Ashland's Financial Situation - A Fire Department Roof Waiting to Collapse

Ashland's financial situation can be compared to the situation with the Fire Department roof.  Instead of repairing the roof every 10 years or so as is recommended for roofs of this type, we put off the repair until it became a crisis.  A 10-year maintenance plan would have been the safest and most cost-effective approach. We could have repaired the roof this past summer, but we chose to put off the repair until Spring, increasing the risk to the members of the Fire Department and very expensive equipment.  This is basically the same approach we have taken with the budget as a whole. 

The only difference between the Fire Department roof and the town's financial situation is that the roof will be fixed this Spring, but our financial situation will take years to rectify.  For many years, the town focused on funding normal operating expenses while ignoring capital improvements like the roof and the Collins Street bridge, which subsequently became  costly emergency situations.   

The Fire Department roof and the Collins Street bridge are just the beginning.  There is a backlog of millions of dollars in capital improvements that will need to be made in the next 5 to 10 years, but we can barely afford to pay for the town's current normal operating expenses.  The best way to deal with this situation is to conduct a complete, independent analysis of the town's finances.   This analysis will tell us exactly what our situation is and provide a detailed plan for the most cost effective way to deal with our long-term finances.

In the meantime, we can support the budget being developed by the Budget Committee.  The committee's goal is to present a budget, including the normal operating expenses plus cost of the warrant articles that will be about the same as last year's budget, minimizing any new property tax increase.  The recommendations of the CIP Committee will also be included in the budget.  While the CIP Committee has not had time to develop a complete plan, they have made recommendations that will begin to address some of our most pressing needs, develop some capital reserves, and invest in energy saving improvements that will ultimately provide a positive return on investment.  This proposed budget will necessitate cuts in the town's operating budget.  Whether there are corresponding cuts in services will depend on how the town and department heads decide to manage the situation.

Beginning to develop capital reserves and planning for long-term needs will not eliminate the risk that emergency situations will arise but will reduce the financial risk.  Furthermore, our taxes will still increase next year because of decreasing revenues and increases in school budget and county and state taxes.  It is also likely that we will have to cut operating expenses again next year while we continue to find more cost-effective ways to provide services.  However,  if we support the proposed budget and the complete independent financial analysis and develop a good working draft of the Capital Improvement Plan, we will have a much clearer idea of the path forward.  Ultimately, we need to get to the point where we can afford to fund both our normal operating and our long-term expenses. 

There are Many Positives in Ashland

It’s so easy to get caught up in the town’s problems – high property taxes, economic woes, increasing distrust or lack of faith in our governing body, crumbling roads and bridges, and a fire department roof that is in critical condition.  But it’s important to also stop and look at the positive.  At the recent financial forum, a member of the audience spoke about Ashland’s charm and how we should do more to market this.  Today, an acquaintance spoke of the all good the town does for those in need, e.g., the fire fighters auxiliary collecting gifts for Operation Santa for Ashland kids in need, Food for All, Got Lunch, etc.  And so I would like to point out a few other things. 

Take the Christmas lights that Sherry puts up year after year.  Look at the whiskey barrels with flowers, also thanks to Sherry.  Look at the beautiful flowers that the garden club plants every year around the monuments.  We have a July 4^th celebration and fireworks that are the envy of many other towns in New Hampshire.  Thanks to Patty and the rest of the committee for your years of service.  We had a health fest that received rave reviews from those who attended.  Appreciation goes out to Steve Felton and the budget committee for the difficult work they do and especially for the financial forums which brought not only valuable information to the town residents about our financial situation, but also giving us a voice.  Thanks to Steve Heath and the other volunteer fire fighters for keeping us safe.  I have witnessed on at least two occasions since I moved here when the town came together to raise money for folks who had experienced great hardship.  I highly value our award-winning school and the amazing staff that we are blessed with.  I know I’m leaving out many other things and people, and for that I apologize.  In fact, I would like to hear more about them.

In the last two years, I have become increasingly involved in the affairs of this town (and I know there are those who are not happy about this), as are several others, because we have followed the lead of our town administrator, Paul Branscombe.  I ask you to take a moment to inventory all that he has done for the town.  Today, drive down Main Street and look at the beautiful banners, an effort he led.  If you attended the music in the park this summer, thank Paul Branscombe.  Look at the HEAL grant that the town was awarded and know that it was because Paul took a suggestion to apply for the grant and moved it forward.  Paul works tirelessly, always looking out for the best interests of the town.  He brought in an energy audit.  He inspired cost saving and ecologically sound measures at the transfer station.  He has brought a new level of transparency to the town with his regular communications.  Observe any Select Board meeting to see how the selectmen continually turn to him to answer questions.  The list is endless – negotiations with Time Warner Cable, rapid action on the Collins Street bridge, exploration of grant opportunities, financial concern and oversight of the budget, etc., etc.  I know his contract is up for renewal, and I sincerely hope for the sake of Ashland’s future that this happens immediately. 

Yes, we do have to face a number of serious problems in town.  But there is so much good and we need to hold on to that if we are to overcome our differences and solve our problems.

Fran Newton

Blog Publication Policy

I wanted to remind writers that Ashland Speaks will not publish letters that contain personal attacks.

Short-Term Versus Long-Term Budgeting

The key issue facing voters concerning the budget this year has to do with how we balance short-term and long-term needs.  The Select Board's budget places more emphasis on short-term operating expenses; the budget being developed by the Budget Committee will place more emphasis on long-term capital needs. 

The Select Board's budget for 2013 is $2,820,867, a $140,000 increase over 2012.  Most of the increase will go the the repair of the Fire Department roof.  In addition, they are currently submitting warrant articles totally approximately $308,000.  If voters approve all the warrant articles, the total increase in the budget will be $448,000 (not all in 2013).   This increase along with the increases in the school budget, county and state taxes will almost certainly cause another increase in taxes again next year and do nothing to help control taxes in the future.

The Budget Committee has agreed in principle to fund the budget at the 2012 level or  $2,680,000 including the cost proposed warrant articles.  This will mean that the town's operating budget will be reduced and the amount recommended for future capital expenses will be increased.  Taxes will still increase next year, but the increase will be more manageable, and we will be taking the first toward stabilizing tax rates and making Ashland more financially sound.

The difference in the budgets has to do with two different approaches to dealing with long-term debt.  The fact is that our anticipated long-term expenses are very high and are increasing for three reasons:

• We currently have only $125,000 in reserve repair and replace equipment, roads, and buildings.
• We have delayed making needed purchases and repairs for years so that we will have to spend several million dollars over the next 5-10 years.
• Instead of replacing and making repairs when they are most cost effective, we wait until there is an emergency situation.

While developing a budget is a complex process, the formula for doing so is simple:

Cost of running the town = short-term operating expenses + long-term capital improvements. 

This means that the actual cost of operating the town is equal to the amount of money it takes to operate the town annually plus the future replacement/repair costs of all our capital assets calculated on a yearly basis.    Our problem is that for years the town has operated without putting any money in reserve for long-term expenses. 

