Salem Observer : taxes

Keeping promise, taxes stay steady

Salem Editor — Wed, 28 Oct 2009 17:47:00 GMT

BY DERRICK PERKINS

To keep a promise made to voters last March, Salem selectmen will dip deeper into the town’s unreserved balance rather than raise taxes in December. But higher town taxes will be unavoidable in 2010.

The decision came Oct. 19 after Town Manager Jonathan Sistare presented options to the board: use reserves to maintain a level-funded budget or increase the tax rate between 3 and 11 cents per $1,000 assessed property value in December to offset shortfalls in 2009 and to anticipate what will be needed in 2010.

In a unanimous vote, the board gave Sistare the go-ahead to pull a total of $450,000 from reserve funds. That will keep the town portion of tax bills the same in December, but the bill will be up an estimated 17 cents per $1,000 assessed property value as the school and county portions of the bill each rose.

Last March, selectmen promised voters their budget would hold the line on taxes in 2009. It hasn’t been an easy promise to keep.

Feeling a cash crunch of its own, the state shorted Salem, leaving a $371,000 hole in anticipated revenue.

Sistare covered that shortfall with a hiring freeze and $300,000 from the town’s rainy day fund. But the rain kept coming, as money from motor vehicle permits and other revenue sources sank dramatically. That meant the town had to find another $150,000 to cover 2009 expenses or raise taxes, he said.

It’s not unusual for the town to draw on its rainy day fund to adjust the municipal portion of December’s tax bill, said Selectman Michael Lyons. But in a normal year, the difference is tens of thousands not hundreds of thousands, he said.

“Right at the time we were proposing our budget there was all this talk in Concord about massive cuts. We went into Town Meeting not knowing what our state aid was going to be,” Lyons said. “We had projected a number of $200,000 (in cuts), but what the state ended up taking away from us went well above that number.”

Sistare said rising health insurance costs alone mean the town will need another $450,000 in 2010. The operating budget proposed by selectmen for next year, already includes a 6.5 cent increase to the tax rate that doesn’t take into account the higher health premiums.

Given that and that more cuts in state aid are expected, Lyons and Selectman Everett McBride argued for raising the municipal tax rate in December above the $4.79 it’s been at since 2008.

That sparked heated debate among board members. Selectman Patrick Hargreaves said changing the tax rate at the final hour would be unfair to residents budgeting for the bill since March and put undue strain on taxpayers already struggling financially.

“If you’re going to tell me my taxes are going to go up 10 percent next year I know. If you tell me, ‘Pat, next year your taxes are going up (X) then I know I have to budget my family for (X),” he said. “You’re giving me the playing field. You’re telling me what I need to survive in this town for one more year. As long as you tell me the number I’m OK.”

Chairman Arthur Barnes said he felt honor-bound to maintain a level-funded tax rate.

Voters reject union raises in Salem

Salem Editor — Wed, 18 Mar 2009 20:05:00 GMT

BY DERRICK PERKINS

For school officials and union representatives it may be back to the drawing board after voters rejected every collective bargaining agreement that affected the tax rate at the ballot box.

Voters turned down proposed raises for the district’s teachers, aides, nurses, secretaries and custodians on last week’s ballot. It marks the second year in a row secretaries and custodians have been denied an increase in salaries or benefits.

An increase for food service personnel did pass, but the contract does not have an impact on the town’s tax rate.

Going forward, officials expect union representatives to request the School Board reopen contract negotiations. While the option of doing nothing and waiting a year remains on the table, School Board member Peter Morgan expects to be back in negotiations with union representatives in the near future.

Complicating the matter, voters also rejected an article that would have allowed the board to call for a special school district meeting to reconsider the contracts. Without a special meeting, negotiators will have to reach an agreement that has no financial impact on the 2009-10 school year.

While school officials could petition the Superior Court for a hearing to decide whether the district can hold a special meeting regardless – if the unions insist on pay raises – a judge would need to agree that the failed contracts constitutes an “emergency,” according to Morgan. Whether a judge would rule with the district remains unknown, he said.

“If we could just negotiate cost items only, the unions would get the message that the percentages that they were asking for weren’t acceptable,” Morgan said. “Now we have to weigh, given the economic climate, are we going to be able to convince the court that if somebody didn’t get a raise that’s an emergency? I’m not convinced that it would be the best option.”

Superintendent Michael Delahanty believes that the gloomy economic forecast, increasing unemployment numbers and numerous foreclosures made salary and benefit increases unpalatable to an electorate that otherwise endorsed the district’s operating budget.

“The fact that so many people have lost jobs or taken pay cuts has certainly affected the mindset of voters … because the way things are, there was no room for salary increases,” Delahanty said.

While Morgan agreed that the state of the economy played a major role in the election, he said voters rejected across the board any proposal that would have had an impact on the tax rate. With a proposed operating budget less than that of the district’s default budget, he saw the passage of the budget less of an endorsement and more of a negative reaction to the idea of increased spending.

