As we come to the end of 2011, taxpayers in the town of Salem, NH are still reeling from the increases felt by the revaluation of homes in Salem.
This appears to be caused by a number of factors including the re-valuations of property due to a down turn in the economy over the past three years and the housing boom that busted because of the federal government administrating Freddy-Mac and Fannie-Mae. These corrupt federal agencies encouraged millions of people to purchase homes with no money down, no check on credit, and too expensive of a home for the purchaser. These actions were also encouraged by unscrupulous realtors.
The idea was not sound but was encouraged because anyone and everyone should have the "right" to live the American Dream of owning a home. The principal was good, but the practice is a formula for disaster. Bankruptcies and foreclosures on homes became the largest loss for families in our history of the United States. The Dream of home ownership was gone for millions. Democrats in Washington need to be held accountable for their greedy approval of programs like this.
In New Hampshire and particularly in Salem, the perfect storm was gathering. Lower valuations of homes in Salem, with homes being foreclosed. Then the people voted down spending millions of dollars with the use of long term bonds.
At the second deliberative secession -- lead by three selectmen and a small crowd of people, most with excellent jobs to pay taxes for the Salem Roads Project -- voted to overturn the legal vote of the people and approved mult-millions of dollars to pave our roads (not with long 20 year bonds but with Cash).
The town did not have the money for this , so taxes were raised, with more to come in 2012. The revaluation of homes and property to a lower valuation on the entire population of Salem. This led to a vast increase in the mill-rate, which is the worst condition a town could be in . The best situation is a high property valuation, low mill-rate, and paving roads with long term bonds.
As a former Selectmen and elected member of a town council in other towns and a B.S. degree in business management. I realize that our present entire school system and town administration need money. Nevertheless, they must learn to bite the bullet on spending and cut back where possible on expenses.
However, there is hope if we can hold out long enough and the economy improves and more homes are sold at proper prices, property valuation will go up and with new good selectmen and our town's people holding the line on unnecessary spending so we could see the mill rate be lowered. This would be a town victory.