Consider a potential revenue source for Merrimack

[uscitizen03054]

Many on this fine forum have been offering up suggestions to cut municipal spending. I say this is a great idea that should be continued to the point of fruition such that our property taxes decrease. However, there must be consideration of the other side of coin - new sources of municipal revenue. Ideas in this domain must be also examined with the same fervor if Merrimack taxpayers are to be best served.

Since there are many people who work for the town and live in Merrimack that are covered by collective bargaining agreements, it may be worth considering a new town surtax on these members. If the new healthcare program goes through Congress, union members will be exempt from the proposed federal tax on any Cadillac healthcare plans for at least five years. Given this, the town should explore a new warrant article to institute a temporary special tax on any union member that is a resident or town employee that have Cadillac healthcare benefits that would be exempted from the new proposed federal tax.

This new tax would help the town a great deal and would not be punitive as other non-union members with Cadillac healthcare plans will be paying this tax. Tax reciepts could be a new source of town revenue.

Just an idea that could be explored by the town council. For details of the proposed tax exemption for union members, please see.

http://online.wsj.com/article/SB1000142 ... sNewsThird

[Tom Mahon]

Thank you for the suggestion. However, the NH Constitution requires that any tax be equal and proportional. This proposal would not be. Towns are creations of the legislature. Towns can only exercise the powers specifically granted to them by the legislature. Towns have no authority to set up their own tax systems. When Home Rule legislation was put before the voters of the state several years ago, the legislation specifically excluded creation of local taxing authority. Finally, even if the town had the authority, any proposed tax or surcharge would be the subject to collective bargaining because it goes to the Terms and Conditions of employment which are mandatory bargaining subjects under RSA 273-A, The Public Employees Labor Relations Act, reinforced by at least a half dozen state supreme court decisions.

Just so you don't think that there is no movement here, keep in mind that the Town's health premiums went up 15%, lower than many surrounding communities (some as high as 27%) and the schools which saw about a 20% increase. The Town has gone out to bid twice in the last four years for health. Part of the reason for this is that the insurers will not rebid after one year because of the time it takes to get all the loss data to form an accurate picture of plan use and cost vs. premiums.

When approached by the Town Manager, several of the unions agreed to some concessions this year with regard to co-pays for drugs and office visits, that contributed to a $150K reduction in contract costs for the 2010-11 budget under review at this time.

There are four contracts up for renewal this year and two next year. By law, cost items must be put before the voters for approval. The language in contracts has eveloved over the last 25-30 years of bargaining. Any changes in the costs with regard to health and other payments through the collective bargaining process will be incremental at best.

On another note, our rates for workers comp did not increase this year. That is a direct reflection on the care that employees are taking at work. Our property and liability rates increased 1%.

[Dennis King]

OK Tom, so the unions get another sweetheart deal that the rest of us taxpayers have to pay for. They also get 30% more than the taxpayers who pay for them. Guess we can;t do anything about that either. I wonder, can we look, I mean seriously look at reducing the town labor force. That, we do have some control over.

Everyone is doing with less, Time to make real changes, can you commit to a FIVE percent cut in taxes? I sure would like to see you try. It is not easy but we are in a crisis, business as usual is no longer acceptable!

[Jimbo]

Dennis, you might as well give that thought up./ The TC NOR the TM is gonna step up and cut unwanted waste in town. They not DARE touch the PD, FD or the DPW and crew. God forbid they even actually conjsider it for goos measure.

[FromMerrimack]

I read the article in the post. I guess the "cadillac" plan is one that costs $8500 per individual and $23,000 per family. Do we even pay that for employees? The non union cost is listed at $16,400 in the Town budget and the cost for different unions is both lower and higher than that. With just one number in the budget can I assume it's a composite number based on all employees needs (Single plan, 2-person plan, family plan). I'm not sure that any federal tax would be paid by anyone. Maybe we can devise a fee on our high end average plan and call it the Merrimack Cadillac Health Plan Surcharge. Question for uscitizen: Are you suggesting that this surcharge only be leveled on town employees who live here ("who work for the town and live in Merrimack")? We charge our neighbors and not the out of towners?

