After the degenerate in the family spends all the cash, what's next?

ANSWER;

 

He begins to hock the assets at twenty-five cents on the dollar.

On Thursday the Barnstable council met in the Selectmen’s Conference room for dinner and to scheme for ways to make up for the $12 million shortfall to level fund next year’s school and municipal budgets.

It seems the council’s prodigal spending of $20 million of cash reserves over the last five years to pay fat cat salaries (two school superintendents in 2004; $260,000, two police chiefs in 2005; $460,000, school superintendent in 2007; $180,000, town manager/assistant manager; $250,000, eight attorneys on the town payroll in 2007; $900,000, etc.), depleted the town’s savings account.

Expect to see lots of town-owned land on the auction block soon to raise money to maintain the wild salaries.

 

The way the economy is headed he town council is creating its own subprime lending crisis, because everyone, except the old farts, and the guys and gals feeding at the town trough, is leaving town.

Taking money from the town's savings account, and selling town-owned land at bargain rates are synonymous bad judgements, because both are finite.

No one, other than COG, told the council that the whole idea of rational government is to spend no more than projected revenue,

because sooner, rather than later,

 

the savings account,

 

will be depleted.

 

There is another more rational option for the council and school committee;

 

ask for an override.

 

The October 30th recall election result said it all;

 

People don't mind paying a little more property tax.

 

This Thursday the council will hold its annual tax classification hearing.

Homeowners are looking at a 6% increase in the tax rate offset by a 2.5% decrease in assessed valuation which means a

 

3.5% hike in their collective property tax bills.

Barnstable’s total levy will fall short of $90 million with homeowners picking up $82 million of it, which means since the new millennium homeowner property taxes will have increased

 

57% ($29 million)

 

to the commercial sector’s 6.5%or $500,000.

Joakim’s smashing victory in her recall election was a loud and clear message to the town council that residential taxpayers have no problem subsidizing commercial property owner's tax bills (the recall election was about her reneging on her promise to support the maximum split tax rate.)

I am absolutely convinced on Thursday the council will once again ignore its legal obligation to maintain tax equity between residents and commercial property owners by once again rejecting the split tax rate.

In light of Precinct 6 voter’s cavalier attitude toward increased taxes the laws of probability strongly favor the passage of a

 

$10 million operational override

 

($6 million for the schools,

 

and $4 for the municipal budget).

 

If the override is approved, the residential tax rate will only increase

 

$0.75 cents

 

from $6.90

 

to $7.65.

A $300,000 assessed permanent resident homeowner’s property tax bill will only increase

 

$150

 

from $1,380

 

to $1,530,

 

or just a few bucks more than the benefit of the maximum split tax rate that

 

Precinct 6 voters just rejected.

 

If Precinct 6 voters are typical, the fact they didn’t mind spending an extra $135 to pay Stop and Shop, Star Market, Cape Cod Mall, et al,  pay their property taxes,

 

why would voters throughout town object to spending $150 more each year in property taxes to keep school programs and municipal services running at current levels?

Why not schedule a special override election in February after the 200 teacher lay-offs, increased class sizes, and program cuts are announced? 

 

 A lot of the cue tips will be still in Florida.