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MOODY’S ASSIGNS Aa2 BOND RATING TO DURHAM GENERAL OBLIGATION BONDS
Moody's Investors Service has assigned a Aa2 rating to the Town of Durham, NH's $4.133 million General Obligation Bonds. At this time, Moody's has also affirmed the Aa2 rating on the Town's $13.9 million of outstanding debt.
The bonds are general obligations of the Town. Of the bonds, $3.5 million will be used to finance sludge dewatering equipment at the town's wastewater treatment plant, as well as various capital projects and equipment projects. The remainder of the bonds will refinance the town's series 2002 bonds for an estimated net present value savings of 5% of refunded par.
According to Moody’s, the Aa2 rating reflects the Town's stable financial position with sizeable reserve levels. The rating also incorporates the Town's moderately sized tax base anchored by the University of New Hampshire, and a moderate debt burden.
STRENGTHS REPORTED BY MOODY’S
- Stable tax base and local economy anchored by The University of New Hampshire
- Trend of balanced operating budgets and healthy reserve levels.
CHALLENGES
REPORTED BY MOODY’S - Maintaining structural balance amidst ongoing expenditure pressures
- Addressing rising cost of employee salaries and benefits
Moody’s reports the Town of Durham is expected to maintain a stable financial position, given its history of structurally balanced operations and adequate reserve levels. The Town's 2012 audited financials (December 31) reflect an operating surplus of $750,000 due to a positive variance in revenues from license and permits stemming from ongoing construction in the Town, as well as continued conservative budgeting for expenditures. The Town's third consecutive operating surplus resulted in a total General Fund balance of $3.8 million, or a healthy 30.1% of revenues.
Further supporting the Town's stable financial position, Moody’s notes several fiscal policies. Durham maintains a general fund balance policy, adopted in May 2010, calling for a minimum target balance of undesignated funds between 5% and 8% of the annual budget. In addition, Durham performs 10-year revenue forecasting in order to appropriately plan for upcoming budget cycles.
Durham derives the majority of its revenues from property taxes (54% of fiscal 2012 revenues) with a significant portion of the revenues directed toward public safety (49% of fiscal 2012 expenditures).
The Aa2 bond rating is excellent for a community such as Durham. The most competitive rating is Aaa. The rating scale flows as follows: Aaa, Aa1, Aa2, Aa3, A1, A2, A3 ...
Bedford is the only town in NH of which we are aware with an Aaa rating. Concord, Portsmouth, Manchester, and the State of NH have an Aa1 rating. Durham, Keene, Derry, Hampton, Nashua, and Salem have an Aa2 rating. Dover has an Aa3 rating. Rochester has an A1 rating. Exeter has an A2 rating.
Moody’s indicated as part of this year’s rating process that if Durham continues to see expansion in the tax base consistent with recent trends, a bond upgrade may be in order in the future.
CONTRACTING OUT SOLID WASTE/RECYCLING COLLECTION A BREAK EVEN PROPOSITION – Administrator Will Not Recommend Contracting Out
The Public Works Department put out to bid curbside solid waste collection and recycling collection as it has done every three or four years.
In past cycles, results have shown that it has been significantly more cost effective continuing to undertake the process in house. This year, the bids were much closer demonstrating in essence a break-even comparison.
Collecting in house is expected to cost $590,947 v. contracting out with a low bid of $578,452, a projected savings of $12,495. The analysis is not so simple, however, as we anticipate operational savings next year of around $12,000 as a result of a change to this year’s collective bargaining agreement with the DPW personnel represented by AFSCME in moving personnel from a 4-day workweek to a 5-day workweek with less overtime use.
In addition, there is uncertainty in the tipping fee projections 18 months from now should Durham make the change – with increased costs anticipated if a change occurred. These realities, combined with the excellent citizen service provided by our in-house staff, and the ability to utilize those staff members within other areas of the municipal operation (i.e., snow plowing) as necessary, have resulted a determination by DPW and Administrator Selig that no change should be made.
The Town did not ultimately bid out operation of the Transfer Station and Recycling Center. Potential operators were interested in making Durham into a regional transfer hub and we had no interest in that outcome.
REQUEST FOR PROPOSAL RESULTS FOR MANAGEMENT OF CHURCHILL SKATING RINK AT JACKSON’S LANDING
The Durham Public Works Department, in conjunction with the Parks & Recreation Department, put out a bid for operation of the Churchill Rink for the upcoming skating season versus continuing to operate the facility in-house.
One challenge in continuing to operate the facility in-house with full time temporary personnel as has been done in the past is that with the new Affordable Healthcare Act regulations, the Town would be responsible for providing full healthcare benefits to these personnel with a significant additional financial impact to the community.
By contracting out the facility, not only does Durham have the prospect of enhancing operations with professionals versed in rink operation, but also mitigating cost exposures associated with new Federal regulations. It is also hoped that professional management of the rink might enhance future revenues but that remains to be seen.
Bids were mailed to five prospective companies. Ultimately only one company, RSG (Rink Services Group) out of Epping, NH, submitted a proposal.
Staff will be reviewing this proposal and if it ultimately looks acceptable, we will discus it further with the Town Council in the coming weeks.
