Revenue cuts loom for town of Houlton

By Elna Seabrooks
Staff Writer
    HOULTON — At its Monday meeting, the town council examined possible serious budget ramifications if the coming November statewide ballot issues to cut excise tax revenues and limit municipal spending are passed by the voters.
    The effort to repeal Maine excise taxes would cut tax revenues to municipalities generated by car sales and registrations. TABOR 2, would impose limitations on state and local spending unless voters approve. Although both ballot issues cut taxes for individuals, they also cut revenues to towns. In that case, Councilor Paul Romanelli said: “The council will have no choice but to cut services or raise taxes.”
    That scenario is compounded by the fact that other money streams for Houlton, already cut by the legislature in Augusta, face future trimming according to a report by Town Manager Doug Hazlett.     Hazlett’s revenue update points to a potential loss of between $500,000 and $600,000 — “a cut in spending of very significant proportions.”
    At a June meeting, the council examined budget figures and cut spending to reduce the budget from $8.5 million to $8.4 million. Hazlett’s report points to several fixed expenses which account for the majority of the budget: school and county taxes, staff salaries and benefits, property, building and equipment maintenance and essential services such as snow plowing and road maintenance.
    The role of winter weather and related fuel costs coupled with the “wild card” of statewide voter decisions in November says Hazlett could do serious damage to the town’s finances.
    Chairman Paul Cleary said the recent “increase in the mil rate was due to lost revenue, not overspending.” Romanelli cautioned if TABOR 2 is passed, some localities “will be on the verge of a new form of government” because spending and funding will constantly go to referenda.
Some good news
    The town manager’s report refers to improvements in ambulance billing and operations in addition to a slight increase in excise tax collections that are helping Houlton’s bottom line. Monitoring of revenue and expenses is ongoing and if revenues weaken, further cuts, it says, will be required. Also according to the report, under-spending is essential to replenish the fund balance and work has begun on the 2010 budget.
    An update on the road and sidewalks revealed that most of the work has or will be done this year with only a few of the lesser-used roads to be completed next year. Councilors agreed that public reaction has been favorable to road and sidewalk improvement. Romanelli said visitors “are amazed at the roadwork done in Houlton.” He also acknowledged that the cooperation of Houlton Water Company in the roadwork “has been great.”
    The issue of dust from construction for the new senior citizen complex near Market Square was discussed and steps to minimize it will be taken.
Other business
    The council accepted a planning grant of $10,000 on behalf of the Houlton Band of Maliseets for research on economic development. It requires no match from the town and presents no conflict for Sue Tortello and Brian Donnelly, both councilors who work for the grantee. The council also granted the Maliseet nation a license to operate Beano/Bingo for one year. Again, no conflicts related to Tortello or Donnelly per advice from legal counsel.
    The council authorized the town manager to execute the final decree on the Hows Corner superfund site agreement.
    Donnelly said community response to the recent men’s state softball tournament was outstanding from staff of the Rec Department to local businesses.
    Councilor Nancy Ketch commented that the Potato Feast Days were successful and she congratulated the Greater Houlton Chamber of Commerce on the events and turnout. Tortello also remarked on the weekend activities and said she was pleased to see a reinstatement of the historic walking tour of Houlton as part of the events.
    The next meeting of the council is scheduled for Monday, Sept. 14 at 6:30 p.m. at the Town Office on Water Street.