LACONIA CITY MANAGER EILEEN CABANEL SPENT THE DURATION OF A RECENT PUBLIC MEETING DOING MATH.
SHE THOUGHT IT WAS IMPORTANT THAT RESIDENTS UNDERSTAND HOW A SPENDING CAP WOULD WORK BEFORE THEY VOTE ON IT.
[D1 T8 0:43] honestly I spent so much time trying to figure out a way to explain it to people, because it IS complicated and BORING as can be…
BUT A LOT OF PEOPLE SHOWED UP FOR HER PRESENTATION ANYWAY.
CABANELTOOK LAST YEAR’S NUMBERS – AND RAN THEM THROUGH THE CAP FORMULA.
THAT FORMULA WOULD, IN EFFECT, LIMIT LACONIA’S ANNUAL BUDGET INCREASE TO THE CURRENT RATE OF INFLATION.
THE FORMULA ALSO FIGURES IN THE VALUE OF NEW CONSTRUCTION IN THE CITY, BASED ON THE PREVIOUS YEAR’S TAX ASSESSMENTS.
CABANEL SAYS THE POINT OF HER PRESENTATION WAS TO SHOW HOW THE CAP WOULD HAVE AFFECTED THE BUDGET FOR THE CURRENT FISCAL YEAR.
[D1 t8 6:56 (EC)] If we had applied this cap to the number we currently have, it would have reduced the amount the city council passed in the budget by 1 point 3 Million dollars.
CABANEL SAYS, RESIDENTS WOULD HAVE SEEN A 90 CENTS PER 1000 DOLLARS DROP IN THEIR LOCAL TAX BILL.
THOSE NUMBERS GALVANIZED SOME RESIDENTS WHO BELIEVE THAT A CAP WOULD END A TREND OF CLIMBING PROPERTY TAXES.
[D1 T10 2:50] it was the continual rise, every time we opened up our December tax bill and saw how much they had raised taxes from the year before, that was quite a sticker shock.
JENNY WATSON IS ON A COMMITTEE OF PETITIONERS WHO COLLECTED SIGNATURES TO PUT THE SPENDING CAP QUESTION ON THE BALLOT.
THAT COMMITTEE FEELS RISING TAX BILLS ARE A SYMPTOM OF CHRONIC OVER-SPENDING IN LACONIA.
A GOOD EXAMPLE, WATSON SAYS, IS THE 75-MILLION DOLLAR NEW MIDDLE AND HIGH SCHOOL PROPOSAL BY THE SCHOOL BOARD AND THE CURRENT CITY COUNCIL.
[D1 T10 2:18 (JW)] we’d like to see that done inexpensively, economically, and we know it needs to be done, but they want to basically rebuild new schools… [CUT TO 3:30ish (jw)] at the same time that we were looking at these continually rising tax bills, and we were saying, how are we going to do this?!
[D1 T12 3:38 (MF)] together they would be the largest bond Laconia has ever issued.
THAT’S OUTGOING, 2-TERM LACONIA MAYOR MARK FRASER.
3:45 (MF) That’s not a small thing, you can’t just look by that, and expect people will say ‘well our council says it’s ok so we’re going to accept that.â€
FRASER UNDERSTANDS RESIDENTS’ TAX BILL CONCERNS.
AND HE ACKNOWLEDGES THE CITY HAS INCREASED SPENDING IN RECENT YEARS.
BUT HE SAYS LACONIA IS NOT OVER-SPENDING.
AND THE MONEY IS NOT BEING WASTED.
[D1 T12 1:40 (MF)] we’re trying to improve and rehabilitate many city facilities that have been left unattended for years. Not just roadways, but a new police station, a library renovation… and we’ve been warning the public about these things for 10 years.
LACONIA ALSO RECENTLY RENOVATED ITS 3 ELEMENTARY SCHOOLS.
AND FRASER SAYS IF THE OTHER SCHOOLS ARE NOT REBUILT, THERE COULD BE SERIOUS CONSEQUENCES FOR THE QUALITY OF EDUCATION IN LACONIA.
THE SCHOOL BOARD SHARES THAT CONCERN.
BOARD CHAIRMAN, AND CITY COUNCIL CANDIDATE, JOE CORMIER:
[D1 T6 0:12 (JC)] If this tax cap is imposed, then it could change the face of education in Laconia, that’s very possible. [CUT TO T6 7:05 (JC)] and we don’t think it’ll be a positive effect. We think it will be negative.
CORMIER SAYS HOW NEGATIVE WILL DEPEND ON HOW MUCH MONEY LACONIA GETS IN STATE EDUCATION AID.
[D1 T1 7:23 (JC)] worst case scenario is they impose tax cap, the state says… we’re going to reduce Laconia’s allotment by a million, 2M, City Council says we have to make up that 2M somewhere, we can’t afford to do it on municipal side, so the school district has to look at reducing services.
CORMIER SAYS THAT COULD MEAN ELIMINATING SPECIAL PROGRAMS, OR EXTRACURRICULARS LIKE SPORTS.