[hdw]

I want to first say what an excellent issue and response by all. But be assured nothing is going to be done about anything. I am one of the fortunate so I will only say we are paying too much for others to live the "Life of Riley". For those who don't know what that is, its' an old TV sitcom. All these studies and consultant reports are all fantasy. WE as citizens are being ripped off by the TC and TM. I will never go to any town meeting for any purpose because they will have to eject me when I start to speak. And besides, no one listens. The TC and TM are probable playing solitaire on their laptops while pretending to be concerned. I use http://merrimackwatch.homestead.com/ which is my site and I can say what I want and use the language I want. When school is over I am moving to my other residence in South America with my family. I am going to let someone else pay the piper. That will mean three less kids in school and six less vehicles registered in Merrimack etc. It also means I pay no federal income taxes as I will be out of country over 330 days. Of course not everyone is as fortunate as I am but enough is enough. My heart goes out to those who have lived here their entire lives and are being denied a decent life because our town politicos are like leaches. Good luck to all and you have not heard the last of me.

[ronrobinson79]

CLASSLIC!!! "taxes are wayyyy tooo high!" so I have a good idea if you cant afford your taxes maybe you should get rid of your six cars or your second home in South America! this is unreal! I really cannot even believe what I just read, you own two homes six vehicles and who knows what else and you complain about a tax bill and town employees that make $50,000 a year. But yet the economy is soooooo bad and your having trouble paying for things.

[uscitizen03054]

CLASSLIC!!! "taxes are wayyyy tooo high!" so I have a good idea if you cant afford your taxes maybe you should get rid of your six cars or your second home in South America! this is unreal! I really cannot even believe what I just read, you own two homes six vehicles and who knows what else and you complain about a tax bill and town employees that make $50,000 a year. But yet the economy is soooooo bad and your having trouble paying for things.

I wonder if the town is having an issue with its salary structure. Are we seeing attrition due to paying some employees $50K?

[spnorm]

I can hear the violins playing for hdw. "Everything is bad, but I can't do anything about it." "They'll throw me out if I speak at a meeting, so I don't bother" (well, that can't happen as long as you follow meeting guidelines). "no one listens anyway" (a great excuse to not bother trying, yet come on here and rant). I have to agree with Mr. Robinson. You won't find much sympathy complaining about your six vehicles and two homes (the Merrimack home on Harrington Drive no less). I don't begrudge anyone having earned themselves a nice home & vehicles, and I know that street has beautiful homes ($500k +) but it's one thing to say tax rates are too high for everyone, and work to encourage people to do something about it. It is another to come across as not being able to afford to live here, when to many people in town, you are the one living the "life of Riley".

[hdw]

WOW, the natives are restless today. I would like to clarify one thing. The taxes are not about me as I can afford them. I feel for those in town that are working two jobs, using their savings to survive or maxing out credit cards to pay for food and fuel. Am I the only person to see the harm being done to those who barely get by? Well, gotta go now. I need to mail my taxes for my condo in Aruba.

[RD]

wow

[Jimbo]

I am afraid the man is right on. Be it two houses, Aruba, 19 cars, god who cares. Either your with us or aganist us, bottom line. Either you want your taxes cut, or you don't. You either work for the town, hide behind a very creative screen name, or are a actual person who cares , the subject is taxes, and THEY ARE WAY TO HIGH.
Thank You. Elvis has left the building.

[uscitizen03054]

I am afraid the man is right on. Be it two houses, Aruba, 19 cars, god who cares. Either your with us or aganist us, bottom line. Either you want your taxes cut, or you don't. You either work for the town, hide behind a very creative screen name, or are a actual person who cares , the subject is taxes, and THEY ARE WAY TO HIGH.
Thank You. Elvis has left the building.

Jimbo, another way to look at it is, we are in a zero sum game. Taxpayers have only so much money, they can vote to keep it or give it to the town to spend. There is no real option for creating more money, we are not the Federal Government.

[Jeannine Stergios]

Jimbo

You are right on!! It doesn't matter what hdw has or doesn't have. That isn't the point and for anyone to attack hdw on that basis is missing the point. The point is taxes are too high for EVERYONE!!

[spnorm]

Jimbo

You are right on!! It doesn't matter what hdw has or doesn't have. That isn't the point and for anyone to attack hdw on that basis is missing the point. The point is taxes are too high for EVERYONE!!

Exactly! That's why he shouldn't distract from the point by listing off his assets, while stating that "others live the Life of Riley". Rather, he should speak before the TC, but says he won't. It's a cop-out to say "nobody will listen, so I won't bother". You can't complain about someone not listening when you are not willing to speak.

This is America and if you work hard, you deserve any cars, homes, boats, etc, you can afford and have every right to complain if you feel taxes are unreasonable or spending should be done differently. But complain where it counts, not just here. I just think he weakened his case with the way the argument was presented.