Dryden residents question city's debt crisis

Hundreds of taxpayers packed a hall in Dryden Thursday night to learn more about their town's future as its leaders try to work their way through a major cash crunch.

The meeting was supposed to be about councils decision to sell the local phone company to raise money, butpeople like Enrique Salinas wanted to know why the city spent so mucheven after bank accounts ran dry.

"Why, why did the council ever give the OK to keep spending money when they knew they were going to lose the tax revenue from the mill?" he asked. "People were losing their jobs, and this is where we are now."

City officials last week announced a planto sell the Dryden Municipal Telephone System to Bell and TBaytelto get rid of a money-losing asset and pay off some of the city's $16 million deficit.

Gerry Artimowich, who works for DMTS, said he's worried about his fellow employees.

"Everybody's not going to have a job," he said. "So, yeah it'll be interesting to see how it's going to get split."

Artimowich said employees were told some would keep their jobs, but weren't given any other details.

DMTS has lost millions over the last four or so years, which isone reasonDryden has had so many cash issues. Another cause of the citys soaring debt was the reassessment of the local forestry mills tax base, which resulted in about $2.5 million less in revenue for the city this year.

Not raising taxes

Mayor Craig Nuttall said he knows his town has a hard road ahead. He said spending will be minimized.

"For a couple years, we won't be doing too many capital projects, if any," Nuttall said.

"We really have to cut the cloth for the pattern. That's it. And the pattern's pretty small."

One positive point that was noted at the meeting was that most infrastructure, such as sewer and water, is in good shape. Dryden is banking on the fact it won't require much in the way of capital expenses.

But there is no time to waste, as the the citys overdraft when it hits a predicted $7.5 million next year will be slapped with a higher bank interest rate.

Nuttall said council can't raise taxes again, as they went up 10 per cent last year.

He said all city services are on the chopping block, and Dryden needs to save money any way it can.