NORWICH — Town officials in Norwich are proposing two plans that would raise tax bills to improve the efficiency of municipal buildings and set aside money to tackle additional environmentally friendly projects.
The Selectboard on Wednesday will discuss plans to spend $2 million on upgrades to Tracy Hall that advocates say would significantly reduce the town’s dependence on fossil fuels.
Meanwhile, Selectboard member John Langhus is proposing to create a designated fund of nearly a half-million dollars to combat the effects of climate change as part of Norwich’s 2020-21 municipal budget.
Both energy proposals were drafted in response to a 2019 Town Meeting article that saw residents vote, 792-189, to recommend Norwich “take urgent and immediate sustained” action to reduce fossil fuel use at a minimum rate of 5% a year.
It’s not yet certain how the town would pay for the building upgrades, Town Manager Herb Durfee said. Two options on the table are a long-term bond or municipal leasing agreement. Both would require approval at Town Meeting.
Officials estimate a 15-year bond would add 2.5 cents to the town’s tax rate, which amounts to an additional $99 in taxes on a $400,000 home.
“We find this cost less than 30 cents per day for an average Norwich family to be an excellent investment for the positive impacts this project will have for our town and our employees who work in Tracy Hall,” Langhus and Selectboard member Mary Layton wrote in a Jan. 3 memo.
Langhus estimates his plans for a climate fund would cost an additional $250 for taxpayers with a home valued at $400,000.
He says that by appropriating $450,000, or about 10% of the town’s current budget, in the coming year, town officials would have the flexibility to purchase electric vehicles, pay for energy upgrades or even prepare for possible storm damage.
The fund is a recognition that combating climate change “must be our guiding priority for the next generation as we meet and eliminate this threat,” Langhus wrote in a Jan. 3 letter to the Selectboard.
The building proposal originated with a working group of 10 people — a mix of town officials and representatives of Merrimack, N.H.-based Energy Efficiency Investments — that were charged with exploring ways to increase energy efficiency at Tracy Hall, the public works facility and public safety building.
They met three times before recommending Norwich enter into a performance contract with EEI that would see the company install new heating and electric systems in Tracy Hall and improved lighting and controls in the other town buildings.
Michael Davey, a business development manager at EEI, said the Norwich project would be structured similarly to a deal approved two years ago in Lebanon.
The Lebanon School District in October 2017 approved a 20-year performance contract that saw consulting firm Trane Building Advantage provide $4.5 million in energy upgrades at city schools.
Trane installed new heating, ventilation and air conditioning units, as well as solar panels and water conservation systems under the deal, which was to be paid for through money saved on energy costs.
In Norwich, Davey said, energy costs won’t fully cover construction costs. That’s largely because officials are asking that upgrades completely reduce Tracy Hall’s dependence on fossil fuels, he said.
To accomplish that goal, EEI is recommending the installation of a geothermal system, which uses constant underground temperatures to heat or cool a building. Davey said such systems are efficient but also challenging to install in a historic structure designed to burn heating oil.
Tracy Hall will have to undergo several upgrades to accept a geothermal system, including a retrofit of its out-of-code ventilation system.
“We’re at the point where the current heating system is close to needing a replacement. And so the question we were looking at is ‘What should we replace it with?’ ” said Linda Gray, chairwoman of the Norwich Energy Committee. “One of the key decisions is do you lock yourself into fossil fuels for another 30 years or not?”
Town officials predict the project will cost more than $2 million to complete. In return, the energy improvements are expected to replace Tracy Hall’s annual dependence on 5,000 gallons of fuel oil and 870 gallons of liquefied propane.
Together, those amount to roughly 15% of the municipality’s fossil fuel use and a quarter of its carbon dioxide emissions.
The Selectboard will discuss the energy project and Langhus’ proposed climate fund when it meets at 6:30 p.m. on Wednesday at Tracy Hall.
Tim Camerato can be reached at tcamerato@vnews.com or 603-727-3223.