For the last 6 mos or so we have all read the stories of a possible upcoming recession. In fact, the fed reserve has drop interest rates the last two times they had met. A lower interest rate for what banks are charged does not necessarily mean lower mortgage rates. Those rates are tied into our 10 year bond markets. A weaker dollar means the cost of everyday items such as food, gas, oil are all increasing in price. ( not a good thing). The flip side is more exports are being sold overseas and are opening up new markets for countries that can now afford US products.
But how does this effect the town of Derry?
Well, our investments that the town has are tied into "low risk" investments. These investments are such as a bank CD rate gets lower and lower each time the feds cut the rates.
The interest these investments make are used as "revenues" for upcoming budgets and well as you can probably figure out by now is the fact that there will be a short fall of revenue coming up in this years 09 budget.
From what I'm hearing now, it could be as much as $200k shortfall.
This is a far cry from the estimated $4k shortfall that has been anticipated.
The big question will be- What gets cut this year? Stay tuned and ask the candidates running for Council what they would cut to make up this $200k difference and lets see if they give you an answer you like.
I also understand that the 2010 budget will have an even bigger impact. And this information, coupled with the tax cap basically spells some trouble upcoming.
Without new revenues coming into town in the form of businesses. It looks like a very tough road for the town of Derry. Problem is.. we have two short years to find a solution.
Not an easy task for new councilors I may add.... Heck, not easy for experienced councilors either.
Update: Just found out that it will be $700K short after next year! Yet be prepared for higher taxes and less services! Will be interesting to see how things progress from here!
But how does this effect the town of Derry?
Well, our investments that the town has are tied into "low risk" investments. These investments are such as a bank CD rate gets lower and lower each time the feds cut the rates.
The interest these investments make are used as "revenues" for upcoming budgets and well as you can probably figure out by now is the fact that there will be a short fall of revenue coming up in this years 09 budget.
From what I'm hearing now, it could be as much as $200k shortfall.
This is a far cry from the estimated $4k shortfall that has been anticipated.
The big question will be- What gets cut this year? Stay tuned and ask the candidates running for Council what they would cut to make up this $200k difference and lets see if they give you an answer you like.
I also understand that the 2010 budget will have an even bigger impact. And this information, coupled with the tax cap basically spells some trouble upcoming.
Without new revenues coming into town in the form of businesses. It looks like a very tough road for the town of Derry. Problem is.. we have two short years to find a solution.
Not an easy task for new councilors I may add.... Heck, not easy for experienced councilors either.
Update: Just found out that it will be $700K short after next year! Yet be prepared for higher taxes and less services! Will be interesting to see how things progress from here!
36 comments:
I'm 100% in favor of a paved bike path. But, if we don't even have enough money for core services, we certainly don't have an extra $225,000 for the bike path. Councilors: do the right thing on Tuesday and vote "NO".
I beleive the first place we should cut is Parks and Recreation. We can start by requiring people who play sports to pay a higher fee. These programs should be self funded. All of these prpgrams are "extras" which are great to have in the community, but should be user-funded, not taxpayer funded.
We can start by closing the Taylor library. We only need one library in Derry, not two. We can bring their programs to the Derry Public Library too. Forget about an expansion, how about a consolidation.
And what about the Exit 4A Environmental Impact Study? We could have bought 5 bike paths for the price of that worthless pile of paper. It's all about priorities folks. Two of the town councilor candidates won't even tell you where they stand on that issue. And I'm sure that most of the BC groupies will be voting for them.
Sorry BC but we should not prepare for higher taxes... we have a tax cap in Derry. We already count on the council lacking backbone and spending up to that limit. (The school board is unfettered and is a totally different matter.)
When we elect morons (of both parties) who go to Washington and spend like there's no tomorrow, the value of our money will go down (supply and demand) and prices of imported things like oil go up. No mystery there. Take it up with our congresswoman after you review her votes. Same with our senator. We will soon be rid of this president but it may be "bad to worse."
Tough choices coming?...Big surprise?...BC how did you vote on the fire contract?
anon 11:02,
I voted YES! As in previous posts I stated that peremiters were discussed as to what the council was looking for. We tasked Admin to get to these peremiters and they did. I,m not saying everything is perfect, what I'm saying is that change happens in time little by little. Why would I won't to waste valuable time for the town by setting certain changes that are agreeable to then vote "no" and get nowhere.
