• Article 9 Finance, Section 9.4 Action on Budget, Part A Limitation on Budget Increase – A portion of the language in the second sentence will be deleted and new language as shown in bold print below will be inserted. The new wording will read as follows:
  
  “In establishing a municipal budget, the Town Council shall be allowed to assume an estimated property tax rate only in an amount equal to the Equalized Tax Rate established during the prior fiscal year increased by a factor equal to the change in the National Consumer Price Index as published by the United States Department of Labor for the calendar year immediately preceding budget adoption.”

The Derry Citizens for a Sound Economy is supportive of this Warrant Article because we believe it helps to address a budgeting loophole that has existed during times of reassessment. For those of you wishing to read the Town Charter, you will find it on the town’s web site (www.derry-nh.org).

How did this issue stack up against the ADT's 11 Questions?

1. What "need" is this action supposed to address? Is this truly the role of government?

Answer: The “need” was felt when a prior Town Council conducted a re-assessment that substantially increased the book value of the town’s real-estate. The Town Council took this opportunity to dramatically increase the town’s budget while the incomes of Derry residents rose little if at all. Yes, restraint in the budgeting process is a major role of the Town Council.

2: Is the proposed action legal and within the proper jurisdiction? Does it rely on a narrow interpretation of the “letter of the law” while running counter to the “Spirit of the law”?

Answer: It is within the council’s power to propose charter amendments. It is within the voting public’s power to vote approval or not.

3: What other options, including private sector, exist to address this issue? Have they been properly and effectively evaluated?

Answer: Other options, other charter changes that were discussed were dropped and will not be on the ballot. The taxpayers’ being able to vote on the budget and bonds was rejected.

4: Which possible solution has the lowest short term costs to the taxpayer, and which has the lowest long term cost.

Answer: This amendment will make it more difficult for future Town Councils to dramatically increase spending as a result of a re-assessment that reflects an increase in our real-estate values.

5: Does this action benefit only a few? Should the majority of taxpayers fund this benefit for the few?

Answer: This amendment benefits all Derry property owners.

6: What are the short and long term consequences of implementing this action? Have recurring operating costs been factored into the true cost to the taxpayers? Will this action force funding consequent actions?

Answer: The short-term benefits are minimal but in the long term, it minimizes a loophole for drastic budget and tax hikes.

7: What are the likely collateral consequences of this action? Increased traffic, reduced safety, damage to existing neighborhood? Will this action increase the size of bureaucracy, and/or add regulatory interference? Will it result in the loss of personal freedoms?

Answer: There are no collateral consequences, beyond protecting the taxpayer from unfair budget growth.

8: Who truly benefits? Are there hidden agendas that are being fulfilled by this issue? Is there favoritism or other remuneration involved?

Answer: All property owners benefit.

9: Are undefined generalities, vague assumptions and unverifiable conjectures being used to advance the idea? Or is the idea being supported by proven facts?

Answer: There are no undefined generalities. This amendment better clarifies a section of the Town Charter dealing with the budgeting process.

10: What restraints are in place to verify that the intended action will be implemented as planned? (Without changes in scope once authorized)

Answer: The people of Derry can petition to change their charter at any time.

11: How can the action be undone if it is proven to have failed to meet it’s stated goals? How much will it cost to undo the action?

Answer: The voting public can petition for a charter change at any time.