On the edge

But now, the fabric of this rural community is at risk of tearing apart, she says.

Financial woes have prompted town officials to cut funding for the town’s senior center, library, and community center for the fiscal year beginning July 1. On June 29, voters in a special election will consider a property-tax increase that would be used to keep those town institutions open.

But that’s only part of the story in Pepperell, a community of about 12,000 residents near the New Hampshire border. One of its two elementary schools is closing, and so is the local Bank of America branch. Residents also worry about the future of businesses like the Chevrolet car dealership, and whether they’ll lose their Catholic church to consolidation.

“Our big fear is you’re going to drive down Main Street and see all boarded-up buildings,’’ said LeBlanc, a member of the town’s Finance Committee and copresident of the Friends of the Lawrence Library. “What else are we going to lose?’’

The struggle in Pepperell reflects the particular damage that the nation’s economic downturn causes in small communities: They have just a few stores and businesses to start with, so the closure of a bank or car dealership means the municipal government loses a big chunk of tax revenue, and the local economy loses a significant number of jobs.

Officials are portraying next week’s Proposition 2 1/2 override vote as a means to keep the town thriving, by keeping open the Pepperell Senior Center, Lawrence Library, and the Pepperell Community Center. The election follows Town Meeting’s approval of the requested tax increase in May, when it passed on a voice vote.

The Bank of America branch is scheduled to close its doors on Aug. 14, and the Peter Fitzpatrick Elementary School will not reopen for classes in the fall.

“Pepperell is at a perilous crossroads in its path to the future,’’ the Board of Selectmen recently wrote in an open letter to residents. “Ultimate economic recovery may take a long time to come about, and even longer to filter down to the municipal level.’’

The letter, posted online at www.town.pepperell.ma.us, continues, “In the interim we must choose, notwithstanding the possibly painful monetary impacts, whether we wish to maintain our community as an entity that gives us pride, hope, and a state of form and function that will carry us on to better days to come.’’

But the prospect of higher property taxes has been a tough sell among many older residents on fixed incomes. Even those who regularly use the senior center and library say they will not support the override.

“They’re holding us hostage,’’ said Kathy Harrison, 65. “It’s sad they are doing this to us. Seniors can’t afford the override. The young people are going to recoup after the recession but we can’t.’’

The ballot question asks voters for $646,797 - $172,640 for the senior center, $436,539 for the library, and $37,618 for the community center. The override would add $169 to the tax bill on a home with Pepperell’s average assessed value, $325,000.

Some seniors oppose the override because they don’t believe town officials will follow through with their stated alternative if the tax increase is turned down, to close the buildings at the end of next month.

“I think they’re just playing hardball,’’ said Sandra Hanson, 67, a volunteer for the local Meals on Wheels program.

But Town Administrator Robert Hanson, who is not related to Sandra, said the threats are not empty.

“There is no bailout waiting on the horizon,’’ he said. “Absolutely, categorically, without hesitation, there is no found money and there will be no resurrection if the override is voted down.’’

Diane Karr, owner of Branch Line Press, a small publishing company in Pepperell, said the override is important not only for residents but also for local business owners and the town’s future growth.

Karr said if the override does not pass, people may leave town and businesses won’t be able to survive. And new businesses, which would take some of the tax burden off residents, will have no interest in Pepperell, she said.

“Who wants to come to a town that doesn‘t support its institutions?’’ she said. “What’s to attract businesses to town if we don’t offer basic services? With those services missing, everyone stands a great chance of losing a lot.’’

The town - facing declining revenues from state aid, local permits, property and excise taxes, and new growth, while seeing increases in utility and health insurance costs - initially had a $1.3 million deficit for fiscal year 2010. By using reserves, cutting positions and wages, and renegotiating contracts, town officials were able to close the gap, the town manager said. But then an accounting error was discovered that showed the town had $600,000 less to work with, he said.

At that point, the Finance Committee cut all town departments by 10 percent, but it wasn’t enough. Hanson said town officials had no choice but to cut the senior center, library and community center budgets, leaving only enough to cover the costs of mothballing the buildings.

That prospect is devastating for some residents who frequent the local institutions, and for those who run programs that are housed in the buildings.

“The library really has been the heart and soul of the community since it was built in 1901,’’ said Debra Spratt, the Lawrence Library’s director. To prepare for a possible shutdown, the library has curtailed services and is no longer renewing materials.

The library is facing closure even though the number of borrowed materials it circulated went up 3 percent last year, as more people have turned to its free services as a way to stretch their own budgets, Spratt said. Residents are borrowing more books and DVDs, instead of buying or renting them, and they’re using the computers to search for jobs or updating resumes, she said. If the library is closed, Pepperell residents will not be able to use their card at public libraries in other communities.

“I’m a single mother and using the resources here are one of the ways I save money and educate my children,’’ said Amy Lacasse, who visits the library with her two children.’

Use of the senior center has also increased, said Sharon Mercurio, director of the town’s Council on Aging. In addition to programs like painting, yoga, knitting, and card games, the center provides services such as Meals on Wheels, insurance counseling, information about fuel assistance, and elder-abuse advocacy.

“I don’t know who will take care of the seniors in town,’’ said Mercurio. “There are a lot of seniors we keep tabs on. I feel for their safety if we’re not here.’’

Geoffrey Beckwith, executive director of the Massachusetts Municipal Association, said all communities - large, small, wealthy, and poor - are struggling to cope with the recession.

“It’s really across the board,’’ he said. “Most communities are going through some form of financial distress.’’

But some of the smaller communities are in a bind because they don’t have a large commercial base to share the tax burden with residents, he said.

That also means any new hotel or restaurant taxes approved by the state Legislature will do little or nothing for towns like Pepperell.

Beckwith said that’s why local officials are pushing lawmakers for management tools that will help them curb costs, such as for health insurance.

He said some communities may make it through the next fiscal year without eliminating services but will feel the pain much more next year after exhausting cuts and savings.

“The bottom line is communities are having to make choices between bad and worse,’’ Beckwith said.

Next year doesn’t look much better, according to Pepperell’s town manager. Already, the town is looking at a fiscal year 2011 deficit approaching $1 million.

“It’s going to be a long, hard row,’’ Hanson said. “There is no magic bullet. Pepperell will survive but you’ll end up with a leaner, meaner town.’’

Jennifer Fenn Lefferts can be reached at jflefferts@yahoo.com.