Sunday, April 10, 2011

Dollars, taxes, and questions

Monday April 11, 7 PM Paris Selectboard will meet at the town office. Agenda here.

Most members on our selectboard, in addition to regular selectboard meetings and responsibilities, have been doing double duty by attending the current sessions of budget committee meetings. These sessions are open to the public, though, since it is a committee work time, no public comments are allowed. A reporter or two has dropped by, and a few citizens. The sessions will end with a public hearing April 22 (that is not really a hearing at all, but a preview presentation of the final budget for any interested citizen).

The already flattened budget proposed by Town Manager Tarr, is being ironed further by the budget committee. [editor's note: A budget flattened except for this $180 K truck that he says we must have... Only a few have pursued the question of why now, in this flat lined budget, when even the streetlights may become endangered species...] The committee is hammering his proposed budget into a document for voters in June 2011 - in the hopes that if spending has the same dollar amount as June 2010, our taxes will be kept in check.

[editor's note: Though municipal spending is a large factor, it is actually the mil rate that determines what the final tax dollar amount per citizen. Mil rate is effected by several factors; 2009 calculation page listed here for reference.]

TPR post 4-01-11
, along with others, questioned both the million dollar bond and the forming of a local road works operation as a short term financial solution. At the budget committee meeting 4-7, Mgr. Tarr presented a very different approach for the road work issue, offering 3 choices with various financial implications and long term effects. The budget committee chose to do what will be an extra belt tightening action: "Perform ditching, culverts, and any other ancillary work on Oxford Street. Place a thin layer of asphalt over the worst sections of Oxford St. and Paris Hill Road to get by for the next year or two. Money to do this would come from the $88,000 already in the capital budget, or the operating budget, and would negate the need to borrow this year."

But now another critical question arises. What dollar amount from 2010-2011 are we going to flat line our 2011-2012 budget to?

Budget Chair Vic Hodgkins, in a frustrated statement at the end of Thursday's meeting, exclaimed "...the numbers don't seem to work! ". He went on to explain what his goal has been for the committee, that he will "...make sure that whatever this committee puts out for numbers is not one penny more than what we voted on last year. And that figure changed." He explained his understanding of how the figures in the material the committee had been working with had been achieved, and his commitment to keeping the total the same this year. "Now, I look at the figure we get tonight, that's dated 4-6-11, same, same categories, same thing, and all of a sudden the numbers have changed."

A composite budget sheet (from the 6-12-10 town meeting plus the 7-26-2010 special town meeting) show a total municipal expenditure for 2010-2011 of $3,346,186; the expenses totals on the 2012 Budget Committee Department Review show a figure of $3,398,590.

This is a difference of $52,404. The composite sheet lists things in single stand-alone categories; and, where there is more than one item in a category, the single items are listed and a total given in the category as well. For example, line item #1 is a stand-alone category; line 2 & 3 are in another category, and line 4 is the total of 2 & 3. Line #2 is $494,716; line #3 is $325,289. And in this line is the rub, because the total is $820,005, not $767,602, as listed. This is a difference of $52,403. Give or take one dollar for rounding up or down, this error had been corrected in the 4-06 budget total.....

...but somehow, no one had thought to tell the budget committee, several weeks into their work sessions ( and for Chairman Hodgkins, much longer). Management evidently working from one figure, workers from another.

So, what dollar amount are we supposed to flat line to, folks, if we're going to do this thing?

And, who has the bottom line responsibility to make sure the numbers are accurate? During Thursday's budget meeting, after Chairman Hodgkins' statement of frustration, Mgr. Tarr was quick to point out the changes in finance officers and all the other changes and new people that have gone on in this town.

TPR wishes to pose the question: Who has the word Manager beside his name? He's been here through 2 budget cycles now. What has he been doing while all this change has been going on?

Friday, April 1, 2011

The use of our money - a red flag or two

Thursday's budget work session on Paris' financial structure and its management included some promising question asking and open discussion between committee members and attending selectboard. There has not been such since the budget process began earlier in March. NPCTV and a reporter from The Advertiser Democrat were also in attendance.

It is a good thing to have the press, because there is no other way for voters to learn about what might happen with their money. Even though there is a token hearing sometime in April, it is only a presentation of a done deal; the work has been finished and approved ready for the June town meeting. Input from the voters - read that the bill payers -is not solicited.

It is a good thing, also, because there are huge financial questions on the horizon, and a feeling of confidence does not abound for the budget planning exhibited by Mgr. Phil Tarr so far.

Granted the economy is tight all over, and municipal needs are many. Paris selectboard voted 4-1 to seek a flat lined budget. This in itself approaches the unrealistic, when there are costs that will not go away no matter what belt tightening is implemented...the state of our roads being high on the list.

A solution offered by Mgr. Tarr is to float a million dollar bond, repayable over 5 years, first payment not to be in this year's budget. To use for what? And how to pay it back? And what about the other costs still accruing while paying back the bond? The 12 or 13 people in the discussion, all Paris citizens who would be included in any consequences, were divided on a bond approach. No agreement was reached.

Mgr. Tarr had been promoting the idea of Paris Highway Department doing its own road work to save money as the bond is paid back, insisting that our new highway foreman and our equipment and gravel...at the ready not too far away...would make that a workable solution. Last night there was a little backpedaling, with the highway foreman saying they could probably do some of the smaller jobs. Mgr. Tarr suggested that some roads, Ryerson Hill, for example could just "have it's surface stripped off and stay a gravel road for a while."

The budget committee and selectboard asked for more information on everything. Despite updates and new budget work sheets with new and different figures being cranked out of the front office for each session, members expressed frustration as they tried to keep up and get some sort of handle on what was going on.

NPCTV will broadcast the session Sunday April 3 at 6:30. See for yourself.

There is no opportunity to ask questions at these meetings. Questions - maybe answers, maybe discussion - only at the town meeting just before voting. Perhaps a question in a selectboard meeting during "citizens' comments" would be answered. Both the Advertiser Democrat and the Sun Journal have shown interest in keeping the public informed; that is certainly hopeful.

But it's our money, and we have to inform ourselves. Take advantage of NPCTV Sunday at 6:30 pm. Support and encourage the local press to ask questions and share the answers.

Items of worry, to list a few, about this budget:

(1) Do we want to saddle Paris with the dilemma of borrow now and pay later - adding to everything else we're already paying for later?

(2)What about roads - can they wait to be fixed properly? Can we afford for them to be "fixed" inadequately? Do we dare trust the decisions to be made wisely?

Part of a town budget is the "undesignated fund balance," Paris' policy linked here. It is a means to keep budgeted money until it's needed to pay the bills. Among other stabilizing factors, "It is a surplus of funds which have accrued from unexpected operating budgets and unanticipated excess revenues." [from Paris' policy, above.] There are strict guidelines on how much can be kept before it is turned over to specifically designated town funds.

(3) So, why would the town need to create an additional account, a reserve undesignated fund account - with less restriction ? What Mgr. Tarr called "a stabilization fund"? An account that eventually could approach as much as $500 K, and could be dipped into whenever, without having the item necessarily on the budget?

The chairman of the budget committee asked Mgr. Tarr for leadership - to give them more concrete information at this point, something they can get a hold of to finish putting this budget in place.

And we? We, the rest of the voters, need to educate ourselves and stay extremely vigilant.