Londonderry voters amended a Warrant Article to change the formula for appropriation of the Land Use Change Tax (LUCT) at the Town’s Deliberative Session last week.
A total of 73 voters attended the Feb. 6 meeting.
Town Councilor Tom Freda proposed Warrant Article 11, to place no more than $1,000 in the Conservation Fund annually. But Conservation Commission Chairman Marge Badois argued the intended use of LUCT, generated by penalties imposed when open space is developed, is to preserve other lands to maintain a balance between development and open space.
“LUCT does not affect the tax rate. No one knows how much will come in,” she said. “LUCT allows us to balance development with open space. When development is rapid, it can be used to purchase land that maintains the quality and rural character of life.”
Freda argued that with “a rough goal of conserving 25 percent of the land,” the Commission has met its goal, having 15 percent under conservation and another 15 percent by state law that is open space.
“If they met their goal, what are we continuing to give them money for?” he asked, arguing open space in Londonderry is underutilized. “If they’ve reached their goal, they should step back and we should stop funding them at the rate we have been and put the money where the money might be needed in the future.”
Bob Saur, who served on the Town’s Open Space Committee, said he takes exception to the idea the Town’s goal is to conserve 25 percent of its land.
“We called for 35 percent protection of open space,” he said. “This town is changing a lot. We talk about the character of the town – it’s going to change quite a bit in the coming years. We really need to protect what folks have become used to in Londonderry.”
But Freda argued his article wasn’t an attempt to restrict conservation activities – he just wants the voters to have the opportunity to decide whether or not a property should be purchased.
Badois argued that using LUCT to purchase open space does not affect the tax rate the way a bond would, and having funds available in the Conservation Fund makes the Town more competitive in seeking matching grant funds.
Noting the Town’s formula previously allocated 100 percent of the LUCT to the Conservation Fund, James Hooley said he was in favor of the change in 2012 to divert 60 percent of remaining LUCT to the General Fund after the first $100,000 is distributed to Conservation.
“The intent was to bring some long-term balance to this. If large tracts of land came in, a good portion would be diverted to the town,” he said. “If a large tract of land is taken out of current use, it could have an impact on services, so a large chunk goes to the Town. That’s what we have now and I think it’s working.”
Chairman John Farrell said Article 11 was proposed to ensure an appropriate share of the anticipated $1 million windfall in LUCT from the planned Woodmont Commons development would go to the General Fund to help pay for unanticipated expenses to the Town resulting from the project that aren’t covered in the development agreement.
But Planning Board member Mary Soares noted Woodmont Commons will be completed in phases over several years.
“It won’t be one lump sum,” she said. “It does make sense to continue with the existing formula.”
“With the understanding this would be done in portions over the next decade, we’re arguing over about $80,000,” Farrell said. “I’m OK with them getting $80,000 more.”
The voters passed to the ballot an amended article that maintains the existing formula used to distribute LUCT funds.
Also amended at the Feb. 6 Deliberative Session was Article 14, to raise and appropriate $50,000 to establish a family mediation program for Londonderry families in need.
School Board member John Laferriere, who sponsored the Article, proposed an amendment to de-fund Article 14, as the Town Council moved to the Warrant to take its place Article 13, to raise and appropriate $50,000 to establish an addiction and counseling program for Londonderry families in need.
“I put this Article together to support what we’re doing on the school side, trying to get our hands around the community problem we’re having with heroin,” he said. “I applaud that we’re taking on that issue proactively. We are not in the business of building programs; my intent was to have us look at how we support existing programs. (Article 13) supports that.”
“This is a growing crisis that’s reached epidemic measure. We need to be more proactive, and arresting people is not the primary way to solve this problem. This is greatly needed,” Councilor Tom Dolan said. “We’re not subject matter experts and have no intention of creating a social services agency within the town. This is to create funds we can use to engage other subject matter experts and agencies and so we can pay fees “associated with therapy.”
An additional amendment was proposed to Article 3, the FY17 Operating Budget of $29.5 million, but failed.
Noting the strain on several Town departments due to rapid residential and commercial development, School District Business Administrator Peter Curro proposed adding to the budget $80,000 for one additional Town Highway employee.
Public Works Director Januscz Czyzowski told the Council he doesn’t dispute the Department is understaffed and recommended three additional employees would improve their efficiency.
However, voters expressed there wasn’t enough time to properly vet the proposal and the amendment failed.
Also discussed during the Deliberative Session was the use of Undesignated Fund Balance for several of the Town’s Warrant Articles.
“Articles 6 through 9 have over $2 million out of Undesignated Fund Balance,” Pauline Caron of Mammoth Road said. “I think Undesignated Fund Balance should have been used to lower the tax rate and let the voters vote on those articles.”
