Pepperell Select Board eyes November override vote as reserves fall toward bond-rating floor

PEPPERELL — May 2, 2026 — Pepperell Select Board retreat surfaces $9 million override target and board dysfunction concerns. Finance Director Sharon told the board at the May 2 annual retreat that the town's combined reserves have fallen to roughly $11 million — about 8.3 percent of net available revenues — well below the 15 to 20 percent that bond-rating agencies recommend, and that the structural deficit for fiscal year 2028 is now projected at approximately $9 million before free-cash offset, up from an earlier estimate of $7.71 million after new school department projections were folded in. Sharon described the situation as "playing with fire" with the town's bond rating, noting that a downgrade on upcoming school construction borrowings could cost more than $1 million in additional interest. Town Manager Jane outlined a three-tier, multiple-choice override ballot — modeled on Melrose's approach — targeting a November 2026 election date, with a formal board vote on the question expected in August; she said the minimum override needed just to hold current service levels is "over $6 million." The first tranche of school construction debt is projected to add roughly $600 to $700 per year to the average tax bill beginning in fiscal 2027, on top of any override amount. The retreat's first half, led by interim facilitator Jeff, surfaced unresolved board trust issues, with members speaking candidly about social media conflict and disengagement at the table, and the board agreed informally to form a policy subcommittee to modernize meeting protocols.