LACONIA — City Manager Scott Myers told the City Council this week that after reviewing the principal and interest payments on the city's outstanding and projected borrowings that it would be possible to borrow for the reconstruction of the Central Fire Station and purchase of the Laconia State School property without raising annual debt service above the self-imposed limit set to comply with the tax cap.
Myers said that Finance Director Donna Woodaman prepared a projected debt schedule of outstanding principal and interest payments as well as servicing a borrowing of $850,000 to resurface the Smith Track at Opechee Park and complete the Weirs Community Park, which is proposed in the 2013-2014 budget. In addition, the schedule projects the debt service on borrowings of $4-million for the Central Fire Station and $2-million for the purchase of the State School property.
The schedule indicates that the additional debt can be accommodated within the $3.2-million limit on total annual debt service, which the council has adopted, except for three years — 2015, 2016 and 2017 — when principal and interest payments would reach $3.4-million. Myers said he expected to recommend the reconstruction of the Central Fire Station in the 2015-2016 budget.
The city previously purchased two lots along Tremont Street to accommodate expansion of the fire station.
Meanwhile, Myers suggests adjusting the $3.2-million limit to reflect growth of the property tax base by applying an annual increase in the Consumer Price Index of 1.5-percent, which he described as a "very conservative assumption." If the limit on annual debt service were adjusted, payments on projected borrowings would remain well within it.
"The city has a reasonable and manageable level of debt," Myers said. He said that the $1.8-million in capital outlay funded with cash within the operating budget proposed in the 2013-2014 budget represents 8 percent of all city appropriations, a level which maintained on a regular basis contributes to managing the debt burden.

LACONIA — Belknap County Commissioners, continuing their long-running turf war with the Belknap County Convention, criticized the convention Wednesday morning for what commissioners say is a lack of transparency in its decision making.
''They want to make decisions before they even get here and without any input,'' Commissioner Steve Nedeau (R-Meredith) said as the commissioners collectively expressed their frustrations with the convention.
The remark was touched off by a discussion of what will be taking place at next Tuesday's public hearing on the commission's request for a $200,000 supplemental appropriation to expand the capacity of the nursing home to offer rehabilitative services paid for by Medicare.
Earlier this month Rep. Colette Worsman (R-Meredith), the chair of the convention, abruptly cancelled a public hearing to address the request, saying that the county administration failed to provide sufficient information in time for members to make a responsible decision.
Worsman has since said that while questions remain that the convention now has sufficient information.
But commission members say that it now appears that the convention or its leadership has already made a decision and that the public hearing will be just a formality.
''The intent of the leadership is not to deliberate issues in public. They're going to come in with a motion already prepared,'' said County Administrator Debra Shackett, who has prepared a PowerPoint presentation for the public hearing, which will be followed immediately by a meeting at which the convention will vote on the request.
Matt Logue, director of the nursing home, has suggested that by accepting a limited number of patients enrolled in Medicare and referred by hospitals for short stays to undergo physical, occupational and speech therapy, the nursing home would generate $400,000 in additional revenue, enough to cover the cost of expanding the services and return a net gain of $200,000.
County Commission Chairman John Thomas (R-Belmont) said that the prepared motion would indicate that the convention has already made a decision ''based on data and discussions they already have done'' and said it appears to be a violation of the state's Right-To-Know Law.
He said that if discussions have been held which led to a decision having already been made that the convention would have to disclose what took place.
Shackett said that it appears that the convention is intent on ''not allowing the public to hear the discussion which led to the decision'' but stopped short of calling it a violation of the Right-To-Know law, saying that it isn't clear how many convention members took part in preparing the motion which will be considered.
''I don't know what it is, but is a process which is patently incompatible with open government. It's obvious decisions are being made without having a healthy discussion in public,'' said Commissioner Ed Philpot (D-Laconia), who suggested that the commission send a letter to the convention expressing their concerns and offering to open a discussion about openness in decision making.
The convention will hold the public hearing on the supplemental appropriation request at 6 p.m. next Tuesday at the Belknap County complex.

LACONIA — Police arrested two men at Cumberland Farms Tuesday night after someone reported a disturbance from inside the store.
Michael J. Gallos, 36, of 76 Center St. was charged with criminal threatening, criminal mischief, disorderly conduct and simple assault.
Matthew Wade Andrews, 25, of 9 Sargent Place #66 was charged with disorderly conduct.