But Town Manager Kevin Smith and members of the Council said the Undesignated Fund Balance is generally not used to lower the tax rate because doing so can create a volatile tax rate.
The District’s FY17 Warrant as passed to the ballot by the voters is as follows:
- Article 1: Election of Town Officers.
- Article 2: To raise and appropriate $210,000 to be placed in the Town’s Expendable Maintenance Trust Fund, with funds to come from the June 30 Fund Balance. The article has no tax rate impact. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 3: To raise and appropriate $29,591,028 as the Town’s operating budget, not including appropriations by special warrant articles and other appropriations voted separately. If the article is defeated, the default budget is $29,594,363. If passed, the article will require the Town to raise $17,924,670 in property taxes, resulting in a tax rate impact of $4.87 based upon projected assessed values. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 4: To raise and appropriate $494,678 to fund Police Outside Details, to come from the Police Outside Detail Special Revenue Fund. The services are funded through user fees and the Article would have no tax rate impact. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 5: To raise and appropriate $6,307,524 to defray the cost of construction, payment of the interest on any debt incurred, management, maintenance, operation and repair of constructed sewer systems. The fund will not accumulate from year to year and will not be commingled with town tax revenues, and the fund will be deemed part of the municipality’s general fund accumulated surplus, all in accordance with RSA 149-I. The services are funded through user fees and have no tax rate impact. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 6: To raise and appropriate $38,000 to resurface the Town’s basketball and tennis courts on Nelson Road, with funds to come from the June 30 unassigned fund balance. The Article would have no tax rate impact. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 7: To raise and appropriate $650,000 to be placed in the Roadway Maintenance Expendable Trust Fund, with funds to come from the June 30 Unassigned Fund Balance. The Article would have no tax rate impact. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 8: To raise and appropriate $350,000 for improvements to the Londonderry Senior Center, with funds to come from the June 30 Unassigned Fund Balance. The Article has no tax rate impact. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 9: To raise and appropriate $724,000 to be placed in the following capital reserve funds: Highway Trucks, $50,000; Highway Heavy Equipment, $30,000; Fire Equipment, $149,000; Fire Trucks, $380,000; Pillsbury Cemetery Expansion, $75,000; and GIS (Geographic Information Systems), $40,000. The funds are to come from the June 30 Undesignated Fund Balance and the Article would have no tax rate impact. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 10: To raise and appropriate $350,000 to expand the Route 102 sewer system from Home Depot to the intersection of Mammoth Road, with those funds to come from the June 30 Unassigned Fund Balance. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 11: To, pursuant to the provisions of RSA 79-A:25 IV, place annually the first $100,000 from the Land Use Change Tax and 40 percent of the remainder of the revenues received from the Land Use Change Tax in the Conservation Fund and 60 percent of the remainder of the revenues in the General Fund. The Article would not change the formula being used to distribute Land Use Change Tax.
- Article 12: To authorize the transfer of all supervision, management duties and responsibilities of the land surrounding the Town Common and fronting on Mammoth Road and Pillsbury Road, which is sometimes referred to as the Town Forest, from the Conservation Commission to the Town Manager, with the advice and recommendations from the Historic District/Heritage Commission, Conservation Commission and Town Council. The Article has no tax rate impact. The Council and Budget Committee voted 5-0 each to recommend the Article.
- Article 13: To raise and appropriate $50,000 to establish an addiction and counseling program for families in need, with the funds to come from the June 30 Fund Balance and to be placed in the general fund. The Council and Budget Committee voted to recommend the Article with a 5-0 vote each.
- Article 14 (Citizen’s Petition): To raise and appropriate $0 to reestablish the Family Mediation Program for Londonderry families in need. The article would result in a tax rate impact of $.01.
- Article 15 (Citizen’s Petition): To recommend the Town Council propose an amendment to the Town Charter to set term limits on all non-land use boards, non binding on the Town Council. The Article has no tax rate impact. The Council voted against the Article 1-4.
- Articles 16-21: To authorize the Town Council to call one special meeting, at its option, to address cost items included in a collective bargaining agreement between the Town of Londonderry and Londonderry Administrative Executive Association-Public Safety, should a collective bargaining agreement be reached between the Town and Londonderry Administrative Executive Association-Public Safety. The Town Council and Budget Committee each voted 5-0 to recommend the Articles.
If the entire FY17 Warrant were to pass as proposed, the tax rate impact would be $5.04 per thousand, which includes veterans’ exemptions, according to Finance Director Doug Smith.
The Town will vote on the School District and Town Warrants on March 8 at the Londonderry High School gymnasium from 7 a.m. until 8 p.m.