In the News: April 21, 2008
Berwick retail project may bring real change
Foster’s Daily Democrat
But he added that Jellison, who was in
Woman killed in Route 236 crash
Foster’s Daily Democrat
A young woman was killed this morning in a two-car, head-on crash on Route 236 this morning involving a sedan and a tractor-trailer truck.
It’s brush fire danger time of year
Portsmouth Herald News
An Eliot, Maine, firefighter exits the woods where a brush fire at the Kittery landfill went to three alarms during a sunny but windy afternoon recently…
Drivers take notice: Memorial Bridge closes today
Portsmouth Herald News
The Memorial Bridge will close today at 7 a.m. and re-open on Saturday morning at 7 a.m., prohibiting vehicular, pedestrian and bicycle traffic and limiting marine access…
Tags: news
April 21st, 2008 at 2:21 pm
The Foster’s article on that sand pit-proposed development in Berwick has the following quote:
“Roberta Orsini, South Berwick’s acting interim town manager, said recent efforts to promote commercial development in town have failed because some residents are afraid new development will bring unwanted change.”
Well, the reporter got it all wrong. The issues with the former manager’s proposals have not been with unwanted change. It’s been heavy handed, ill conceived, proposals that were not thought out; financially or otherwise. I have yet to see any analysis that shows that the type of development described in that article will lower tax rates one penny.
And why does no-one deal with the relationship of State funding assistance for South Berwick’s SAD 35 costs; and new development that has no school age kids? It’s a dominant factor, negating most of the value of expanded tax base.
It’s this kind if oversimplification that truly limits good conversation/debate about how S. Berwick should grow. It perpetuates the myth that if a citizen opposes stupid proposals , then that citizen is anti-growth. That’s simply not true.
April 21st, 2008 at 4:13 pm
Sharon, I agree with these points, and thought of them immediately when reading the Foster’s article about the Berwick development.
In Roberta’s defense, though, I’ll add that she probably didn’t actually misspeak here, when saying citizens have opposed UNWANTED change. That isn’t the same as saying ANY change is unwanted.
As you point out, change that promises to relieve our tax burden but ends up adding to it is unwanted (and I wonder which Berwick will get from their sand pit???). Change that alters residential zoning or destroys our community’s character, while costing the town for services and piling on more traffic is unwanted.
Investment in South Berwick’s downtown properties that are already zoned commercial is change that citizens definitely WANT. Citizens applaud investment made in recent years by South Berwick Yoga, Lassel Architects, Nature’s Way Market, the Little Hat Company, the Masiello/Asia Café building, Pepperland (and that building’s owner, the late Dennis Smith), Kim’s Cleaner, Monkey Business Bakery, Civil Consultants, and others.
I hope there’s more to come. In all there are about 100 downtown properties already zoned for business between town hall and Fogarty’s. It would be great to see business there revitalized—the kind of change South Berwick really wants!
April 22nd, 2008 at 2:40 pm
Investment in South Berwick’s downtown properties that are already zoned commercial is not a change at all, good bad or indifferent. I am totally for new businesses moving into downtown, but that is not change. That is how it has been for over 100 years. We need to be able to allow some type of commercial development in new areas. No, this may not be the total solution but it is a start. I hate this cliché, but we need to start thinking outside the box.
April 22nd, 2008 at 2:43 pm
JD,
I’m curious, do you understand this issue:
“And why does no-one deal with the relationship of State funding assistance for South Berwick’s SAD 35 costs; and new development that has no school age kids? It’s a dominant factor, negating most of the value of expanded tax base. “
April 22nd, 2008 at 2:50 pm
You’re right. We do need to think outside the box, and intelligently. Right now, SB is a “sleepy town”. You drive thru the main street, and nothing is happening. The storefronts are dark, or the windows are so small you can’t see inside the stores — hardly inviting.
You want a cost-effective change? Brighten up the town — encourage the shop owners to lighten up their stores, clean out their windows, put up some banners. Make it look like something is happening here.
What’s more, the addition of a coffee cafe could work wonders…..you have a place where adults can meet, or sit and kill time waiting to pick up a child. That begets a hairdresser. That brings in a more extensive bookstore. That brings business to the pharmacy. And with those services here, not over the border in Dover or Somersworth, then you got something.
Right now…come on…you want bigger industry to come here? You have to make the town look inviting. Right now, it looks like its asleep.