“The message from the voters is clear. They’re worried about their jobs, they’re probably not going to get raises this year and they don’t believe anyone else should either,” Morgan said. “We want our employees to be satisfied and treated fairly, but we also represent the voters and they need to be satisfied and teated fairly.”

Mass. gas tax hike may benefit N.H. businesses

Salem Editor — Wed, 25 Feb 2009 19:46:00 GMT

BY DERRICK PERKINS

A 19-cent jump in the Massachusetts gas tax has local gas station owners hoping to see a rise in customers from across the border, though the talk of taxes has left motorists steaming at the pumps.

Massachusetts Gov. Deval Patrick unveiled the increase to the state’s gas tax on Jan. 20 as part of a plan to raise $500 million a year to offset the cost of repairing the Commonwealth’s deteriorating roads, bridges and tunnels.

Reaching a total of 42.5 cents per gallon, the increase would leave Massachusetts surpassing New York and California with the highest gas tax in the nation. By comparison, the gasoline tax in New Hampshire is 18 cents per gallon, with another 1.6 cents set aside in environmental fees. Motorists already pay a 18.4 cent federal tax on each gallon of gasoline purchased.

“If you keep on taxing people, they are not going to buy it,” said Jim Massahos, owner of Salem’s R and J Getty. “People from Massachusetts will start coming over here. If someone gets 20 gallons, that’s like eight to 10 bucks a week. That’s a lot of money, especially now.”

Massahos, who has been operating the Main Street gas station since 1972, said the tax hike was good news for border communities like Salem with Massachusetts residents considering crossing the border for gas as one way to save money.

Frank Laratonda, manager of the Route 28 One Stop Retail Shoppe, said he had already seen a roughly 7 percent increase in the amount of customers from Massachusetts filling up at his pumps, a figure he expects to rise with the Commonwealth’s gas tax.

“I believe that it will help our sales, at least on the border stores. People are coming up here right now for other items, why not come up for gas, too?” he said. “This should definitely be a benefit for us.”

While many New Hampshire motorists view the increase as making the state a more attractive location for out of state consumers – like Derry resident Mike Stankus, who called the move “great news” for the economies of border communities – the plan has left a sour taste in the mouths of Massachusetts motorists.

Topping off his gas tank at Salem’s North Broadway St. Hess station, Richard Bartholdson, a native of Massachusetts’ South Shore, said the tax increased disgusted him.

“Where does it end?” he asked. “Between that and the cost of food, the lack of jobs and then the little guy gets to pay more for gas. Do you have to lose your home before you get relief?”

Massachusetts is not alone in eyeing increased taxes at the pump as a way to fill in budget deficits. Legislators in New Hampshire, for the first time since 1992, are considering a 15 cent increase on the gas tax as a way to fund the upkeep of the state’s transportation infrastructure.

Casting a critical eye on the move, Massahos predicted the potential increase would backfire, inspiring motorists to stay off the roads and dampening business for gas station owners. If the state wanted to lend residents a helping hand during the recession, they ought to cut taxes rather than raise them, he said.

“These people have already adjusted to where they’re learning not to use two cars anymore because of the price of fuel. All that it is going to do is keep people from driving,” Massahos said. “If they were smart they wouldn’t raise the tax and everyone will come over here. It’s a no-brainer.”

Salem selectmen fear state revenue loss

Salem Editor — Wed, 25 Feb 2009 19:26:00 GMT

BY DARRELL HALEN

Selectmen told a group of local legislators that proposed cuts in state aid and retirement contributions would lead to an increase in the local property tax rate.

During a Wednesday, Feb. 18, meeting at Town Hall, selectmen said a loss of roughly $1.7 million from the state, as proposed in Gov. John Lynch’s new budget, would add 37 cents to the town’s portion of the local tax rate. That figure translates into an increase of almost 8 percent.

“That’s obviously a dramatic increase to our property taxes,” said Town Manager Jonathan Sistare.

Lynch’s proposed budget would decrease state contributions to police and fire retirements from 35 percent to 30 percent. Meanwhile, the town would experience the loss of $1.6 million in revenue sharing and rooms and meals tax revenue.

The meeting was intended to be a dialogue between selectmen and the town’s 14-member legislative delegation on how decision made in Concord during the current economic crisis will affect local taxpayers.

“Especially in this difficult time (we’re) struggling with the same issues you’re struggling with – how to pay for services,” said board Chairman Beth Roth.

Selectmen, who worked to craft a level-funded budget in anticipation of a challenging year economically, are worried about the state revenue loss. Roth warned less state money could lead to layoffs of police officers and firefighters. Officials also questioned if federal stimulus money would make up for the cuts in state aid.

Some of the meeting’s discussion focused on the prospect of expanded gambling at Rockingham Race Track. State Sen. Michael Downing, R-Salem, said he’s written legislation to expand gambling there. It’s a move that would bring in revenue.

“I think that’s something that should be done,” Downing said. “Not only for this state but especially for this community. It will create jobs with private money. You have to understand it’s going to give you more property taxes. It’s going to expand the property tax base, and it’s going to give us a percentage of whatever they make over there.”

