Article 10 – Operating Budget $34,503,083 versus Default $33,155,072

What it means: The voters are presented with two possible budgets. The Proposed Operating Budget is what the Town departments feel they need to manage the Town efficiently and effectively. The Default Budget is the minimum budget allowed.  The RSAs (New Hampshire state legislature) dictate certain costs that must be covered in the Town’s Budget* and that is what makes up the Default – the voters do not have a choice.

Both budgets for 2023 reflect the effects of the Warrant Articles approved by the last year, such as union agreements and infrastructure projects. Roughly 60% of the difference between the Proposed Operating Budget and the Default Budget is a result of increases in energy costs – gasoline for vehicles, electricity, heating, etc. Another major contributor is wage & benefit increases for non-union employees.

Compared to the 2022 adopted budget, the Default Budget represents a 9.7% increase and the Proposed Operating Budget represents a 13.8% increase. The Proposed Operating Budget includes items not allowed by the RSA to be included in the default budget.

*The default budget is regulated by RSA 40:13, and starts with the prior year’s approved budget, and is increased by obligations mandated by law, debt service, and contracts lawfully entered into, and is reduced by one-time expenditures, salaries and benefits of positions that have been eliminated since last year’s budget. The default budget will be the operating budget for the Town in the event the Proposed Operating Budget does not pass.

Those in favor say: The Town is unique as a prime tourist destination with pristine beaches that we all enjoy, but it also requires certain responsibilities other towns may not have. The Budget Committee receives input from all other Town Departments in meeting these anticipated responsibilities. The proposed operating budget reflects the police department’s shift from a combination of part-time police officers and State Police – to full-time staff and outside agencies.

Those opposed say: Those opposed stated that taxpayers are already negatively impacted by inflation as well as concerns over the possibility of a recession. There are concerns that the senior population of the Town would be driven out due to the high taxes. It was also noted that in past years, the Town ended up with a budgetary surplus, which would indicate that the default budget provides adequate funding for the Town’s needs, including unexpected overages.

Fiscal impact: The proposed operating budget impact is $1.096 per $1,000 valuation. The default budget impact is $0.752 per $1,000 valuation. For a home valued at $400,000 this means that the proposed budget will cost $438 more than last year in annual property taxes and the Default Budget will cost $300 more than last year, or a difference of $138. The number to use if you are calculating for your own property would be the difference between the two or .344 per thousand dollars of property valuation.