PETERSHAM – Advisory Finance Committee member Mark Bishop gave a primer on the town budget to about two dozen residents at a public meeting held Feb. 26 at Town Hall.

While one purpose of the meeting was to educate voters regarding the budget process and the overall state of municipal finances, it was also to discuss the committee’s thinking behind two Proposition 2 ½ debt exclusions that are on the ballot for Monday’s Town Election.

Bishop explained that the final payments on two previously passed debt exclusions – one for the addition to the Petersham Center School and the other for renovations at Mahar Regional High School – were made during the current fiscal year. Town officials are now recommending that each of two loans currently being paid out of the general fund be paid via debt exclusions.

As is the case with every Massachusetts municipality, Petersham’s general fund is subject to the Proposition 2 ½ levy limit; the maximum amount that can be raised from property and personal taxes each fiscal year.

Because the two school loans were paid off in fiscal year 2025, Butler explained, the town’s overall indebtedness has decreased by about $120,000, which will also lower the level of the town’s maximum levy by the same amount.

“If this occurs,” he said, “we may face an override or a reduction in essential services. We can avoid this by approving debt exclusions for the existing Nichewaug Demolition and Broadband Make-Ready loans. This won’t add to our debt obligations; it simply allows us to comply with the law without increasing our levy limit through an override or reduction in essential services.”

Essentially, by voting to make the Nichewaug and broadband loans debt exclusions, the money in the general fund that would have been used to pay on that borrowing can now be committed to other priorities, such as funding for the fire and police departments.

Payment on the Nichewaug Demolition loan is currently about $86,000 per year, while the annual payment for what’s known as the Broadband 1 loan is approximately $31,000. It’s anticipated the Nichewaug loan will be paid off in 2032, and the broadband loan completed in 2029.

The loan voters approved for the Nichewaug demolition was for $621,000 and the loan for the broadband work was $260,000.

Bishop made it clear that he would be supporting passage of both debt exclusions.

In addition to the debt exclusions, there are a number of uncontested candidates on the ballot. Incumbents seeking re-election without opposition include: Deborah Poodry for Selectboard, Jean Robinson for Board of Assessors and Donna Byron for Planning Board.

Non-incumbents running unchallenged include Richard Nicoletti for Board of Health, Jill Wessell for Petersham School Committee and Claudette Bishop for Trustees of the Public Library. There is no candidate running for a three-year term as Petersham’s representative on the Mahar Regional School Committee.

Monday’s election will be held from 10 a.m. to 8 p.m. in the Upper Town Hall.

Greg Vine can be reached at gvineadn@gmail.com.