The bill is expected to pass in the Senate but die in the House, some legislators said. But they believe the gambling expansion is necessary.

“We need new revenue,” said Rep. Charles McMahon, RWindham, who urged selectmen to testify in Concord in support of the bill. The racetrack, he said, has “been a lifeblood, not just of Salem, but of this state.”

Legislators still have a lot of work to do on the budget. Rep. Russell Ingram, R-Salem, told selectmen that Lynch’s proposed budget will likely be different after legislators are done with it.

“You must understand, this budget will not look like this by the end of June,” Ingram said. “It’s got to go to the Senate, it’s got to go to the House. And they’re going to be bickering back and forth. It’s going to be different. You can talk all you want right now about numbers but they’re not going to be the same numbers.”

The meeting also included talk about local projects and their effect on the economy. Selectman Everett McBride urged legislators to press for the expansion of I-93. The highway is an important link to the Manchester Airport and too many deaths and injuries have occurred on the road, he said.

“It’s the economic pipeline for the state of New Hampshire,” said McBride. “It’s the gateway to New Hampshire.

Town Fair Tire may impose 5 percent tax on Bay State residents

Salem Editor — Wed, 11 Feb 2009 20:45:00 GMT

BY DERRICK PERKINS

Shoppers reacted with a mix of anger and disbelief to a court dispute between Massachusetts and a Connecticut-based retailer that might result in a 5 percent sales tax for Bay State residents making purchases in New Hampshire.

On a quiet afternoon inside the Mall at Rockingham Park, consumers – many from across the state border to the south themselves – came out staunchly against the idea that Massachusetts residents might now have to look forward to paying a sales tax, even while doing their shopping out of state.

The reactions came as the Massachusetts Department of Revenue issued an order to Town Fair Tire Centers – which has locations across New England, including New Hampshire – to collect a 5 percent use tax on Massachusetts residents making purchases out of state.

For Haverhill, Mass., residents Jim Schiavoni and Helen Hoffman, paying a potential sales tax on their cross-border purchases would take all of the incentive out of making the 15-minute drive to Salem.

“It’s not fair, we pay plenty of taxes in Massachusetts and now they are raising those too,” Schiavoni said. “That would be like a tax for just being from Massachusetts … I’m against it.”

He also questioned whether requiring customers to verify their state of residence would cause a slowdown at the cash register and create headaches for out-of-state business bookkeepers.

Hoffman, who shops occasionally at the mall and at stores in the surrounding area, said she could easily see her friends who drive up from Massachusetts to buy cigarettes and alcohol just staying home.

“I live in Massachusetts and I already can’t afford it,” she said. “You can’t barely afford anything.”

While Joe O’Brien, a native of Dracut, Mass., does his shopping in Salem because of the proximity to his house and not TAXES: Town Fair Tire could charge 5 percent tax Continued from page A-1 Derrick Perkins Photo Town Fair Tire may require Massachusetts residents to pay a 5 percent tax on purchases made in New Hampshire.

Town and School District Meetings because of the tax-free savings, he said consumers ought to have the freedom to shop where they want, regardless of the state tax. Raising taxes would be detrimental for the slumping economy as well, he said.

“I don’t think it’s right to raise taxes. It’s not good for anybody. We are trying to save as much as we can,” O’Brien said.

Given the economy, Mike Handy – a newcomer to New England originally from New Jersey who resides in Andover, Mass. – said he wasn’t surprised by the steps the commonwealth was taking to recover lost taxes.

“Every state is looking for money wherever they can. New Hampshire is talking about tolls and Massachusetts is talking about gambling,” Handy said. “(Tax-free shopping) is good for Southern New Hampshire. If it’s not tax free I doubt shoppers would come unless it’s a convenient (distance).”

Gov. John Lynch has announced that the state will file a brief in the court dispute. The retailer has already lost its case at the Massachusetts appellate tax board and is now being heard in front of the Massachusetts Supreme Court.

Objections raised to N.H. I-93 toll plan

Salem Editor — Thu, 15 Jan 2009 01:15:00 GMT

BY DERRICK PERKINS

State and local officials spoke out against the possibility of a new toll plaza on Interstate 93 by the Massachusetts border with one town selectman calling the measure “ill conceived.”

“I understand the state’s revenue is down because of the economic times. We’re having the same problem in town on a smaller scale,” said Salem Selectman Arthur Barnes. “It doesn’t make sense to me that raising new taxes is the way to work out of an economic slowdown.”

While State Transportation Commissioner George Campbell has said the proposed $2 toll on the southbound lane of I-93 is likely three or four years away and the revenues raised would go toward funding the highway’s $800 million rebuilding project, Selectman Everett McBride believes the extra cost would be a deterrent for people planning to come to New Hampshire.

“For recreational purposes and any other way you look at it, it would deter people from coming,” McBride said. “Any time you present a fee or a tax, it deters people. It would be a way to reduce recreational opportunities for people in New Hampshire.”

