Tuesday, June 22, 2010

Let's talk money

OK. First up: Town of Paris Operating Budget, budget to actual figures [editor's note: prepared for town meeting 6-12-10] Citizens are soothed with encouraging words - not to worry - fine shape.

Perhaps.... Time will be the judge of that.

TPR wishes to focus on a particular line item that is, even without the June figures, 37% over budget. The line item for legal expenses in the 2008-09 budget was $8000; by the time the figures were printed for the town meeting in June, the current figure was $24,453.

About 39% of the total legal expenses to date have been the current lawsuit.

In previous postings, TPR has addressed legal costs - related to the lawsuit specifically - totaling about $3000, from July 2009 through December 2009. The total for January through end of May, however, not yet counting June, is more than twice that amount: $6,645. Roughly $9600 total .

Beginning in March, the bills have increased substantially, with costs for extensive preparation for meetings, requested research, questions to be answered, and then more research. By April the amount spent just on this case had grown to $2082.24; and by May, the research and questions to be answered had expanded to bring the total amount spent to $3205.50.

Consider: the whole first 6 months of the year didn't cost as much as what we have paid for the month of May.

And, for those who have the time to plow through it, May's bill shows almost $1600 worth of just questions and research. One wonders just what the quest was, and who initiated it. One also wonders if the reason the searches keep increasing is because what is wanted... simply isn't there.

So, next: Mediation on Thursday. One lawyer per side, plus sharing cost of the mediator. $250 per hour for Atty. Hole; estimating the mediator (lawyer) $250-$300 per hour, or $125-$150 each side. Each side talks, mediator talks to each, everyone meets again. 2-3 hours? More? Estimate anywhere from $625-$800.

Add legal costs of this case to date ($9600) to mediation estimate ($625-800) = $10,225-$10,400

And finally: If our elected officials cannot manage a responsible decision before, a full blown court trial: lawyer(s) preparing the case; lawyer(s) trying the case; court costs....

Rule of thumb, it is said, is that costs will start at triple whatever you're paying in legal costs at the moment. That puts us at about $30 K to $31K to start. Just the beginning....

The process escalates; the costs escalate; so much could have been prevented - even since March. There is no excuse for what this town is going to have to pay.

It is simply a matter of how much.