Council Approves $27.5M Budget

The Londonderry Town Council approved the town’s proposed $27.5 million operating budget Monday night by a 4-0 vote.

Council Chairman John Farrell was not present.

If voters pass Article 3 in March as proposed and approved by the council, the town will need to raise $16.3 million in property taxes, which would have a tax rate impact of $4.74 in FY14, based upon projected assessed values.

In addition to the town’s operating budget, the council approved Article 9 and Article 10, ratifying union contracts with Londonderry Executive Employees Association (LEEA) and the American Federation of State, County, and Municipal Employees (AFSCME).

“The unions have done a really good job of recognizing the taxpayers could not afford bigger raises,” said Councilor Joe Green, noting the unions even accepted lower raises a few years out despite hopes that the economic climate will have improved by then.

Under the LEEA contract, union employees will see no pay increase in FY14 and a modest $.004 pay increase in FY15 and FY16. The town’s contract with AFSCME also includes no pay increases for union employees in FY14.

Other warrant articles the council approved that would impact the town’s tax rate include the following:

• Article 2, to raise and appropriate $200,000 for repairing and maintaining town facilities. If passed, the town would need to raise $50,000 in property taxes, which would have a $.01 tax rate impact.
• Article 4, to appropriate funds to capital reserve funds to replace ambulances, highway heavy equipment, fire trucks, fire equipment and highway trucks. With $400,000 in Fund Balance to be used towards the proposed $710,000 appropriation, the town would need to raise $310,000 in property taxes, which would mean a tax rate impact of $.09.
• Article 8, to raise and appropriate $101,000 for the purpose of hiring an additional police officer to serve as a School Resource Officer (SRO). The town would be required to raise the entire appropriation in property taxes, resulting in a tax rate impact of $.03.
• Article 12, to raise and appropriate $500,000 for the town’s Roadway Maintenance Trust Fund. Fund Balance in the amount of $250,000 is to be used towards this appropriation, with $250,000 to be raised by the town in property taxes. That means Article 12 would result in a tax rate impact of $.07.
• Article 13, as amended by the council Monday, would raise and appropriate $20,000 to conduct a Zoning Ordinance audit. The resulting tax rate impact would be $.01.

The town plans to seek advice regarding the exact wording of Article 8. It’s the intention of the council to provide flexibility in the article’s wording so that the appropriation may be used to hire one full-time SRO or two part-time officers.

Police Chief and Acting Town Manager William Hart said his desire is to hire one additional full-time SRO.

“In my capacity as town manager, I understand the fiduciary concerns of hiring one full-time officer as opposed to two, part-time officers,” he said. “But as police chief, hiring a part-time officer is not something I’m excited about in considering the safety needs of the town.”

The council additionally voted 3-1 to approve Article 14, to raise and appropriate $227,000 for paving a one-mile section of the Rail Trail from Sanborn Road to Symmes Drive.

Vice Chairman Tom Dolan voted against the warrant article, saying that while he has been a strong support of Londonderry Trailways and believes the Rail Trail really enhances the character of the community, he “is faced with the costs associated with supporting an additional SRO.”

"If the taxpayers feel they can only afford one of these warrant articles, I hope they pick safety rather than recreation," he said, adding that he would be a vocal supporter of funding the project if it were to come back to the town in the next fiscal year.

Budget Committee Member John Curran, who said he is “usually a budget hawk,” vocalized strong support for Article 14.

“I think this is long overdue,” he said, adding members of Londonderry Trailways have “put in more than $227,000 in time for this.”

The town’s warrant articles will undergo further consideration and may be amended in Deliberative Session on Feb. 4 at 7 p.m. in the Londonderry High School Cafeteria.