OBSERVATIONS ON THE FTR OUTCOME

There will be plenty of analysis about yesterday's FTR results, but a couple of points to consider. 

1) TTA spent thousands on mailer cards, robocalls, signs, etc. We spent nothing & relied on social media, word of mouth, & the common sense of not raiding the General Fund. 
2) "Lower taxes with no consequences" is a much easier sell than "Do the responsible thing for long-term financial health", especially in a low-turnout election; 
3) there's a pendulum nature to politics, & TCC has won battles before only to be defeated the next time; 
4) there's been an undeniable complacency after the big 2012 victory & how smoothly elected officials have been working after years of turmoil; 
5) win or lose, it's silly to read election results as a single "message from voters", as voters show up and vote for a variety of reasons; as we heard at the polls, many voters were venting anger at things that had nothing to do with this budget choice. 

These are observations, not excuses. I congratulate the Budget 2 proponents, & hope they're proven right, as my motivation is the good of the town and not political gain. But this is no doubt just the first step in a TCC/TTA attempt to return to "power" in November. Those who believe in strengthening our community should be prepared to work to elect candidates who agree, and this will clearly require funds to counteract the deep pockets on the other side. 

Thanks to all who worked tirelessly on the impressive Budget 1 proposal, all who worked to get out the word, and all who took the time to vote.

Brian Medeiros
Tiverton, RI

FTR RESULTS

FTR results (link below). Obviously disappointing, but the voters who turned out have decided. We now look to working for a better result in the November elections.

2014 FINANCIAL TOWN REFERENDUM (FTR)
BUDGET OPTION 2 (Petitioner): 1234
BUDGET OPTION 1 (Budget Cmte): 698
voter turnout: 18% of registered voters

http://www.eastbayri.com/news/government-politics/zero-tax-increase-proponents-win-at-tiverton-polls/

FTR IS TODAY / VOTE FOR BUDGET 1, THE BUDGET COMMITTEE PROPOSAL

Today is Tiverton's Financial Town Referendum (FTR). Voters will decide the town's budget and tax-levy. 

Polls are open 7:00am - 8:00pm. 

COMBINED POLLING LOCATIONS 

PRECINCTS/DISTRICTS 3301, 3302, 3304 AT VFW 134 SHOVE ST

PRECINCTS/DISTRICTS 3303, 3305 AT COUNTRYVIEW ESTATES 325 HURST LANE 

PRECINCTS/DISTRICTS 3306, 3307 AT AMICABLE CONGREGATIONAL CHURCH 3736 MAIN RD

Budget Proposal 1 was submitted unanimously by our elected Budget Committee. It was created through months of public meetings and hard work with all town and school officials. It is supported by both the Town Council and School Committee, as well the elected Town Treasurer. It maintains town and school services, strengthens the town's financial health by increasing the town's General Fund, and does all this while requiring a historically-low 1.29% tax increase (this amounts to about a dollar a week on an average home). It has the support of Tiverton 1st and the Democratic Town Committee.

Budget Proposal 2 was created by members of the TCC group, now going by the name "Tiverton Taxpayers Association". It strips funds from the town's General Fund to artificially lower the tax-levy to zero percent, leaving the town's finances in questionable condition. It will also cost taxpayers far more in the long run when the town's bond rating suffers from the General Fund being at the bare-minimum 3% of operating budget required by Charter (most towns reserve a much higher amount). It's a dishonest political stunt being sold as "tax relief", backed by big bucks.

Please take a few minutes to get out and vote to support our community, and our own financial health. And encourage every Tiverton voter you know to do the same. A few minutes of effort today can prevent years of financial turmoil, cuts in services, and higher taxes in coming years. The people of Tiverton have weathered some difficult years, and are finally on solid financial ground looking forward. Don't let this progress be reversed.

VOTE FOR BUDGET 1, THE BUDGET COMMITTEE PROPOSAL

Show those counting on voter confusion and complacency that Tiverton is not for sale.

There are also five resolutions that Tiverton 1st recommends voters approve. They are basic procedural resolutions requiring voter approval.

Thanks to everyone who has worked to inform voters. Let's all work today to get out the vote, inform voters of the facts, and keep Tiverton strong. 

