Peterborough officials expect to exceed the town’s proposed $20.9 million Fiscal Year 2027 budget by $215,000 due to a pro-rated health insurance bill from SchoolCare.

Even without the additional expense, the operating budget represents a 6.4% increase — about $1.25 million — over the current $19.4 million budget, according to the Select Board.

At a Feb. 17 joint meeting with the Budget Committee, officials reviewed the budget drivers and discussed several new warrant articles.

Health insurance shortfall

Finance Director Lilli Gilligan said the town received a pro-rated bill from SchoolCare, a Manchester-based health insurer serving school districts statewide. Town Administrator Nicole MacStay said SchoolCare notified member communities at the start of the fiscal year that it lacked sufficient funds to cover all obligations.

“SchoolCare sent us a pro-rated bill at the start of the fiscal year but we didn’t have a fund to cover the cost,” MacStay said.

After meeting with state officials, the town received permission to use its Available Funds Balance.

“By pulling from the balance, we’ve been given permission to spend up to the cost we can’t cover, which is $215,000.”

Major budget increases

The Department of Public Works, Ambulance Service and Police Department account for some of the largest increases in the proposed budget.

Water and sewer expenditures in the DPW are projected to rise by a combined $658,643 — $362,050 for water and $296,593 for sewer — a 20.81% increase over the previous year. Total water and sewer costs are budgeted at $3.82 million.

The new Cold Stone Springs water system, shared with Jaffrey, adds $149,140 to the water budget.

The Ambulance Service budget is projected to increase by $230,579, or 10.24%, from $2.25 million to $2.48 million.

The proposed Police Department budget is $2.97 million, a $245,220, or 9.01%, increase from $2.72 million in 2025. A line item for vacation and sick time paid upon retirement in the Police Administration section adds $130,375. No amount was listed for that category in the previous five fiscal years.

Proposed warrant articles

The Select Board also discussed seven new warrant articles. MacStay emphasized the language of some articles required modification.

Warrant Article 15 proposes creating a Health and Dental Expendable Trust Fund with an initial $25,000 appropriation from the Unassigned Fund Balance to help offset midyear insurance premium increases.

Article 16 would establish an Accrued Benefit Liability Expendable Trust Fund, funded with $100,000 from the Unassigned Fund Balance, to cover payouts for accrued leave and associated New Hampshire Retirement, Social Security and Medicare taxes when employees separate from town employment.

Warrant Article 17 proposes creating a Peterborough Community Power Expendable Trust Fund to support municipal renewable energy and energy-efficiency projects. The article calls for a $250,000 appropriation from the Peterborough Community Power Discretionary Reserve Fund.

Warrant Articles 18 and 19 would add funds to existing trust funds. Article 18 proposes appropriating $751,488 to the Greater Downtown District Expendable Trust Fund, while Article 19 would allocate $1.13 million to the South Peterborough District Expendable Trust Fund.

Article 20 addresses changes to veterans’ tax exemptions following new state legislation that prevents qualified veterans from receiving both the Optional Property Tax Credit and the Optional Total and Permanent Service-Connected Disabled Property Tax Credit. The article would ensure that affected veterans do not see a reduction in benefits. Fewer than 50 residents qualify for both credits, MacStay said.

Article 21 proposes prohibiting keno games in Peterborough. MacStay said many communities are considering similar measures ahead of a state law taking effect in 2031 that will expand gambling, including keno.

She said the town isn’t looking to prohibit all forms of gambling, as bingo has been legal since 1972. The article is specifically directed at keno as it’s the backbone of casinos. MacStay noted that casino money wouldn’t contribute to the town.

Residents can comment on the proposed budget at a public hearing March 3 at Town Hall.