April 22nd, 2008 at 3:03 pm
Sharon,
I understand where yuo are coming from, but I do have some questions.
I am not being critical of anyone, just trying to understand.
The LP station that is going in to Eliot is supposedly going to generate $500,000 in taxe revenue for Eliot.
Does the State reduce SAD 35 funding dollar for dollar for the increased revenue?
If this is the case, and the funding is reduced by $500,00, and Eliots share of school funding is 60% with ours being 40%, doesn’t that mean that Eliot would pay an additional $3000,000 while we pay an additional $200,000?
If this is the case, doesn’t that nmean that Eliot has increased tax revenue of $500,000 minus the $300,000 in increased cost for the school leaving an increase of $200,000? Wouldn’t our increaqse then be $200,000 with nothing to do but raise property tax to come up with the money?
If the situaltion were reversed, wouldn’t that mean an estimated increase of $300,000 for South Berwick if the station were in our town?
If the state does not reduce funding dollar for dollar, wouldn’t we still see an increase in tax revenue?
April 22nd, 2008 at 3:05 pm
Sorry about the typos in the last post, that should have been an additional cost to Eliot of $300,000 not $3000,000
April 22nd, 2008 at 3:08 pm
KC,
I have to agree with you.
Until we build up some of the smaller business in town, there is nothing to attract an office park or other types of larger tax revenue businesses.
April 22nd, 2008 at 3:14 pm
I agree with the emphasis on making the downtown attractive and vibrant, KC.
As for JD’s call for “change” and “thinking outside the box,” very well, but let’s not be as foolish as the Foster’s headline writer who wrote on this week’s story about the new Berwick mall that “Retail project may bring real change.” Real change from what? Every town around has a retail mall. The chains make money and suck trade away from the downtown independent local business people. And the locals there get nothing– their taxes and traffic are as bad as ours if not worse. Look at Eliot. They got a mall on 236 about 20 years ago. Was that “real change?”
April 22nd, 2008 at 3:43 pm
No, Dave, it doesn’t work that way (State aid for schools). The aid goes to the town not the school district. The SAD 35 costs are proportioned between the towns, and then the State formula is applied to each town separately.
This is huge to understanding how local taxes work in Maine; and nobody seems to understand.
If Eliot gets a large new addittion to it’s tax base without new school age children (such as this alleged gas facility), then they will receive LESS in state aid for their portion of the school budget. Hence the effect of that extra tax base will be in part cancelled out.
South Berwick receives over 40% of it’s school costs for SAD 35 through the State formula. The formula is based on total valuation, and school age poulation. Turns out we are near the optimum point on the funding curve. That’s huge. Because we are at or near the optimum, added tax base has a dollar for dollar decrease in the tax base that is used to calculate the State aid. Result: zero benefit for the school portion of our taxes, which is about 2/3 of the total local tax bill. The majority of the potential benefit just isn’t there.
Put another way, if we were to get a large industry or commercial development (with no added kids; just what everyone wants….) we would receive LESS state aid at the rate of that additional valuation!
South Berwick gets over 40%. Kittery gets about 15%, and York gets less than 10% (I think). Why? Because they have very large tax bases in comparison toi their school age population.
Put another way, our position on the funding curve is our most valuable tax asset!
Go talk to the business manager at SAD 35, if you need more on this. I did, and it changed my understanding completely.
I keep bringing this up, because it’s the dominant factor in all of this, And nobody wants to accept it. The former manager wouldn’t respond to numerous questions on this essential issue. Some councillors get it, some don’t. In NH this would not be so, as there is virtually no state aid for education. People are thinking about South Berwick’s tax situation like we were Rollinsford. We’re not.
April 22nd, 2008 at 3:54 pm
Bill,
That’s why I ask questions, to get a better understanding of how this stuff works.
Alot of this information is difficult to get a hold of, which leave people with a less than good understanding of how it all works.
It would probably be in the towns interest if the council could somehow get this type of information in one central location so people like me who have questions can at least try to get them answered.
I hope I didn’t come across as being petty in my earlier post, as that was not my intention.
The more information I have, the better understanding I have of the situation.
April 22nd, 2008 at 3:59 pm
Dave,
You’re not alone. This issue has been evading the Town’s collective understanding ever since the call for expanded tax base started. This is a major, major impediment to lowering tax rates through and expanded tax base. And people simply ignore it.
