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An Interview with Jim Rurak:
mayor Concealing growth numbers
TOM DUGGAN
(10/04/07)


Why should the voters look to you for leadership in Haverhill instead of mayor Jim Fiorentini?

When I was mayor we had a certain sense of balancing growth with preserving Haverhill’s quality of life and I think we are losing that balance. The mayor is concealing the fact that his growth is really on the edge threatening to eat up our quality of life. I acquired over 300 acres of open space when I was mayor. I am pro growth. I believe in economic development and industrial expansion but, I think you need to manage it in such a way to preserve what is unique to Haverhill.

Haverhill is a community with over 40 square miles, has lakes and open spaces, a well developed downtown as well as an industrial park, but the balance between the two needs to be upheld. You see, the mayor is not being truthful about the growth numbers. That’s why I brought an Eagle-Tribune to show you the headline about ...
That’s not going to help your case.

Well the point is that the balance between residential growth and incoming revenues is just not happening. Now we find out that … and I warned about this in February … we learned that there are 121 new students as the result of new growth.

During my tenure as mayor we planned for growth, we built new schools and kept under the levy limit just to make sure the revenues that were brought in kept pace with new growth. Right now we are getting to the point where the new growth is outpacing the revenue, and that is why I think people ought to vote for me. I have found a way to balance new growth and provide the revenue needed for the services that are required to run the city. Fiorentini is bringing us to the edge where it’s going to take quantum leaps in our tax rates and our water rates to pay for the growth and he’s denying that’s happening.

OK, so you say you have a plan for doing that how do you go about it?

We need to put a residential cap on growth downtown. During the 90’s we also had caps on buildings throughout the city We had two kinds of caps; one was an absolute building cap every year. The other was, there was no development permitted that was to be built out all at once. They had to do it over a period three years. So you don’t get an all-at-once influx of new people.

In 1995, when we didn’t have the water we froze all permits and didn’t allow another one unless we could find a way to pay for the water without increasing the water rates. As soon as we did, we imposed a hookup fee for new construction to pay for the water lines that come from Crystal lake and cross downtown to Kenoza. So we did those types of hard decisions to control growth and make sure we had the money to pay for it.

You said he is concealing the growth numbers why would he do that?

He claims that the growth that we have is not going to demand more services and it’s going to pay for itself but the numbers are showing there’s going to be a demand for more services. If the numbers show that we are going over the threshold then the growth is not good, that’s what the numbers show now. If the numbers didn’t show that and they showed an even pace that is good. So, he’s concealing the numbers and it’s going to push us beyond our limits.

What are the quality of life issues that you se as the most important for the people of Haverhill

One of them is the preservation of our natural resources.

We acquired over there hundreds acres of open space when I was mayor and at least half of that was on watershed. Haverhill has seven lakes, four are tied into the water system and we acquired land around all of them. We put in recreation spaces. These are natural attractions that are part of the fabric of Haverhill. He sold off some of the open space that we acquired.

The Schools are also a quality of life issues. There needs to be a different tone set with the school committee and the superintendent.

What kind of a tone is he setting?

Divide and conquer. I’ll give you an example, one of the things Haverhill fell behind in recently are the books to keep up with MCAS. We are teaching from books that do not contemplate what it is that the test is going to check up on. So, the school committee says ‘well look, we’ll buy the books but we can’t borrow money because the city’s getting financial aid for the schools.’ So, in order for the schools to borrow money they have to go through the city council. We’ll pledge $150,000 a year for three years to buy $450,000 worth of text books today, we just need the council to authorize it. And he votes for it. So Mr. mayor your job is now to take this request from the school committee to the state house and advocate for it. He decides all on his own that he is going to try and look like a fiscal conservative and say ‘well, no the school have to put up the money out of this years’ budget and he would only let them borrow the money over three years. They don’t have that kind of money. He ripped the loan order in half and it caused an enormous outcry. He finally backed down and he went and did what he was asked to do in the first place. That sets a very bad tone.

Is he a fiscal conservative?

I don’t think so, but I think he wants to project himself that way.

The other quality of life issue is the services we provide to our seniors and our kids. We’ve cut back on our senior services, the nursing programs and other programs like after school programs for the youth. We’ve turned our backs on programs for kids after school. A lot of kids don’t have a stable home and they need a place to go after school. He cut that.

What about MCAS, there is talk of lowering the standard to make it easier for kids to pass the test. Do you support MCAS?   I was the first mayor to embrace MCAS. I supported it then, I support it now. I think it is always important to look at whether it is pushing at the appropriate level. I’m not an expert at that. So I think we need to let the experts tell us about that. So we have to look at that but I don’t support lowering standards for political reasons. I do think we have to look at that but not for political reasons. They came up with the MCAS, and one of the reasons they came up with it is so that communities like Haverhill and Lawrence would get additional funds to hire the teachers they needed to do the job.

There is a perception, correctly or incorrectly that you are responsible for the Hale debt and the debacle that ensued. Can you address that?

Let’s discuss the $6.5 million Hale debt. The mayor is fond of using that $6.5 million number and I’ll address that in a minute. It would be wonderful if the city could be in the Hospital business and make money at the same time. It’s impossible. It was made impossible by the balanced budget act and the reputation that municipal hospitals have throughout the state.

We had a disproportionate number of Medicaid and Medicare patients at the Hale so, when the federal government cut back substantially cut on funding for procedures they did, the Hospital was bound to lose money. The problem with the Hale was, Quorum Management did not book those reductions until far too late and that wasn’t even caught by the auditors at Ernst and Young. We were paying Earnest and Young good money to oversee Quorum and they did not catch the slight of hand by Quorum.

Did they work for the city directly?

They worked for the trustees and the mayor. It would have been wonderful if we could have made money but what they did was cook the books.
So, we were all under the impression that the hospital was making money. The city had to pay all the bills that the hospital incurred and we were hoping that the money we got would cover that but in May of 2000 we discovered we didn’t have any cash so we did an investigation. At that stage we realized we either had to close or sell it off.

In 1998 the hospital lost 5 million and what they did was put the debt on the back of the hospital and said you pay off the debt until it’s paid off. Now the Hospital was built in 1984 for 35 million. It lost money in its first three years and every year forward it lost a little more money. So what you had was, it had to be subsidized by the city.

Once we went to bid we found a remedy that was not as bad as Fiorentini is portraying.

You had the 6.5 million debt hanging over the hospital and it was on the city‘s ill we had to accept that debt if we wanted to sell the hospital. But the city’s ability to pay a bill is not 6.5 million less. Up through 2000 the city was putting in annually almost $2 million dollars a year to keep the city afloat. That’s gone now.

So, the 6.5 is reduced by the 2 million we are not spending. The other thing is we had a 1.2 million margin in the tax levy. So we applied that to the hospital debt.  So now that 4.5 million debt is 2.5 million. So I’ve been called a tax and spender, I’ve had that reputation but I was the first one to get Haverhill below the tax levy after proposition 2 ½ by any considerable amount.   

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The October 2007 Edition of the Valley Patriot
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