The way the town is currently operating is as follows:

Cost of running the town = short-term operating expenses + immediate/emergency needs

We have replaced some equipment and made some repairs, but there is a very large back log.  Estimates range from $2.3M (CIP estimate) to $16M (accumulated depreciation).

If we were to begin to save for these anticipated expenses, the minimum we should put away is $230,000 each year, so that we would have $2.3M in 10 years.  The board is requesting $125,000 for roads, and $1,500 for the town clock, but that leaves us short a little more than $100,000.  We could count the Fire Department roof and the bucket loader as a capital expenses, but neither of those expenses is included the CIP estimate, which means that we need $230,000 in addition to the roof and the loader.

The board's budget also assumes tax payers are willing and able to pay more taxes next year and for many years to come.

Taxes have increased over $1M since 2009, which means that the town, the school, the county, and the state have asked for more money each year during the worse economic conditions since 1929.   The assessed property value has remained fairly constant during that same period and there has been no significant change in the tax base (residents and businesses), which means that the same tax payers are bearing the burden of these increases.

The idea behind a level funded budget is that tax payers cannot afford to pay more than they are paying now and are willing to make some changes to begin to stabilize tax rates over the long term and help get the town on a solid financial footing.

A level funded budget budget will not provide an immediate solution to the town's financial problems.  Those problems have developed over a long period of time. Taxes will still increase, and we will still be subject to dealing with large long-term needs and emergency situations.  However, a level funded budget will help begin to stabilize tax rates and lessen the impact of financial emergencies and long term capital investments.

Does this mean a decrease in services?  Possibly.  However, the Select Board has a number of options to limit decreases in services including outsourcing services, reorganizing departments, establishing cooperative agreements with other towns, cutting non-essential services, limiting over-time, reducing hours, refinancing long-term debt, using volunteers, creating efficiencies, increasing revenues, looking for grant opportunities and promoting economic development.  Through these actions, we can limit cuts in services over the short term.  We can restore and even increase services when the town is on a more solid financial footing. 

An improving economy, economic development that is occurring now, and the reductions our in long-term debt over the next 5 years will help us in our efforts if we also reduce our spending and increase our savings.

Ultimately, voters must make the final decision:  More taxes, more long-term debt, more long-term financial risk - or more stable taxes and increased long-term financial stability.





 

An Anonymous Question

The following question was received yesterday.

What is happening to this town? We always had problems, 

but now we are becoming laughing stock. Why? 

Financial Forum II

Last night Steve Felton Chairman of the Budget Committee presented the second financial forum on the town budget.  The session was a continuation of the forum given in late September.  Mr. Felton explained the town's current financial situation, the town's budget proposal, and the general direction the budget committee is taking on preparing the budget to be presented to the townspeople.  I encourage people in the town to watch the presentation on Public Access television.

Mr. Felton's explained the complexities of the budget, but I wanted to present the highlights here.  The simple narrative is:  We have almost no savings, we do not have enough cash to meet expenses and must borrow, we have no emergency funds, we are deep in debt, our revenue stream is flat, we have millions in long term expenses we need to prepare for, the select board's budget plus the warrant articles is higher than last year's budget, and the budget committee wants to cut the town's operating budget and increase capital reserves so that the budget is the same as in 2012.

The facts are are follows:

Key Trends

•  Since 2009 property taxes have increased by $1,066,766, an $807 increase on a $200,000 house.
• 33% of the increase was from increases in the town budget

Current Financial Situation 

• $125,000 in capital reserve for roads; $0 in reserve for other needs
• Minimal cash on hand; will have to take out a TAN early in 2013 to pay bills
• Long term debt between 70 and 80% of municipal expenditures
• $10,791 in unassigned funds (emergency funds)
• Assessed property value flat since 2009
• Revenues other than property taxes continue to go down

Capital Improvement Needs

• Town CIP Request - $2,308,000 over 10 years
• Town Accumulated Depreciation - $16,107,781

 Select Board's Proposed Budget

•  $2,820,867; $140,615 over 2012; $475,557 over 2009
• Warrant Articles $308,000
• Total if warrant articles are all approved - $3,128,867

Budget Committee's Proposal

• Budget + Warrant Articles = 2012 Budget 
• Cut the proposed operating budget and add more capital reserves 

Why the Select Board Will Not Allow Public Comments

Below is one of the questions I recently sent to the Select Board.   The following is a transcript from a recording made at the Work Session on Wednesday morning.

Question:  "Please have the members of the board provide a detailed explanation of the reasons for banning public comments at the Select board meetings. Please have them present the facts upon which they based their decision.

Jeanette Stewart: "There weren't any facts that we based our decisions.   It was just that Paul had recommended  that we discontinue public comments at the meeting, and after careful consideration, we decided that that is what we were going to do."

This response from the board a good example of why we need public discussion.  The board avoided answering my question.  First, the board members did not answer the question.  Jeanette Stewart did not provide any facts because as Stewart said, "There weren't any facts."  Nor did board members explain their reasons for making the decision other than it was a recommendation made by the Town Administrator.  Stewart indicated that the board made the decision after "careful consideration," but she did not explain what the considerations were or how one considers making a key decision without facts.

How the Ashland Select Board Has Systematically Supressed Public Participation in Town Government

At Monday night’s Select Board Meeting in Ashland, Select Board Chairman Jeanette Stewart announced that the board would no longer allow public comments at their meetings.  Instead, the public must submit questions and comments in writing two weeks in advance.  This action is the board’s latest attempt to suppress public discussion.  I was ejected from the meeting as I was trying to explain the other actions this board has taken to exclude the public commentary and public participation in town government. 

Since Jeanette Stewart became chairman, the board has removed one of two public discussions from their agenda.  Before that, the public was allowed to make comments prior to and after the business portion of the agenda.   Up until Monday night, the public could speak but only after the board made its decisions.  Immediately after the last election, the board moved the work sessions from Monday night to Monday mornings, effectively excluding many members of the public from attending.  They also changed the location of the meeting to the conference room in the town hall, a  room with very limited space and access.  Furthermore, the board announced that they would no longer allow public comments at the work sessions.  The board promised that no votes on important issues would take place during the work sessions and that they would provide a recap of the discussions at the Monday night meetings.  In fact, the opposite is true – we hear little about their work session discussions, and votes on important issues are routinely taken.

Complex and difficult issues are rarely discussed at Monday night meetings.  As an example, the decision to prohibit public comments was made at the last work session.  The topic was not even included on Monday night’s agenda.   Instead, the board decided to announce their decision at the end of the meeting after the public comments were concluded.  However, the issue came up earlier than they planned when a member of the public said that she understood the board had made a decision at the work session to exclude public comments.  Jeanette Stewart replied, “How do you know?  You weren’t at the work session!”  Stewart then said she planned to announce her decision after the public comments.  When I tried to continue this discussion, I was ejected from the meeting.

