On the 2020 Warrant, Articles 10 through 43 have been sponsored by the Town. They are a collaboration of the Department Heads, the Board of Selectmen and finally the Municipal Budget Committee. They are listed below with their explanations.
Unassigned Fund Balance (UFB) Explained
Many of this year’s Articles are listed with costs, yet zero tax impact. That’s usually because there is loan forgiveness, or a grant offset, or in many cases, it is because the cost will be drawn from the Unassigned Fund Balance. This brief explanation is drawn from the Town Finance Director’s discussion in the Annual Reort:
In private industry, the Unassigned Fund Balance is referred to as “Retained Earnings” and is adjusted annually by the net income (income minus expenses). Examples of items that contribute to the Unassigned Fund Balance are receipt of federal grants; expenditures lower than budgeted and appropriated; interest on deposits higher than anticipated; income from the Real Estate Trust higher than anticipated; etc. The estimated 2019 Unassigned Fund Balance is $8.8 million. This is above the DRA 2019 suggested minimum balance level, and above the Municipal Association guidelines. There are 11 Warrant Articles that will utilize these excess funds. If all of these are approved, $1.3 million will be used from the fund, and that will still leave a balance higher than that recommended by either DRA or the Municipal Association.
Articles # 19, 22, 24, 31, 32, 33, 34, 36, 37, 38 and 39 are being offset by withdrawal from the Unassigned Fund Balance, and will have a “UFB” designation in the title of the discussions below.
Article 10: Planning Services for Revised Master Plan ($125,000)
Shall the Town of Hampton vote to raise and appropriate the sum of $125,000 for the purpose of contracting professional services for the completion of a comprehensive update of the Town of Hampton Master Plan. The purpose of a Master Plan is to guide the overall character, physical form, and development of a community and is required by law to be updated periodically. Hampton’s Master Plan has had only occasional updating since its inception in 1985. As Hampton is the most vulnerable Town in the Seacoast in several respects (such as flooding, potential impacts from sea level rise, drainage problems, etc.), it is essential to update our Master Plan in its entirety in order to meet more recent challenges and to better plan for the future. A professionally developed, forward-looking Master Plan is needed to preserve, protect, and enhance property values and the quality of life of Hampton residents, and to enable the Town to qualify for grants for projects that are otherwise financially beyond what the Town can afford.
The Master Plan update will be conducted with the assistance of qualified professional consultant(s), and will include a robust public participation process. The Town has already been successful in securing grant funding in the amount of $45,000 from other sources to accomplish specific parts of this project. The additional $125,000 must be raised and appropriated through this Article to provide for the concurrent completion of all Master Plan components, resulting in a Plan that is fully current, comprehensive, and user-friendly.
This shall be a non-lapsing appropriation per RSA 32:7, VI and shall not lapse until the purpose of this Article is completed or by December 31, 2023, whichever is sooner? (Majority vote required)
What it means: A Master Plan is a blueprint for the future. How do you want your Town to look? Do you want open spaces? What types and how much development should be allowed? It is a comprehensive, long range plan that will guide decisions over the next 10-20 years. This warrant article would fund a professional planning service to complete tasks associated with the update of the Town of Hampton Master Plan.
Those in favor say: A Master Plan is required by statute. Revisions to the plan are recommended every five to ten years. The current Master Plan was adopted in 1985, with some subsequent chapter amendments since that time. It has been 35 years since the last comprehensive update. Having a current Master Plan will allow the Town to be more competitive for grant funding, and will increase property values because the town will be able to evolve in the vision of the residents with funding from outside sources.
The process of establishing a revised Master Plan will encourage better relationships between the various departments. It’s for the future, and it’s by the people – what do we want our community to look like? We need something to guide development. Many decisions are made with reference to a Master Plan, which was last updated when our population was about 8,000 people – roughly half what it is today.
Those against say: No one spoke against this Article at the Deliberative Session.
