No. City water and sewer services are paid for by user fees and will not be affected by the tax cap.

2. What will happen if the city faces an emergency of some kind and needs more money?

2. The tax cap can be overridden by a two-thirds vote of the Laconia City Council (four out of the six councilors). Any legitimate emergency will certainly be able to get a two-thirds vote.

3. Why are there two sections in the tax cap that talk about the override ability of the council?

3. Section B was part of the original proposed amendment and allowed only two exceptions to the tax cap: capital expenditures (expenses paid out on projects with long-term benefits such as roads and buildings) and municipal bonds (the expenses incurred by a city borrowing money for various projects). However, this limitation was one of the problems Assistant Attorney General "Bud" Fitch had with the language of the tax cap. To satisfy the State of NH, the "Override Provision" in section A was added to allow for an override vote of two-thirds of City Council for any budget item, thus bringing this proposed tax cap amendment into compliance with NH state law.

4. Won't this tax cap suppress growth?

4. When companies and individuals look for a community to move to, they frequently look at the tax burden they will have to shoulder. Communities with a high tax rate discourage growth. Franklin, NH has had a tax cap for fifteen years, and they are experiencing tremendous growth. Business growth means additional taxes for the community, too, which could make it even easier to balance the city's budget.

5. Won't a tax cap mean that personnel will be laid off and needed services will be cut?

5. This is one of the most frequent objections to a tax cap and is largely a baseless "boogeyman." Franklin, NH has never laid off any city workers as a result of their tax cap. Services have continued. Some projects have been delayed until more money was available, however, this kind of budgeting is no different than that exercised by any responsible homeowner who has to make decisions about priorities. Laconia's problem is not that the city doesn't have enough money coming in; Laconia's problem is that the city's leaders are spending too much.