I wish the new management and council majority would really look at this. When the former manager and curent planner were asked repeated questions about this in the face of the Contract Zoning dispute, they refused to deal with it.
That’s why I like to think of growth as Community Development (ie: what makes our town better), instead of the blind call for Economic Development (which probaly doesn’t affect taxes).
April 22nd, 2008 at 4:06 pm
One thing that bothers me though, is the fact that there just isn’t that many places for a teen or young college student to work locally.
That is one of the reasons I would like to see additional businesses in town.
The lower Main street area really doesn’t have enough parking to support much more business.
It’s crazy trying to get through that section when Fogarty’s is busy, I’d hate to see what it would look like with additional business open after 5:00PM
April 23rd, 2008 at 8:56 am
Bill, thanks for that explaination. I also did not comepletely understand the state education aid thing totally. I just can’t believe that there isn’t some way to increase our tax base and take some of the burden off the residents without dramatically decreasing the amount of state aid we get. If York and Kittery are getting that much less in aid then how are they surviving? I realize that a larger percentage of property values in those towns are higher than in South Berwick. Is it a case of those with the higher property taxes making up for the difference in the state aid? I am just trying to wrap my mind around this.
April 23rd, 2008 at 9:50 am
JD, Yes, in a nutshell, their (significantly) larger tax base supports proportionally fewer fewer children in the school system. The State aid formula gives more to towns with a low property valuation/ school age population ratio. This ratio goes up: State aid goes down. This ratio goes down: State aid goes up.
This State aid is worth several $Millions of DIRECT PROPERTY TAX RELIEF to South Berwick. We could never replace that with new taxes. As I wrote yesterday, South Berwick’s near-optimim place on the State formula’s curve may well be our most valuable tax rtae asset.
Also as I wrote, I don’t know why this issue is not “front and center” in these tax rate discussions. It certainly should be, and must be if we are going to discuss this intelligently.
April 23rd, 2008 at 10:03 pm
Bill
So any change is bad. More businesses in town means more tax revenue which means less state aid. Less businesses in town means higher taxes but more state aid. So if were at the peak of the curve theres nothing to do but fall off?
Please don’t take this as sarcastic because its not meant to be.
April 23rd, 2008 at 10:12 pm
Dave
I just can’t see down town supporting any more business there is just not enough parking or the right spaces (buildings). Now that spring has finally arrived traffic is on the rise and its just a nuisance to go through town some times.
BOY I MISS RIDEOUTS!
April 23rd, 2008 at 10:37 pm
We as a town must bring in more business maybe an industrial development of some kind.
April 24th, 2008 at 6:48 am
Mark, Pretty much, but not quite: The state aid formula is based on total valuation and school age population. Less new valuation means maintaining state aid. More valuation means losing state aid. More or less state aid means changes in taxes up or down. Please do your own research on this. It’s the biggest variable in our local taxes.
Jim, an industrial park will lower state aid, and hence negate most potential tax benefit. Very little tax rate impact.
April 24th, 2008 at 8:35 am
THe thjing that bothers me the most is something that goes on at the local state and federal level.
The federal government takes money in taxes, and give a certain portion of that back to the states.
The state govenrment takes money in taxes, and give a certain amount back to the cities and towns.
Wouldn’t it be nice to just reduce the taxes intead of sending the money back?
If our federal and state taxes were reduced to exclude all the give back money, then the property taxes wouldn’t be such a burden.
Oh well, just a pipe dream, we all know that the income tax we pay is going somewhere else because we can pay more in property tax.
That means that Southern Maine will continue to be a cash cow for the state instead of the state controlling costs.
April 24th, 2008 at 8:43 am
Okay, so it sounds like one possible thing that could help would be to somehow attract business to town that can inhabit existing buildings without increasing it’s value drastically. I just can’t envision what type of business that would be. It just doesn’t seem like we have the population to support much more retail.
Just out of curiosity, does anyone know what the effect on taxes was when York Hospital’s facility moved to town?
April 24th, 2008 at 9:42 am
To look for the tax effect of York Hospital you can go to the town website.
Click on “Tax/Assessment Data”
Then run a search for York Hospital on Portland Street.
I did it and saw that they basically pay about $1,335 in property taxes a year for some sub lots but the main Hospital itself looks to be EXEMPT from property taxes. Most likely because it is a Not For Profit entity.
