The Selectmen have been going through the Operating Budget for Fiscal Year 2010 very carefully. They have raised numerous questions about increases asked for in the budget that will drive property taxes up about 5% for all Chatham taxpayers. It could be even more if other revenues the town receives fall off, such as hotel/motel and motor vehicle excise taxes. Chatham Concerned Taxpayers has been monitoring meetings of the Selectmen and the Finance Committee as they go over the wish lists. The School Committee presented what appears to be its biggest increase request in percentage and dollars in recent memory and has thus far made no adjustments to its requests.

The Selectmen have expressed significant concern about hitting property taxpayers with more taxes during these financially disastrous times. To hold the line on spending and to keep the property taxes flat, the Town has to peel back desired increases by about $1 million from the operating budget. The Selectmen by a 4-0 vote asked the unions and other employees to agree to an across-the-board compensation freeze for fiscal 2010, which would reduce excess spending from $1 million to $300 thousand. Chatham Concerned Taxpayers pointed out that the nation is currently in a period of zero inflation, so cost of living increases (and other increases) for town employees in such a time seem bizarre for private sector taxpayers who aren't getting any bump-up in income. The union and other employees were asked to respond to the Board on or before this Tuesday, February 24.

Assuming town employees take account of the difficulties of town taxpayers, the additional reduction in spending increases of $300K should be doable in a $32 million budget, less than 1%.

Property taxes are also impacted substantially by capital projects, which are planned outside the operating budget. To hold the line on property taxes will require a freeze on capital spending for FY10 as well. In other words, during these tough times, should not the town take a spending break on capital projects until economic times improve? The so-called debt dropoff used in recent years should be used to reduce property taxes or to build up the Stabilization Fund to save for emergencies in FY11.

As the agenda set forth below shows, this coming Tuesday the Town Manager will present his proposals about capital projects to be brought up at the Annual Town Meeting on May 11th. Such proposals can have very significant impacts on the property tax. The Selectmen may disclose the response of town employees to the across-the-board freeze proposal. Without such a freeze, personnel layoffs are almost certain unless the property taxpayers are forced to pay for such pay raises in increased taxes.

Tuesday, February 24, 2009
Board of Selectmen meets, Town Hall, Channel 18, 4 p.m.
Sean Summers, Chairman

Agenda on ATM Warrants
Article 6 – Operating Budget
Article 8 – Cost of Living Increases for Town Employees (in a zero inflation environment)
Article 9 – Stabilization Fund – Use of funds for PD/Fire overtime and library
Article 11 – General Obligation Bonds – five year capital plan
Article 12 – Stabilization Fund – use of funds for transfer station trailers
Articles -- May discuss hotel/motel tax revenues and possible State House actions on same and meals tax
Ballot Question – Operating Budget