It is my understanding that the board decided to eliminate public comments because they have received comments from individuals outside of Ashland indicating that the perception is that our Select Board Meetings are “a circus.”   Apparently, Ms. Stewart, Mr. Preston, and Mr. Golden believe that the problem lies solely with the public and thus, the best way improve their meetings is to do away with public discussion.  I would submit that the board is often responsible for this environment.  If you watch Monday night’s meeting on Public Access television, you will see how the board treats the taxpayers in the town of Ashland.  They do not set a good example for civil discourse and are often rude and dismissive.  Sometimes they erupt in anger, make false claims and accusations, provide incorrect information, and goad the public to anger.  Their decision to exclude public comments is an example of their negative attitude towards the public.  

Had I been allowed to continue speaking Monday night, I was going to propose that we as a town develop ground rules for public discussion, and that the town moderator facilitate the discussions.  That would allow the public to speak without having the board control the discussion.  Ironically, I agree that some of the meetings get overly contentious.  Part of this is simply the nature of the democratic process.  John F. Kennedy said, “The unity of freedom has never relied on uniformity of opinion.”   Solving the problem by excluding public comments only exacerbates the underlying tensions that are at the heart of problem.  Ashland, like many towns, is in the position of having to face serious economic problems that can only be solved by facing the issues, and working together to solve them. 

Economic Development and Ashland's Financial Crisis

At Candidate's Night last February, all of the candidates for selectman (except for Phil Preston who did not attend) spoke about the importance of economic development for Ashland.  Jeanette Stewart promised to establish an economic development committee.  It is now December, there is no economic development committee.  At the recent economic development forum held in Holderness, the message was clear: towns have to be prepared for economic development.  There is plenty of help and support available from the state and other public and private organizations, but unless the Select Board considers economic development a priority, nothing will happen.

Ashland needs sustainable economic development in order to resolve its current financial problems, create a stable financial footing for the future, and provide the town with basic services to improve the quality of life.  It would be nice not to drive to Plymouth or Tilton to get medical services, medication, clothing, household goods or healthy foods and baked goods. There are several new businesses starting town, and the Squam Landing project is going forward.  However, it is likely that the revenues generated from these ventures will be consumed by spending on necessary capital improvements.
Those who attended the first Budget Committee Financial forum learned that we have a cash flow problem, approximately $20M in accumulated depreciation,  little cash in the general fund for emergencies, long-term debt that amounts to about 70% of the budget, no long-term financial plan, and little money in capital reserves.  We have put off making large capital expenditures for years and are now beginning to see the consequences of that delay.

The Collins Street Bridge had to be replaced and the Fire Department roof needs to be replaced.  It was known that both needed repair or replacement, but the town chose not to address these issues until they became very serious problems. Rather than having the political courage to ask the town for additional funding to repair the roof this year, the Select Board decided that the members of the Fire Department should get up on a dangerous roof and "sweep" off the snow this winter.

Unfortunately, we will need to pay millions more for equipment, buildings and roads over the next 10 years.  Should we continue to wait until we have no choice but to replace or fix things, or should we begin to plan, save, and encourage economic development?

Last year we made a start at addressing our long-term needs when voters approved putting $125,000 in a capital reserve fund for roads and $50K toward the Fired Department roof.  If we continue with the road fund, over the next 10 years, we will have $1.25M which may be enough to repair/rebuild the now crumbling Thompson Street and Smith Hill Road, but by then others will likely be in need of major repair.  This does not even begin to address the $2.3 million in capital expenses identified thus far to the CIP committee.

We cannot solve our financial problems in one year, but we have to increase our efforts to do so by reducing our operating budget, putting more in capital reserves, reducing our long-term debt, and building our emergency cash in the general fund.  The Budget Committee will be conducting Financial Forum #2 on December 12 at 6:30 in the Elementary School Cafeteria.  At this event, the committee will provide more detailed figures providing a better picture of our financial picture and some options to resolve our financial crisis.

It is already clear in my mind that we need sustainable economic development along with sound financial strategies to recover from years of having no financial plan and Select Boards that are focused strictly on the present moment.  Whether it is clear or not, we have all been paying the price for this lack of strategic thinking, and we will continue to do so for a very long time unless we make some very difficult decisions this year and going forward.  Strong and effective leadership is needed if we are to work collaboratively to restore Ashland's financial health and promote sustainable economic development. 

Did Dan Golden Resign?

We received this comment from an anonymous source.

So did Dan Golden resign or not? I hereby say that I resign - 

get someone else in here as selectperson but then he went 

on to the private part of the meeting??? if he goes I hope 

he takes the rest of them with him.

We Are Open for Business

"Ashland Speaks" is open for business.  The Select Board has decided to exclude public comments from its agenda and is requiring that residents submit their comments and questions in advance.   The Coalition has always believed that transparency and public participation strengthen the democratic process.  We are again making the blog available for those wishing to enter into the public discussion of the issues.

A Time for Action

After the March 2012 election, in a spirit of cooperation and constructive action, we made the decision to suspend the Ashland Speaks Blog and Coalition for Action.  I have personally refrained from making comments at the Board of Select meetings, despite many concerns, that might in any way seem controversial.  I told Jeanette Stewart on the night of election (where she had defeated me in my bid) that I would work with her.  I watched and waited for the creation of the Capital Improvement Plan committee (promised by Ms. Stewart during the campaign and voted for in the election), which was delayed for four months after the election.  I still wait for the promised economic development committee, also promised by Ms. Stewart.  I listened to her at the first Board of Select meeting after the election as she announced that there would be no discussion of “history” because there were too many important matters to attend to going forward.  I have now observed more than nine months of meetings waiting to hear discussion about any of those “important” issues.  Alas, now we are in a position of being banned from making any comments at the BOS meetings. 

To be sure, we have been told that we can submit comments and questions two weeks in advance of the next meeting.  I suppose that legally, the Board can make this decision.  But, even if the issues are addressed, there is absolutely no opportunity for discussion in real time.  I can envision a scenario whereby one comment addressed two weeks after submission will lead to a new comment addressed two weeks after that, and so on, leading to endless discussion.  Is this efficient?  So where do we go from here.  I submit that in a truly democratic society, the public’s voice must be heard.  The Ashland Speaks blog is just such an avenue.

The Ashland Coalition for Action was established for the express purpose, among others, to create transparency in local government.  I’m sorry to say that to date we have failed.  In light of recent actions, it is time to renew that purpose.

Fran Newton

Tax Increment Financing

We have written a great deal about Ashland's economic problems and discussed some of the ways that we can deal with these problems. The town cannot expect to resolve these problems by placing the entire burden on residential tax payers. We need sustainable economic development. Tax Increment Financing (TIF) is one way for towns to encourage economic development and fund necessary infrastructure improvements without increasing the tax burden. A number of cities and towns in New Hampshire and in other states have already used TIFs successfully to improve their downtown areas, historic districts, and business parks.

TIF is the financing of public improvements with the incremental taxes created by new construction, expansion, or renovation within a defined section of a community. Say that the town of Ashland voted to create a TIF district in the downtown and mill area, and a business owner in that district renovated the building. The tax increase from the renovation could then be used to make public improvements in that area. The taxes originally paid on that building would still be distributed as they are now between then town, school district, and county.

