Weaker Dollar brings in less town revenue.

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!

Highest Foreclouser Rate

It has been reported that Derry has the highest foreclosed rate in New Hampshire. Londonderry and Merrimack are not that far back in comparison.
As the real estate market begins to correct itself, it is no happy news to some as they are looking at possible foreclosure on their homes in the next 3-6 mos. There is help for many however most just don't know where to begin to look for help. Some banks are working with people in trying to keep their homes. People that need some assistance should call their mortgage lenders and ask if they could skip a couple of monthly payments and/or tack those extra payments onto the end of their loans. ( it has helped some people stay in their homes)
On the flip side of things, there are many good deals for buyers who may want to purchase a " bank Owned home today. With over 190 homes on the market as of this post, which reflect a 10 months supply, there are good deals to be found!
Short Sales are homes that have not been foreclosed on yet however the banks give the homeowners who must sell a chance to sell at a reduced price and will waive the difference in what is owed and what the new buyer will pay.
Another great way to buy a new home for a great price.
It looks like the next 6 mos should bring the most foreclousers into the market. After that lets hope for a quick real estate recovery.

Where there is smoke- there is Fire!

Be careful what you read. You may interpret it the wrong way. Many authors want to "steer" you into thinking one way or another and when small snippets of information are left for someone not knowing the issues in depth as others do then sometimes people tend to jump to conclusions.

The Fire fighters contract that was recently turned down by a 4-3 vote last week has made top news in local papers. Some councilors are giving their reasons in more detail to the papers than others.
Lets look at some information from my standpoint.
#1) The council in the beginning of last year met with town administration to set some target perimeters for all the contracts including Fire. Understanding that the tax cap is very tight, we set some goals that the council could live with in a new contract and then charged the administration to negotiate with the Unions
#2) After many many months with Town and Fire Union talking, they come to agreement with the perimeters that we had requested. It was at that time that Administration came back to council to say that they had met our council targets and that Fire was looking into a 2 year contract.
#3) For some councilors to voice "new concerns" after the fact is "unfair at best" and disingenuous at the worst. The concerns that a certain councilor who ran to the Derry News in today's paper gave his reasons and he thinks the fireman in Derry have to many "perks" such as 10 weeks vacation time. Also that they only contribute 15% to health care when Londonderry pays 20% and that fireman hired before 2005 have a "lifetime" guarantee.
However, Councilors should of spelled this out at the very beginning of the talks,If this was a big issue now, why was it not then? We should not wait until the two sides have come to terms and then say they are not satisfied.
Now, please understand a couple of things here. This councilor wants all to think that these issues he doesn't like are issues that have never been discussed in prior contracts and that he is unsatisfied with the contract as presently offered. The fact of the matter is that these issues have already been in previous contracts many years ago. ( Don't get me wrong here, I think our Firemen and Women make a great wage and have great benefits) No doubt.
But lets look at this for a minute, because the issue Councilor Coyle brings up have been in older contracts, with or without a new contract, they still get their 10 weeks vacation, they still pay less in health care contributions than Londonderry.( actually the new contract makes them contribute more than without a contract).
The fact of the matter is moving forward into the future, contracts will have to be different then they are today. The tax cap will make these issues that way. But as we move forward, its the progress we make toward that day matters. You just can't change every aspect of a contract overnight. There has to be compromise and understanding. But to change the terms AFTER you set the guidelines and come to agreement is not the way to handle town matters. To make it sound different in the media is mis-leading.
I want to hear from you. What are your thoughts.

Life in the Downtown

Is it me or am I seeing some hustle bustle in the downtown lately. The streets seemed to be filled with business friendly patrons and thats a good sign! I have also gotten some of the old complaints about parking spaces in the downtown again.
Our new business development director stated it well when Beth said "this is a good problem to have" and implying that lots of cars are better than no cars and I would have to agree.
On Valentines day, my wife and I were looking for a place to dine and driving downtown we found that the resteraunts were packed. Steak house...packed Sabitino's packed and there was something going on at the Adams Opera House because cars were in every spot there was. None to be found. And then last night.. I wanted to take my wife out to eat and then to a 8 oclock movie. Again everything in the downtown was packed. Ahh but I found a spot when someone just left and into the steak house we went.
"Dinner for two" the host asked
"yes" we replied
"whats the wait time" we asked
"about 1 hour to 1 1/2 hours" she said.
Just my luck, we would never make the movies and so off we went
Twice now I have tried to eat in the downtown and twice turned away. A little upset but then I stopped to look at people walking, shopping and using the downtown.
At this pace, we should see more businesses wanting to come in and thats a wonderful thing!
This folks is how the downtown will cahnge for the better.
Let the market do its thing! And its nice to see some positive economic vibes don't you agree.
After all I'm sick and tired about reading all the negative news!

Fresh Start

I would like to take this blog in a more information sharing and educational direction. I will also be including some video bloging of topics and views of the important issues that we all talk about at home at the dinner tables or out at the coffee shops each day. I would like to keep it from attacking other positions as much as possible and use it as a tool to get more information out to people at their lesiure.

I am asking for topics that people are interested in most. Any ideas?

I have also added a link to the Derry Rail Trails website. There you will find timely information about their plans to bring this exciting project to Derry. And please consider a donation as they are trying to use the least amount of taxpayers money as possible.

If anyone else has a link they want displayed-Just let me know.