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.
Saturday, January 28, 2012
Thursday, January 26, 2012
Increasing the Select Board to 5 Members
There is a petition warrant article asking the townspeople to increase the number of selectmen from 3 to 5. At the Public Hearing on this issue, both Jeanettee stewart and Glen Dion were in favor of keeping the number at 3. They said that it is easier to conduct business with a 3-member board and that in their experience more is accomplished. There is, however, no evidence to support or refute these claim. The previous 5 member board had some contentious sessions, but former Selectman Sandra disputed the claim that more can be accomplished with 3 members. How boards function and how much they accomplish is influenced by a number of factors including how well the people on the board work together and the amount of work that actually needs to get done.
People in favor of a 5-member Select Board raised several concerns. The first was that they wanted broader representation. If there are 3 selectmen and one is absent, important decisions can be made by just two people. This was the case when Dennis Potter resigned and the board had to appoint a new selectman. There was no formal public selection process. Dan Golden put Glen Dion's name forward in a motion. The motion was seconded by Jeanette Stewart. There was a very brief discussion about Glen's qualifications, none of the other candidates were discussed, and the two voted in favor of Glen.
Several people mentioned that it is that it is difficult for a 3-member Select Board to fulfill its functions and meet its obligations with only three members. The selectmen are required by law to be ex officio members of the Budget Committee and the Planning Board. In the past, selectmen have acted as liasson to the Electric Department, the Water and Sewer Department, and other town committees and boards. They have also represented the town at public functions. This year, however, the selectmen have not been able to attend Electric Department and Water and Sewer Department Meetings, the Table Top exercise (an Emergency Services exercise), the Charrette meetings, the opening of the River Street Bridge, the 4th of July Parade, or Christmas night.
Glen Dion's response to these comments was that the Selectmen do not have to attend every meeting and every function. Jeanette Stewart said that the board sends the town administrator and the administrator reports back to the board. Whether you decide to support the 5-member may be determined by what your philosophy is concerning the involvement of the Select Board in town meetings and activities.
Perhaps the most import issue was raised by Fran Newton. She said that the town is facing very serious financial problems and that we need the ideas and leadership of more people to deal effectively with these issues. We will need to develop a long term perspective in dealing with our finances, and we need to bring sustainable business to the town if we are to maintain our quality of life and meet our financial obligations.
People in favor of a 5-member Select Board raised several concerns. The first was that they wanted broader representation. If there are 3 selectmen and one is absent, important decisions can be made by just two people. This was the case when Dennis Potter resigned and the board had to appoint a new selectman. There was no formal public selection process. Dan Golden put Glen Dion's name forward in a motion. The motion was seconded by Jeanette Stewart. There was a very brief discussion about Glen's qualifications, none of the other candidates were discussed, and the two voted in favor of Glen.
Several people mentioned that it is that it is difficult for a 3-member Select Board to fulfill its functions and meet its obligations with only three members. The selectmen are required by law to be ex officio members of the Budget Committee and the Planning Board. In the past, selectmen have acted as liasson to the Electric Department, the Water and Sewer Department, and other town committees and boards. They have also represented the town at public functions. This year, however, the selectmen have not been able to attend Electric Department and Water and Sewer Department Meetings, the Table Top exercise (an Emergency Services exercise), the Charrette meetings, the opening of the River Street Bridge, the 4th of July Parade, or Christmas night.
Glen Dion's response to these comments was that the Selectmen do not have to attend every meeting and every function. Jeanette Stewart said that the board sends the town administrator and the administrator reports back to the board. Whether you decide to support the 5-member may be determined by what your philosophy is concerning the involvement of the Select Board in town meetings and activities.
Perhaps the most import issue was raised by Fran Newton. She said that the town is facing very serious financial problems and that we need the ideas and leadership of more people to deal effectively with these issues. We will need to develop a long term perspective in dealing with our finances, and we need to bring sustainable business to the town if we are to maintain our quality of life and meet our financial obligations.
