School presenters told the Hooksett Budget Committee on Monday that the district plans to borrow $5,995,998 to repair and renovate Memorial School and intends to place a bond warrant article before voters in March.

The proposal was explained by Wayne, the presenter for the financing package, who said the school board voted to seek a 15-year bond using level principal payments and estimates about $1,700,000 in total interest under recent New Hampshire Municipal Bond Bank rates. "Ultimately, we are looking to borrow $5,985,000 ish," Wayne said, then clarified the exact figure: "$5,995,998 for, to repair and renovate Hooksett Memorial School." He added the estimated tax impact would be about 19 cents per $1,000 in the first year and about 13 cents per $1,000 by the end of the 15-year term.

Why it matters: the financing vehicle, term and estimated interest determine both near-term taxpayer impact and how quickly the district repays work ahead of future maintenance cycles. Committee members asked how the estimate on the warrant relates to actual interest rates at time of sale and how the first-year payment would be covered if rates rise.

Committee members pressed for clarity on the placeholder rates used for ballot materials. One member asked, "So the interest rate isn't set in stone yet. What happens with the any difference between what the interest rate is versus what's on your warrant article?" Wayne responded that the district uses recent bond-bank sales to estimate rates and that the New Hampshire Municipal Bond Bank had recommended a conservative placeholder; he said the January 7 municipal bond-bank issuance would provide more up-to-date market indications. Wayne also explained the board chose a bond rather than a lease because the lease quote received previously was roughly 1.56 percentage points higher in interest, producing a materially larger total cost.

Wayne described the district's financing choices: a 15-year term instead of 20 years to reduce the overall interest charge and finish repayment before the next major maintenance cycle, and a level-principal schedule so the principal portion is constant while interest declines. He said using the July 2024 bond-bank sale as a recent example produced the $1.7 million interest estimate for a 15-year bond and that a 20-year bond using the same earlier rates would have shown about $2.4 million in total interest and a lower first-year payment but a longer repayment period.

The presenter and committee members agreed the final market rate will be set by supply and demand at issuance. Wayne said the district expects to join the bond bank's July 2025 issuance, assuming voters approve the warrant in March; he offered to circulate the January 7 rates to the committee once available.

No formal vote on the warrant article or financing method took place at the meeting. Committee members were provided packet slides and a written schedule comparing 15- and 20-year options and lease-versus-bond scenarios. Wayne said he would send updated bond-bank rates after the January sale so committee members would have the most recent figures before the public hearing.

The committee will review the warrant article and hear public comment at the scheduled public hearing before making any formal recommendations for voters at deliberative session.