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At one time the Derry Fire
Department was organized as a village district, with its own
commissioners, just as the East Derry fire district is set up now. Back
in the early eighties the Derry Fire district voted to dissolve itself,
transfer all its assets to the town, and become a town department.
Some years back the town adopted a tax cap as part of the town charter.
It was the intention at the time that the entire town of Derry and all
its departments be under that tax cap. Until recently the Town Council
honored the tax cap in its budget-making decisions.
However, in late 2003 when the town again failed in one of its many
attempts to take over part of the East Derry Fire Precinct and in so
doing take a significant portion of East Derry's tax revenue, things
changed.
The current Derry Fire Department budget had been constructed in
anticipation of the tax revenue which would have been realized from the
revenue confiscation from East Derry. When the town plan was again
denied by the Rockingham County Superior Court, the Derry Fire
Department found itself with a significant budget shortfall.
Rather than cut the DFD budget, it was decided that the DFD was "no
longer a town department" and therefore not subject to the tax cap. The
decision permitted the DFD to use fund balance to make up their
shortfall.
The Town Council voted 5-2 to exempt the Derry Fire Fire Department
from the tax cap with Councilors Hopfgarten and Needham the two
opposition votes.
It is worthy of note that this revenue shortfall did not meet the
EMERGENCY provision of the charter to deal with "unforeseen" events
because the event was a clear and predictable possibility.
The town at various times has asked their attorney Ed Boutin for
opinions on the matter and in all three cases (letters from Boutin
dated May 22, 1998, December 2, 1999 and March 2, 2001) attorney Boutin
wrote the town that in his opinion the tax cap applied to the town's
fire department.
In a memo to Carol Granfield dated September 16, 2003, Chief Financial
Officer for the town Frank Childs states that it appeared that the tax
cap applied to the Derry Fire Department. This decision of the Town
Council is in direct violation of the town charter and is a breach of
trust with those citizens the council is supposed to represent. The
citizens placed a tax cap in the charter to preventoverspending by the
council or the town departments.
It is for these reasons that the Derry Citizens for a Sound Economy
takes the position that the Derry Fire Department should be under the
tax cap and that the new Town Council should, as one of its first items
of business, reverse the position of the prior council in this regard.
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 to address a serious budget
shortfall for the Derry Fire Department because they had budgeted on
the basis of the town council taking a significant portion of EDFP
revenues.
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 -- This action does not violate state or federal
laws, but DOES violate the town's charter. Rationale offered by the
council, to justify their action, relies on twisting words to create a
technical fiction -- that the DFD is NOT a town department. They are.
3.
What other options, including private sector, exist to address this
issue? Have they been properly and effectively evaluated?
Answer -- The cause of DFD's significantly increased
budget was NOT addressed. The only alternative sought, was to find more
revenue, NOT to correct the budget problem at the source.
4.
Which possible solution has the lowest short term costs to the
taxpayer, and which has the lowest long term costs?
Answer -- The option of reducing the DFD's operating costs
was not on the table. Without reducing costs, the too-high budget will
only be passed along to the taxpayers.
5.
Does this action benefit only a few? Should the majority of taxpayers
fund this benefit for the few?
Answer -- This action benefits primarily the DFD personnel
who continue to profit at taxpayer expense.
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 consequence, is that it raises
taxes for Derry Fire district residents. The long term consequence is
that it will raise taxes for everyone in Derry. With the DFD outside
the tax cap, it is free to raise its budget without constraint (no
voter oversight of the budget), but all other town departments, freed
from having to cut costs to cover the DFD's increases, will be able to
increase their budgets. Everyone will pay more.
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 -- The damage of this action is in setting a
precedent that the tax cap can be circumvented. The council need only
concoct a rationale to justify their action.
8.
Who truly benefits? Are there hidden agendas that are being fulfilled
by this issue? Is there favoritism or other remuneration involved?
Answer -- DFD personnel benefit directly.
9.
Are undefined generalities, vague assumptions and unverifiable
conjecture being used to advance the idea? Or is the idea being
supported by proven facts?
Answer -- This action is being supported by contrived
inference, from a few facts, to pretend that the DFD is not a town
department, in direct contradiction to many other facts, AND the
opinion of the town's own lawyer.
10.
What restraints are in place to verify that the intended action will be
implemented as planned? (without changes in scope once authorized)
Answer -- This action is the opposite of restraint. It
seeks to circumvent budget restraint the people voted to include in the
town charter.
11.
How can the action be undone if it is proven to have failed to meet its
stated goals? How much will it cost to undo the action?
Answer -- This action can be undone by the council admitting, publicly,
and in all future budget decisions, that the DFD is a town department.
No additional cost need be associated with the council taking this
public stand.
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