Saturday, January 14, 2012
Public Hearing on the Budget
First let me say that the town, the utilities, and the budget committee did an exceptional job in preparing the budget. The budget committee, in particular Steve Felton and David Ruell did an excellent job in presenting the budget to the public. Steve Felton began with a Power Point presentation that reviewed the budget committee's responsibilities, the process,the basic financial principles used to prepare the budget, and a high-level overview of the budget itself. David Ruell discussed the details of the budget focusing on those areas where changes were made or where the decisions were difficult to make. The Power Point Presentation will be made available on the town's new website. Members of the budget committee also spoke and shared their rationale on a number of decisions.
In this article I want to focus on some issues that arose during the presentation from which we can learn to improve the process. The greatest area of contention was the police budget. The budget committee voted not to approve a 1.5% raise for non-union employees while approving increases and merit raises for other employees. Chief Randall took exception to this since it directly affects all of the police department employees. Mark Ober asked why we do not treat all employees the same, but members of the budget committee felt that employee should be given raises based on merit. Since the issue was raised, the budget committee will take another look at the issue before the SB2 meeting.
Underlying the issue is the lack of a consistent policy on wages and employee evaluation. My experience has been that employee raises should be determined in part by the cost of living and in part by merit. The town administrator evaluated the performance of the administrative staff and recommended merit raises. Other department heads, including the police chief, did not evaluate their employees but expected their non-union employees to receive the 1.5% raise since town employees have not received raised in a number of years. The budget committee also found that employees in the library were not receiving wages consistent with other town employees. Union employees would get a pay raise greater than 1.5% in the new contract. In addition, non-union employees are being asked to contribute 5% to their health insurance while the union accepted the new, lower cost health insurance plan but will not be contributing to the premiums. These inconsistencies create a problem for the budget committee, for the employees, and for the towns people who have to vote on the budget.
I would recommend that the town develop a consist policy that combines cost of living and merit in determining wages. Raises are ultimately based on what tax payers can afford. In this economy that may not be much. But, to keep valued employees, we need to compensate them as fairly as we can. Cost of living increases are fair, and so are certain merit raises when the town has money. Many companies give department heads a pool of money to divide among their employees based on merit. Department heads must evaluate their employees based on pre-established objective criteria and then divide the money in the pool among the members of their depart. This rewards performance and provides incentives if the evaluations are done fairly. The town need not adopt this idea, but it should have consistent a consistent policy on wages and raises so that employees and tax payers know what to expect.
Chief Randall was also concerned that the budget committee cut two rifles from the budget. He felt that the police department was being singled out; however, the budget committee had legitimate questions about the rifles. Kevin Stack, who was a Marine sniper, questioned the use and cost of the rifles. The committee asked for more information, but the information provided was not adequate. Ingrid Heidenreich brought up the point that the budget preparation process needs to start earlier so that department heads would have the time to meet with the budget committee to defend their budget requests if necessary.
The budget process is difficult, often contentious. The townspeople can only pay so much in taxes, and in economic times like these we may not be able to afford all the things we need. Budget requests needs to be prioritized so that we can choose based on the greatest need. Right now, there is no objective way to determine which departments have the greatest needs. Are rifles more important than a water tank for the fire department? We need to develop a capital improvement plan so that we can identify, prioritize, and plan for the needs of each department.
Finally, in the budget presentation, Steve Felton pointed out that are debts are very high, and we have not saved for the large capital expenditures we will need to make over the next 5 to years. Developing a capital improvement plan and increasing capital reserves as we pay off debts is one way to improve our financial situation. Fran Newton said that we also need an economic development plan to increase our tax base and improve the quality of life in our town. The ideas for improving the downtown that have come from the Charrette can provide a starting point for attracting sustainable development. We cannot continually go to the residents, increase fees, and borrow money.
The input from the townspeople at the meeting showed a real willingness to work together to improve our financial situation and improve our town. I saw this same interest and willingness at the Charrette meetings.
In this article I want to focus on some issues that arose during the presentation from which we can learn to improve the process. The greatest area of contention was the police budget. The budget committee voted not to approve a 1.5% raise for non-union employees while approving increases and merit raises for other employees. Chief Randall took exception to this since it directly affects all of the police department employees. Mark Ober asked why we do not treat all employees the same, but members of the budget committee felt that employee should be given raises based on merit. Since the issue was raised, the budget committee will take another look at the issue before the SB2 meeting.