Brian Medeiros

Tiverton 1st Co-Coordinator

DOCUMENTS REFUTING ROBERT COULTER'S GENERAL FUND CLAIMS

SHOW THAT TIVERTON IS NOT FOR SALE: VOTE FOR BUDGET 1

With the FTR vote on Tuesday, every Tiverton voter needs to understand the crucial importance of supporting the Budget Committee's "Budget 1". Despite what you might have heard, there's a huge difference between the two budget options, with Option 2 pushed by the Tiverton Taxpayers Association (aka the TCC-in-exile) . TTA has followed the same strategy this small group of self-interested has used for years: create a big lie, spend a lot of money spreading it, and hope the people of Tiverton are too uninformed or too complacent to care. It's exactly the type of political discourse that turned off voters and caused most of those behind Budget 2 to go down in defeat in the 2012 election. Voters need to know that what they're being sold by this group of extremists isn't true, and that facts again show that the only taxpayers the TTA care about are themselves. 

The fact is that there has been consensus for years that the Unrestricted General Fund (UGF) should be significantly higher than the 3% of operating budget required by Charter. Plans to change the Charter to raise this amount have been proposed, and the only reason it was left at 3% was because the town was in tough financial straits, largely due to short-sighted use of General Fund surpluses to lower tax-levies (the same mistake being offered by Budget 2). There was agreement that a higher percentage was wise and should be sought, but not to make a difficult time tougher by requiring it by Charter. It's appalling that this cynical crisis will be created in a year of a historically-low tax increase, with the cost of trashing the town's long-term financial-health being around a dollar a week for most taxpayers. There's a reason every elected body and the elected Town Treasurer support Budget 1.

Robert Coulter, former Town Councilor and TCC leader, has published a letter in which he says, "I don't support building up unrestricted surpluses without a comprehensive plan that includes taxpayer protection, and I don't support support the docket put forth by the town this year which misleads the people about what is required for reserves." This sounds like a firm principled stand, and it certainly rejects the rationale of the "long-term financial plan" proposed in August 2011 . This "plan" included the following: "It is the policy of the Town Council that the UGF be maintained with a cushion above what is minimally required by Charter. The goal of the Town Council is that the UGF be maintained at 5% of the operating budget". That plan was proposed by then-Town Councilor Rob Coulter. Yes, that's the exact opposite of what he and his cohorts now say, and exactly what he now says he doesn't support. Wait a few weeks and his view may change again. Apparently he doesn't realize documents and video exist to prove this flip-flop of political convenience. Mr. Coulter is either deceiving himself or the people of Tiverton, but either way, voters need to be aware that he's a poor source of information (documents quoted are available at www.tiverton1st.blogspot.com). 

But the hypocrisy and deception goes beyond a 180-degree change in views. Mr. Coulter gives the hidden-game away in this phrase: "without a comprehensive plan that includes taxpayer protection". That's right, the person who has supported two lawsuits against the town to reverse the budget decision of voters is STILL looking to take away the rights of voters. Since voters alone decide the budget/tax-levy in Tiverton, who do they need "protection" from? This is the same old "say and do anything to get your way" strategy that Tiverton voters have rejected time and again. And Rob Coulter accusing others of "misleading"? Seriously? This is the politician who made the flat-out lie that there was a conspiracy to "bring back the Financial Town Meeting" the centerpiece of his failed 2012 campaign. He also had an opportunity to support returning $600,000 to taxpayers in 2012, but pushed a plan that gave those funds to the Town Council, of which he just coincidentally happened to be a member of the majority.

The majority of Tiverton voters have consistently stood up to this political scheming. Please get out to vote for Budget 1, and encourage every voter you know to do the same. Don't let deep-pocketed interests with a self-serving political scheme throw TIverton's finances into chaos, and turn a small tax increase to maintain services this year into a large one needed next year. Please take 5-10 minutes to stand up for our community, and support our hard-working elected officials who have created a consensus budget with a historically-low 1.29% tax increase that maintains services and a strong General Fund. Let those counting on complacency, and spending big bucks to deceive voters into voting against their own best interests, know that Tiverton is not for sale.

Brian Medeiros

Tiverton, RI

LETTER: BUDGET CHOICE IS A SMALL TAX INCREASE OR USING UP TOWN'S SAVINGS

The Tiverton Budget Committee and the citizen whose alternate budget proposal will appear on the Tiverton Financial Town Referendum ballot next week both agree that we, as a town, should increase our spending a small amount next year. The budget committee recommends we pay for that increase in spending by raising property taxes 1.29%. The citizen petitioner wants us to pay for that increase in spending by taking $600,000 out of the town’s savings account, or general reserves.

