10 Years $75,418; Tax Note Borrowing Interest paid to Banks…Could the Optional Fiscal Year have saved us from this expense???

Good Governance

February 16, 2010

Let me be clear…I support looking into the Optional Fiscal Year! Here’s why;

Henniker’s fiscal year runs from January 1st to December 31st. The 2019 budget will be  passed at Town meeting in March.

First tax bill for new budget will not go out until June…and must be paid bu July 1st.

In essence, the Town of Henniker is billing in arrears…So for the first six months of each year the Town of Henniker BORROWS money (line of credit) from a bank to pay our bills.

The interest we pay to the bank can be found in the Annual Report, Financials, MS 6 Town Budget, (after 2013 MS 636) account #4723. (read here)

RSA 31:94-a allows for towns to adopt what is called the Optional Fiscal Year…July 1st to December 31st. The semi-annual  billing would stay the same, but the budget would be approved at a May annual meeting.

With the new fiscal year, the June billing provides cash at the very beginning of the fiscal year. The December billing then provides cash six months later when we are in the middle of the fiscal year, rather than at the end of the fiscal year.

The New Hampshire Municipal Association (NHMA) (Henniker is a member Town) advises that, “This change in cash flow virtually eliminates the need for short-term tax anticipation note borrowing.” (read here)

I have brought this up to the Select Board numerous times. Each time the Select Board defers to Mr. Roy the finance director. His opinion is in direct contradiction to that of the NHMA…

NHMA reported in 2006 that eleven cities and seventeen towns in New Hampshire have adopted RSA 31:94-a…I wonder what their experience has been??? Have they saved MONEY???

Why are we NOT looking into this????

I support hearing what these other towns have to say about this matter….

OHB…all the news fit to printkeeping it real… making it easier for you to find the facts so you can draw your own conclusions…..

“There are things public officials would never do if they thought somebody might call them out on it.”

http://www.onlyhennikerbruce.com

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