Underlying the issue is the lack of a consistent policy on wages and employee evaluation. My experience has been that employee raises should be determined in part by the cost of living and in part by merit. The town administrator evaluated the performance of the administrative staff and recommended merit raises. Other department heads, including the police chief, did not evaluate their employees but expected their non-union employees to receive the 1.5% raise since town employees have not received raised in a number of years. The budget committee also found that employees in the library were not receiving wages consistent with other town employees. Union employees would get a pay raise greater than 1.5% in the new contract. In addition, non-union employees are being asked to contribute 5% to their health insurance while the union accepted the new, lower cost health insurance plan but will not be contributing to the premiums. These inconsistencies create a problem for the budget committee, for the employees, and for the towns people who have to vote on the budget.
I would recommend that the town develop a consist policy that combines cost of living and merit in determining wages. Raises are ultimately based on what tax payers can afford. In this economy that may not be much. But, to keep valued employees, we need to compensate them as fairly as we can. Cost of living increases are fair, and so are certain merit raises when the town has money. Many companies give department heads a pool of money to divide among their employees based on merit. Department heads must evaluate their employees based on pre-established objective criteria and then divide the money in the pool among the members of their depart. This rewards performance and provides incentives if the evaluations are done fairly. The town need not adopt this idea, but it should have consistent a consistent policy on wages and raises so that employees and tax payers know what to expect.
Chief Randall was also concerned that the budget committee cut two rifles from the budget. He felt that the police department was being singled out; however, the budget committee had legitimate questions about the rifles. Kevin Stack, who was a Marine sniper, questioned the use and cost of the rifles. The committee asked for more information, but the information provided was not adequate. Ingrid Heidenreich brought up the point that the budget preparation process needs to start earlier so that department heads would have the time to meet with the budget committee to defend their budget requests if necessary.
The budget process is difficult, often contentious. The townspeople can only pay so much in taxes, and in economic times like these we may not be able to afford all the things we need. Budget requests needs to be prioritized so that we can choose based on the greatest need. Right now, there is no objective way to determine which departments have the greatest needs. Are rifles more important than a water tank for the fire department? We need to develop a capital improvement plan so that we can identify, prioritize, and plan for the needs of each department.
Finally, in the budget presentation, Steve Felton pointed out that are debts are very high, and we have not saved for the large capital expenditures we will need to make over the next 5 to years. Developing a capital improvement plan and increasing capital reserves as we pay off debts is one way to improve our financial situation. Fran Newton said that we also need an economic development plan to increase our tax base and improve the quality of life in our town. The ideas for improving the downtown that have come from the Charrette can provide a starting point for attracting sustainable development. We cannot continually go to the residents, increase fees, and borrow money.
The input from the townspeople at the meeting showed a real willingness to work together to improve our financial situation and improve our town. I saw this same interest and willingness at the Charrette meetings.
Friday, January 13, 2012
The School Budget
This year's proposed school budget is $3,069,665, which is $42,216 or 1.39% higher than last year's budget. The school board also expects a decrease in revenues of $138,636 for a net increase in the budget of $180,852. This will increase the mill rate by approximately $0.68. The cost of education makes up 45% of the tax rate in Ashland. Approximately %68.5 of the cost comes from salaries and benefits of teachers, administrators, and staff.
A common perception is that the education budget is too high. The school budget, after all, makes up 45% of the total tax burden. A little over 68% of the budget goes to salaries and benefits, and many of the teachers and staff are at or near the top of the pay scale. Still, compared to other towns with populations between 1400 and 2600, the Ashland school budget in 2009 was $512,000 less than the average, and the cost per resident was $238.78 less than the average.
There are other factors to consider as well. (1) The debt service for the school budget is $0.00. (2) There are no large large capital expenses anticipated over the next few years. (3) A number of teachers are likely to retire over the next few years. (4) There are no proposed funded warrant articles for the school. (5) Increases in this year's budget have come from outside sources: increased fuel costs, increased enrollment, increases in health insurance, and increases in retirement contributions. Increases in expenses or decreases in revenues will be offset somewhat by retirement. The school budget may increase, but increases in the budget will not cause large spikes in the tax rate because the school board has budgeted for short-term and long-term expenses.