The problem with spending more money on normal, recurring expenses than we earn – or in the case of a town, take in – is that in a year or two our savings will be gone. At that point, our choices will be either to approve a big tax hike or to drastically cut services, scenarios most of us would like to avoid. In addition to that, we will be left with little or no savings to pay for the things savings actually should be used for: one-time major expenses, such as septic systems, or unexpected emergencies, such as repairing hurricane damage.

So ask yourself: Would you rather accept a small tax increase of 1.29% to pay for new spending, or use up our limited savings and ignore the problems that would create for us tomorrow?

I’d rather be the proverbial ant instead of the grasshopper. Please vote for Budget #1 on Tuesday, May 20.

Carol Herrmann

Tiverton

LETTER: TIVERTON DEMOCRATIC TOWN CMTE SUPPORTS BUDGET 1 (BUDGET CMTE PLAN)

The Tiverton Financial Town Referendum is about one thing this year: What is the appropriate level of funding for the town’s unrestricted reserve fund?

The budget put forward by the Budget Committee leaves the unrestricted reserve fund at 3.5% of expenditures. The citizen’s petition, authored by Justin Katz, removes $600,000 from the unrestricted reserve fund. The allocations and level of spending are identical in the two proposals. The Budget Committee’s proposal results in an estimated tax increase of 1.29% or  $25 per $100,000 of home value. Mr. Katz’s proposal is estimated to result in no net increase in the tax rate.

Zero sounds good but is poor policy. The unrestricted reserve fund (also known as a rainy day fund) should stand higher in general, likely at least as high as 5 to 8%. Mr. Katz acknowledged this  at the Financial Town Hearing yet still put in his fiscally unsound proposal. The Town Council recognized the need to keep a higher percentage in our rainy day fund a few years ago and intentionally pursued a policy of allowing this fund to gradually grow. Why is this a good idea?

Common sense would suggest to most that having money set aside for unanticipated costs is a benefit to the town and its taxpayers. A higher reserve fund also demonstrates to potential creditors and rating agencies that the town has its financial house in order and its leadership knows how to pursue a fiscally prudent policy. Finally, maintaining or growing the rainy day fund allows the town to lessen the impact of a large tax increase if one should become necessary in the future.

Mr. Katz suggested at the Financial Town Hearing that the people of Tiverton, if they had five years of zero percent increase in taxes, probably wouldn’t mind an increase of 10% in one year. Hmm.  Really? That is a problem with short term memory, not just misguided policy

Zero sounds good but is poor policy. A short term gain (political, financial or otherwise) at the expense of a less secure fiscal position for the town is a bad idea. Rhode Islanders should have learned this lesson from the current state-wide pension crisis.  On May 20, we ask all Tiverton voters to support the budget recommended by the Budget Committee.

Mike Burk

Chairman, Tiverton Democratic Town Committee

TOWN COUNCILOR BILL GERLACH: REASONS TO SUPPORT BUDGET 1

Tiverton Town Councilor Bill Gerlach:

Just came back from early voting for BUDGET #1 as part of the Financial Town Referendum. While the FTR process affords those who wish to put forth a petitioners budget a way to do so, I hope all give pause regarding the other budget on the ballot and not be swayed by the allure of a 0% tax increase. Here's why:

BUDGET #1 -- the budget that I and my colleagues on the Town Council collaborated with the School Committee and Budget Committee on for countless hours -- is a very fiscally-responsible budget that increase taxes by 1.29%, a historic low for the town. That 1.29% equates to around $75 in additional annual taxes on a $300,000 property. Folks, only the priorities of the priorities made it through on to this budget.

The other budget that was submitted would keep the same level of funding but pay for it by pulling funds out of the town's General Fund (instead of collecting it in the form of the very modest tax increase). While this sounds great on the surface, it will create a VERY negative downstream impact for the following reasons:

1) It starts the next budget cycle (FY '15 - '16) $600,000 in the red -- money that will have to be made up in some way (read: a higher tax rate). Smart, sensible budgeting avoids up-and-down spikes in the tax rate in favor of a smoother trend line. BUDGET #1 supports that smoother trend line and avoids the spikes.

2) It positions the town unfavorably when it comes to its bond rating. Next year, the town will go out to bond for the new library. A lower bond rating will mean a higher interest rate on the bond. This will create higher annual payments for the life of the bond, which tax payers will have to be on the hook for.

Those putting forth the alternative budget will argue that the General Fund is too large and goes above the Town Charter directive of 3% of the operational budget of the town. The former Town Council put forth a prudent plan to increase the General Fund in a modest way in order to ensure we had enough in case of a "rainy day" and be well-positioned in the eyes of creditors and lenders.