Mary Griffin, state representative for District 4, said she would rather see Campbell focusing on how to keep the roads clear and safe during the winter months than on how to increase taxes on motorists going back and forth across the state border. Griffin believes that forcing drivers to spend an additional $2 on every trip across the border would have a “drastic” effect on the local economy.

“Two dollars is too much. I don’t know why we’re adding something like that. People are having a tough time getting along. Things are really tough,” Griffin said. “I’m against all taxes. I think we’ve been taxed out of the state already.”

At the Salem Rest Area and Welcome Center, reactions among commuters and motorists ranged from outrage to acceptance.

“If it was there I’d pay it. The money’s got to come from someplace,” said John Lacquere, who has spent the past 20 years commuting across the border to his job at Manchester Community College. “It’s just an economic thing. Nothing is free.”

Frank Caeteruici, a salesman who crosses the border a couple of times a week, worried that the southbound tolls would slow his commute and said the state should look to either finding alternative ways to fund highway projects or increase mass transit options to Massachusetts.

“That type of infrastructure costs should be incumbent on the state as a whole, not just the individual travelers,” he said. “Just make it a state thing, like the gas tax.”

Judy Murray, a skier from Massachusetts who likes to hit the slopes once a week, agreed with the proposed tolls.

“Times are hard,” she said. “Of course, I don’t use (I-93) often.”

According to Barnes, even if the state put tolls on the highway, motorists familiar with the area would know how to circumvent the plaza, most likely by getting off in Salem and taking Route 28 across the border. A toll plaza would mean increased traffic congestion in an already busy section of town, he said.

“Those who really know the area would run Route 28, which is parallel to I-93, and that would bypass the tolls for them,” Barnes said. “I guess I’ll be taking back roads until I get on the highway.”

Paying taxes online in Salem would come with a cost

Salem Editor — Thu, 13 Nov 2008 01:12:00 GMT

BY DERRICK PERKINS

While selectmen are considering pursuing a plan to allow residents to pay their tax bills and other town fees with credit or debit cards online, that convenience could come with a hefty fee.

“People think they can just go online and do these things, but you have to download a file, upload a file, and do a report to make sure everything was paid correctly,” Salem’s tax collector Cheryl Bolouk said. “You have to write specific files, and that’s going to cost money. It’s not as easy as it sounds. It’s information that’s there that you have to make sure that it’s protected.”

According to Bolouk, the challenge is determining whether the cost of purchasing and then setting up the required software would be feasible for the town. Another potential obstacle is the convenience fees charged by many of the credit card companies and whether that would be absorbed by the town or by the individual resident using a charge or debit card to pay their taxes.

“Everybody thinks it a good idea until they find out what it costs. See, it’s not free, it does cost something to someone at some point,” Bolouk said. “The cost of trying to pay your (tax bill) with a 3 percent or 4 percent convenience fee is expensive for a tax bill.”

While retailers absorb those fees charged by credit card companies for their consumers, Salem would either have to take on that cost – thereby passing the 3 percent or 4 percent fee onto all taxpayers – or require a resident choosing to use their credit cards to pay that fee themselves, according to Bolouk.

“If you took a Discover card to pay your taxes because someone wants their (card rewards or benefits) and they just paid a $3,000 or $4,000 tax bill, then unfortunately the town may end up having to pay a 3 percent fee on that,” said Kevin Breen, acting town manager. Bolouk agreed.

“I’m not charging the rest of the taxpayers because ‘Joe Smith’ wants to use a charge card.”

Bolouk said that she had been approached by about 25 individuals asking whether they could use their credit or debit cards to pay town bills. The motivation came from people wanting to rack up frequent-flyer miles or tap into their card’s rewards bonus, though according to Bolouk, many of the people she had spoken with did not realize that they may be hit with a convenience fee that on a bill for several thousand dollars would add up.

Though any serious discussion of the move remains premature until if and when voters approve the measure in March, Bolouk has begun researching third-party companies that had a history of working with municipalities and other governmental bodies.

Bolouk has also presented the board with a sample warrant article asking voters to authorize the town to accept credit cards for payment.

“People are just saying, ‘I want my frequent-flyer miles.’ That’s the bottom line. The ones that are asking because they want to pay their tax bill with a credit card. To get your frequent- flyer miles you’re going to be paying a fee. I don’t think they’re going to realize that,” Bolouk said. “People don’t think there is a cost. I have software that is specifically written that I have to make sure can interface (with a third-party company). If it’s going cost the town, then I’m not going to recommend it.”

While any move toward making town bills payable through a third-party company on the Internet would first require a warrant article approved at the next town meeting in March of 2009, Breen said that selectmen plan to host a public workshop on the possibility within the next two months.

Salem won't need to borrow money

Salem Editor — Wed, 11 Jun 2008 19:29:00 GMT

BY JENN McDOWELL

The town will likely not have to draw upon a line of credit the Board of Selectmen authorized in anticipation of an end-of-year funding shortage.

“‘I’m 99 percent sure that we’re not going to need to borrow at this point in time,” said finance director Jane Savastano. “We were just being extra cautious.”