One of the reasons that the school budget makes up 45% of the tax burden is that the town has put off large capital expenditures and has not budgeted for long-term capital expenses. As of 2009, the town had $20,440,271 in accumulated depreciation of capital assets and $7,470 in capital reserves. Accumulated depreciation is an estimate of the cost of replacing or repairing assets, and a capital reserve is money saved for capital expenses. The town is proposing approximately $235,000 in warrant articles for capital expenses this year, $150,000 to establish a capital reserve account for roads and the rest for equipment and building repair. We will still have $20,200,000 in capital expenses to take care of over in the future.
One additional problem is that the town has a very high debt to expense percentage. The average debt to expense percentage for towns in New Hampshire is about 15%, but Ashland's percentage as of 2009 was 77.5%. This means that a large portion of what we pay in taxes and utility bills goes to pay off debt. It also means that our ability to borrow more money will be limited in future.
These facts help to explain, in part, why the town budget is $3,135,756 higher than the average of towns with populations between 1400 and 2600 even though the education budget is lower. Unfortunately, we can expect large spikes in the tax rate in future years because we have not only put off replacing and repairing our capital assets, and we have put off saving for them while running up a huge debt. We need to begin to reverse this situation if we are to restore the town to financial health.
A common perception is that the education budget is too high. The school budget, after all, makes up 45% of the total tax burden. A little over 68% of the budget goes to salaries and benefits, and many of the teachers and staff are at or near the top of the pay scale. Still, compared to other towns with populations between 1400 and 2600, the Ashland school budget in 2009 was $512,000 less than the average, and the cost per resident was $238.78 less than the average.
There are other factors to consider as well. (1) The debt service for the school budget is $0.00. (2) There are no large large capital expenses anticipated over the next few years. (3) A number of teachers are likely to retire over the next few years. (4) There are no proposed funded warrant articles for the school. (5) Increases in this year's budget have come from outside sources: increased fuel costs, increased enrollment, increases in health insurance, and increases in retirement contributions. Increases in expenses or decreases in revenues will be offset somewhat by retirement. The school budget may increase, but increases in the budget will not cause large spikes in the tax rate because the school board has budgeted for short-term and long-term expenses.
One of the reasons that the school budget makes up 45% of the tax burden is that the town has put off large capital expenditures and has not budgeted for long-term capital expenses. As of 2009, the town had $20,440,271 in accumulated depreciation of capital assets and $7,470 in capital reserves. Accumulated depreciation is an estimate of the cost of replacing or repairing assets, and a capital reserve is money saved for capital expenses. The town is proposing approximately $235,000 in warrant articles for capital expenses this year, $150,000 to establish a capital reserve account for roads and the rest for equipment and building repair. We will still have $20,200,000 in capital expenses to take care of over in the future.
One additional problem is that the town has a very high debt to expense percentage. The average debt to expense percentage for towns in New Hampshire is about 15%, but Ashland's percentage as of 2009 was 77.5%. This means that a large portion of what we pay in taxes and utility bills goes to pay off debt. It also means that our ability to borrow more money will be limited in future.
These facts help to explain, in part, why the town budget is $3,135,756 higher than the average of towns with populations between 1400 and 2600 even though the education budget is lower. Unfortunately, we can expect large spikes in the tax rate in future years because we have not only put off replacing and repairing our capital assets, and we have put off saving for them while running up a huge debt. We need to begin to reverse this situation if we are to restore the town to financial health.
Monday, January 9, 2012
More on the Budget Excel Spreadsheet
At the Select Board work session this morning, Dan Golden said that the town would give the Budget Committee the budget in Excel format. Jeanette Stewart said that the town had sought a legal opinion and that there had been a misunderstanding about the request. The document in Excel format will save the Budget Committee hours of tedious work, and will make greatly facilitate the sharing of information.
Friday, January 6, 2012
A Blog Article Critical of My Recent Post on The Select Board's Refusal to Give the Budget Committee the Budget Document in Excel Format
I received this article this morning and am reprinting it as written:
"It seems to be that all you do is bash someone. This time it is the selectmen. Why not talk to them and see what their reasons were for the decision they made. Instead you have to bash them, because you are not man or woman enough to face them. Your website needs to be taken down, it is a disgrace to the town of Ashland. I am the one that before said it was negative and this proves it again. Get real and grow up and be proactive. Get rid of your website!!!!