Fiscal impact: If Article 10 is approved, it will create an additional one-time tax cost of $13.20 for a Hampton home valued at $400,000. Take your property value divided by 1000 times .033 to get your cost.
Article 11: Discontinue Board of Cemetery Trustees
“Shall we discontinue the Board of Cemetery Trustees by delegating their duties and responsibilities to the Town Manager?”
What it means: The duties of the Board of Cemetery Trustees would be transferred to the Town Manager. The Cemetery Trustees, founded via a 1979 Special Town Meeting, currently manage the operation of the cemeteries, recommend items that require funding, and suggest funding mechanisms. In 2016, the voters approved a Warrant Article that allowed funds for maintenance of the cemeteries to be withdrawn from both the principal and the interest of the Cemetery Maintenance Trust. Having done so, funding for required maintenance is more straight-forward, as long as the principal (currently more than $600,000) lasts.
Those in favor say: The type of maintenance work required for the cemetery often involves coordination with the Town. By assigning these responsibilities to the Town Manager, duplication of effort is avoided.
Those opposed say: By definition, the Cemetery Board has a focus on the cemeteries, including physically walking them from time to time to learn what is needed. Some who were opposed to disbanding the Board worry that the focus will no longer be there, and the cemeteries will suffer.
Fiscal impact: No tax impact.
Article 12 – Allow Sports Book Retail Locations in Hampton
“Shall we allow the operation of sports book retail locations within the Town of Hampton?”
What it means: In July, 2019, the H 480 bill regulating sports betting was signed by the governor making sports betting legal in the State of NH, with land-based retail locations capped at 10 in the state. NH Sports betting will be regulated by the NH Lottery Commission. Six different cities have approved sportsbooks throughout the state, with towns voting for approval in the upcoming ballotss.Of the towns that approve it, 10 locations will be selected for retail betting.The money collected does not flow directly to the hosting municipality, but the availability of sports betting may attract more tourists to the area.
Those in favor say: Having a retail location would attract users to Hampton, which could benefit local charities. The state on NH will receive 51% of revenues. Money currently collected by the NH Lottery Commission is dedicated to education in the state.
Those against say: Some people are concerned about unintended side effects of having more strain on our infrastructure with unclear benefit to the Town.
Fiscal Impact: There is no direct tax impact to this decision.
Article 13 – Include Wastewater Assets in the Town’s Asset Management Program ($30,000 – 100% Offset)
Shall the Town of Hampton vote to raise and appropriate the sum of $30,000 to assist the Department of Public Works in the continued advancement for the Town’s Asset Management program for Wastewater Assets. Said appropriation to be offset by $30,000 in principal loan forgiveness under the New Hampshire Department of Environmental Services Clean Water State Revolving Fund (SRF); and To authorize the Board of Selectmen to apply for, contract for, accept and expend any Federal, State or other available funds towards the project in accordance with the terms and conditions under which they are received and to borrow in anticipation of the receipt of such and or the issuance of such bonds or notes as provided in the Municipal Finance Act (RSA 33); and To authorize participation in the State Revolving Fund (SRF) (RSA 486:14) established for the purpose, and to authorize the Board of Selectmen to accept and expend such monies as they become available from the Federal and State Governments. This shall be a non-lapsing appropriation per RSA 32:7, VI and shall not lapse until the project is completed or by March 31, 2022, whichever occurs sooner? (3/5ths vote required)
What it means: The Town has already begun a program of electronically cataloging major assets and maintaining key documents and notes relevant to the major assets. Article 13 expands this program to include Wastewater Treatment assets. The $30,000 will be offset by a loan forgiveness program.
Those in favor say: This continues work already begun by the Department of Public Works, and helps to protect the Town’s investments.
Those opposed say: No one spoke against this Article at Deliberative Session.
Fiscal impact: There is no tax impact, because the NH State Revolving Fund will provide 100% principal loan forgiveness.