The funding issues arose from the timing of property tax billings and payments. Savastano said spring is a particularly tough time for the town financially, as it comes between the December billing and the July billing.

Also contributing to the low point in funding were a $1.5 million sewer project for Dawn and Marsh streets, taken out of the town’s sewer fund last year, and $750,000 to offset the tax rate for this year.

At Town Meeting in March, several million dollars in projects, including about $2 million in road bonds, were voted into the town’s expenditures.

The $4 million tax anticipation note approved by both the Budget Committee and the Board of Selectmen would prevent the town from falling behind on its bills before the next tax billing in December, Savastano said.

Board of Selectmen Chairman Elizabeth Roth said the board approved the note a couple of weeks ago at a meeting.

“It’s pretty much an insurance policy with cash flow,” said Roth. “What’s coming in might not meet obligations. It’s just like a regular business line of credit.”

While the line of credit has been opened through Citizen’s Bank at an interest rate of 2.55 percent, the town would not start paying interest until it is forced to take funds out of it, and it doesn’t look like the town is going to have to do that, Savastano said, adding the town’s funds are in a positive balance right now.

Tax collector Cheryl-Ann Bolouk is monitoring the tax payment situation daily. Currently, the town is getting about $2,000 to $3,000 per day in tax payments, Savastano said.

When more tax payments, particularly from commercial properties, come in later in June, the town should be in good shape, she said.

“It’s good that we have it in place, we’ve got some big projects coming up,” said Savastano. “It’s a nice feeling that we can meet our obligations.”

Salem has not had to borrow money to pay its bills since 1999, a luxury that caused people to become concerned with the possibility of having to borrow resurfaced this past fall.

“We were just very fortunate in the last eight years that the money stayed in the reserves, sewer and water essentially,” Savastano said. “We used reserves for sewer and water projects. If we didn’t use reserves for that, water and sewer rates would have dramatically increased.”

Prior to the eight-year stint without having to take out a tax anticipation note, which is the only way the town can incur debt without a townwide vote, Salem frequently took out similar lines of credit, Savastano said, adding that most towns have to do it at some point to bridge the gap between tax collections.

“We used to borrow all the time. We budgeted money in the budget for (tax anticipation note) interest,” Savastano said.

New police station tops town warrants

Salem Editor — Wed, 30 Jan 2008 19:42:00 GMT

By Darrell Halen

A proposed $32 million operating budget and a $7 million warrant article to construct a new police station top the list of warrant articles Salem voters will consider when they gather for the town’s first deliberative session of Town Meeting.

That first session will be held Saturday, Feb. 9, at Salem High School, and begins at 9 a.m.

Selectmen are asking voters to approve a $7,135,712 warrant article to construct a 26,000-square-foot police station behind the department’s current building.

The new facility is being requested to accommodate a police department that has outgrown its station, which was built in 1966 and has been added on to several times.

The article, if approved, would authorize the town to issue not more than $6,985,712 of bonds or notes and use up to $150,000 in interest earnings on the invested bond proceeds.

Asset forfeiture money and impact fees would also be used to cover some of the project’s $7.3 million total cost. The new station would cost the average homeowner $42 annually.

Officials are proposing an operating budget of $32,249,993. The property tax impact is $4, the water rate impact is $2.85 and the sewer rate impact is $2.80.

In addition, there are five warrant articles that each provide increased financial benefits to unionized workers. These include: $121,376 to firefighters; $101,366 to police employees; $43,614 to clerical and administrative employees; $50,092 to professional employees; and $45,851 to public works employees.

If the operating budget is rejected at the polls, voters will take it up again at the town’s second deliberative session on Saturday, March 15, when at least 19 other warrant articles, including requests for roadway improvements and hiring four new firefighters, will be debated and voted on.

Renovation funds among warrant articles up for debate

Salem Editor — Wed, 30 Jan 2008 19:38:00 GMT

By Darrell Halen

A $53.5 million operating budget, money to plan for a high school renovation and a new contract with teachers and other professionals are among the Salem School District warrant articles voters will see this year.

The district’s deliberative session will start at 7 p.m. on Thursday, Feb. 7, at Salem High School. There, voters can discuss and debate these spending measures. Voters will decide the fate of each warrant article when they go to the polls on Tuesday, March 11.

One topic that could generate debate is whether voters should approve spending $1,511,000 for architectural and engineering plans to renovate Salem High School.

The renovation project has an estimated price tag of $41 million, and the preliminary work would provide a better defined price.

The school board is asking voters to authorize spending the money for the architectural and engineering plans, and would use impact fees to cover $250,000 of the cost. The Budget Committee, however, is not recommending the article.

Advocates of the proposed renovation say the project is needed to improve and expand the 42-year-old school, which suffers from numerous deficiencies and has been pushed to capacity.

Some Budget Committee members, however, said they would prefer to address the issue after Windham students leave the school.

Also on the warrant is an article to put $600,000 into a reserve fund to pay for renovations to the high school. The money is a penalty that Windham is paying to keep its students at the school an extra year, after Windham delayed the opening of its own high school.