April 24th, 2008 at 9:48 am
JD–I wish our town, and I hope that is job one for our new town manager, would put some serious research and planning to come up with an economic development plan that would figure out what kind of businesses would have the most positive impact on good jobs, tax relief, and quality of life in South Berwick and them come up with a plan to lure those businesses here. Other towns have targeted specific industries to focus on and then put effort into building the infrastructure to offer them. It feels like the efforts that have been made recently in South Berwick have had no rhyme or reason and when we are competing with other towns that have a plan in place, don’t seem like they are likely to succeed.
Here’s an example from Portsmouth’s Economic Development Department website that describes efforts to bring tech companies to Portsmouth:
“The e-Coast
The e-Coast moniker describes the vital role software, hardware, web design and e-commerce companies have come to play in the economic landscape of the City and region. The e-Coast began under the leadership of the Greater Portsmouth Chamber of Commerce a Technology Roundtable comprised of volunteers from high-tech with businesses joining together to promote the future success of this powerful economic sector. The e-Coast’s Technology Roundtable works to attract new business to the area and establishes guidelines for managed growth. It also addressees infrastructure and communications bandwidth issues, and fosters efforts to recruit, train, and retain qualified technology workers. (http://www.ecoast.org/) ”
I wish we could do something like that.
April 24th, 2008 at 11:46 am
It’s a pretty sad state of affairs when poor towns are rewarded for underachieving economically (“From each according to their ability, to each according to their need” anybody?).
We’re stuck in the middle somewhere where we are too affluent for substantial state aid, but don’t have the tax base to pay for it on our own. New Hampshire’s tax system is far from perfect, but it seems to me that the greater portion of taxes should be paid where the citizens have the greater control: At the local level.
April 24th, 2008 at 7:02 pm
State Aid for School Funding - It is true that if a business locates in a town, the valuation of a town increases. It also brings jobs to the town. In our case, we have a school system - SAD 35, which receives state aid based on the valuation of both towns. With Eliot’s valuation going up because of their business base increasing, they will gain tax revenues and jobs. With South Berwick’s valuation remaining constant, there is no increase of tax revenues and jobs. The state combines the valuation of both towns together as one to determine the state aid provided to SAD 35. Because Eliot receives more tax revenues from businesses in their town, they make out better because the loss of revenues from state aid are not realized due to gains in business tax revenues. South Berwick on the other hand with no additional increase in the business tax base, and the loss of state aid because of combining both towns to determine the aid amount received, will have no additional revenues from businesses to off-set the loss of state aid. For additional information on how state aid is applied, contact your town assessor or school superintendent.
April 24th, 2008 at 7:24 pm
Library at St. Michael’s Church - It troubles me to read comments concerning locating the Library at St. Michael’s Church. Some have suggested that possibly something else could be located in the church. It is my understanding that we are purchasing St. Michael’s Church for a Library and that the bond is specifically for a Library. and can’t be used for any other reason.
The Library’s operating budget will be astronomical because of the renovation costs and heating costs due to high ceilings.
April 25th, 2008 at 5:57 pm
I agree. While the actual purchase of the library may not directly affect the budget, the cost of heating and maintenance will be very high. Those items WILL directly affect the budget, and perhaps now is the not the right time to invest in a building that will be such a drain.
April 25th, 2008 at 6:04 pm
But, also, as someone has posted previously, the SAD 35 budget is huge, and is the largest part of our town’s budget woes. I think the school board needs to do some trimming in all areas - if we are loaning cars to people who live out of the district so they can commute that needs to stop, housing allowances need to stop, etc. While they may be small in comparison to the heating bill, every little bit helps.
April 25th, 2008 at 8:19 pm
what everyone needs to sit down, and really wrap their minds around is that there is no quick fix to the economy’s problems. It took eight years to get us in this place. this is not going to — presto, chango — be over in six months. we have people in this town in danger of losing their jobs, their houses. with every month that goes by, more people let their health insurance go…… now the town has reached a crossroads here >> it can be part of the problem, or it can help support the people who live here thru what is going to be a very, very hard time. Gas, as per the current futures contract, WILL BE at least $3.81 per gallon this summer. If not more. Heating oil is going to be, as per the current futures contract, very, very problematic for people this coming winter. And, given the employment situation, there are not going to be very many raises given to people. You put this together with rising costs on all adjustable mortgages, a brain dead “energy policy” emphasizing ethanol that does nothing more than raise food prices….and raising taxes substantially is driving a stake thru the heart of every middle class person in this town.