Article 14 – Updated Tax Credit for Elderly Exemptions
Shall the Town modify the Elderly exemptions for property tax in the Town of Hampton, pursuant to N.H. RSA 72:27-a, based on assessed value, for qualified taxpayers, to be as follows: for a person 65 years of age up to 75 years increase to $140,000 (currently $125,000); for person 75 years of age up to 80 years increase to $168,000 (currently $160,000); for a person 80 years of age or older increase to $221,000 (currently $200,000). To qualify the person must have been a New Hampshire resident for at least three (3) consecutive years preceding April 1st, must own the real estate individually, or jointly, or if the real estate is owned by his or her spouse, they must have beenmarried and living together for at least five (5) years, in addition, the taxpayers must have a netincome of not more than $38,000 if single, or if married, a combined net income of less than$58,000, and own net assets not in excess of $250,000 excluding the value of the person’s primaryresidence? (Majority vote required)
The purpose of this article is to modify the exemption for the elderly due to the recent revaluation of the Town in order for the exemption to keep pace with inflation and the general increase in property values so as to leave no elderly persons behind because of these value changes.
What it means: There are currently in place real estate tax exemptions for elderly homeowners who meet certain criteria. This Article proposes to increase the assessed values used to base the Elderly property tax exemptions.
Those in favor say: The intention is to keep the exemptions in line with the increasing property valuations so that the qualifying elderly are not taxed out of the Town.
Those opposed say: No one spoke against this Article at Deliberative Session.
Fiscal impact: No direct tax impact.
Article 15: Operating Budget of $28,322,336 versus Default Budget of $28,335,036
Shall the Town of Hampton vote to raise and appropriate as an operating budget, not including appropriations by special warrant articles and other appropriations voted separately, the amounts set forth on the budget posted with the warrant as amended by vote of the first session, for the purposes set forth therein, totaling $28,322,336. Should this article be defeated, the default budget shall be $28,335,036, which is the same as last year, with certain adjustments required by previous action of the Town of Hampton or by law or the governing body may hold one special meeting in accordance with RSA 40:13, X and XVI to take up the issue of a revised operating budget only? (Majority vote required)
Fiscal Impact Note (Finance Dept.) The proposed operating budget figure of $28,322,336 is an increase of $727,220 more than the budget amount adopted in 2019 of $27,595,116. The net estimated 2020 tax impact of the proposed operating budget is $0.193 per $1,000 valuation (nineteen point three cents per thousand dollars of valuation). The default budget figure of $28,335,036 is an increase of $739,920 more than the budget amount adopted in 2019. The net estimated tax impact for the default budget is $0.197 per $1,000 valuation (nineteen point seven cents per thousand dollars of valuation)
What it means: The voters are presented with two budgets. The Default Budget is regulated by RSA 40:13 and is determined by the amount of the previous-year approved budget, as adjusted by debt service, and contracts/obligations mandated by law. The Default Budget will be the Operating Budget for the Town in the event the Proposed Operating Budget does not pass.
For 2020, the Proposed Budget is an increase over the 2019 approved Budget by $727,220, but is less than the Default Budget by a difference of $12,700.
The Default Budget adds $0.197 per $1,000 valuation or $78.80 for a $400,000 home in Hampton. The Proposed Budget adds $0.193 per $1,000 valuation or $77.20 ($1.60 less than required by the default budget.).
To calculate the effect on your property tax (for your specific property):
Divide the Tax Assessor’s Valuation of your home by 1,000. (Example: for an assessment of $400,000, the number to use would be 400.) Use your latest tax bill, or go to: http://gis.vgsi.com/hamptonnh/Search.aspx and enter your street address to get your valuation.
Multiply the result in #1 by .197 to get the tax impact of the proposed Operating Budget. Multiply the result in #1 by .193 to determine the tax impact of the Default Budget.
Those in favor say: The proposed Operating Budget is less than the Default Budget for the first time since 2015.
Those against say: There was no discussion against the proposed Operating Budget at the Deliberative Session.
Fiscal impact: A Hampton home valued at $400,000 would bear an increased tax cost of $77.20 in 2020 if the Proposed Operating Budget is approved. Note that the Default Budget is higher than the one proposed.