The $600,000 article, which the budget committee is not recommending, will be null and void if the $1.5 million for architectural and engineering plans is approved.

The proposed operating budget for 2008-09 is $53,539,584, of which $29,707,595 goes to salaries.

The budget also includes $9,412,708 for employee benefits; $2,342,468 for supplies and materials; $421,730 for equipment, furniture and fixtures; and $7,354,795 for various purchased services, such as pupil transportation, equipment repairs and printing.

The warrant also includes a $100,000 deficit appropriation for the school district’s current budget, representing the cost of special education tuition for out-of-district placements, and a $198,197 article to address deficiencies identified in a 2005 facilities audit, which includes replacement of fire panels, roofing, windows, HVAC units and paving.

Five other warrant articles each provide increases in pay and benefits in accordance with collective bargaining agreements between the School Board and worker unions: $31,830 to secretaries; $29,120 to food service workers; $83,601 to aides; $47,233 to custodians; and step increases totaling $404,284 and increases in salary and benefits totaling $730,897 to members of the Salem Education Association, which includes teachers, nurses and student services specialists.

Company wants slots at Rockingham

Salem Editor — Wed, 30 Jan 2008 19:30:00 GMT

By Darrell Halen

An audience of business people, local officials and state legislators got a look at plans for a revitalized Rockingham Park, presented by a company that hopes to bring 3,000 video slot machines to the 101-year-old Salem landmark.

William Wortman, who owns 20 percent of the park, also hopes to return thoroughbred racing as part of his company’s plans.

“I am committed to revitalizing Rockingham to bring it to its former grandeur,” said Wortman, the co-owner of Millennium Gaming.

Millennium is the majority owner of Cannery Casino Resorts, which owns or leases four casinos in Las Vegas and Pennsylvania.

The audience, made up of about 50 people, were gathered inside Rockingham’s clubhouse on Thursday, Jan. 24.

They also heard from Matthew Landry of The Innovation Group, a consulting company that estimated that slots at the racetrack could annually generate $294 million to $402 million, depending on how much competition there would be in Massachusetts and at greyhound tracks in New Hampshire.

Half of the revenues would go to the state in taxes, the study assumes.

For Millennium to bring slots to Rockingham, the state Legislature would have to allow for the expansion of gambling.

Gov. John Lynch has said it must be demonstrated to him that expanding gambling will not adversely affect the quality of life in the state before he would agree to it.

“We need the revenue. We need the money,” said state Rep. Mary Griffin, R-Windham, following the company’s presentation.

She cited that the state is experiencing a shortfall.

“Personally, I think it’s a good thing,” she said. “It brings in jobs. It’s entertaining.”

Currently, Rockingham employs 250 people, according to Edward Callahan, its president and general manager. Wortman estimates that as many as 1,200 people could be employed when the project is complete.

If lawmakers agree to allow slots, Millennium could have a temporary facility up and running about eight months later.

A new clubhouse would include a retail shop, gaming areas, restaurants, space for banquets and conferences, a food court, an outside covered grandstand, and VIP boxes.

“This represents a very unique opportunity for all of us,” said architect David Climans. “I think the tradition here, the 100 year history of Rockingham, is extremely valuable and our whole philosophy is to respect the heritage that’s been here all these years, and really to create something that’s reminiscent of what’s been here but brings it into a new era.”

Rockingham, which opened in June, 1906, currently offers live harness racing, simulcast racing, bingo, Texas Hold ‘Em Poker tournaments, various attractions and other activities.

Budget Committee won’t recommend warrant on ballot

Salem Editor — Wed, 23 Jan 2008 19:22:00 GMT

By Darrell Halen

Salem’s Budget Committee decided not to recommend a $1.5 million school district warrant article to fund architectural and engineering plans to renovate Salem High School.

It was one of the decisions the committee made on Friday, Jan. 18, at Town Hall when it cast votes on a dozen warrant articles going to voters this year.

The School Board is asking voters to authorize $1,511,000 for the architectural and engineering work and to use impact fees to cover $250,000 of the cost.

After a lengthy discussion, the committee voted 6-3 to forward the article without recommendation.

One of those six memb

Anners, Ann Marie David, said she wanted to see how the impending departure of Windham students would affect Salem High School: what class sizes and the curriculum would be, how much sports enrollment would change and how the school district would cope with a loss of $5 million in revenue.

“Let the dust settle, let Windham leave and revisit this,” she said.

Several others agreed, and said if the article is turned down by voters, school officials might come back with a scaled-back renovation plan.

School Board member Bernie Campbell said the $41 million renovation project would receive 30 percent in state aid, leaving $28 million for the town to pay for.

Budget Committee member Kathy Cote noted that the bond’s highest tax impact of 73 cents translates to about $213 on a $300,000 home – an expense in addition to paying for regular town and school district spending increases.

But others defended the project. School Superintendent Michael Delahanty said that currently about 2,300 students are being educated in the 230,000-square-foot school. A school being built today with that population, he said, would be 424,000 square feet in size and have 18 science labs.