Towns in New Hampshire have used TIFs to pay off bonds and to create "savings accounts" to pay for public improvements, and in conjunction with grants and other sources of funding. There are number of improvements that need to be made to the downtown that could be funded using a TIF. The repair of the Fire Station Roof, replacement of the water pipes, addition of parking spaces, and several of the ideas from the Charrette. Businesses and home owners in a TIF district benefit because money they spend to improve their property gets reinvested in their district. A TIF can also be used to attract new business because it can be used to finance infrastructure that a new businesses would need to locate in Ashland.

A TIF is not a silver bullet that will solve our economic problems. It is only a tool that can be used if the town can develop the right opportunities. It requires that we have the right expertise in terms of planning, budgeting, economic development, accounting, and leadership to develop effective partnerships with businesses and developers. It requires a great deal of work as well as commitment from the town. But, it could prove the be a great help in revitalizing the downtown and bringing new business into the mill area.

For more information on TIF, see the following links:

• RSA CHAPTER 162-K: Municipal and Economic Development and Revitalization Districts
• Tax Increment Financing - OEP Technical Bulletin #13
• TIF: Nashua Board Endorses Rail Plan

Dear Negativity, Negativity, Negativity

Thank you for your comment. I wish I knew what negative comments you were referring to or which statements you think are false. In reference to your comments about negativity, we think there is a difference between fact-based criticism and negativity. Personal attacks are negative; criticism of documented actions and policies are not. One of the reasons we started the Coalition for Action was to change the political dialog and focus the discussion on issues rather than personalities or ideologies. We do not agree with the kind of name calling that goes on in state in and national politics. When we need to fix the Fire Station roof, we need to focus on the facts about the roof and the best way to finance the repairs. My point in my article about the roof was that the select board needs to have a good understanding of the problems and the options for repair, and they should have either had someone explain the report or been able to explain it themselves. We made no value judgments about any select board members. We do not engage in name calling, nor do we misrepresent ideas or actions. We do have a right, however, to analyze and interpret the facts.

Your comment that we should not "interfere" with meetings troubles me. Our role as citizens requires us to participate responsibly in government. I participate whether I think people are doing a good job or not. I respect the office and our system of government, but citizens need to make sure that the government is accountable for its actions. The Coalition believes that the way to do that is through responsible dialog. You could help us by providing specific information so that we can address your concerns or correct any errors that me may make.

NEGATIVITY, NEGATIVITY, NEGATIVITY

We received a comment from Concerned Citizen.

I cannot believe that you like putting negative comments on this website after the selectmen's meetings. You should be putting positive things
on about what they accomplish and how much time they put in. I have heard about the
people involved in the CFA and I am not impressed at all. You seem to like targeting
people and saying false things and negative things. You should fine something more
constructive to do. I would hate to think that people like you are involved with the
town. I feel we had a great board and now have new board that will do a great job. I
watch the meetings and I am appalled by the way you people act and the questions you
ask. You only care about yourself and not the town. As far as Jeanette Stewart is
concerned I feel she is doing a great job as chairperson as I see her on TV. Let her
do her job. Stop interfering. Going to the meetings is fine, but acting the way
your group does is uncalled for.

Monday Night's Board Meeting - Avoiding the Past and the Future

I recommend that people watch Monday night's Select Board Meeting on Public Access television. At that meeting before public comments were allowed, Jeanette Stewart said that she would not entertain any questions or comments from the public about the past. She said the board had a great deal to do in the coming months like the Capital Improvement Plan. The board itself discussed the past, however, and did not address any future concerns.

I might understand not discussing the past if this was a completely new board. However, Jeanette Stewart and Dan Golden were on the previous board, and Jeanette Stewart ran on a platform of providing continuity to the board. Most of the issues discussed at the meeting were continued from the previous board: The Fire Station roof, the campground dumpster, Northern Lakes Veterinary Hospital, and Time Warner Cable. That is why these items were placed under "Old Business." The board discussed the past while the public was prohibited from doing so.

They also avoided discussing the future. They spent 25 minutes discussing the campground dumpster, a subject the previous board spent almost the same amount of time discussing at the last Work Session with exactly the same result. The issue of the dumpster should have simply been turned over to the town administrator to handle with the assistance of the Public Works and the Police Department. If the dumpster was properly shielded and the local ordinances were enforced, there would be no problem. They also spent time discussing issue at Northern Lakes Veterinary Hospital, which is really a matter for the Planning Board. The board did discuss the engineering report on the Fire Department roof, but when asked to provide more details on the report, they could not explain the problem or the options for repair other than reading from the list in the report, which the town administrator provided. They should have been prepared with a summary of the report the townspeople would understand the situation.

Despite the fact that Jeanette Stewart told us on Candidate's Night that the town is in serious financial trouble, the new board did not discuss developing the Capital Improvement Plan (CIP) approved by voters or starting an Economic Development Committee. Both of these are critical to returning the town to a healthy financial position. The town's financial situation should be the board's top priority. It should have been the first item under new business, even though it is really old business. It is new business because the previous board did not take any meaningful steps to deal with the problem. That may be why the new board wants the public to forget the past and why they did not discuss the future.

The Fire Department Roof

Of the Agenda Items for the Future we posted yesterday, the only item discussed at the Select Board meeting last night was the Fire Station roof. The towns people approved a warrant article for $50,000 for the repair, and last night the board agreed to additional engineering studies before proceeding with repairs.

I asked the board to provide more details about the specific problems outlined in the report and the recommended repair options that range from $40,000 to $175,000. Jeanette Stewart read a section from the report that did not answer my question, but Fire Chief Steve Heath offered to take people down to the Fire Station and explain the basic problems. Several residents attended including two members of the Coalition for Action and newly elected Select Board member Phil Preston.

Steve Heath told us that the Fire Station was built in 1967 and the current roof was updated in the late 1980s. There are four sections of the roof. Looking at the building from the street, there is a small section to the right that was the old radio room. The large section in middle is the equipment bay, and to the left are two lower sections that house the offices, radio room, and classroom. In terms of repair, the old radio room seems to be in the best shape, and the sections over the offices and training room are in the worst shape.

The roof is supported by metal stanchions that support sections of corrugated galvanized steel that are covered by a thin layer of cement, insulation, a rubber membrane, and a layer of material to hold the membrane in place. Steve Heath took us into the equipment bay to show where there has been leakage through the seams in the corrugated steel. He shined a flashlight on the seams to reveal what he called small stalactites ranging in size up to several inches. The seams were formed by overlapping the corrugated sections, and a layer of cement was poured on top of the steel to provide additional strength. In order for the roof to leak and the stalactites to form, water would have to penetrate the cement and then make its way under and back up over the corrugated seam.

Picture water making its way down into the U-shaped channel that is filled with cement and then back up over the inverted U-shaped corrugation. According to the engineer, what may have happened over the years is that the cement deteriorated - turned to sand - as a result of water freezing and thawing. Even though there is a layer of beaded styrofoam insulation over the cement, the roof was designed to let heat through to help melt the snow on the roof. There are drains in the roof to channel the water off, but the engineer found evidence of pooling in the center of the roof. The pitch of the roof will need to be changed in order to correct this problem.

