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Dear neighbors,
Last year, 2008, was a difficult year for many of our residents. We saw a rise in foreclosures and a rise in unemployment. In 2008, many of our citizens lost a good deal of their life savings in the stock market.
But even in 2008, Haverhill continued to have its bright spots.
At at time when colleges nationwide are having financial difficulties, Zion Bible College took root in Bradford. The kind words of the college President, that they moved here in part because our administration pledged to work with them, cheered us.
At a time when real estate sales have slowed throughout the country, Forest City Development turned the abandoned Hamel Leather Factory into Hamel Mills Lofts. Every day, 200 people are working there in the midst of a recession. Downtown lofts have added very few children to the public schools, but have downtown residents with disposable income.
The new downtown residents brought with them new purchasing power, and four new restaurants opened downtown.
And, at a time when manufacturing jobs are leaving the country, Southwick Clothing brought 300 new manufacturing jobs to Haverhill.
I was grateful when the company's leaders said they considered locating in Thailand, but that Haverhill's economic development team made it clear that Haverhill was the better choice.
Despite these good things happening, we are ultimately not immune from State and national trends. In 2009, we are hoping for better but bracing for the worst. This newsletter outlines what proactive plans we are taking.
If I can be of service, please do not hesitate to contact me,
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Mass Mayors Brace for the Worst
"...everything is on the table"
In October, Governor Patrick cut his budget by $700 million and cut aid to Haverhill by $1 million.
The Governor recently told reporters that these cuts will not be enough. The Governor asked the State legislature for authority to cut local aid in January, half-way through the fiscal year. Cities have been warned to expect yet another cut in June of up to 10% in State aid.
In Haverhill, a 10% cut in State aid means a cut of $1.2 million to the city, and $3.6 million to the schools.
In this recession, State tax revenues are down by hundreds of millions of dollars. People buy less so sales tax revenues are down by $77 million. The stock market is down so capital gains revenues are down by 30%. People make less so income tax revenues are down.
The bottom line? Our budget is dependent upon State aid. If State tax revenues are down, they have less money to give us, and we are forced to make cuts.
Read more:
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What We Have Already Done
Here are a few things we have done to prepare:
We've Reformed Health Care
We have more to do in health care, but I am proud of our employees and unions who worked with us in the past to consolidate five health care plans into one, and who agreed to pay a higher contribution towards their health insurance. These reforms save us $1.5 million a year.
We have reorganized government
We have already reorganized city government, cut every department and trimmed away the fat. Our highway department has 6 fewer people than the day I took office. Our auditors office is down 3, treasurer's 2, Mayor's office 1.
My budget last year cut 7 more positions, and in October of last year, we cut $1 million from our budget. Now, we need to consolidate school and city services and save more!
We've Broadened our Tax Base
We rezoned downtown and the areas near highways to broaden our tax base. We have millions more in commercial and industrial property on the rolls today.
The Results:
Today we have over $4 million in reserves. These reserves provide a cushion to help preserve most of our vital services. However, the reserves will not be enough if the cuts are as large as are being forecast. |
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We Are Aggressively Seeking Money under the Obama Stimulus Package
We have asked for $100 million to rebuild our streets and sidewalks, put in water and sewer in outlying areas of the city fix our school and city buildings, rejuvenate our school system, relieve the Hale debt, expand curbside recycling, and install alternative energy systems in our buildings.
We Are Asking our Unions to Work with Us to Further Reform Health Care System
Health care costs are now over $20 million and continue to grow at a pace that outstrips our ability to pay even in good years.
Our estimate are that if we join the State Group Insurance Commission, the city will save between $1.8 and $2.5 million a year.
But joining the GIC is just one way to save money. Changing our existing plans (called "plan design), or switching to a new plan (called a "tiered network") are two others.
Last week, I met with the union leaders in the city. We outlined several ways to save money including redesigning our existing Blue Cross plan, going to a "tiered network" and joining the GIC.
No commitments given, but I liked the cooperative spirit of the meeting and we are meeting again.
If local revenue taxes are offered, we should adopt them
The legislature is considering giving us the power to enact a local meals taxes of 1-2%.
If you and your family go out to eat and spend $50, the local meals tax will cost you between 50 cents and dollar. If you spend $100, you can double that.
At least some of that money should be dedicated towards public education.
A Common Sense of Shared Sacrifice
If the cuts are as bad as legislative leaders are predicting, we can get through this with strong fiscal discipline and a common sense of shared sacrifice.
We may have to increase fees in some areas, or cut back on some services, and we may have to ask you to be patient.
I can't promise you that Haverhill won't be affected if State aid is cut. I can promise you this. We will work as hard as we can to preserve the vital services of government. |
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Mayor's Survey:
Last month, I asked you how the highway department did in your area. Here are a few responses:
From a Bradford resident:
"I would like to express my thanks to the public works/highway departments who have done a great job keeping up with the water/ice that has accumulated."
From a constituent who works at Suffolk:
"GREAT JOB! sidenote: sidewalks almost impassible at corners..."
From Inez off of North Broadway:
Please send my thanks to all the people who kept going through the ice storms and snow storms to keep us all safe and warm. They've been working hard and I'm sure getting a lot of gripes, but they really have been wonderful.
From Carol in Ayers Village:
It was clear everyone worked hard, long, icy hours to help our community as swiftly as possible. I really appreciate their calm, professional, and friendly demeanor under the worse of circumstances.
From Kathy in Riverside:
"You did a great job in moving the debris so Nat'l Grid could get at the lines and restore our power. Our hats off to the fire dept who raced all over putting out fires on the poles & trees and houses and keeping us safe. You guys rock. "
But, we also received a number of complaints, mostly about sanding. Here are a few:
From Giglio
"...the road ways are clear for driving but parking is a complete disaster."
From unknown area:
"some areas need more sanding attention "
From a Silver St. area resident:
"The silver street hills are impossible to get up if you do not have a 4-wheel or AWD vehicle... a lack of sand/salt."
DPW is reviewing every complaint to see where they can improve.
This month:
I made it easier. I have a click on survey, very easy to use. If you have never tried our survey before, try this one!
This month we ask our neighborhood schools, about converting shoe factories to lofts, about meals taxes and about which services are most critical to you.
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This is email is authorized and paid for privately. It is NOT an official city of Haverhill publication. | |
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