During our strategic issues discussions last
August, Team Haverhill members expressed a desire to play a stronger strategic
role in the life of the city. This hope was further reinforced at our meeting
two Mondays ago, when we discussed at length Team Haverhill’s potential
role as an independent financial monitor. View our recent article on city
finances:
Failing Grade for City Finances....
One of Team Haverhill’s goals is to
help educate citizens about important civic issues. Preceding the 2007 municipal elections, Team
Haverhill published a series of articles, which are still posted on our website
(teamhaverhill.org) for your review.
In preparing a 2009 update, we note
a significant reduction in the amount of information available on the city’s
website. While updated bond rating
reports, city council presentations and 5-year budget forecasts were available in
2007, none of those items are posted now.
We believe citizens deserve ready access to this information, whether
the news seems good or bad for elected officials.
Team ....Haverhill.... has come to value independent
analyses of city finances, such as Moody’s bond rating system. The Moody’s rating
gauges the city’s financial health–much like your individual credit score. ..Haverhill..’s bond rating had improved in 2006, from Baa1
(the lowest of ten levels, same as ..Lawrence..) to
Baa3 (level 3 of 10, same as ....Fall
River....).
Moody’s released its most recent
report on September 16, 2009, indicating a negative outlook for ....Haverhill.... and predicting
that our rating will be downgraded soon.
Three main factors drove this analysis: depleted reserves, the status of
union contracts, and structural deficits.
According to Moody’s, our reserves (which peaked at $4M) will be
exhausted by June 2010. Labor contracts
for all but one of the city’s collective bargaining units expired in June 2008
and remain unresolved. And finally, the
city has not trimmed expenses enough to match revenue.
So, despite the run-up in home
values and property taxes, robust state aid (including Hale debt relief) and
new growth that characterized ....Haverhill....
from 2003-2008, we are basically back where we started. An opportunity to improve long term financial
strength has passed, and we face the years ahead without a safety net. Many of the relevant decisions were made
before the recession hit.
Residents of ....Haverhill.... have been taxed to the legal limit. This year, even though property values
declined by 6%, property taxes rose 3.7%. Citizens can no longer afford to ignore City
finances. In order to remove the negative outlook, Moody’s would need to see ....Haverhill.... adopting “comprehensive
financial policies designed to promote long-term financial stability.”
What can you do about it? Right
now, educate yourself about the candidates for Mayor and Council, and ask them hard
questions. For the long run, support independent monitoring efforts (including
Team Haverhill’s work in this area), and keep these vital public issues “on the
table”—in your kitchen, your business, your church, your club. Our city’s
“possible dreams” depend on it.
___________________
Alice Mann is Co-Chair of Team Haverhill. Email your
responses to article.response@comcast.net.
To view 2007 articles, go to: http://www.teamhaverhill.org/candidateforumsarchives.html.