February 15, 2010
Work Session
Present were Mayor Grenier, Councilors Danderson, Remillard, McCue, Evans, Landry and Poulin (6:45 p.m.); Councilors Cayer and Rozek were absent.
Warren Horsfield, Paul Ingersoll, Eric Eisele, Paul Bousquet, Corinne Cascadden, Jon Edwards, Patrick MacQueen and members of the public were also in attendance.
Mayor Grenier opened the meeting at 6:30 p.m. and moved ahead to the second item on the agenda, awaiting the arrival of Ms. Cascadden.
Request for Support for SB 489
Mayor Grenier noted that the City Council has taken a position in the past supporting the gaming bill. Paul Ingersoll added that with the change in leadership, he would like to see the current Mayor’s name on a letter of support for the bill. He explained that this year’s gaming legislation gives a percentage of the proceeds to the host community and gives a percentage to the abutting towns and county.
Councilor McCue questioned the logic in having DOT as one of the state agencies to share in the proceeds. Representative Ingersoll replied that the additional funding would be to make the roads better to accommodate the additional traffic of a casino.
Representative Ingersoll confirmed that the amount received by communities would be based on the demographics of the population. He added that the main differences between this year’s and last year’s bill is that everyone gets a share of the gross fees. There are still casino developers that are interested in Berlin. Where the casino would end up would be determined by a bid process. Lancaster and Groveton are interested as well.
Councilor Landry asked what it would take to get this in Berlin. Representative Ingersoll responded that the City would have to support the project and bid on it.
Councilor Remillard moved to send a letter of support for SB 489 to Senator Gallus and our representatives; Councilor Evans seconded and the motion carried unanimously.
Councilor McCue asked if Mayor Grenier could represent the City at the hearing if possible.
School Collaboration
Corrinne Cascadden and Paul Bousquet Superintendents of SAU 3 and SAU 20 respectively, came to continue the dialogue started in the fall regarding school collaboration. Mr. Bousquet noted that the City’s new Master Plan supports the communities’ effort to work together with Gorham and Milan. If there were to be a study done, the issue would have to be a warrant article on every town meeting’s warrant.
Ongoing collaboration between Berlin and Gorham may not have a big impact on taxes but it could on programs by allowing students from each school to participate in the programs at both schools where allowable.
Consolidation is another possibility where all high school students from Berlin, Gorham, Milan and the surrounding towns could come to Berlin and all middle school students would go to Gorham. That would bring about a whole new set of identity issues with school colors, mascot, etc. Councilor Poulin entered the meeting at 6:45 p.m. Ms. Cascadden admitted that they don’t know what the answer is but they want to plan for the future.
Mayor Grenier established that Berlin is a dependent school district where funding is from the City Council. There would need to be a charter change to give up control of the school system. Funding is the major issue. Mr. Bousquet described the system that exists in SAU20 which incorporates Gorham, Milan, Randolph, Shelburne, Dummer and Errol. Cost is based on average daily membership and Gorham pays the biggest share at 64%. The formula takes into account what facilities the community has, including transportation.
Mayor Grenier reasoned that the Council would be shortchanging the students by not looking at this. It would have to be demonstrated that the students are the big winners in order to get the voters to agree to a charter change. Ms. Cascadden proposed that much can be accomplished with tuition agreements and those can be dissolved at any time.
Mr. Bousquet confirmed that assessed valuation is used in the formula that addresses who pays for what. Councilor McCue stated that he appreciates the thought of changing the charter; however his concern is whether people would have enough information.
Mayor Grenier noted that the NHIAA won’t allow a team of players from a combined school to compete in Division I hockey. Mr. Bousquet asked about the time line for a referendum and Mayor Grenier stated that the issue could be put to a non-binding referendum. He added that the easiest thing is the tuition agreement and perhaps that could be tried to see how it works
Mr. MacQueen commended both Superintendents for the informal approach. He reported that State law has three approaches to school districts: regional, independent and cooperative. Once any of these is formed, it is very difficult to get out of. Usually the wealthier communities want to get out of an agreement. He noted that he asked how much savings are expected by making the change to a combined school district and he was told that the move is not for cost savings, it is to benefit the students.
Councilor Danderson stated that he would like to see better tuition agreements. Councilor Evans voiced that he is in favor of moving forward with regionalization with a formal RSA approach.
