Letter: Peru Should Take Hard Look at Budget
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To the Editor:
The Peru taxpayers have just learned that their tax rate has increased to $20.15.
We were informed by our gatekeepers (the Board of Selectmen), via an explanatory insert included with our tax bills, that 85 percent of the increase was due to the school budget. That's all well and good and the math works, but since the laws of our land dictate that children get a free education, apparently including whatever vocational school they care to attend, with no limit on the tuition and transportation costs, there's not a heck of a lot we can do about that number other than to pay it, especially since we are the last town in our district to vote the school budget and it is always a "done deal" by the time we vote.
They also pointed out a $24,000 increase in our Veterans Services account. Pretty much dares anyone to complain about the huge increase in their tax bills, now doesn't it? Obviously, the reasons for the insert were to throw the children and veterans under the proverbial bus and to draw attention away from the gross negligence of the financial management of this town.
Review of the veteran's account ledger for the last year clearly showed that there were more funds spent out of that account to pay our newly appointed VSO's stipend along with his training, lodging, meals, mileage and a laptop (costing $1,100) than any veteran ever saw in a single payment by this town. The funds that are raised and appropriated for this account are for the veterans' care and support they have earned with their service to our country and NOT some VSO's personal money tree. In prior years, Peru had a fully trained, qualified and competent VSO who did not resign but was replaced for no apparent reason.
Secondly, let's put the school budget's impact on our total tax levy and a couple of other things into perspective: the school budget is 67 percent of our total levy (actual school budget minus state aid divided by tax levy); all other town services make up the remaining 33 percent. Are there any services in this town worth it? The roads are horrendous, you can't get information from the town officials without a warrant and it is blatantly obvious that they have no intention of working for the best interests of the taxpayers.
Last year's town report reported over $500,000 surplus revenue (taxes levied minus expenses paid out equals collecting more money by taxation than is actually needed); it also reported around $330,000 of uncollected taxes (taxes that are not paid and NOT moved into tax title).
Tax title is a process that not only protects the town by placing liens on properties that are not paying taxes, it also frees up the surplus revenue to be put back into the system via free cash — the free cash that is currently being certified annually is (basically) surplus revenue minus uncollected taxes. With this huge increase how many more uncollected tax dollars will be holding our free cash hostage? Free cash which can be used to specifically reduce the tax rate — something Peru has not done since 2004 or 2005, but obviously, something that should be done now!
That surplus revenue of $500,000 represents $5.79 of our tax rate. If it were available as free cash, we could literally vote $5 off our current rate and to hell with using free cash to "pay off the fire house early" or buy the "latest and greatest" of whatever the town officials want. What impact does this tax rate/tax bill have on mortgage payments for those taxpayers with a tax escrow in their mortgage? Are they going to be able to pay off their mortgages early?
Here are Peru's tax rate increases since fiscal 2012: 2013 up 90 cents; 2014 up 96 cents, 2015 up one dollar and 10 cents and 2016 up one dollar and 79 cents.
Can anybody see the forest?
Kimberly Wetherell,
Robin Wadsworth
Peru
Tags: letters to the editor, property taxes,
