Police Station Proposal - Part V - Project Financing

This is the fifth in a series of posts covering the proposed Gilford Police Station Addition and Renovation.

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One of the many comments we've heard again and again from fellow town residents is their concerns about the extra burden the bond for the police station will place on the taxpayers in the town, particularly in light of the tough economic times we're dealing with at present. There was also an excellent question asked at the town deliberative session that bears repeating here.

Project cost and financing of the project:

A number of folks have a misconception about the financing and the effects of the proposed bond on the tax rate.

First, we must emphasize the proposed bond will have no effect on the tax rate for the upcoming 2009-2010 fiscal year. None. The town will not start making payments on the bond until the 2010-2011 fiscal year.

Second, a school system bond for energy improvements will be retired at the same time, meaning the police station bond may have little effect on the overall total tax rate (town and school combined) for the 2010-2011 fiscal year.

Third, the reason for the split between the bond and money from undesignated surplus funds balance was to avoid financing monies used for certain customer costs and contingencies. It was felt by the Board of Selectmen that financing money that may not be needed (contingencies) would not be a good deal for Gilford taxpayers. Also, in order to lessen the size of the bond, it was felt some of the customer costs should also be paid out of the same fund rather than financed.

The total proposed bond is $1.2 million. $380,000 will come from the undesignated funds balance.

Meeting rooms:

One Gilford voter asked why the project included the new meeting rooms. She didn't know if tax money should be spent for that purpose.

It isn't that there will be 'new' meetings per se. Instead, the meeting rooms are actually being relocated from the basement of the existing police station basement.

In the lower level (basement), directly below the location of the new meeting rooms is the space presently used by the police department for meetings and training sessions. This room cannot be used by the public because it is located inside the secured section of the police station. Due to liabilities and the need to have a police officer present should that room be used by the pubic, the police department and the FPC felt it would be prudent to move that room to the first floor, thereby making the space in the basement available for evidence storage. Since the meeting room(s) would now be located outside the secured section of the station, it would be available for use by the public when the department isn't using it.

It's more 'bang for the buck' for the taxpayers, freeing up space for public use that would otherwise sit empty when not being used by the police department.