Councilor Landry asked how we save money going forward and get more for our dollar. Ms. Cascadden replied that would have to be studied. Both superintendents have gone to their administrators and asked for a list of ways to save and combine services.
Mayor Grenier suggested that a meeting be held every six months with Selectmen; City Council; and school boards for issues to be discussed. It may not take long for everyone to realize that things need to be done differently. He added that he is not sure the valley is ready for the full RSA change; however the communities involved are not as divisive as in the past.
Request for Crosswalk
Councilor Remillard affirmed that she received a letter from Al McClain for a crosswalk in front of the new court building. Councilor Danderson moved to add the letter to the agenda; Councilor Remillard seconded and the motion was unanimously approved.
Mayor Grenier noted the work session would resume after the regular meeting.
Discussion of City Code Sec. 19-46 to 19-52 Partial Tax Exemption for New Industrial & Commercial Construction
Mayor Grenier explained that Skip Sansoucy brought this matter to his attention. The history is that the Council passed this ordinance in 2008 in anticipation of Greenova, a wood pellet plant that was to locate here. HB 1651 permitted North Country communities to pass legislation that would allow tax exemptions over a five year period to stimulate new industrial development. Mayor Grenier went on to say that there is no wiggle room to allow the city to choose how it could be applied to new development. They city is looking at having two new biomass plants and potentially not generating tax revenue from them for the next few years.
Councilor McCue stated that the power plants may not be affected given how their property valuation is done. He indicated that revoking the ordinance would send a poor message. We would be balancing against a message that we are willing to work with communities and willing to work with people. He advocated leaving the ordinance in place.
Councilor Danderson expressed that it seems the more we accommodate an industry, the less viable they are. If they can’t pay property taxes like we pay, then do we really want them?
Councilor McCue reasoned that when the ordinance was passed, there were readings, public hearings and everyone had an opportunity to speak up.
Mayor Grenier advised that in his view, good efficient government has to be nimble. This ordinance has a weakness in that it was crafted without exemptions for utility properties. It would be better for the city if we shelved the ordinance until we know what goes on with the plants. Though he understands the foresight, he felt the ordinance could be misapplied in the community and the City could lose a lot of money.
Councilor Evans confirmed that the ordinance was adopted into the city code though he stated that he is not clear that it applies to biomass. He also confirmed that no industry has utilized this tax exemption yet.
Councilor Landry established that the ordinance was adopted using our own percentages. Mr. MacQueen commented that the ordinance may send a message to existing business/industry owners that because you are already here, you don’t get a tax incentive. He added that there was no intent to give a tax incentive to biomass plants. It is clear in the ordinance that if they meet the requirements, the City will have to give them the incentive.
Councilor Landry questioned whether such a tax discount at the beginning, or a PILT paid yearly may end up being the same. Mayor Grenier noted that PILT is not necessarily a discount but a cost certainty for the industry.
Councilor Remillard proposed that the percentages in the ordinance could be changed.
Councilor McCue made the point that we want to treat all industry the same and if we continue the discussion about rescinding the ordinance, it should be clear that we don’t want any particular business being singled out.
Councilor Landry voiced that he likes the ordinance but does not think we can afford it. Councilor Danderson added that this shifts the burden to the homeowner. He questioned how this is fair to existing business.
Mr. MacQueen reported that this incentive has been on books for one year and we have not had anyone come to the city because of the incentive. It has not had any effect.
Councilor McCue pointed out that the ordinance only deals with new construction or existing business that develops new construction.
Mayor Grenier stated that Mr. Sansoucy will be at the March 8 meeting and may be able to give costs to the legislation. He added that this could get in the way of a significant revenue stream for the City.
HB 1677
Councilor McCue reported that the Council received correspondence from coalition communities and his concern is that, according to the correspondence, there is a vote scheduled for Wednesday of this week. The recommendation of the committee is to kill the bill that would extend education funding.
Councilor Evans moved to send a letter supporting that education funding be extended; Councilor Poulin seconded and the motion carried.
Councilor Danderson moved to adjourn; Councilor Evans seconded and the motion carried. The meeting ended at 8:15 p.m.
Respectfully submitted,
Susan Tremblay
Administrative Assistant
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