DERRY — With one of the highest foreclosure rates in the state, there's no question that Derry taxpayers are hurting.
That's why two town councilors, Kevin Coyle and Brent Carney, have requested that the town not increase property taxes next year.
"We have one of the highest tax rates in the area," Coyle said. "How much more can people afford?"
The average home price in Derry dropped to $267,600 this year from $300,000 last year, but homeowners are paying a higher rate. The average homeowner will pay $6,832 this year compared with the average tax bill of $6,415 last year.
"We don't want people to leave our town because they can't afford the taxes," Carney said, noting that might happen if taxes continue to rise.
Carney said in order to make sure next year's budget is level-funded at $35 million, Town Administrator Gary Stenhouse and his staff will likely have to come up with creative solutions.
According to the proposal, Carney and Coyle suggest the town consolidate all information technology services into one department, consolidate police and fire dispatch services into one department and create a new ambulance service that is user funded rather than taxpayer funded. Although town officials have no authority over the School Board, Coyle and Carney's proposal suggests they follow the same process.
The school portion of the 2009 tax bill accounts for almost 52 percent of the $25.53 tax rate. The town's portion of the bill amounts to about 35 percent.
But Derry also faces the loss of $7.5 million in state aid this year due to a proposed educational funding plan the Legislature will take up later this year.
Sen. Bob Letourneau, R-Derry, told the Derry School Board last month that if Derry's funding is cut by that figure it will result in an increase of $4.80 per $1,000 in their next tax bills.
The proposal suggests personnel changes such as a four-day work week for nonessential employees, eliminating non-emergency road projects, instituting strict policies regarding fuel and energy and eliminating capital expenditures or leases.
The proposal also suggests the town look into the number of employees that receive a paycheck from the town. Currently, the town employs 250 full-time and 22 part-time employees.
Since last year's budget cycle, the threat of laying off town staff has been rumored, but Coyle and Carney said they'd rather see a decrease in personnel come from other means.
Councilor Brian Chirichiello also has requested the town curb spending by not hiring any new employees and freezing all overtime for existing staff.
Currently, the town is advertising for a public health network coordinator and a full-time police officer.
Starting salary for a police officer is $40,476. No salary is listed for the coordinator position, according to a posting on the town's Web site.
With six months still left on the fiscal year 2009 budget, Chirichiello said that freezing overtime could have a substantial savings.
The council would release overtime on a case-by-case basis if necessary, such as a snowstorm or major emergency.
"It makes sense to do all this before layoffs," Chirichiello said.
Coyle said it would be difficult to make that move though.
"In an ideal world they would do minimal overtime, but in reality there is overtime," Coyle said.