But the school currently has 12 labs and three “glorified classrooms” that are used as labs where teachers bring in materials, Delahanty said.

“To think we have sufficient space is ill conceived,” Delahanty said. “To think we are going to have too much space when Windham leaves is misguided. We’re squeezing kids and staff into that building and it’s taking its toll.”

“The need for the school is absolutely a necessity,” said Budget Committee member Jim Randazzo, later adding: “Bottom line is, if it gets shot down now, it’s going to cost us a lot more money in the future.”

The Budget Committee later voted 5-4 to forward without recommendation an article to establish a capital reserve fund for renovations to the high school and to place $600,000 into the account. The money is a penalty Windham pays to keep its students at the school an extra year.

The article will be null and void if voters approve spending the $1.5 million for architectural and engineering work.

Voters will weigh in on the warrant articles and the proposed 2008-09 operating budget of roughly $53.5 million at the school district’s Thursday, Feb. 7, deliberative session. It will be held at Salem High School and begins at 7 p.m.

During the meeting, Budget Committee member Stephen Campbell complained that town and school officials have been providing too little information to the panel too soon before it cast votes.

“That’s not the way things are supposed to be run,” he said. “We’re suppose to review this stuff and not be a rubber stamp.”

The following budget warrant articles were forwarded by the committee with recommendation:

• Step increases totaling $404,284 and increases in salary and benefits totaling $730,897 in accordance with agreements between the School Board and the Salem Education Association.

• $31,830 in increases in salaries and benefits to secretaries for the second year of a three-year collective bargaining agreement between the School Board and the Salem Educational Personnel Association.

• $29,120 in increases in salaries and benefits for the third year of a three-year collective bargaining agreement with the Salem Association of Food Service Personnel.

• $83,601 in increases in salaries and benefits to aides for the second year of a three-year collective bargaining agreement between the School Board and Salem Educational Support Personnel Association.

• $198,197 to address deficiencies identified in a 2005 facilities audit, which includes replacement of fire panels, roofing, windows, heating ventilation and air conditioning units, and paving.

• $100,000 deficit appropriation for the current budget, representing the cost of special education tuition for out-of-district placements.

These are the other warrant articles that the Budget Committee forwarded without recommendation:

• Putting $30,000 of surplus money into a capital reserve fund for reconstruction or additions to schools. It will be null and void if the $1.5 million for architectural and engineering plans is approved

• $47,233 for increases in salaries and benefits to custodians in the second year of a three-year collective bargaining agreement between the School Board and Salem School Custodian Employees Association.

Selectmen back new police station

Salem Editor — Wed, 16 Jan 2008 18:37:00 GMT

By Darrell Halen

A $7.3 million proposal to build a new police station was unanimously backed by Salem selectmen and appears to have the support of most Budget Committee members.

Plans call for a 26,000-square-foot building that would be constructed behind the current station. The new facility is being requested to accommodate a Police Department that has outgrown its station, which was built in 1966 and has been added on to several times.

“The building is not getting any younger. It’s not getting any easier to maintain,” Don Freeman, a member of the police station building committee, told selectmen during their Monday, Jan. 14, meeting. “It ultimately will be constructed. It’s not going to get cheaper than it is today.”

The Salem Police Department is the fourth busiest in New Hampshire, according to Freeman.

In the 1970s, officers answered 123,000 service calls. In the 1990s, they were answered 354,000.

The department had 27 officers in the 1970s. Now it has 59 full-time officers, 20 civilian employees and 20 part-time officers.

The current station suffers from inadequate space, its cell block, lockers and weapons storage are substandard and the building doesn’t meet current building and electrical codes, according to Freeman.

“We need to be out of that building,” said Police Chief Paul Donovan. “It’s just not suitable for a department our size.”

The new station can be built with minimal impact to adjacent wetlands, and the current station will remain operational while the new building is being constructed, Freeman said.

The warrant article that selectmen are putting before voters in March calls for appropriating $7,135,712 to construct the new station and for site improvements, to authorize the issuance of no more than $6,985,712 in bonds or notes, and to spend up to $150,000 in interest earnings on the invested bond proceeds.

In addition, it authorizes selectmen to accept state aid and other funds that may be available.

Some of the $7.3 million for the project will be funded with asset forfeiture money and impact fees.

The warrant article requires a two-thirds percent majority to pass. If approved, it would annually cost the average homeowner $42. A proposal to build a new station in 2004 did not get the two-thirds vote it needed to pass.

Baybutt Construction of Keene, selected for the project, submitted a bid of $5,985,525. The project’s total price tag includes contingency money and $827,500 for owners’ costs, such as wetlands permitting, equipment, furniture, communications, technology and construction oversight.

Most Budget Committee members, meeting after the selectmen adjourned, supported the article when they took a preliminary vote. But several said they wanted to see a breakdown of some of the costs.

One committee member, Stephen Campbell, said he doesn’t support the warrant article. School and town spending is going up, and people can’t afford the new station, he said.