This is why sometimes politics are not an easy job.
I build bridges- I don't burn bridges. I also realize that future changes MUST be accomplished and that all issues are not a simple solution.
anon 10:47,
It is interesting that 4A opponents will also say that business in Derry is needed and then say in the same breath that 500 walmarts are needed to make a difference. If your comfortable "wishing" and "dreaming" of business flocking in droves to Derry then I've got some swap land in Florida for sale!
anon 11:02,
"sorry bc we should not prepare for higher taxes-we have a tax cap"
Yes, we do. However you have state, school, county taxes has well. None of these operate under a tax cap and on your tax bill it is lumped all together. So what you will soon see is tax increases and less town side services. That is the point I'm making.
The place to cut back is in the school system. All of these hacks that go to every Council meeting should also be attending the school district meetings. This is where we can save some money. If they care som much, why aren't the Al Dimmocks and Kevin Coyles of Derry speaking out at school district meetings? Explain that!
I'd still ike to see what other bloggers think should be cut... I say we start with non essential services like Parks and Rec. Sorry Derry, there will be no summer concert series this year. And by the way, no fireworks either. These are items that can easily be cut. I'm sure that Dept has a whole lot more too.
anon 12:40,
The town council meetings have higher "Neilson Ratings"
anon 12:43,
It is interesting you say that. My biggest taxpayer complaint in 4 years was the year we cut the "fireworks" budget in half. WOW, we got a mouth full!
BC,
After hearing that our town employees after ten years get 10 or 11 weeks vacation, why did the town allow this in the first place.
For every 4 town employees we had to hire another just for cover the others taking vacation every year. SO you want me to get another job so DERRY employees can take 25 percent of a year off. Who the heck is watching out for the taxpayers when these packages are agreed to.
The town needs to stop spending crazy and make believe they live in this town. THE BANK IS CLOSED.
anon 1:46,
Good question! I don't know who put those 10 week vacations in prior contracts because it was before my time. The facts are that they are in there and the present council has to deal with it. Some may just want to "gut" everything and start everything new. Ahh but thats the art of negotiations. Both sides would have to agree. (do you suppose boths sides would agree to start everything fresh? Doubt it) This is why I made the original post that things change over time. Both sides understand that the future is uncertain and that as the older employees retire- new ones will have different contracts. If we set certain peremiters and they are met, why vote NO- The no votes should just tell the employees that its a "steel mate" and they go on with the present contract that is in place. This doesn't make sense. At the very least councilors should of set up peremiters that they wanted early on in the process. Saving taxpayers time, and money.
Why don't we start the cutting with the money we haven't spent yet? $225,000 to pave a path that is already adequate for most bicycles is something the town cannot afford with the looming town and school budget issues
The highly touted Windham section of the trail is still waiting for a topcoat of pavement after 4 years. But we want to get it done in 6 months when (to my knowledge) not a dime of private money has been raised by the Derry Rail Trail.
Lets see the financial commitment from them before we start spending money that we may not even have.
Don't get me wrong, I think it's a great project, but let's see some private investment before we commit taxpayer dollars
Those weeks of "vacation time" also include sick days and personal days. Most employers divide these up, the Town doesn't.
Annonymous 6:28pm
Why don't you question Coyle...He was the councilor pushing to give them 'air time'at a couple of council meetings. He has shown to be a strong supporter of this project...he, the fiscal responsible person that he is!
BC; Sorry but I can't follow your logic on many of these postings. You seem to confuse the negotiating process with the outcome. If the process is upheld but the result screws the taxpayers, you are for it.
Anon 6:28 We don't care what the 10 weeks includes, most of us out in the outside world don't see half of that after 10 years. The company I work for gives 3 weeks and 10 personal/sick days. We think that's great.
anon 12:40 I must have missed watching YOU get up at the school meeting to denounce their reckless spending.
anon 8:32,
Let me try this with some logic. Old Contract: 10 Weeks vacation time New Contract: 10 Weeks vaction time.
Now lets suppose all 7 councilors voted "no"- End result=10 weeks vaction time. How in the world does that screw the taxpayers????
Don't point fingers and say I'm not for the taxpayers without doing some research on the subject. I appreciate your opinion however please stop throwing wrong accusations.
anon 8:32
Forgive me if I am stepping out of line here, but I got a different meaning from these posts than you did.