The Town Council should stop listening to the real estate people, who are dependent upon commission for their livings, and forget completely about buying the church now. They need to talk seriously to some real estate finance people who will give them the straight story on what is going on in the real estate finance markets…..and then, like grown ups facing a very hard situation, opt for the rationale choice — a first option to buy, which will give them the opportunity to met the offer of any now “one in a million” developer with the cash and the willingness to buy the church. Then they should keep the cash they have set aside for the church, set aside. They will be able, the real estate finance people will tell them, buy the Church for 500K this time next year. And I am not kidding.
And they need to sit down, like grown ups who actually have some respect and care for their neighbors, and talk about the town payroll. There is no rational reason on earth why the town employees are getting 100% medical while the people paying for it are losing their insurance due to the cost. How many completely uninsured families do we have here? And you’re going to ask them to chip in and pay to give the town employees a cadillac plan???????? Excuse me????
And they need to sit down and, like grown ups with good intentions and pure hearts, and realistically assess the town salaries. Do we give people raises when the taxpayers on average haven’t seen raises in years? Much less cost of living raises? Particularly when layoffs are running high, and we could probably hire new employees much more highly qualified for less money? And, ultimately, not have families sitting around debating whether its better to try and game the town about paying the tax bill late versus getting some heating oil????? Hello?
And everything here applies as well to the school budget.
At some point, we have to be grown ups about what is going on, and we have to demand that the Town Council act in the same manner. Like I said, it took eight years to get into this mess, it is not going to be over by the end of the summer or even by the end of this year. The sooner we all wake up, turn off the TV and the spin, and grapple with the reality, the better off we will be. The more we put this off, the worse the pain is going to be in the long run.
April 25th, 2008 at 10:16 pm
KC
Why are you so hung up on the 100% medical .You mention it in every post. We get it you don’t like it. It is a benefit that the town employees have. Its been that way for along time and only now are people complaining. This maybe a small contributing factor to the over all tax base but it isn’t what has caused the 18% increase for this year. If you had it your way the town employees would pay the town just for the privilege to work here. I applaud the people who keep our roads clear in the winter the people in the town hall that have helped me when I had a question or a problem. They work just as hard as you. You should give them a pat on the back not a bash on the head!
April 26th, 2008 at 12:15 am
The medical is indicative of the attitude towards taxpayer money. It is the red glaring flag. it is outrageous. No one says these people don’t work hard. You miss the point entirely. Let’s take it down to the basics. A job is worth X to get done. No matter how much you like the person, no matter how wonderful that person is and great at the job, the job is still worth X when completed. In private industry, that’s how it works. In short, you may be the best cashier they have ever seen at the grocery, friendly with all the customers, but….no one is going to pay you 40K to do it. Its not worth that much.
People are complaining now because over the years the packages have grown excessive, and times are tough….and are going to get tougher. Saying that this is how its been for a long time is no defense whatsoever. In short you’re saying because we’ve overpaid for years, we should continue overpaying? No matter how much it hurts? Even if we can’t afford it?
Frankly, I would find it very hard to justify salary and benefit increases of any kind when you know that we are going to have people giving up their health insurance right and left over the next couple of months, and really scratching to pay for heating oil next winter. And forget about how many people the tax increases are going to push over the edge. Given that inflation — if you use real numbers (shadowstats.org),– is running at 10-11%. So, as long as the Town Council seems to be fine with the raises and packages, and fine with the pain its going to cause, I think they should go all the way and give out real COLA raises of 12%. Why not? Its just going to another two or three foreclosures. So what the hell, right?
If this town were operating in a responsible manner, they would be working these numbers thru and figuring out exactly how many people are going to be hurt with every percentage increase in the tax rate. It would take some research, but it can be done. And then, with that information, when they know what the ramifications of their actions will be, then…..when they know exactly how many people are going to be hammered with throwing in “just a few more bucks for salaries”, “just a few bucks for the window hangers for the dump”, “just a little donation to the Lions Club”…..then they might be a little more respectful of the taxpayers’ money. Right now, it doesn’t seem like they see any connection whatsoever……right now, when they talk “pain”, you can hear that they don’t really grasp it, or see it as real….
So, yes, working for this town does indeed seem to be a privilege……as someone said before, the only people who aren’t going to suffer mightily in this recession are the employees of the Town of South Berwick. The Town Council seems to be determined to ensure this…. no matter what this might mean for the town, the taxpayers or the people.