Derry sees more signs of an improving economy
DERRY — For the second quarter in a row, the local economy is showing signs of improvement, according to town officials.
Chief Financial Officer Frank Childs and Controller Janice Mobsby presented the Town Council last week with an overview of the second quarter of fiscal year 2014.
Mobsby went over some of the highlights of the past quarter that ended in December.
The town’s cash balances are $7 million higher than last year, she said. This is a little artificial, however, as there are funds that were raised by bonds for transfer station and road projects that haven’t been spent as of Dec. 31, she said. Also factoring into the change in the cash balances was the timing of a school district payment. The town incurred the payment last year at this time but didn’t this year, she said.Also during the second quarter, accounts receivables, property tax and property tax liens all improved compared to last year. Unpaid property taxes fell by $115,000 to $3.4 million as of Dec. 31.
Mobsby said unpaid tax liens of $1.5 million dropped by $57,000 over the prior year. When considering the growth in property taxes, the rate of increase in unpaid tax liens is lower as a percentage of the total tax levy.
“It’s demonstrating, as I’ve said the previous quarter, the economy is strengthening in Derry,” Mobsby said. “The unpaid property taxes and tax lien position is improving.”
In addition, capital assets improved overall in the past year by $33,000 over last year.
“The town is continuing to invest in capital assets at an amount that is exceeding depreciation,” Mobsby said
The town is focusing more of its investments on roads and vehicles and less on building improvements, she added.
Councilors are scheduled to receive a review of the current third quarter during their regular meeting on Tuesday, May 20, Childs said.