Voters attending the Jaffrey budget hearing Saturday had little to say on the budget itself, focusing mainly on proposed bonds to pay for a new water source and road maintenance.
The proposed budget is set this year at $6.6 million, which is $96,849 lower than last year’s approved budget, or a 1.5 percent decrease.
Most of the resident’s questions centered around two proposed bonds this year, one which would pay to purchase a new well source and build a treatment plant, sharing the cost with Peterborough.
The total project is expected to cost $12.3 million. Of that, Jaffrey would be responsible for paying $5.5 million.
Town Manager Jon Frederick said Jaffrey and Peterborough have jointly applied for state and federal grants to offset the cost. The town plans to only apply for a bond of $3 million. If the grants aren’t enough to offset the rest of the cost, the project won’t move forward, Frederick said.
The project is to cover the purchase of three wells on the Cold Stone Springs well site, located on the border of Jaffrey and Sharon, and the construction of a treatment plant and pipes to connect the wells to the Jaffrey and Peterborough water systems.
Three million is the target because that is the amount the town can take on without raising water rates, which is how the project will be paid for.
Frederick said a $3 million bond can be covered by retiring debt on a former water project, and increased revenue expected to come from Jaffrey manufacturer MilliporeSigma, which is currently expanding and expecting to greatly increase its water usage.
Selectman and Budget Committee representative Frank Sterling said Jaffrey has approached MilliporeSigma about an agreement to guarantee their water usage, to ensure its enough to cover the bond repayment. The company has been amenable to such an agreement, he said.
Though the town doesn’t anticipate water rate increases due to the water project, some residents suggested the town should look at ways to decrease the rate, not only keep it stable, as Jaffrey’s water rates, which are $11.36 for the first 1000 gallons $1.39 per 100 gallons thereafter, remain among the highest in the state. Suggestions included using the water trust fund or having one-third of the project come from the tax rate and two-thirds from the water rate, as some other water projects in the past have been.
The town is also asking for a seven-year note for $1 million to do road repairs. Stratton Road will be among the roads addressed, but the committee and town manager couldn’t definitively say what other roads would be on the list.
If voters vote down the $1 million for road repairs, a contingency article requests $600,000 for roadwork, to come from the tax rate.
Selectman Kevin Chamberlain, who attended the meeting in the audience, pointed out that it would be a much higher tax impact to pay for $600,000 in one year, than it would to take out a seven-year loan.
Other warrant articles request the voters accept a collective bargaining agreement with the police department employees, which would result in $30,616 in salary increases next year and $5,739 in 2021. This represents a 2 percent salary increase, plus health insurance stipends.
The town is also requesting to purchase a new 10-wheel dump truck this year, taking $225,000 from the highway capital reserve. The purchase will nearly deplete the reserve, which currently has $294,000 in it. In a separate article, the town requests $160,000 to replenish the reserve.
Jaffrey will vote on ballot issues on March 10 at the Conant High School Cafeteria between the hours of 7 a.m. and 7 p.m. The remainder of the warrant will be voted on during Town Meeting on March 13 at 9 a.m. in the Ernest J. Pratt Auditorium at the Conant High School.