They will argue that we view the General Fund as a slush fund of sorts, available to pay for operational costs on a whim. NOT SO. Any expenditure out of the General Fund REQUIRES a vote of the citizens in the form of a referendum. The Town Council CANNOT just spend it willy-nilly.

I'm happy to talk to anyone more if you have any questions. I hope you do support BUDGET #1 when you vote in the upcoming FTR. Remember, early voting finishes tomorrow, Saturday, May 17th, from 8:00AM - 4:00PM at Town Hall. Then regular voting happens this coming Tuesday, May 20th. See the town website for more details.

Please feel free to share widely. Thanks.

FTR CHOICE: A RESPONSIBLE BUDGET VS. AN EXPENSIVE POLITICAL STUNT

The outcome of Tiverton’s May 20 Financial Town Referendum (FTR) will determine the town’s financial health for years to come. The choice facing voters is actually a simple one: Option 1, a fully-vetted, fiscally-responsible budget presented unanimously by the elected Budget Committee, or Option 2, a self-serving political stunt masquerading as “tax relief”.

Option 1 offers a remarkable balance: maintaining town and schools services, strengthening the town’s General Fund, and requiring a historically low tax-increase of 1.29% to fund it. It has the support of all three elected town bodies, as well as the elected Treasurer.

Option 2 is the latest attempt by a small group with a political agenda to cripple the town financially. Their motto seems to be, “If it ain’t broke, break it.” Having failed in previous years to decimate funding to our school and community services, their strategy now is to strip the General Fund and claim the result is a “zero tax increase” that won’t cut services. Anyone who knows how finances actually work realizes this view is either woefully uninformed or intentionally deceptive. The fact that they refer to the town's General Fund, the guide of a town's financial health as well as its "rainy day fund", as a "slush fund" tells you all you need to know about their extreme views. As is usually the case, when something sounds too good to be true, it is.

Slashing the town’s General Fund will actually cost every taxpayer far more than the small savings in this year’s tax-bill. Despite claims to the contrary, those with actual financial expertise have made clear that doing so will result in lowering the town’s bond-rating, costing us more in financing bonds (such as the bonds for the new library). It will also eliminate the funds necessary to stabilize town finances and keep taxes low in a year when there are unexpected expenses or expected revenues are short. The town will be thrown back into lurching from crisis to crisis, exactly the situation the town has worked for years to overcome. Throwing away hard-earned financial stability on the hope it won't be needed is the very definition of fiscal irresponsibility.

Tiverton 1st strongly endorses Option 1, the Budget Committee's proposal, and encourages all voters to take ten minutes on May 20 to protect our community's financial well-being. For more info, visit Tiverton 1st on Facebook, or at www.Tiverton1st.blogspot.com. Don't leave this crucial choice to others. Make your voice heard in favor of economic sanity, and protect Tiverton from Option 2, a self-inflicted wound taxpayers will be paying for for years to come.

Brian Medeiros

Co-Coordinator, Tiverton 1st

LETTER: THE FACTS ABOUT TUESDAY'S FTR BUDGET OPTIONS

The proponents of Citizen Budget #2 have once again put forth a budget that strips our town’s unreserved fund balance (UGF).  Don’t worry, they say, it won’t affect our credit rating for our new library bond, it won’t cause a spike in taxes next year or cause cuts in services when our savings are gone and that bond comes due. They “assure” us that taking $600,000 of savings to pay for day-to-day expenses, leaving us with a bare minimum fund balance of 3% of expenses, is really okay.  

Many others disagree:

1)   Moody’s bond rating agency cautioned the town that building its reserves instead of drawing them down will “remain an important rating factor” for future borrowing (like next year’s library bond.)

2)   In a May 1, 2014, letter to citizens, Tiverton’s town treasurer warned regarding our rating, “Moody’s has developed a new rating methodology … review of our general fund balance accounts for 50% of the Finance Review – that is a hefty portion.” Further cautioning that, “Tapping into our UGF could cost us down the road. I urge you to protect your investment in the town.”

3)   The town’s independent auditor twice commended the council for its policy of wisely and prudently beginning to increase the town’s unreserved fund balance to provide financial stability.

4) The Government Finance Officers Association recommends, at a minimum, that governments “maintain unreserved fund balance in their general fund of no less than five to 15 percent.”

5)   Our immediate neighbors, Portsmouth and Middletown, require a minimum of 8%. In a 2012 State of RI report designed to measure fiscal stress on communities, 30 of the 39 other communities had a higher combined fund balance than Tiverton.