"It seems to be that all you do is bash someone. This time it is the selectmen. Why not talk to them and see what their reasons were for the decision they made. Instead you have to bash them, because you are not man or woman enough to face them. Your website needs to be taken down, it is a disgrace to the town of Ashland. I am the one that before said it was negative and this proves it again. Get real and grow up and be proactive. Get rid of your website!!!!
Thursday, January 5, 2012
The Select Board Stonewalls the Budget Committee
The Select Board - specifically Jeanette Stewart and Dan Golden - have effectively stone walled the Budget Committee by denying their request for an Excel spreadsheet of the town's budget. This decision means that the Budget Committee will have to do hours of needless, tedious work re-entering all of the data into their own Excel spreadsheet so that they can prepare the budget and present it to townspeople on January 12. Dan Golden said that the Budget Committee has asked for too much information and that there are formulas in the spreadsheet the Budget Committee should not see. I'm not sure what is so confidential about formulas, but the spreadsheet data can be copied and pasted without the formulas, an operations that takes about 20 seconds. (Here are the commands: Select All, Copy, Paste Special, Paste Values.) Of course, an extra minute or is involved in emailing the file to the Budget Committee.
First, I want to explain more about the issue with the spreadsheet, and then I want to address the claim that the Budget Committee has gone too far.
The town provides the Budget Committee with a PDF file of the budget. A PDF file is essentially a picture of the Excel spreadsheet. The committee can only view the budget figures in this format; it cannot enter its own figures. The committee, however, needs to be able to enter its own figures because it reviews and votes on each line item, and it also creates the default budget. The committee does not need to change the town's figures or see the formulas used to create the figures; it simply needs to add its own figures and total them. If the town had provided a spreadsheet with just the values, the Budget Committee could have used that spreadsheet during their deliberations to enter the figures for their proposed budget and the default budget. As it is, they had to write down all the figures by hand, and they will have to re-enter them along with all of the data in the original spreadsheet. Although it can be done, there is no easy way to convert a PDF file to and Excel file. There is simply no good reason why the town cannot provide the Budget Committee with the budget in Excel format.
Second, I want to respond to the claim made by Dan Golden that the Budget Committee has asked for too much information. Selectman Golden did not explain what he meant by this or provide examples so that we could understand his reasoning. The Budget Committee can question any line item in the budget and ask for rationale. The Budget Committee cannot, however, question management decisions. A good example of this, and perhaps one of the most controversial, concerns the Electric Department's accounting practices. (I have written about this on the blog.) The Electric Department uses an accrual accounting system. They enter the billed amounts as income at the time the bills are sent out, and they enter the expenses once they actually pay their bills. This means that on the monthly financial reports, income is overstated and expenses are understated. It may take several months before the actual income and expenses are reported depending on when they receive payments and when they receive and pay their bills. Companies usually estimate their expenses so that their monthly reports are close to the actual income and expenses; the Electric Department does not. The Budget Committee cannot tell the Electric Department how to do their accounting, but the committee needs to understand how they account for income and expenses so they can read the financial reports. At the time the committee was reviewing these matters, Dan Golden felt that the committee was going too far. However, the committee did not cross the line between asking how the accounting is done and telling the department how to do its accounting. Although these discussions were difficult to understand, the committee and the public has a much better understanding of how the Electric Department operates.
Many people have commented that this year's Budget Committee has asked more questions than they have in the past. I might add, that they have asked more difficult questions. Some departments have made more thorough presentations than others: the Fire Department and the School Board are excellent examples. The committee had more questions for departments that did not make very thorough presentations. In determining the final budget, the committee and the townspeople need to know as much detail as possible. We are in a very difficult financial position. We have been in a recession for four years, our taxes are high in relation to other towns, the budget of some of our departments are high in relation to other other towns, our debt as a percentage of the budget is extremely high in relation to other towns, and we have not put away a great deal of money to meet our large capital expenses. The Budget Committee has done much of the hard work for us. They have asked the hard questions that many of us would have asked or should have asked. We will have to decide what we can afford, but that decision will be easier because we have the facts we need.
First, I want to explain more about the issue with the spreadsheet, and then I want to address the claim that the Budget Committee has gone too far.