What I hear BC saying ( and I am not trying to speak for him - just clarifying what I hear from these postings) is that you cant negotiate a ton of past consessions out of these contracts all at once.
The way I think it works is that each year there are things that the council asks for in the new contract. They lay those things out, communicate them to the negotiating team, and then the people who negotiate those things go and do their job and come back to council to see what compromises, if any need to made on either side.
In this case, this year, I think that they were able to come to an agreement to everything that the council asked for.
But when the council was then asked to vote on it, it didn't pass. even though everything they asked the negotiators to address was included.
I think what BC is saying is that the time to ask for more or take back some of the past benefits ( if this is even possible) would have been before the negotiations began. It seems to me that it spins peoples wheels to ask for things, have the other side concede to them, and then say - well thanks but those weren't REALLY the things we wanted, we wanted THESE things instead, so we aren't going to agree to it.
I agree that there seem to be quite a few things that are out of line and many that should be looked at. Probably more than we know about. A lot of it is very concerning, considering our tax burdens and the economy, but negotiating with unions is not easy, and no one is going to give up everything all at once. If they put forth a contract this year that doesn't get agreed to by the council, they just work with last years contract. Its not like you vote no - and the contract doesn't get approved and all their benefits go away. They just revert to last years - with same benies.
anon 10:19,
B I N G O ! you got it!
I read in the Eagle Tribune that Derry currently stands to lose about $7.5 million in state education funding.
Where are our reps. and senators?
If benefits can never be taken away, let's just turn over our homes to the town employees. They will win everything by attrition anyway. I guess my question is, do taxpayers today and in the future have to continue paying for the foolish decisions of past councils? Doesn't a contract negotiation start with a clean sheet of paper?
anon 10:20 AM
Unfortunately I don't think that negotiations start with a clean sheet of paper. It does seem like they should. But the system doesn't appear to work that way.
anon 1:28 Let's change the system.
I actually have a few friends that moved their families to Derry from some of surrounding towns because of Derry's services. They were able to move here from Auburn and Chester and only pay about $200 more in taxes. And they get a heck of a lot more for their dollar in Derry.
Did you know in Chester, they don't even have police on duty overnight. If anyone needs help, the State Police come from Route 101 or Route 95 where they are patrolling.
I think the residents of Derry really need to take a hard look at the taxes here and what they actually get.
Derry's roads seem to be some of the best in the area. We have excellent police and fire/ems.
But I guess if people want to save a couple hundred dollars they can move to one the surrounding communities and hope that their house doesn't burn down, their wife doesn't have a heart attack, and that their daughter doesn't get assualted in the middle of the night by a rapist. Oh, and if these things were to happen, remember that it will take even longer to get there due to poor road conditions.
BC: I know this is off subject, but with Janet Fairbanks selling her house and likely moving back to New York, how is her position going to be filled? Is there a special election? Is it an appointment? Or is it not even filled at all?
There's one thing I will probably never understand. And that is why all of Derry's complainers and some Council members/candidates(and we all know who they are) don't move out of Derry.
These people constantly complain and are not happy. We live in a great country that allows us to live where we want. These people should follow Janet's lead, pick up a map, and find a Town that they actually like and MOVE there.
This is the first I have heard of Councilor Fairbanks possibly moving. It would be a relief to me as I believe she has been a disruptive force to the Council. Her disregard and treatment of Chair Bulkley is abominable. Has she announced a house sale and/or relocation plans?
A simple google search for 1 Rose Ave and Century 21 will reveal her property listing...
BC, I'm still waiting for an answer as to how we replace Fairbanks if and when she moves out of her political district. Any info would be great. Thanks!
celtic,
I'm sorry. If and When Ms. Fairbanks moves the remaining councilors would pick someone to fill her seat. She has one more year on the council under her first term.
I think the Town should buy Fairbanks house it would be the best money ever spent.
We could also help her move
I have an idea. Why don't we buy the fairways, and Country Club estates. The market is down maybe we could get it for 4 or 5 Mil. Let all the leases expire over the next year or so, then bulldoze the whole place. Make a nice bikepath. It would give us plenty of room in the schools for more publicly funded mandates like kindergarten. Once we pay the bond off for the original purchase price we could cut other services and the roads would be a lot less crowed. The families that live there now might start to buy up the crazy amount of real estate on the market. The rest of us might actually be able to stay in this town as our taxes level off or even drop.
anon 5:56,
See your thinking out of the box! Creative!
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