By Stephen Tait
Staff Writer
May 15, 2008 03:50 am NEWBURYPORT — Property tax bills would increase by about 3 percent if a debt exclusion plan pushed by Mayor John Moak for the November ballot gets approved by voters. The debt exclusion is different from the tax override that some city officials pushed for last year — which failed — since it increases the tax rate temporarily instead of permanently. Moak said his new plan also aims to push the city in a different direction. "The main purpose of this particular avenue I'm going in is to stabilize our financial picture, not just to come up with operating money," he said. "That is the difference from last time; (the debt exclusion) really is a step toward stabilization." Moak said he plans to send a letter to the 11-member City Council next week to outline the specifics of the debt exclusion plan. He took time at this week's City Council meeting — during his 2009 budget summary — to remind councilors he would request they put a debt exclusion question on the ballot in November. Yesterday, Moak acknowledged that the lobbying effort in support of the debt exclusion must begin. "It is certainly a lot smaller a number, but is it easier (to get approved than last year's override)? It is different," he said. "It is less expensive, it decreases in costs, but it is possibly more difficult to understand for the public than a regular override." Moak said his first job, though, is to get the council to approve a debt exclusion for the fall election by Aug. 1. "I have June and July to get them to decide to put it on the ballot," he said. The mayor's debt exclusion plan would add about $900,000 annually to the city's operating budget by paying off $5.3 million in debt. That amount could increase if the City Council approves the bonding of the mayor's $2 million capital plan. In that case, residents would vote on a $7.8 million exclusion, including a recently bonded $500,000 firetruck. If the debt exclusion is passed by voters, Moak said it would help to pay for many of the items the 2009 budget could not. The 2009 fiscal year runs from July 1, 2008, to June 30, 2009. The increase to property owners' tax bills is less than what officials pushed for during last year's failed Prop. 21/2 override attempt. Under that proposal, the average tax bill would have increased by about $215 permanently. In Moak's debt exclusion plan, the average bill would increase by about $148, a rate that would decrease during the exclusion's 10-year lifetime. It appears likely that voters will see the ballot question. City Council President James Shanley said he is "happy" and "very willing" to put the question on the November ballot and will vote in favor of that recommendation. "I think it is a reasonable question to ask people," he said. But Shanley, the Ward 3 councilor, said it is "too early" to say whether he will endorse the measure. While he said he understands the basic concept of the mayor's plan, he wants more details and time before making that decision. At-large Councilor Tom Jones said he will vote to allow the question on the ballot, especially since the mayor is not asking for funding for a special election, which is what happened during last year's override vote, costing taxpayers $17,000. "I don't think the council has the right to say no," Jones said. Like Shanley, Jones also said it is too early to decide whether he would support the debt exclusion. He said the council still must decide whether to authorize Moak's $2 million bond request for capital improvements. "I'm not there yet," he said of supporting it. "I'm not there because I don't have a full picture."
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