BELCHERTOWN — After years of rubber-stamping capital projects as funds become available, leaving critical infrastructure work to pile up and deteriorating buildings to wait for repairs, Belchertown this week adopted the town’s first capital planning policy.

The goal of the new policy will be to coordinate capital projects in a proactive and fiscally responsible manner starting in fiscal 2026, which begins July 1, 2025.

The document approved by the Select Board on Monday calls for the creation of a new Capital Improvement Planning Committee, an advisory board that will review capital project requests collaborate with the board to choose capital projects to fund. The new policy also outlines criteria for a capital project and deadlines for capital requests.

“This is a critical shift in the way the town approaching its finances, in that we’re making it a priority to invest in the things that keep the government running,” Select Board Chair Edward Boscher said.

The policy defines a capital project as an physical asset or project that costs over $20,000 to attain and has a lifespan of at least five years, like vehicles, new construction and major renovations to existing infrastructure. Technology capital items may cost a minimum of $10,000 to $20,000. All departments, including the school department, will submit capital requests by Sept. 30 of each year for the next fiscal year.

The Capital Improvement Planning Committee will review each request, then compile the information into a capital planning report for the Select Board and Finance Committee to review. The advisory committee will consist of five residents with knowledge of asset management in capital fields, like construction, engineering, facility management and fleet management. That body will then prioritize capital requests and send a list of capital projects for the Select Board and Finance Committee to review.

“I think I would like to have a committee review capital request without the constraints of finances,” Town Manager Steve Williams said.

“They can come up with an objective list of priorities based on need, and present that back to their Select Board and myself and the Finance Committee, so we can say this is how much we can afford this year.”

Capital projects requests will be considered based on 12 criteria ranging from eliminating a public safety hazard, preserving existing infrastructure, stabilizing or decreasing operating costs, protecting and increasing property values, replacing an old structure, upholding state and federal laws or regulations and supporting town goals and plans.

During the meeting, Select Board Members Nicole Miner and Lesa Lessard Pearson expressed concern that the committee will prioritize certain metrics and neglect projects that may not impact residents’ financial health or public safety as immediately as other projects.

“What I want to make sure is that all of these (criteria) get hit so that social, cultural, historic, economic and aesthetic value isn’t kicked out all the time, and that we’re not just focusing on any one objective,” Pearson said.

New funding methods

To fund the Capital Improvement Program, the town needs to designate a minimum percentage of its yearly operating budget to capital spending. Williams told the board he explored designating 1% of the town’s budget, or $550,000, but determined that figure was too ambitious for a municipality still running on an structural deficit.

“It’s almost like we need another year or two on the structural deficit and then really get aggressive with the capital funding,” Williams said.

Instead, the Select Board choose a goal of setting aside 0.5%, or $225,000, for capital spending. That money for the first year would come from free cash, stabilization funds and the operational budget. In subsequent years, the board would slowly peel back contributions from free cash and stabilization funds as the municipally reaches financial stabilization. Once the 0.5% goal is reached, the Select Board can raise the minimum percentage contribution.

“Healthy communities actually have an ongoing, debt-revolving schedule, as it were, specifically for these types of programs,” Boscher said. “This is part of the policy that could be a critical change in Belchertown’s future: how much are we going to continuously borrow in the support of capital planning?”

The Select Board met with the Finance Committee on Tuesday night to further discuss the plan. Both Williams and Boscher remarked on the major change the policy will bring to Belchertown’s financial planning.

“We’re trying something that’s new to Belchertown. I get that. It’s not a new concept in my mind,” Boscher said. “It’s a huge step forward.”

Emilee Klein can be reached at eklein@gazettenet.com.