Common Sense Proposal for Budget Consciousness & Tax Transparency

Since announcing my candidacy for the Exeter Select Board, I have expressed a deep concern about our town’s increasingly high cost of living, the consequence of a burdensome tax rate and a relative shortage of affordable housing options. Having knocked on over 3,000 Exeter doors to date, I have heard firsthand the financial strain that many residents face by living in Town and the manner in which Exeter has been become inaccessible for those of many socio-economic backgrounds. Exeter’s cost of living is a problem that I intend to combat as Selectman, but I have also brought forth a 2018 citizen’s petition that, if passed by Exeter voters on March 13^th, would empower the general public to shape the Town’s response to this critical issue with more informed decisions at the polls.

My proposal is that all future warrant articles requesting public funding include, directly on the ballot, an estimate of the annual tax impact to the median single-family homeowner in Town. Since it is difficult for an individual to quantify the personal impact of town spending propositions, placing objective cost figures on the ballot would equip voters with the information needed to make cost-benefit analyses at the polls. While residents would of course still be free to vote as they see fit, my hope is that tax estimates would create greater budget consciousness and encourage voters to make value judgements on spending proposals with Exeter’s cost of living in mind. In addition, these projections would offer homeowners transparency on the tax liability that they would incur were each respective warrant article to be approved. Renters would similarly know what cost might be passed along to them by their landlords.

To illustrate my point, here are two examples assuming Exeter’s 2018 proposed budget, our current tax base of $1.68B, an annual non-property tax revenue of $6.75M, and a median single-family home assessment of $300K. First, a budget warrant article proposing a General Fund of $18.65M would include an additional sentence stating that the median taxpayer would pay $2,125 in town taxes in the given fiscal year ($7.08 per $1,000 assessed). Second, a bond warrant article proposing a $5.05M library expansion would note the annual cost to the median taxpayer for some specified bond length and interest rate, such as $72 per year over a 15-year debt amortization period at 2.5% APR.

A critique of my proposal is that these tax estimates might prove inaccurate given changes in interest rates and our Town’s tax base. It is true that these variables introduce some uncertainty. However, these tax estimates are just that, estimates. The Town is capable of producing cost projections within a reasonable margin of error that, if not perfectly accurate, are nonetheless useful to voters at the polls. In fact, the Town already has the confidence in such forecasts to provide tax estimates at Deliberative Session, so my proposal is merely that the same numbers be placed on the ballot for all voters to incorporate into their decision-making processes.

As Exeter’s cost of living continues to increase, it is more important than ever that voters understand the personal financial impact of our Town’s spending decisions. Just as any person would expect to know the cost of a new home or car purchase, our residents deserve objective cost figures at the polls. Placing tax estimates on the ballot is a common sense proposal that I urge all Exeter voters to support on March 13^th.

Nicholas is a member of Exeter’s Budget Recommendations Committee, Planning Board, and Historic District Commission. He is a 2018 candidate for the Exeter Board of Selectmen.