2008 was an extremely challenging year. Record oil prices, record rains and snow, and a decline in revenues put a significant dent in the municipal budget. While our municipal tax rate declined slightly, we still experienced a small increase in the overall tax rate. Our overall tax position relative to other communities improved. (See the appendix in this town report) However, this coming year will be more challenging.
Quite honestly, our fate will depend on other local, county and state agencies. Last year we reported the negative impact from the decision of the Grafton County to replace its jail with a 40 million dollar correctional facility. This facility currently services 150 inmates. Many groups of selectman from towns in Grafton County were in opposition to this plan especially since no operational costs were available. Also, the leading economic indicators were ominous. In spite of that, they moved the proposal forward. It has been recently reported that the staff will expand from 30 to 72 employees and the costs to operate such a large facility will be significant. This plan should be tabled. If it’s to be built, the funding should come from federal dollars not your property tax dollar. We expect a 90% increase on the county portion of the tax bill over the next five years if built and staffed. The Grafton County Commissioners could stop this if they had the political will. We ask you to call, email or otherwise communicate with them to stop this foolishness. The current state of the economy does not warrant this expenditure funded by a property tax. Thus far, the Grafton County Commissioners remain steadfast on a course that will burden most taxpayers regardless if they have lost income or recently became unemployed. (They hold a lot in common to Marie Antoinette’s alleged quotation “ .... Let them eat cake...” when hearing of widespread starvation during the French Revolution.)
At this moment, the Governors recommended biennium budget eliminates state revenues to cities and towns. There is some discussion that there will be some sort of substitute revenue, but it is unclear at this moment. The school district (SAU 4) budget committee had made attempts to trim the school budget, but at the SB2 deliberative session, $200,000 was restored to the budget by members of the public. If the warrant articles as proposed pass,the overall school budget will increase. If the warrant articles fail, the school budget will be slightly less than the default budget. We are not in favor of SB2 voting. Only 85 people in attendance moved an increase of the school budget. The increase was not earmarked to any program(s). In our opinion, SB2voting has not helped either side with respect to budgeting. Because of SB2, many voters are poorly informed and vote down good ideas or up the bad. The bottom line is more people need to attend these meetings.
The Hebron - Bridgewater Disposal District is level funded and we expect level funding or another small decline from the Bridgewater-Hebron Village District. (The Village School in Bridgewater.)
To complicate matters further, last year the Department of Revenue Administration further reduced the tax base by lowering the assessed value of the only industrial plant in town. This year they further reduced that entity. Using revenue analysis and return on investment methodology, the plant was reduced from an assessed value of 38 million dollars in 2006 to 8.5 million this year. Most real estate valuation is based on replacement cost. Utility appraisals are based on what they can earn. This is not a complaint against the plant. They have been a really good neighbor. (For example, they donated $20,000/yr for 5 years for the new school. In normal times, this would not have been a significant issue. Obviously, these are not “normal times”. The net impact is moving tax burden to the residential base.
If that isn’t enough, it is likely we will become a “donor” community by 2011 unless the legislature adopts a constitutional amendment target school aid to the neediest communities. Why the state sends subsidies to communities, which by any measure, are well off? It doesn’t make sense.
The municipal budget has been about level funded for the last three years. The overall increase in taxes raised has been about 1.35% for the last five years. This is well below the consumer price index (CPI) for that period. Our long term debt is about $650,000 (fire truck and public safety building) and final payoff is about 2014. Our infrastructure is in great shape and very little is needed to maintain the current status. We are recommending the purchase of a replacement pickup truck for the highway department. This vehicle’s repair costs this year almost matched one year’s financing cost. We have a reduction of about $12,000 in per year debt issues, so this will actually reduce or contain costs. If approved, this bond would payoff in four years. Our employees have had pay raises reduced and frozen to 2% or less over the last few years. They are working with us to reduce costs at every avenue. We are reaching the point that we need to replenish financial reserves. We will discuss this at Town Meeting. While oil costs have declined, it is too early to determine the impact on budgets. We are in pretty good shape to withstand these financial times. We continue our pledge to do everything to stabilize the economics. Most likely, we will take a bit of an economic battering but will come out stronger in the long run.
In closing, we wish to extend our appreciation to all the employees of the Town, both full and part-time, for their dedication and hard work. We will weather this economic storm given their assistance and your patience and understanding.