The town provides the Budget Committee with a PDF file of the budget. A PDF file is essentially a picture of the Excel spreadsheet. The committee can only view the budget figures in this format; it cannot enter its own figures. The committee, however, needs to be able to enter its own figures because it reviews and votes on each line item, and it also creates the default budget. The committee does not need to change the town's figures or see the formulas used to create the figures; it simply needs to add its own figures and total them. If the town had provided a spreadsheet with just the values, the Budget Committee could have used that spreadsheet during their deliberations to enter the figures for their proposed budget and the default budget. As it is, they had to write down all the figures by hand, and they will have to re-enter them along with all of the data in the original spreadsheet. Although it can be done, there is no easy way to convert a PDF file to and Excel file. There is simply no good reason why the town cannot provide the Budget Committee with the budget in Excel format.
Second, I want to respond to the claim made by Dan Golden that the Budget Committee has asked for too much information. Selectman Golden did not explain what he meant by this or provide examples so that we could understand his reasoning. The Budget Committee can question any line item in the budget and ask for rationale. The Budget Committee cannot, however, question management decisions. A good example of this, and perhaps one of the most controversial, concerns the Electric Department's accounting practices. (I have written about this on the blog.) The Electric Department uses an accrual accounting system. They enter the billed amounts as income at the time the bills are sent out, and they enter the expenses once they actually pay their bills. This means that on the monthly financial reports, income is overstated and expenses are understated. It may take several months before the actual income and expenses are reported depending on when they receive payments and when they receive and pay their bills. Companies usually estimate their expenses so that their monthly reports are close to the actual income and expenses; the Electric Department does not. The Budget Committee cannot tell the Electric Department how to do their accounting, but the committee needs to understand how they account for income and expenses so they can read the financial reports. At the time the committee was reviewing these matters, Dan Golden felt that the committee was going too far. However, the committee did not cross the line between asking how the accounting is done and telling the department how to do its accounting. Although these discussions were difficult to understand, the committee and the public has a much better understanding of how the Electric Department operates.
Many people have commented that this year's Budget Committee has asked more questions than they have in the past. I might add, that they have asked more difficult questions. Some departments have made more thorough presentations than others: the Fire Department and the School Board are excellent examples. The committee had more questions for departments that did not make very thorough presentations. In determining the final budget, the committee and the townspeople need to know as much detail as possible. We are in a very difficult financial position. We have been in a recession for four years, our taxes are high in relation to other towns, the budget of some of our departments are high in relation to other other towns, our debt as a percentage of the budget is extremely high in relation to other towns, and we have not put away a great deal of money to meet our large capital expenses. The Budget Committee has done much of the hard work for us. They have asked the hard questions that many of us would have asked or should have asked. We will have to decide what we can afford, but that decision will be easier because we have the facts we need.
Tuesday, January 3, 2012
Some New Year's Resolutions
A wish list for 2012. Please add your ideas.
1. Fix the fire department roof immediately before it collapses on personnel and equipment.
2. Take last year's budget and cut it back by the amount of proposed warrant articles.
3. Establish capital reserve accounts for each department.
4. Implement an austerity program that limits spending to essentials, reduce the town's debt, begin to build capital reserves, and take advantage of grants.
5. Make Parks and Recreation a profit center.
6. Develop a long term capital improvement plan.
7. Develop a long term energy plan to include solar, wind, and hydro.
8. Continue plans to develop the receiving station.
9. Conduct an independent audit of the town and the utilities.
10. Develop a plan for economic development, start a chamber of commerce, begin to implement ideas from the Charrette, and support local business.
1. Fix the fire department roof immediately before it collapses on personnel and equipment.
2. Take last year's budget and cut it back by the amount of proposed warrant articles.
3. Establish capital reserve accounts for each department.
4. Implement an austerity program that limits spending to essentials, reduce the town's debt, begin to build capital reserves, and take advantage of grants.
5. Make Parks and Recreation a profit center.
6. Develop a long term capital improvement plan.
7. Develop a long term energy plan to include solar, wind, and hydro.
8. Continue plans to develop the receiving station.
9. Conduct an independent audit of the town and the utilities.
10. Develop a plan for economic development, start a chamber of commerce, begin to implement ideas from the Charrette, and support local business.
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