Solar Arrays Project $4.9 Million Savings While Debt Loads Block CPA Tax Relief
Key Points
- Solar initiative at six town facilities projects $4.9 million in utility savings over 20 years.
- CPC proposes using $2.8 million in cash reserves to slash interest costs on pending debt.
- Debate ensues over lowering the 1.5% CPA surcharge versus maintaining revenue to pay down $11.7 million in debt.
- $85,000 Historic Preservation Plan and $70,530 newspaper digitization project move forward for review.
Plymouth officials are eyeing nearly $5 million in long-term utility savings through a new solar energy initiative, even as internal debates intensify over whether the town can afford to slash its community preservation tax while carrying millions in debt. During the February 9 meeting of the Committee of Precinct Chairs, Climate Resiliency and Sustainability Planner Mike Cahill introduced a slate of four articles designed to install solar arrays at six town facilities, including the library, the DPW headquarters, and three local schools. The town plans to enter 20-year Power Purchase Agreements (PPAs) with Green Skies Clean Energy LLC, a move Cahill said would require no capital outlay from taxpayers while generating significant returns.
Cahill explained that the developer would own and maintain the equipment while the town benefits from reduced electricity rates. We are working with a developer who will own, maintain, and install solar arrays at six facilities across town,
Cahill said, noting that the electricity generated would be used directly on-site. The project is estimated to save the town $246,668 annually, totaling $4.9 million over the 20-year term. However, the proposal met resistance from Dale Weber, who questioned the inclusion of the DPW administration building at 22 Mary B Lane. I did not support at the last town meeting the purchase of 22 Mary B Lane. For continuity, I won't be supporting any improvements to that site. I believe we should sell that building,
Weber stated.
Other members focused on the logistics of the solar arrays. Pompy Delafield raised concerns about weather-related performance, asking, Who maintains them and at what level? I'm looking now at a big snowstorm... I have solar panels that are doing no good on my roof because of the snow.
Cahill clarified that maintenance and snow clearing are the responsibility of the developer to ensure maximum generation. Chris Merrill inquired about safety protocols, asking, Has the fire department signed off on this project?
Cahill noted that while the fire department has not yet weighed in, the project must still clear approvals from the school committee, the library board, and the select board. Public commenter Kevin Lynch also sought clarity on the visual impact of 14-foot high carports planned for the sites, prompting Cahill to point toward similar existing structures in Eastham and Chatham as examples.
The financial complexity of renewable energy continued with Article 34, which would allow the Select Board to negotiate 30-year Payment in Lieu of Taxes (PILOT) agreements. Finance Director Lynn Barrett explained that these agreements provide predictability for both the town and developers regarding personal property taxes on equipment. Alan Costello voiced concern that this might bypass traditional oversight. If this article passes, that procedure goes away and the selectmen handle it going forward? Town meeting is out of it?
Costello asked. Barrett clarified that the PILOT only concerns the tax payment structure and does not grant project approval, which still rests with the appropriate boards and committees.
A broader debate over the town’s fiscal strategy erupted during a discussion on the Community Preservation Act (CPA) fund set-asides. Dale Weber suggested that with the town focused on paying down $11.7 million in debt rather than acquiring new land, it might be time to lower the 1.5% CPA surcharge. Would this not then be a time for someone to make a motion at town meeting to reduce the 1.5% CPA tax down to one quarter of a percent?
Weber asked. While you go through your exercise at paying down the debt, we can give the taxpayers a break.
Katherine Holmes strongly disagreed with the premise of reducing the tax while debt remains. In that debt, there's an interest rate that the taxpayers pay,
Holmes argued. If we slow down the revenue coming in order to pay down that debt, we actually extend the debt and extend the cost of that debt over the long term.
Lynn Barrett added a legal hurdle to the discussion, noting that state law prohibits eliminating the CPA charge as long as the town carries debt linked to the fund.
To mitigate those interest costs, Ed Bradley and Lynn Barrett presented Articles 26 and 27, which proposed using available CPA cash reserves to reduce authorized borrowing. By applying $2.4 million in affordable housing funds and $415,351 in open space revenue, the town can avoid significant debt for the Plymouth Area Coalition for the Homeless and the Jenny Pond project. Bradley explained that these maneuvers will allow the Finance Department to use available CPA affordable housing funds... reducing the amount of the original borrowing which will also control the cost of interest.
The committee also evaluated an $85,000 request for a town-wide historic preservation plan. Ed Bradley described the plan as a roadmap
for the town’s historic resources, noting that the town expects a grant to cover half the cost. Beth Greg suggested that the various historic groups in town can be confusing for residents and recommended a visual aid. It seems a little confusing to me that there are so many historic committees, commissions, districts, plans... it might be helpful to have something visual that says here's how we relate,
Greg said. A separate $70,530 request to digitize the Old Colony Memorial newspaper archives drew mixed reactions. Alan Costello questioned the urgency of the expense, but Joe Hutchinson defended the project, stating, I think that this kind of information is critical
for researching past town meeting warrants and local history.
Earlier in the evening, Town Clerk Kelly McElreath requested $10,800 to codify the town’s zoning bylaws, correcting an initial warrant figure of $16,800. McElreath explained the two-year project would ensure zoning rules are searchable and consistent with state law. It takes the vendor probably six to nine months to even get me a document back once we sign the contract,
she told Chair Matt Tavares, who asked if the work could be handled in chunks
by existing staff.
During public comment, Steven Michael Palmer expressed frustration with the overall tax burden on residents. We are balancing the town's budget off the backs of the working class of the town of Plymouth,
Palmer said, urging officials to monitor spending more closely. Kevin Lynch suggested the committee form a financial oversight committee
to keep a closer eye on the town's books. The meeting also included a somber note as Alan Costello announced the passing of Precinct 15 member Richard Capron, praising his dedication to the town and the Center for Active Living. Motion Made by [Unidentified Member] to approve the adjusted agenda. Motion Passed (15-0-1). Motion Made by [Unidentified Member] to approve the minutes with the noted corrections. Motion Passed (14-0-2).