Steve said that they are not sure where the water is coming from. No core sample was taken in the portion of the roof to determine the condition of the insulation or the cement layer. In addition, the roof does not meet current load standards for emergency buildings. Further engineering studies are needed to determine the nature of the problem and to develop approaches for repairs given the limited amount of money the town has. Steve said that we may to increase the strength of the supports before we actually repair the roof.

The sections of the roof to the left of the equipment bay are in worse shape. Snow blows off the equipment bay roof and piles up on these sections. A core sample was taken somewhere in this area and the fiber board insulation was found to be 100% saturated. Pictures of the stanchions show that there has been more leakage in these sections, and there is evidence that the rubber membrane has come loose at either end of the roof. The engineer is also concerned about whether the stanchions were properly installed and has suggested that we consider making the building earthquake safe. (We had a small earthquake in Ashland a few years ago, and the state is working on new standards.)

There were several approaches to fixing the roof ranging from $40,000 to $175,000, but further engineering studies are needed to determine the extent of the problem and the best approach for fixing the roof. Hopefully, the board will do a thorough cost benefit analysis before making their decision.

I asked whether the engineering report could be put on the town website so that it would be easily available for all of those interested in the repairs. Jeanette Stewart said that the report could not be placed on the website but did not explain why. The report is a public document and is available for viewing at the Town Hall.

An Agenda for the Future

The election is over, and now we need to address the key problems we face as a town. The following is a list of items we think should be on the agenda of the first meeting of the new board:

• Development of the Capital Improvement Plan
  
• Establishment of an Economic Development Committee
• Consideration of Tax Increment Financing (TIF)
• Decision about the Fire Station Roof
• Plan for Dealing with the Bucket Loader and Tractor
• Status of Correcting Discrepancies in the Union Contract
• Plan for Renegotiating the Employee Contributions to the Health Care Plan
• Repair of Thompson Street, Smith Hill Road, and West Street
• Hiring a full-time Grant Writer

Development of the Capital Improvement Plan is a campaign promise made by Jeanette Stewart at Candidate's night and was approved by town. It is imperative that a committee be established and that work commence on the plan immediately.

Establishment of an Economic Development Committee was a campaign promise made by Jeanette Stewart at Candidates' Night. A committee should be formed by the select board as soon as possible. Promoting economic development is essential to meeting the goals for the town established in the master plan, is critical to the town's economic future, and necessary for improving our quality of life.

Consideration of Tax Increment Financing (TIF). Establishing a TIF district is one way to improve the downtown area and attract both new businesses and talented people to the town. Many towns in New Hampshire have used this approach to revitalize areas for business and recreation. TIF funds are accumulated from tax increases on property improvements and are spent on improving infrastructure in established TIF districts.

Decision about the Fire Station Roof. The board has had the report on the fire station roof for a week and should be ready to discuss a plan for the repair. There are several approaches to repairing the roof that range from a little less than the $50,000 approved by the town to about $175,000.

Plan for Dealing with the Bucket Loader and Tractor. The town did not approve the warrant articles to lease a new bucket loader and tractor. However, the problem of either repairing or replacing this equipment remains. We need to know how the board plans to deal with this situation, what the options are, and how much it will cost.

Status of Correcting Discrepancies in the Union Contract. We wrote a blog article outlining the major discrepancies in the new union contract. Jeannette Stewart said at a board meeting that she would address these problems by calling a meeting of the negotiating team. That meeting has not yet been held. At a later meeting she said that the discrepancies were not a problem because the town had not approved the final contract. The town voted to approve the contract, but as far as we know the contract has not been corrected.

Plan for Renegotiating the Employee Contributions to the Health Care Plan. At a board meeting Jeanette Stewart said that the union had agreed that they would go back to the table and renegotiate the issue of employee contributions to their health care plan. This is an important issue since non-union employee are required to contribute to their plans, and the non-union employees did not receive the same increases in salaries. We voted to approve the contract based, in part, on the promise that this issue would be renegotiated. It should be done soon.

Plan to Repair of Thompson Street, Smith Hill Road, and West Street. These three roads along with the dirt portion of Owl Brook Road, are the worst roads in Ashland. They are in desperate need of repair, but the town does not have a plan to repair them. The town approved $125,000 capital reserve fund for roads, but it will cost over $1 million dollars to repair these roads. At the rate of $125,000 a year, it will take at least 8 years to save enough money to do the major repairs, but the roads need temporary repairs until then. There are people living in all of these areas with health problems who are finding it very difficult to travel over these roads. The board needs to develop a plan to address this issue. I believe the following figures are correct. We have $50,000 in the budget for road repair, but more than $30,000 will go to Owl Brook.

Hiring a full-time Grant Writer. The town has a grant writer who is very dedicated, but we need to place much more emphasis on writing and getting grants. The town's financial position should qualify us for grants in a number of areas.

All of these issues should have been addressed by previous boards, but we as voters need to make sure that they are addressed now, and they are addressed soon.

Setting the Record Straight

I have received information from several different sources now that false information was spread during the recent campaign. People were told not to vote for Fran Newton because she wants to change the downtown, including putting in a roundabout. If you went to Candidate's Night or saw the broadcast on Channel 20, you would have seen that (1) Fran Newton wants to develop a shared vision for Ashland, and (2) she did not say anything about changing the downtown or putting in a roundabout. A roundabout would be extremely expensive; it would create traffic problems, ruin the appearance of that section of town, take away parking space, and cut into Memorial Park. She did, however, express her desire for economic development and revitalization, thoughts echoed by many.

However, there is a case to be made for reconfiguring the traffic island. One of the ideas initially proposed by the Charrette team was to close the short section of 132 by the traffic island and make the island part of Memorial Park. This would make that corner safer for cars and pedestrians, improve the appearance of the island, add space to Memorial Park, and add parking spaces to the lower village. The cost to do this would be moderate, especially compared to a roundabout. However, this was just a preliminary idea. We have not seen the final report to see whether the plan is even viable. Fran made the point at Candidate's Night that all options would be on the table. This means that if the plan were viable, it would be something we should consider. I put the emphasis on WE, because improving the downtown must be part of a shared vision of the townspeople, not something that a single person or small group wants.

Behind this issue is the larger issue of economic development. The fact is that we need to attract businesses and talented people to our town even if we just want to maintain the town as it is. We do not have enough people to pay the taxes to support necessary services and maintain the equipment, buildings, and roads as they currently exist. Previous boards have not addressed economic development, and they have let our infrastructure and equipment deteriorate. The town is in a very difficult position in terms of attracting business because of our financial situation and because our downtown area is not attractive to new business for a number of reasons. We are having a difficult time sustaining businesses.

