The Hingham Advisory Committee signaled a major shift in the financing strategy for the Hingham Center for Active Living (HCAL) on Wednesday night, reaching a consensus to forgo a proposed $2.5 million "clawback" of design costs into the town’s unassigned fund balance. The decision, aimed at keeping interest costs down and avoiding taxpayer confusion, means the town will proceed with a $30 million borrowing plan for construction rather than an expanded $32.5 million bond.

The committee debated whether to replenish the fund balance by including previously spent design costs in the long-term borrowing. Tina explained that the strategy would treat the entire project as a single long-term asset, noting the thinking is that it treats the whole project cost as a long-term asset... to spread the cost of that building out over all the 28 years... rather than to take the $2.5 million from the fund balance at the beginning. Jerry supported this view, arguing that representing the total cost of a long-term asset through long-term borrowing feels right to me. It tells the taxpayers what it costs and spreads that cost over the useful life... while replenishing the fund to be used for things we normally use it for.

However, other members warned that changing the project’s price tag late in the process could erode public trust. Mary pointed to the town’s online tax calculator, which has been set at $30 million for months. There's a potential confusion. Until now, there's a tax calculator on the website targeted at $30 million. I think we should think about the degree to which that may cause confusion among people, she cautioned. Dave echoed these concerns, stating, I think it will confuse people. People say, 'Wait, you spent months getting it from 35 to 30, now it's 32.5?' Ben ultimately summarized the committee's pivot, suggesting that the juice is not worth the squeeze when considering the added interest expense and potential for voter backlash.

Infrastructure woes within the Hingham Public Schools dominated the second half of the meeting, as the committee reviewed a $2,655,437 request for energy recovery units (ERUs) at East Elementary and a total fire alarm overhaul at the High School. Gina highlighted the dire state of the high school’s safety systems, revealing that the fire alarm system for Hingham High School is 26 years old... they cannot find the parts to repair this system. They actually have had to go out to eBay to look for parts. Facilities Director Matt provided further context, reporting that the system currently has 29 active "trouble alerts." Today we had to pull a sensor because the sensor was no longer functional. We are looking at a system from 1999... the technology is old and very expensive to maintain, Matt said.

Motion Made by Brian to recommend that the Town appropriate and transfer a sum of up to $2,655,437 from unassigned fund balance for the replacement of Energy Recovery Units at East Elementary School ($860,000) and the Fire Alarm/Life Safety System at Hingham High School ($1,795,437). Motion Passed 11-0.

The committee also reviewed a $770,000 request for general school maintenance and repairs. Brian described the funding as a bridge basically to the big work project that will appear either at a fall or town meeting. We need to support the schools; they're in dire shape. This will enable necessary repairs and maintenance. Chair George Danis noted the fine line between maintenance and capital improvements, observing that the accountant in me—it sounds like these are repairs, not replacements... but I'm just making a comment that there's a fine line here.

A contentious discussion regarding the future of 86 Central Street, known as the Lincoln Square Apartments, followed. Affordable Housing Trust Chair Jack Valby warned that the senior housing complex requires $7 million to $10 million in renovations that the town cannot afford. The town does not have the resources to take this on, Valby said, adding that Hingham is an outlier in directly managing such a facility. Dave argued that selling or leasing the property to a developer who can leverage tax credits is the only viable path to recapitalizing the building. Select Board member Julie noted that the board is open to the possibility of restrictions for senior affordable housing to protect current residents.

However, the proposal faced pushback from the public and some committee members over a lack of specific details. Resident Nate urged the committee to wait, saying, I don't think it's fair to ask the voters to make a decision on something that you don't have all the answers to at this point. Betsy, an abutter, raised concerns about density and traffic, noting that as abutters, we are hearing that we've already decided to sell it, and then we'll deal with issues like density and traffic later. The committee opted to hold the item for more information on appraisals and deed restrictions.

In other business, the committee unanimously voted against a citizens petition seeking to put 6.8 acres of land near Plymouth River School into conservation. Kevin explained that the land was designated by the School Committee as surplus only on the condition that it be used for the HCAL project. An affirmative vote on this article would ignore those conditions, Kevin stated, noting that a citizens petition cannot legally override the School Committee's control of the parcel. Motion Made by Kevin to recommend "No Action" on the article. Motion Passed 11-0.

Finally, the committee moved toward finalizing Hingham’s exit from the state's Civil Service system for the Police and Fire Departments. Ben explained that the move follows negotiated agreements to modernize hiring and promotion processes. Motion Made by Ben to recommend the Town vote to rescind its acceptance of Civil Service for the Fire Department and transfer $390,000 from unassigned fund balance for compensation. Motion Passed 11-0. A parallel motion for the Police Department also carried. Motion Made by Ben to recommend the Town vote to rescind its acceptance of Civil Service for the Police Department and transfer $360,000 from unassigned fund balance for compensation. Motion Passed 11-0.

Reflecting on the town's broader financial outlook, John and Brian discussed the recent growth of the unassigned fund balance, which Town Accountant Katie attributed to a one-in-a-lifetime interest rate cycle. Brian warned that the town must remain cautious as it prepares for a potentially large capital slate ahead. Michelle and other members reviewed the upcoming meeting schedule, with the Chair noting that a final vote on the FY27 budget is expected on March 24th.