux (Owner’s Project Manager) explained the procurement process: the project has been put out to bid and the town expects a guaranteed maximum price (GMP) from the contracted construction manager at risk; a GMP will be presented and reconciled with the architect’s and OPM’s independent cost estimates before any final construction contract is awarded.

- Libby (Town Manager) and Brian said the pro forma treats the previously approved $5 million debt exclusion override as revenue in the operating model but that the modeled deficit remains substantial even after that amount is included.

Vote and next steps

The committee vote on the motion to adopt the warrant article passed 6–3 (roll call recorded as: Chris Aye; Jill No; Peter Aye; Steven Aye; Joanna Aye; Jeremy Aye; Joe Nay; Rob Aye; Denise Nay). With the vote the article will go forward to town meeting and the ballot as required for debt exclusion questions; if approved by voters there would be subsequent steps to finalize contracts and proceed to construction, including presentation of a GMP for the construction manager and refinements to the cost estimate.

Implementation and public impact

Town staff cautioned that the pro forma carries several material assumptions — projected patient mix, payor rates, occupancy, and construction costs — that drive the deficit estimate. Brian said the town’s five‑year estimate is inherently uncertain and that prolonging design and refining bids will produce more precise numbers before final borrowing. Supporters pointed to nonfinancial values: local access for residents and families, staff employment, and continuity of long‑term services. Opponents said the scale of the projected subsidy and debt service is a fiscal risk for the town and its taxpayers.

What happens next: The article will appear on the 2025 town meeting warrant and on the ballot as a debt‑exclusion question; if voters approve the debt authorization the town will proceed to finalize the GMP and related contracts and then to construction scheduling.