BY RYAN O’CONNOR

Bow selectmen originally set up an operating budget and warrant that, if all articles were approved at Town Meeting, may have increased taxes 33 percent.

They deliberated during and following a Feb. 20 public hearing, and trimmed the maximum increase to 18 percent. The board reconvened Feb. 23 to review and approve the amended warrant.

Following several amendments, the tax rate will likely increase no more than 95 cents to $6.29 per $1,000 assessed property value.

Pitts, however, explained that after the current revaluation and an increase in potential revenues, the increase may not be as harsh.

“This is way too early to be guessing what the tax rate will be, but at the same time, we’re trying to do our best to estimate at this point,” said Pitts. “We’re having to forecast an entire 12-month budget before we’re in it, so we don’t want to overestimate. We would rather be safe and underestimate.”

Still, selectmen expressed interest in presenting a minimal tax increase at Town Meeting on May 10.

The town portion of this year’s tax rate is $5.34 per $1,000 assessed property value, but the proposed increase could have been as much as $7.10 per $1,000 assessed property value, said Town Manager Jim Pitts, who noted the average tax bill would have increased about $400.

Deliberating the town warrant, the board trimmed $1.08 million in proposed expenses between the municipal operating budget and other articles.

The operating budget is up 11.3 percent from $7,347,551 last year to $8,176,829 this year, but the total request for warrant articles is $185,514 less than last year, which included $955,000  to purchase Paul Hammond’s land off Dunbarton Center Road.

Still, Bow Finance Director Bob Levan said the tax rate will go up because many of the  warrant articles that are usually withdrawn from special reserve funds will be paid primarily through tax dollars for the upcoming fiscal year.

In addition, there will be no significant reductions in operating revenues, said Levan, but the town must still face rising energy, asphalt, insurance and contractual costs.

Selectman Harry Judd said the town is experiencing an adjustment this year because of fire and police personnel approved through last year’s warrant, but the impact will level next year.

Operating budget

The operating budget that was first presented at the public hearing was $8,162,991.

After several adjustments, the proposed operating budget is now $8,176,829.

To save money, the board delayed hiring a new assistant town planning director for six months, though they support adding the position.

“I’d like to think the planning position will pay for itself through increased development  as we move forward,” said Selectman Jack Crisp.

The board, recognizing rate of inflation, also adjusted the cost of living allowance for all town employees from 2.6 to 3.5.

Pitts said the town is projecting using $300,000 from surplus funds to offset the tax rate as opposed to $600,000 it used last year.

“Because we don’t know, at this point, how much we have in the retained fund balance and because we must meet certain guidelines, we don’t want to reduce the balance below the level the guidelines call for,” said Pitts. “When the tax rate is set in August, it’s possible we may use more than $300,000 currently designated.”

Selectmen approved the proposed municipal operating budget 5-0.

Public safety building

The largest cut will be money for to study options for a new public safety building.

While selectmen fully support the initiative, they decided to cut the warrant article back
from $296,000 to $25,000.

This, rather than funding a full architectural and construction study, will limit the study to a basic conceptual plan so residents will have an idea of the size, location and appearance of the potential building.

“It’s cheaper to pay for conceptual plans rather than going into construction details, which could be far less and we could then get approval from residents to go forward,” said Pitts.

Selectmen Crisp and Leon Kenison voiced their support of the adjustment, saying it is better to allow the town to examine the issue and how their tax dollars would be spent before investing too much time and money in the plan.

“If we go only half ready and they call our bluff, it could be putting us off for another couple years,” said Kenison. “I think we would be taking an awful risk if we don’t get the community involved in all aspects of this process.”

The $25,000 will be withdrawn from the public safety building capital reserve fund and will not affect taxes.

If the article is approved, the board will likely request a new building at the 2008 Town Meeting, including additional costs for a full construction plan.

Resident Janet Shaw asked the board if the resolution will be enough to appease the state fire marshal’s office, which is requiring the fire building to undergo massive improvements or show progress toward a new facility by the end of the year.

Pitts said he feels confident the fire marshal will accept the plan as a good faith measure.

Other cuts

The board also cut a $48,000 warrant article for mosquito larvae spraying.

Pitts said the best and most effective defense against mosquitos is not spraying for larvae, but educating residents to use DEET.

Though Kenison was a major proponent of appropriating $155,000 for the design of a round-about for the intersection of Logging Hill, Bow Center, Knox and White Rock Hill roads, he suggested the town put the plan on the back burner for this year to further reduce the tax rate. The board agreed.

Selectmen also decided to delay the purchase of a new plow/sand truck, which would have removed $115,000 from capital reserve and to further delay adding money to the fund until next year.

The police department will have to wait at least another year for a new sport utility vehicle.

Police were set to transfer their current SUV to the fire department, but all parties agreed to transfer a soon-to-be retired cruiser to the fire department for short-term use.

The move will save the town $32,000 but, next year, voters will be asked to approve $10,000 in capital reserve for replacement of the vehicle.

The board also agreed to place explanatory notes on slides at Town Meeting, as it has done in the past, to explain capital reserve funds spending.

Once published, the annual town report will be available at the Municipal Office Building.