One way to attract business is to work on both situations. Improve our financial situation by controlling spending and building reserves, and improve the appearance of the downtown. We are going to develop a Capital Improvement Program, and we should consider making the downtown area a Tax Increment Financing (TIF) District so that money generated from improvements can be funneled back into improving the downtown without negatively affecting the tax rate. We need to work much more closely with other government agencies to find ways to address specific problems and obtain grant money to make the process of improving our town easier on taxpayers. Hopefully, there will be a number of ideas in the Charrette report that will help us promote economic development, but we have to examine them, determine what is feasible, find ways to finance them, and prioritize them before we implement them.

In general, unfounded rumors are detrimental to the town. We do not need leaders who discourage creative thought, who mislead voters, and who stand in the way of progress in order to promote their own political agendas. As Fran clearly stated, we need to develop a shared vision for the town. This vision must be based on the truth and on the facts. And, we need people who have integrity, vision, and the ability to bring people together to support a common purpose. We certainly hope the newly elected board will exemplify these ideals and, if they do, find support from the town.

A Response to the Author of "Grow Up"

We received the following article from Sandra Coleman:

It is sad to say we have come to the point in our life when we respond to those who
write anonymously, and we give them precious time to respond to their words. The
writer who wrote "Grow Up" "Grow Up" "Grow Up" and "Your Website is Disgusting" was
hiding behind a 'door', for whatever reason, and slanders the person writing only
the truth on subjects of interest to the tax payers and rate payers of this town.
What is the writer afraid of? State your name!! If you, as author of these articles
believe in the words you have written, there should be a sense of pride in what you
have written. Therefore, I challenge the author of these two (2) articles to respond
to me and sign your name as 'we' are proud to sign our names to articles we have
written for 'Ashland Speaks' or any other paper.

Capital Improvement Planning

One key issue in the upcoming election is whether we will continue to try to fund capital expenses through yearly Warrant Articles or develop a Capital Improvement Plan (CIP) and begin funding these expenses by building capital reserves.

I have heard a number of opinions for and against developing a CIP ranging from, "It is a waste of time. Ashland only has 2,000 people, and the townspeople won't support it," to "Some towns New Hampshire fund all of their capital expenses through capital improvement plans and capital reserves." While there is a wide range of opinion, people on both sides are concerned about tying up tax payer money. This is particularly important concern in Ashland where our taxes and debt are high, and our ability to raise revenues is limited by demographic factors and a lack of economic development.

The whole point of developing a Capital Improvement Plan, however, is to find the best approach to budget for and fund large capital improvements like equipment, buildings, building repair, and roads. Although CIPs are generally a necessity for cities and larger towns, they also benefit small towns like Ashland. However, they have to be tailored to meet the needs of the community. It is also important to understand that CIPs are not new to our State. RSA 674:5 provides the guidance for developing Capital Improvement Programs. Many towns have already developed or are in the process of developing plans. The benefits of a CIP according to The League of Women Voters of the Upper Valley are as follows:

• Avoiding undue tax increases
• Preserving public health, safety and welfare
• Anticipating the demands of growth
• Improving communication and coordination
• Developing a fair distribution of capital costs
• Building a foundation for growth management and impact fees
• Identifying "scattered and premature" development
• Supporting economic development

For Ashland, the key benefits are avoiding undue tax increases, improving coordination among the town's governing bodies, preserving public health, safety, and welfare, and supporting economic development. One resident who is familiar with economic development said to me that given our limited ability to raise revenues, the only way we can solve our financial problems is to grow our way out." Towns with Master Plans and CIPs attract business and talented people.

What does a CIP plan involve? The core of the plan involves the following tasks:

• assessing the town's financial capability
• inventorying the town's capital assets (equipment, buildings, and infrastructure)
• determining when assets will need to be replaced or repaired
• developing a plan to finance assets
  
• determining the best approach to replace or repair them

For Ashland, one of the most important features of the planning process will be to assess the town's financial capability. I have already mentioned that our ability to raise revenues is limited. Our ability to control spending is also limited by factors that are internal and external to the town. This year, for example, the town limited budget increases by putting capital expenses and charitable contributions in Warrant Articles, and changing the Director of Parks and Recreation position to part-time. The town cannot control the cost of fuel, the economic situation, or cuts in state and federal spending.

Since we have no CIP, we end up as we did last year having to replace equipment and make costly repairs without having accumulated any capital reserves to help fund them. For example, the problems with the Fire Station roof were known but the repairs were not planned for. This year there are warrant articles to replace or repair about $250,000 worth of capital assets. If we approve these articles, we will raise our taxes approximately 1 mill. But, if we had a CIP, we could have paid for part or all of these expenses, saved money in the long, and made our budgeting process more straight-forward and transparent.

A key advantage of a CIP is that it helps the Selectmen and the Budget Committee manage the town's finances by prioritizing capital improvements, preparing cost-benefit analyses to determine the best approach to purchasing and financing capital assets given the town's financial capacity. Now we invest in capital improvements on a yearly basis when equipment wears out, buildings need repairs, and roads are so bad we cannot ignore them. Our assets literally plan for us. We are going to be trying to catch up for quite some time because we have put off purchases and repairs for so long.

One final point. Putting requests for the funding of key capital equipment and repairs can put the town at risk if voters do not approve them. Capital Improvement Plans do not take control away from voters because voters have input into the plans, and the plans provide voters with the necessary information to support spending. This year we are being asked to approve a new bucket loader and tractor just a year after purchasing an expensive sidewalk plow, and we have no cost benefit analysis that justifies these purchases and no idea of how they fit into the town's priorities. A CIP makes the entire process easier for voters to understand and easier for town officials to manage.

GROW UP GROW UP GROW UP!!!!!!

We received the following article:

I have lived in Ashland many years and have never, and I mean
never seen residents act the way you people do. So what if there are mistakes in
the union contract, it can be corrected. No big deal!!!
You act life selfish brats with nothing better to do
than to find fault with everything everyone else does except yourselves. Please
grow up and don't act this way. The town is more important. Stop your pettiness
and start putting more positive things on
the website like the many hours the selectmen spend
working and doing what is best for the town of
Ashland. The many hours the office staff puts in. Take your website down, the
majority of the
townspeople do not even want to go on it. GROW UP GROW UP GROW UP!!!!!!

The Discrepancies in the Union Contract

Given the number of questions and concerns that have been raised about the new Union Contract, we felt it important to take a close look at the problems. This task is complicated by the fact there are several different versions of the new contract out in public. Rather than discuss all of the discrepancies, and there are many, I will focus on some of the key differences.

First, some background information. The new contract (April 1, 2012 - March 31, 2015) is based on the current contract (April 1, 2003 - March 31, 2008). The town and the union negotiated a Tentative Agreement that was initialed by the parties on January 11, 2012. The agreements in the Tentative Agree should have been incorporated into the new contract that was signed on January 12, 2012. I have seen several copies of the new contract, all with the same dated signature page but distributed at different times, one from January 24, 2012, one on February 9, 2012, and a copy I obtained from the town office on February 10, 2012. There are differences among these copies, which I will discuss below.

As far as I can tell, some of the discrepancies have resulted from improperly transferring sections of the tentative agreement and the current contract to the new contract. There are also differences between the three copies of the final contract I referred to above.

