The Northborough Financial Planning Committee on Tuesday discussed plans to borrow for a new fire station and reviewed the town's capital priorities, funding sources and potential tax impacts.

Jason Little, a staff member presenting the finance update, told the committee that Town Meeting approved the fire station appropriation and that the town is preparing to issue debt for the project. “We are going to be, going out and borrow for this project soon,” Little said. He described a schedule from the town’s financial advisers that includes a ratings call in April and a competitive sale planned for April 22, when the actual interest rate should be known if the timetable holds.

The presentation estimated the principal being requested “somewhere in the neighborhood of $35,000,000,” Little said. He added that a cash‑flow analysis prepared by the owner’s project manager showed a fast spend-down once construction starts — “something like $4,000,000 a month” — and that the $35 million figure is intended to cover early outlays rather than require repeated short‑term borrowing.

Why it matters: borrowing for the fire station will increase the town’s debt service and factor into multi‑year budget projections. Committee members asked whether the interest‑rate assumptions remain valid amid market movement; Little said the town’s financial adviser, Hilltop, had described the previous estimate as conservative.

Committee members also reviewed other capital planning items and funding sources. Little reported that the town met an American Rescue Plan Act (ARPA) obligation deadline of Dec. 31, 2024 to obligate funds through actions of the Select Board and that an ARPA allocations report is in the meeting packet. He said free cash had been certified and that his memo to the Select Board in November explained that free cash figure and proposed uses for the upcoming budget process.

That free cash figure was discussed in more detail: Little said the town has discussed using $4,600,000 of certified free cash and described typical annual uses (up to $500,000 for underwriting the budget per policy, approximately $175,000 for the appropriations reserve, and $200,000 to a special stabilization fund intended to smooth the operating cost of eight newly hired firefighters). That allocation would leave roughly $2,800,000 toward the capital plan, Little said.

Committee members identified several larger capital items appearing in the 10‑year projection. A downtown revitalization item (about $2.5 million) and a planner‑driven master‑plan project were discussed; Little said those requests may be contingent on grant funding. The packet also included an architect’s feasibility number for a town office building behind White Cliffs, which Little said was presented in the feasibility study as roughly $45,000,000 and is currently a placeholder in the 10‑year window rather than a committed project.

Members pressed for clearer communication to the public on the tax impact of major capital decisions. One member cited the recent tax bill increase (about $556 for the average single‑family homeowner in the most recent year) and asked for a more transparent way to show how capital and operating choices affect individual tax bills. Little said the town previously provided a tax‑impact calculator for the fire station and that the committee’s financial trend work breaks projected items down to estimated homeowner impacts over five years.

Lisa Miceli, a resident who spoke during public comment, asked whether the committee would review the 95 percent construction documents (CDs) for the fire station before the project goes out to bid. “Will this committee do the 95 before it goes out to bid?” Miceli asked. Committee members replied that the committee had not done that level of review yet and that the decision was still to be determined.

Committee process and next steps: Little outlined a schedule for department presentations and recommended beginning outreach to department heads; the committee discussed meeting cadence and agreed to try meeting at 6 p.m. on alternating Tuesdays and to start department presentations at the end of January. Little said he would reach out to the school department first. Members also discussed the capital request list items and asked for more detail about how department estimates were developed.

Votes at a glance: The committee approved the Oct. 7, 2024 meeting minutes by voice vote, and later voted to adjourn at 7:50 p.m.

What’s next: The committee plans to meet again on Jan. 30 (subject to scheduling), begin department presentations on capital requests, and track the financial advisers’ April schedule for the fire station bond sale. The committee asked staff to provide clearer, homeowner‑facing tax‑impact information as the capital process advances.