6)  This year’s Little Compton Budget Committee FTM report states, “We believe that the 12% (UGF) balance is an important level to return to in order to maintain our excellent credit rating and maximum financial flexibility. The benefits of this strategy have already been proven as Little Compton has the only AAA credit rating in the state, which will save us close to $1 million in interest on the school bond.”

An adequate fund balance is not some secret pot of cash or some conspiracy cooked up by government insiders to take taxpayer money. An adequate fund balance is part of a responsible, long-term financial plan that provides for community services and programs. Support the small 1.29% increase recommended by Tiverton’s elected budget committee that leaves our savings intact.

Approve Budget #1 on May 20.

Deborah Pallasch

Tiverton

FULL SENATE VOTE ON TOLL/FUNDING BILL DELAYED AGAIN TO ALLOW TIME TO WORK OUT DETAILS

Hopefully the delay in the Senate vote is a sign that all parties are committed to working out a deal that finally ends this Sakonnet toll debacle, and also sets up Statewide infrastructure funding (link below).

We should continue to support our local Reps and Senators as they work to make this happen, and make clear to those not yet on board that this issue won't go away until the toll is gone.

Brian Medeiros
Tiverton, RI

http://www.providencejournal.com/breaking-news/content/20140514-r.i.-senate-house-working-on-proposal-to-finance-statewide-transportation-repairs.ece

FTR ABSENTEE VOTING THIS THURS, FRI, SAT

ABSENTEE VOTING FOR THE FTR IS THIS THURSDAY & FRIDAY (May 15 & 16) @ 8a-8p, & SATURDAY (May 17) @ 8a-4p AT TOWN HALL. 

Anyone who may not be able to vote at the May 20 FTR should take advantage of these three days of absentee voting. Take ten minutes to support our community and prevent years of financial turmoil. 

VOTE FOR OPTION 1 (BUDGET COMMITTEE PROPOSAL)

Brian Medeiros

Tiverton, RI

SENATE POSTPONES VOTE ON TRANSPORTATION BILL TO WORK OUT AGREEMENT ON LANGUAGE

It's disappointing that the full Senate vote has been postponed, but hopefully the Senate, House and Governor's office can agree on language ASAP. It's time to put this toll issue behind us, and finally set up reliable infrastructure funding as well.

Brian Medeiros

Tiverton, RI

http://www.providencejournal.com/breaking-news/content/20140507-senate-expected-to-postpone-discussion-of-bill-to-remove-sakonnet-bridge-toll.ece

SENATE COMMITTEE UNANIMOUSLY APPROVES BILL TO FUND INFRASTRUCTURE, ELIMINATE SAKONNET TOLLS

Great news (link below). 

It's just a first step, but the unanimous vote is encouraging as the bill moves forward. Our local Reps & Senators have clearly done an excellent job of crafting and promoting legislation that not only eliminates Sakonnet tolls, but addresses a Statewide need. 

Now we need to make sure this bill makes it over the finish line.

Brian Medeiros

Tiverton, RI

http://wpri.com/2014/05/06/senate-committee-votes-to-remove-sakonnet-tolls/

SENATE COMMITTEE TO HEAR TRANSPORTATION FUNDING / SAKONNET-TOLL REMOVAL BILL

Hopefully tomorrow's Senate Finance Cmte hearing is the start of the final act of this Sakonnet tolls drama (links below). If working to do the common-sense thing of eliminating these tolls also results in a sustainable Statewide system of transportation-infrastructure funding, then at least some good will have come out of this unnecessary, unfair, unwise ordeal.

Brian Medeiros

Tiverton, RI

http://www.eastbayri.com/news/senate-panel-considers-bridge-funding-bill-tuesday/

http://www.heraldnews.com/article/20140505/NEWS/140507884

MAY 20 FTR VOTE: A CHOICE BETWEEN A BUDGET AND A POLITICAL STUNT

Once again, Justin Katz and his TCC-in-exile cohorts demonstrate their approach to town government: "If it ain't broke, break it." (link below)

This year's Financial Town Referendum (FTR) isn't a choice between two budgets. It's a choice between a fully-vetted budget with a historically low tax increase to maintain & improve the community & the town's financial health on one hand, & another senseless, self-serving political stunt from the usual suspects on the other. 

All who care about our Tiverton community need to work to make sure Tiverton voters know the facts, & get out to vote at the May 20 FTR in support of the Budget Committee budget.

Brian Medeiros

Tiverton, RI

http://www.eastbayri.com/news/two-budgets-battle-it-out-at-tiverton-hearing/