One key problem concerns Article 24, Uniforms. The part of Article 24 that lists the items in the clothing allotment and the boot allowance was left out of the February 9th version of the contract but was added to the February 10th version as page 23. The new section takes up half a page, and the remainder of the page is blank. There is no other place in the contract where there is a large portion of blank space. In addition, the page references in the Table on Contents do not reflect the addition of the information on page 23. Articles 25, 26, and 27 are listed on page 23 when they are actually on page 24. The Table of Contents looks as if it might have been altered to account for the additional page. The page references are in a right justified column, but "22" is out of alignment with the rest of the page numbers.

I have seen two versions of the Tentative Agreement with different last pages. The copy distributed on February 9, 2012 was initialed by 5 people. The copy from February 10th has been initialed by two additional people, Selectman Jeanette Stewart and negotiator Ann-Marie Welch. It appears that the initials A.M.W have been squeezed between the date and the initials R.D., and it also appears that the initials J.I.S. are squeezed in at the bottom of the page. The hand-written date on the both pages is January 11, 2012. This seems to indicate that the Tentative Agreement was not initialed by all parties at the same time.

Another important omission concerns Article 23 - Wage Rates. The article begins by stating, "Effective April 1, 2012, wage rate schedule is provided in Appendix 1, attached..." However, there is no Appendix 1 in the February 10th version of the new contract. When I asked for Appendix 1 at the Town Hall, I was told that there is no Appendix 1. In other words, there is no wage rate schedule to be followed for paying union employees in the new contract. The rate increase does not appear to be spelled out anywhere else in the contract. The January 24th and February 9th versions both have an Appendix "A" as does the current contract.

There is a significant discrepancy concerning Article 11, Holidays. The Tentative Agreement specifies that item 5 should read the same as the current contract; however, there is no item 5 in the new contract. Item 5 should read, "When an employee works on a holiday, he/she shall receive time and one half in addition to the eight hours of holiday pay within the pay period the holiday is earned." This could mean that a union employee would not receive time and half in addition to holiday pay if he/she were required to work on a holiday.

Article 23 also specifies that wages will be increased further according to the CPI-U (Consumer Price Index of All Urban Consumers) for the Greater Boston Area plus one-percent. I was told that members of the negotiating team had requested that this be changed to more accurately reflect the economic conditions in our area, but it appears this was not done.

Article 13, Sickness and Disability, Section B in the Tentative Agreement only says, "Employees to be on disability insurance with LGC." The final contract reads the same as the current contract, which is significantly different from the tentative agreement. It contains 7 sections and does not mention LGC. I am not sure how this might affect workers on disability.

In the current contract, Article 11, Annual Vacation specifies that, "vacation will be credited on January 1 of each year." The final contract does not specify a date. When vacation is credited affects when employees can take vacation and how much vacation they can take.

There are a number of inconsistencies in the wording of the contract in regard to who is responsible for certain interactions regarding employees like requiring a doctor's certificate or approving educational reimbursement. In some places the contract specifies the Board of Selectmen, in some the Town Administrator, and in some the Hiring Authority. The problem is that some union employees work for the town and some for the Electric Department. The contract needs to make clear who is responsible. If the responsibility is split between the town and the Electric Department, the contract should reference the Hiring Authority, which would be applicable to all.

Since I am not a lawyer, I do not know what the legal ramifications of these problems are. Clearly, the negotiating team and the union are both at fault since both parties signed documents that contain so many discrepancies. But, we as townspeople are now faced with a problem since we have to vote on a Warrant Article to fund the contract, when we know the contract is flawed, and there is no salary schedule that specifies the exact amount of the raises. Furthermore, figures in the the Warrant Article may not be correct. The figures include the cost of all the positions at the Electric Department and not the the cost of the three positions that are currently filled as stated in the Warrant Article. In addition, the figures did not include the allowance for jackets. Hopefully, these issues will be resolved before the election, so we will have a clear understanding of what we are actually voting for or against. We also should also call for a in-depth review to see what went wrong with the process, to determine why there are differences among signed copies of the contract, and to identify which copy of the signed contract is correct.

The Union Contract

There has been discussion in town about the terms of the new union contract and discrepancies between the new contract, the tentative agreement, and the old contract.

The new contract calls for a salary increase of 4.2%. It also calls for the union employees to accept the new health care plan, which represents a savings to the town. The concern, however, is that the non-union employees have been given a 1.5% and have been asked to contribute to their health insurance as most local employees in the state already do. Jeanette Stewart has said that the town can go back to the negotiating table at any time to discuss union employee contributions to their health care plan. There is, however, no guarantee that this will actually happen after the election and no guarantee that the town will be able to reach a new agreement without the leverage of salary increases and other benefits at stake.

At Monday Night's Select Board Meeting Lee Nichols addressed the issue of discrepancies between the new union contract, the tentative agreement, and the old contract. Lee also addressed this issue at the Deliberative Session on Saturday. Lee correctly pointed out that some of the terms in the tentative agreement and the old contract were not entered correctly into the new contract.

The discussion became heated. Jeanette Stewart at one point tried to end public discussion on the subject. Glen Dion said this was a union matter and not a public matter. Electric Commissioner Kendall L. Hughes said that he had been left out of the final approval process while Jeanette Stewart said that she had notified him but had not received his comments on the contract.

The union contract is a public issue, not a private matter between town officials and the union. We pay employee salaries through our taxes, and we have a vested interested in ensuring that salaries, benefits and working conditions are clearly defined and fair. Most of our employees are also residents and taxpayers. The negotiating committee and the union are responsible for reviewing and approving the final contract. The fact is this was not done by either side, and now there are a number of discrepancies that affect salaries, benefits, and working conditions. These discrepancies also affect managers who have to carry out the conditions of the contract.

After a lengthy argument, Jeanette Stewart agreed to meet with the negotiating committee to discuss the issue. The meeting should have been arranged after Saturday's session when the problems were first brought up. Better still, the problems should have been brought to the attention of the negotiating committee and resolved before the Deliberative Session.

The argument that took place at the BOS meeting also reveals that there are underlying issues that interfere with decision making and problem solving. There are systemic, political, and personal problems that interfere with communication, close cooperation, problem solving, and effective management of the town's business. We have serious financial problems to deal with in the coming year. These are problems that will be with us for many years. But, we won't be able to make progress if we can't work together.

The Deliberative Session

If you attended the deliberative session on Saturday, you might have thought that the most pressing problems facing the town were moving the bandstand and making the Parks and Recreation Director a full-time position. The real issue is getting control of spending and facing up to our serious financial situation. A committee of interested people can resolve the issues involved in moving the bandstand and even raise the remaining $2,500 to move it. Making Parks and Recreation a self-supporting entity would be one way to restore the position without cost to taxpayers. However, we will not be able to resolve our financial problems unless we understand them, develop a plan to address them, and make the difficult decision to tighten our belts and work together.