“The question is: where are we supposed to come up with this money? The idea that it will never be cheaper doesn’t make it any easier to pay the tax bill when it comes.

“I’m going to vote no, not because we don’t need a new police station, but because there doesn’t seem to be any political will in this town by elected leaders to say no to anyone,” he added. “That’s why the increases are so crazy this year.”

Budget Committee approves school operating costs

Salem Editor — Wed, 09 Jan 2008 19:40:00 GMT

By Darrell Halen

The Salem Budget Committee approved a proposed 2008-09 operating budget of roughly $53.5 million for the school district.

The panel took its votes on the budget during a public hearing on Thursday, Jan. 3, in Town Hall.

The $53,539,584 spending plan includes $29,707,595 for salaries, $9,412,708 for employee benefits, $2,342,468 for supplies and materials, and $421,730 for equipment, furniture and fixtures.

The budget, and other warrant articles, will be discussed at the school district’s Feb. 7 deliberative session. Voters will decide their fate when they go to the polls in March.

The committee voted 6-3 for the budget. Members who supported it were Ann Marie David, Jim Randazzo, Susan Covey, Chairman Michael Carney Jr., School Board representative Bernard Campbell and selectmen representative Everett McBride.

Kathy Cote, Roland Theberge and Stephen Campbell voted against it.

Stephen Campbell said that the passage of the budget and warrant articles would mean a school tax rate increase of about 10 percent. The Budget Committee cut only four-tenths of 1 percent of the board’s proposed operating budget, not going far enough to produce a budget taxpayers can afford, he said.

“I’m telling you this is crazy,” Campbell said. “I think you’re going to regret asking for a 10 percent increase because things we do need are going to fail.”

He said the proposed spending was unreasonable given that in a year, the district will lose $5 million in revenue with Windham students leaving Salem High School but the School Board isn’t planning to make a proportional cut. He also cited the School Board wants $41 million to renovate the high school.

“I’m going to be voting no, because these increases are just not affordable,” Campbell said. “We can argue about what we need until the cows come home, but they are not affordable by the vast majority of people that I talk to.”

During the hearing, members trimmed the budget by $1,061 in the employee benefits account. Previously, the committee reduced the total budget by $216,415.

Another point of contention during the hearing was whether $74,000 should be included in the school district’s default budget – the budget that goes into effect if the proposed budget is rejected by voters in March – for protection of underground storage tanks.

Superintendent Michael Delahanty and Bernie Campbell said the school district’s attorney told them it is legal to include the money in the default budget.

“We don’t think your interpretation is right,” Stephen Campbell said to Bernie Campbell. “You say district counsel somehow legitimizes it. Well, if I had the money, I could find a lawyer somewhere that would say something entirely different.”

“We don’t know what to anticipate,” Delahanty said later in the hearing. “It’s better to be safe than sorry. My responsibility is to do the best thing for the school district.”

Plowing takes bite out of town budgets

Salem Editor — Wed, 09 Jan 2008 19:12:00 GMT

By Darrell Halen

Snowfall isn’t the only thing heavy in this wintry season. So, too, has been the expense of clearing, salting and sanding roads in Salem-area communities.

Big snowstorms in December took a big bite out of municipal snow removal budgets

Salem budgeted $578,934 for winter operations in 2007, according to Finance Director Jane Savastano. It has spent $619,149 so far, with a few more bills to come in.

In November, the town had $111,000 on hand. But December’s snowstorms took a big whack in the budget – $150,000 – forcing the town to go about $40,000 over budget.

The amount of space that public works employees and contractors are responsible for clearing in Salem is extensive: 375 lane miles, 31 miles of sidewalks, 13 buildings and several other areas.

Thirty-nine public works employees, along with 29 contracted workers, “fight the fight,” said Dave Wholley, the department’s operations manager.

The workers, who are assigned to 41 predetermined routes, have seen 37 inches of snowfall this season.

“We’re always going to get the work done,” he said. “We won’t compromise public safety.”

Of the 375 lane miles they plow, 30 of those are unpaved roads. Included also is a 5-mile stretch of Route 28 from Old Rockingham Road to the Massachusetts border.

There are nine parks and parking lots that the departments salts and sands. It also plows some of them.

Some other areas of responsibility: salting and sanding at the towns’ six public schools, clearing and maintaining water department areas, and clearing several water and sewer department areas.

“It’s quite an undertaking,” Wholley said.

December was one of the busiest months the department has had. Workers had a couple of 24-hour shifts, and a couple of men worked 30-hour shifts this winter, Wholley said.

A pair of storms at the end of the month kept workers busy.

“Those two back-to-back storms during the holidays were tough on the guys,” Wholley said.

Snow storms in December had a big impact on Windham’s budget. The town spent about $72,270 – 44 percent of its 2007 winter contracted services budget – during that month alone.

To date, the town has spent $161,765 on contracted services out of $168,000 that was budgeted for 2007. Its winter materials cost was $90,700.

In 2006, the town spent $82,480 on contracted services. Its winter materials budget that year was $88,380.