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.
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