Article 16: Collective Bargaining Agreement – Firefighters Union ($87,623 Current Year)
Shall the Town of Hampton vote to approve the cost items included in the collective bargaining agreement reached between the Hampton Board of Selectmen and with the Hampton Professional Firefighters Association, Local 2664, IAFF, which calls for the following increases in salaries and benefits at current staffing levels, over the amount paid in the prior fiscal year:
Estimated Increase (over previous year level)
2020 (39 weeks) $ 87,623
2021 (52 weeks) $118,455
2022 (52 weeks) $125,166
2023 (13 weeks) $ 29,054
And to further raise and appropriate $87,623 for the current fiscal year, such sum representing the additional costs attributable to the increase in salaries and benefits required by the new agreement over those that would be paid at current staffing levels? (Majority vote required)
What it means: This Article provides a 2.8% salary increase, in line with the federally defined cost of living in 2019, meaning that Hampton Firefighter’s salaries will keep pace with inflation.
Those in favor say: There is a scarcity of young people coming into the workforce with qualifications to fill firefighter and fire supervisor positions. Hampton has needed to run more than one hiring process to find qualified candidates. Frequently, professionals are accepting positions in other communities because our pay increases have been less reliable (get voted down frequently) versus surrounding municipalities in New Hampshire and coastal Massachusetts. If we want to attract and maintain good people, we need to pay them at a level that is consistent with surrounding communities. For example,
- Dover’s firefighters have a CPI-based COLA with a range of 2-4%. In 2018 they received a 3.2% increase, and in 2019 it was 2.8%.
- North Hampton’s firefighters have a CPI-based COLA with a range of 2-4%.
- Rye’s firefighters have a 2.75% proposed increase for each of the next 3 years. In 2019, they received a 3.4%.
Those opposed say: No one spoke against this Article at Deliberative Session.
Fiscal impact: If Article 16 is approved, it will create an additional tax cost of $9.20 for a Hampton home valued at $400,000 in the current fiscal year, and a maximum of $13.14 per year during the contract period. Take your property value divided by 1000 times .023 to get your cost.
Article 17: Collective Bargaining Agreement with Fire Department Supervisory Personnel ($31,742 Current Year)
Shall the Town of Hampton vote to approve the cost items included in the collective bargaining agreement reached between the Hampton Board of Selectmen and the Hampton Fire Department Supervisory Association, affiliated with the Hampton Professional Firefighters Association, Local 2664, IAFF, which calls for the following increases in salaries and benefits at current staffing levels, over the amount paid in the prior fiscal year:
Estimated Increase (over previous year level)
2020 (39 weeks) $ 31,742
2021 (52 weeks) $ 38,398
2022 (52 weeks) $ 37,769
2023 (13 weeks) $ 9,499
And to further raise and appropriate $31,742 for the current fiscal year, such sum representing the additional costs attributable to the increase in salaries and benefits required by the new agreement over those that would be paid at current staffing levels? (Majority vote required)
What it means: This Article does not cover the Fire Chief, but it does include the Lieutenants and Captains who ride on the fire trucks and manage resources during events. It also includes the Fire Prevention Officer and the Medical officers who manage the ambulances. Like the Firefighters’ contract, and the Police Officers’ contract from last year’s Warrant, the contract provides a 2.8% salary increase, in line with the 2019 federally defined cost of living.
Those in favor say: Hampton Fire Supervisors’ salaries will keep pace with inflation if this Article passes. See the comments under Article 16 – the requested increases are in keeping with raises in neighboring towns. If we do not keep pace, we will lose trained and qualified professionals to other communities.
Those against say: No one spoke against this Article at the Deliberative Session.
Fiscal impact: If Article 17 is approved, it will create an additional tax cost of $3.20 for a Hampton home valued at $400,000 in the current fiscal year, and a maximum of $3.87 per year during the contract period. Take your property value divided by 1000 times .008 to get your cost.