ENHANCED CODE/ZONING ENFORCEMENT AT START OF SEMESTER UNDER WAY TO SET TONE FOR ACADEMIC YEAR
A brief note that the Durham Code/Zoning Enforcement Office has been out and about documenting trash violations, too many vehicles in driveways, and possible over occupancies in off campus properties. Our staff will be out over the course of the weekend as well.
EDC MEETS WITH CODE ENFORCEMENT OFFICER TOM JOHNSON TO DISCUSS CODE REVIEW/APPLICATION IN DURHAM
This Tuesday evening, August 20, 2013, the Economic Development Committee spent time talking with Code/Zoning Enforcement Officer Tom Johnson discussing about code enforcement in Durham. It was both an interesting and productive session that is available on DCAT On Demand, Channel 22, at http://dcat.pegcentral.com/player.php?video=98473550f45ccc0ba391b24b028e7e8b .
“SHARROWS” INSTALLED GARRISON AVE AND COLLEGE RD – A New Durham/UNH Initiative
The Town and University are installing ‘sharrows’ (a national standard symbol installed in the vehicle lane) intended to alert drivers that bicycles share the travel lane. Sharrows are used in instances where the roadway geometrics (in our case curb to curb widths) make it infeasible for dedicated bike lanes. They are installed in roadways which have low speeds (25mph) or less and in zones with high bike usage rates. They frequently replace or are used to supplement the old-style vertical yellow ‘Share the road’ signage. The sharrows are an alert - as drivers already yield to bikes in vehicle lanes. In NH state law vehicles must also leave a 3’ minimum gap when passing (at 30mp 4’ at 40mph 5’ at 50mph).
Ideally they are installed in a way so that the chevron directs bicycles to a travel line/position away from potential car door openings - so they are typically installed center-lane or just offset.
Garrison Avenue now features sharrows from Main to Madbury.
College Road (from Main St to Service Road) now features sharrows in sections which were too narrow for bike lanes. In other sections, bike lanes have been installed.
Durham and UNH will look at future opportunities for installation of sharrows and bike lanes as roads are resurfaced and or reconstructed.
Dedicated bike lanes must typically be >3’ and in Durham are marked with the bike symbol/arrow/bikes only designation.
Sharrows = Drivers share vehicle lane with Bikes
Bike Lanes = Bikes only (no motorized vehicles
DURHAM/UNH STORMWATER CENTER PARTNER TO ADDRESS RESIDENTIAL RUNOFF IN FACULTY NEIGHBORHOOD
The UNH Stormwater Center (UNHSC) in partnership with the town and the Durham Department of Public Works will install an innovative bioretention system to treat 6 acres of residential runoff in the faculty neighborhood. The design has been modified for the direct treatment of phosphorus and nitrogen loads discharging to the Oyster River.
This project is similar to other partnerships between UNHSC and the Town that led to the installation and monitoring of the filter that treats runoff from the Pettee Brook and Madbury Road municipal parking area in the center of town. The system installed at the Pettee Brook and Madbury Road annually removes 16 lbs of sediment, 2 lbs of phosphorus, 14 lbs of nitrogen and 4,392 cigarette butts that would otherwise have dumped directly into Pettee Brook, Oyster River, and inevitably into the Great Bay.
A story reported by New Hampshire Public Radio can be viewed at the following link:
http://www.nhpr.org/post/durhams-third-way-one-great-bay-community-blazing-new-trail-clean-water.
The new residential biorention system is expected to have similar success and is being planned for construction in September.
“CPR ON THE STREET”
McGregor Memorial EMS will be conducting a free informational CPR demonstration and education on Monday August 26th (weather permitting) on Main St. in Durham from 2:00 pm to 5:00 pm. The demonstration will be held on the downtown sidewalk to inform students, shoppers and residents alike about the benefits of learning Hands Only CPR.
This program, sanctioned by the American Heart Association, is part of a nationwide effort to save lives.
Most people who experience cardiac arrest at home, work or in a public location die because they don't receive immediate CPR from someone on the scene. As a bystander, you shouldn’t be afraid. Your actions can only help. Feel free to join in.
If you are interested in additional training or information, contact Sean Madden, CPR Safe Program Manager at McGregor Memorial EMS. He can be reached at 862-3674 or smadden@mcgregorems.org. The American Heart Association has an informative YouTube video on Hands Only CPR at http://www.heart.org/HEARTORG/CPRAndECC/HandsOnlyCPR/Hands-Only-CPR_UCM_440559_SubHomePage.jsp
BELLA’S OFFERS OPPORTUNITY TO GET TO KNOW RESTAURANT AT DURHAM’S MILL PLAZA
This spring, Bella’s restaurant celebrated its 1-year anniversary at the Mill Plaza next to Rite Aid. They had a small celebration with balloons and cake.
Bella’s menu is mainly American cuisine with some pub style appetizers and some comfort foods, with daily specials such as Shepherds Pie ,homemade lasagna, and some Italian dishes such as Eggplant and Veal Parmigiana. Their homemade soups are very popular too. Administrator Selig and ORCSD Superintendent Jim Morse both enjoy the liver and onions!
Bella’s really tries to cater to the locals as opposed to focusing on students.
Their hours are Tuesday thru Saturday 11:30 am to 9pm, Sunday 11: 30am to 8 pm.
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NEWS AND HAPPENINGS ... 