AND IT COULD EVEN MEAN CUTTING TEACHERS.
[D1 T1 7:50ish (JC)] And the net effect of that on education is that students don’t get the education they need…
SOME CITY OFFICIALS ARE ALSO WORRIED ABOUT POTENTIALLY NEGATIVE EFFECTS OF A SPENDING CAP ON THEIR DEPARTMENTS.
LACONIA FIRE CHIEF KEN ERICKSON HAS SAID THAT UNDER A CAPPED BUDGET, HIS FIXED COST INCREASES WOULD FORCE HIM TO LAY OFF FIREFIGHTERS.
AND POLICE CHIEF TOM OETINGER IS WORRIED THAT, LONG TERM, THE CAP COULD HAVE A –QUOTE- CORROSIVE EFFECT ON HIS DEPARTMENT.
HE RECENTLY TOOK HIS CONCERNS TO THE CITY’S POLICE COMMISSION.
[D2 T1 5:39 (to)] I really didn’t want to make apocalyptic prophecies, I really didn’t want to sound like the agent of doom in this, it’s not my style, but at the same time I have concerns…
OETINGER SAID HE FACES COSTS THAT DRIVE UP HIS BUDGET EACH YEAR.
THOSE INCLUDE HEALTH INSURANCE AND SALARY INCREASES…
AT THE SAME TIME, DEMAND FOR SERVICES IS INCREASING.
OVER THE PAST 3 YEARS, OETINGER SAYS CALLS FOR SERVICE HAVE INCREASED BY 19 PERCENT.
REPORTED CRIMINAL OFFENSES ARE UP MORE THAN 23 PERCENT, AND ARRESTS HAVE GONE UP ALMOST 40 PERCENT.
BUT OETINGER SAYS THE CITY COUNCIL HAS DENIED RECENT REQUESTS TO HIRE MORE OFFICERS.
IF VOTERS APPROVE THE CAP, HE PREDICTS THE COUNCIL WILL BE EVEN HARDER TO CONVINCE.
[D2 T3 2:25 (TO)] they may understand the need, they may even recognize that the need I have is just, but feel as result of cap or pressure to keep tax rate down to deny the request.
BUT CAP PROPONENTS COUNTER THAT IT COULD BE THROWN OUT FOR A YEAR IF THE CITY’S WELFARE WERE TRULY AT RISK.
THE MEASURE SAYS 4 OUT OF 6 COUNCILORS CAN VOTE TO OVERRIDE AND SPEND AS THEY SEE FIT.
[D1 T10 11:38] I think if we had something that was serious… we’d have no trouble getting an override, so I’m not worried about our city being put in jeopardy.
AGAIN, CAP SUPPORTER, JENNY WATSON:
[D1 T10 7:40] this is something that’s very easily overridden if needed. All it does is provide a certain level of accountability. And the other thing it does, is it gives a little backbone to some of the councilors who might be swayed by department heads who say I need this I need that. They can say, listen, we have a cap, this is what we can do.
AND THIS ELECTION YEAR, LACONIA VOTERS HAVE A CHANCE TO INSTALL A COMPLETELY NEW CITY COUNCIL.
IF THEY PASS THE CAP, RESIDENTS WILL BE CHARGING THAT COUNCIL WITH FISCAL RESTRAINT FROM THE BEGINNING.
CAP SUPPORTERS SAY THAT’S WORKED FOR OTHER CITIES IN NEW HAMPSHIRE, SUCH AS NASHUA AND FRANKLIN.
FRANKLIN HAS HAD A SPENDING CAP IN PLACE SINCE 1989.
Doyon1: I think it’s important if a community is going to adopt the cap methodology, that they understand it.
THAT’S FRANKLIN CITY MANAGER GREG DOYON.
HE’S AVOIDED GETTING INVOLVED IN THE DEBATE OVER WHETHER SPENDING CAPS WORK…
BUT HE SAYS THEY DO PROMOTE DEBATE.
Doyon2: It will encourage a healthy dialogue between taxpayers and councilors who on an annual basis are having to determine their community’s priorities under the structure of the cap.
WITH ELECTION DAY FAST APPROACHING, CAP SUPPORTERS, ESPECIALLY JENNY WATSON, ARE FEELING CONFIDENT.
[D1 T11 4:27] I think if all the supporters who really would like to see this in place get out and vote, I do think it will pass…
REGARDLESS OF HOW THE VOTE TURNS OUT ON TUESDAY, CITY MANAGER CABANEL HAS SOME GOOD NEWS FOR RESIDENTS.
SHE SAYS BECAUSE OF AN INCREASE IN PROPERTY VALUES, LACONIA’S TAX RATE SHOULD GO DOWN BY ABOUT ONE DOLLAR PER THOUSAND.
THAT MIGHT NOT BRING TAX BILLS DOWN, BUT IT’S AT LEAST ONE FACTOR THAT WON’T CONTRIBUTE TO ANOTHER INCREASE… CAP OR NO CAP.
FOR N-H-P-R NEWS, I’M SM.