Steve Felton, Patsy Tucker, Police Chief Tony Randall, Fire Chief Steve Heath, and Fran Newton all addressed the Warrant Articles that will help us build capital reserves. Warrant Article 14 calls for the establishment of a Capital Improvement Plan (CIP) Committee, Article 8 calls for the establishment of a $125,000 capital reserve fund for roads, and Article 10 calls for the establishment of a capital reserve fund for Fire Department equipment.

Why do we need a Capital Improvement Plan? Chief Randall made the case when he said that we have put off replacing equipment for so long that we now have to pay the piper. Steve Felton described this situation in financial terms. The town has a little over $7,000 in capital reserves and $20,000,000 in accumulated depreciation. As a piece of equipment, a building, or a road ages, it loses value. The $20,000,000 is an estimate of how much value all of the town's equipment, buildings, and roads have declined in value over the years. Normally, businesses and governments put away money to replace and repair these things, but Ashland has not, and so we have to find ways to fund fund these things as they need repair or replacement. A Capital Reserve Plan is a form of long term planning. It identifies and prioritizes capital expenses so the town can plan how best to deal with these expenses.

What are these expenses? Last year, we leased two police cruisers, and we purchased a sidewalk plow with attachments and a defibrillator. These items added $23,000 to this year's budget This year, the town is asking voters to approve Warrant Articles to lease a loader for the Public Works Department ($28,420/year for 5 years), repair the fire department roof ($50,000), purchase police radios ($10,000), and lease a tractor for the recycling station ($15,000 per year for four years). The cost this year is $103,420 and the total cost is $257,300. The actual cost of repairing the Fire Station roof is unknown at this point because the engineering studies have not been done. $50,000 is not based on an actual estimate.

Why is this a problem? These kinds of expenses cause spikes in the tax rate, and they increase future budgets, and they can take financial and personnel resources away from other important projects.

Planning and saving for these expenses allows us to prioritize large expenses, gives us more options in terms of purchasing and financing, reduces the cost of financing, and limits dramatic increases in the tax rate. However, as taxpayers, we would have to accept the concept that the cost of operating the town includes our yearly expenses plus a portion of our long term expenses.

Our problem now is that we have $20,000,000 in accumulated depreciation, and we have no idea how much money it will actually cost to replace or repair the items that have decreased in value, nor do we know when we will have to replace them. There are several warrant articles that will help us begin saving for things we will need. Article 8 would establish a $125,000 capital reserve fund for roads. As Fran Newton of the Budget Committee pointed out, it will cost $1,000,000 per mile to repair Thompson Street, Smith Hill, and West Street. $125,000 is only a start, but a necessary start. Article 10 would establish an $8,000 capital reserve for Fire Equipment. The purpose of this article is to spread the cost of 400 gallon water tank over two years. The tank is for use in fighting forest fires and reaching homes in town that are hard to access with other equipment. Article 13 establishes a non capital reserve fund for the repair and maintenance of the town clock.

Developing a good Capital Improvement Program takes several years, a great deal of work by the members of the Select Board, the Budget Committee, the Planning Board, and townspeople. Following the plan takes political will and cooperation. It will also take a number of years to get the town on a solid financial footing. During this time, we will have to accept higher taxes and lower budgets. The alternative is to continue to operate without long term planning and not only the ability to choose how we deal with our financial problems but lose our identity as town.

Candidates for Town Offices

Member Board of Selectmen – 3 year term: Fran Newton, Jeanette Stewart
Member Board of Selectmen – 1 year term: Sandra Coleman
Town Moderator - 2 year term: Bobbi Hoerter
Town Clerk/Tax Collector – 3 year term: Sherrie L. Downing, Patricia Tucker
Town Trustee of the Trust Funds – 3 year term: Thomas Peters
Library Trustee – 3 year term: Lynn Davis
Supervisor of the Checklist – 6 year term: Beverly J. Ober
Electric Commissioner – 3 year term: Bobbi Hoerter
Water and Sewer Commissioner – 3 year term:John C. Hughes, Gordon F. McCormack Jr.
Budget Committee – 3 year term [three positions]:David Ruell, Mark Scarano, David Toth
Ashland School Board Member – 3 year term: Jennifer Wrath
Ashland School Board Member - 2 year term: Mardean Badger
Ashland School District Moderator – 1 year term: Philip Preston
Ashland School District Clerk – 1 year term: Patricia Tucker
Ashland School District Treasurer – 1 year term: Brian Chalmers

The Effect of Budget Increases and Warrant Articles on Taxes

Budget Committee co-chair Steve Felton brought up two important points about warrant articles at the public hearing on the budget. The first is that the money to fund warrant articles is not contained in the proposed budget. Funded warrant articles approved by voters add money to the budget and are paid for by increases in taxes and/or revenues. Think of it this way: If you vote for a funded warrant article, you are voting to increase your taxes.

Second, warrant articles for leases and union contracts also add money to future budgets. If you vote for the warrant articles for the bucket loader, the tractor, and the union contract, you are voting to increase your taxes this year and increase the budgets for 2013, 2014, 2015, and 2016. A little less than half of the increase in this year's budget comes from warrant articles we approved last year for the police cruisers and the defibrillator.

If the town approves all of the funded warrant articles this year, we would be approving an increase of $256,890. If we add the increase in the town and school budget, the total increase in spending is $491,583 over last year. It is difficult to predict what the tax increase will be because the rate is affected by revenues, assessments, and actual spending. However, if all things remained the same as this year, taxes would increase by about 1.86 mills. If you had a house assessed for $100,000, your taxes would increase by $186.00.

If the town approves the warrant articles for the bucket loader, the tractor, and the union contract, we will add $53,525 to the budget in 2013, $50,255 in 2014, $43,420 in 2015, and $28,420 in 2016. I did not include the amount for the police cruisers and the defibrillator because I do not know when those leases run out.

What does this mean? If we vote to approve all of the warrant articles, we are voting to increase the budget this year and each of the next four years. All of the warrant articles for equipment are justified. We cannot put off repairing the fire station roof. It is likely that there is not enough money in the warrant article to complete the repairs, which means that we will have to find the money elsewhere. We could put off purchasing some or all of the equipment, but we will have to purchase these items eventually. We could put off starting a capital reserve fund for roads, but we are facing paying over $1M to repair Thompson Street, Smith Hill Road, and West Street. And, we could choose to not fund or reduce the funding to those agencies that provide health and human services to the town, but in most cases these agencies save the town money while providing necessary services to those who need them most. It is also very likely that we will be facing many other large expenses over the next five years to ten years because we have put off making large capital expenditures and have not put any money into capital reserves to cover these expenses.

What should we do? Right now I do not have enough information to make an informed decision on all of the warrant articles. By that I mean I don't know what the best approach to meeting our capital needs is. Do we lease equipment, take out loans, or purchase it outright? Do we really need to replace radios that are working, or is there an alternative approach that will meet our safety needs and save us money? If we had a capital improvement plan, we would have a much better understanding of our priorities and options in terms of acquiring equipment and repairing roads and facilities. We would know what expenses we would be facing short-term and long-term. Now our priorities are determined by which equipment breaks down, which buildings develop serious problems, and which roads are in bad enough condition that we can no longer ignore them.