Council considers welcome signs, weighs impact of excise tax change

16 years ago
By Barbara Scott
Staff Writer

    Caribou City Council members were given a chance to review a number of different artistic drawings, one of which may be used to replace the current weather-worn, damaged or stolen Welcome to Caribou signs located at the major entrances to the city.     During a presentation given to the council by Sandra Huck, and Michael Shrewsberry of NMDC, it was noted that Wayfinding signs should be located at key ‘decision pints’ for drivers, even in combination with gateway signs and should highlight key destinations and city services. It was also encouraged to have the signage have a consistent, easily recognized design used throughout the downtown area. Wayfinding signage is especially import along U.S. Route 1 and the proposed bypass, as a way to help direct drivers in to the downtown area.
    The panel discussed the various pieces of artwork and proposed wording on the designs, one of which included artwork created by Caribou resident artist, Chester Gage. Huck stated the group was at this point in time looking for direction from the council members regarding their decision on the signs.
    Councilwoman Karla Bell commented that perhaps the designs should be presented to various service clubs in Caribou as well as the Chamber of Commerce regarding preferences to any one particular design.
    Mayor Ken Murchison agreed that more input would be helpful in the final decision but noted that it was necessary to have uniformity in signs throughout the city.
    Shrewsberry said he would be responsible for taking the presentations to other groups for further input on the project. Councilwoman Bell motioned to table the decision on the new signs until Shrewsberry contacted the other sources. The motion was seconded by Councilman Chris Bell. Besides the new look in welcoming signs, logos on the signage are also under consideration.
    Other agenda items at the Sept. 28 Caribou City Council meeting included considering authorizing a letter of support for Vaughn Keaton for the Distinguished Eagle Scout Award. The letter in support of Keaton was read into the city’s record  by Mayor Murchison. The letter, in part, reads: “On behalf of the City of Caribou, the Caribou City Council has had the distinct privilege of reviewing the achievements of Vaughn Keaton for his pending nomination for the Distinguished Eagle Scout Award. It is noted that the Distinguished Eagle Scout Award is made to those Eagle Scouts who have demonstrated outstanding service in their profession and to their community for at least 25 years after obtaining their Eagle Scout Award. The Caribou City Council could not lend stronger support to any individual within our community as deserving of the recognition and honor that would be bestowed upon Vaughn by such an honor as the Distinguished Eagle Scout Award.
    “The name of Vaughan Keaton is synonymous with Scouting in Caribou. We know Vaughn as a business leader, as a contributing leader in civic organizations and supporter of numerous youth activities. Vaughn is more than a volunteer, more than a leader, even more than a mentor to Caribou youth. He has and continues to demonstrate within our community that, ‘Once an Eagle, always an Eagle.  As a community we have witnessed for over 47 years what the true meaning and expectations can be for an Eagle; we know that to be Vaughn Keaton.” A motion by Councilwoman Karla Bell, seconded by Councilman Dave Martin  resulted in the approval of the letter of support.
    The council considered acting upon bids for the construction of a boat launch located off Lyndon Street for the Aroostook River, project in partnership with Maine Department of Conservation.
    On Sept. 15 at 2 p.m.  pre-bid meeting was held at the site of the future boat launch, on Monday, Sept. 28 at 2 p.m., the bid opening took place in the city council chambers. The winning bid for the project was submitted by  McGillian, Inc. at $ 79,356.
    This project was approved by the council earlier this year. The estimated cost is to be an estimated $91,000, of which the state has agreed to reimburse up to $75,000. According the Kathy Mazzuchelli, director of Caribou Parks and Recreation Department, “ We have $25,000 in reserve for this project and we anticipate having sufficient funding to complete the work.”
    Councilman Chris Bell motioned to accept the bid as named, this was seconded by Karla Bell, and the council voted to accept this bid, allowing the project, after eight years of planning, to begin.
    Other bids considered for the boat launch project included: M.J. Ouellette with a bid of $79,650 and Soderberg Construction submitting a bid  of $83,790.
     In a lengthy discussion the council consider acting upon a: Resolve, to Declare the concerns of the Caribou City Council, on the November 2009, referendum to amend the automobile excise tax initiated Bill LD 974. The resolve contained the following:
    • Whereas, the Maine Policy Heritage Center initiated LD 974, An Act to Decrease the Automobile Excise Tax and Promote Energy Efficiency, would decrease revenues to Maine’s towns by over $82 million per year used to plow, treat, maintain and reconstruct nearly 14,000 miles of local roads and nearly 850 bridges; and
    • Whereas, a ‘yes’ vote could cut an estimated 40 percent of $470,000 per year in locally generated non-property tax revenue that is currently used to maintain Caribou’s 152 miles or roads and assist in maintaining 91 miles of state aid road systems; and
    • Whereas, to replace the estimated impact of the Excise Tax amendment would require an increase in the local property tax rate of $1.77 per thousand of assessed value, 1.77 mils; and
    • Whereas, Excise Tax currently provides the third largest non-property tax revenue collected and retained locally, a form of user fee, of approximately $1.2 million annually and is in direct proportion to the resources expended by the City on maintaining and improving local road systems; and
    • Whereas, statewide municipalities currently expend approximately $235 million per year to maintain and reconstruct local roads funded by $210 million in Excise Tax receipts and $25 million in state road assistance, an expenditure level that would be severely impacted by the potential loss of over $82 million of this funding per LD974; and
    • Whereas, the initiated Bill LD 974 provides inequitable tax rate reductions to vehicles less than six years old ranging from 38 to 70 percent and no tax rate reductions to vehicles six years and older which comprise 68 percent of vehicles registered in Maine; and
    • Whereas, the initiated Bill LD 974 further provides for a sales tax and three years of Excise Tax exemption for ‘alternative or hybrid’ vehicles reducing their user fees for their road uses; vehicles having the same impacts on local roads as all others; and
    • Whereas, Maine municipalities receive an average of $2,654 per local road mile in federal and state assistance as compared to the national average of $4,553; a further reduction of locally generated user fees via Excise Tax will likely result in the reduction of road maintenance and reconstruction or the equivalent fiscal impact of other essential or local option services;
    • Now, therefore, be it resolved that the Caribou City Council hereby acknowledges these detrimental founded impacts associated with the initiated Bill LD 974  An Act to Decrease the Automobile Excise Tax and Promote Energy Efficiency; and further agrees to provide information to the voters of Caribou regarding the anticipated negative impacts of this initiated legislation.
    Council members asked  if the excise tax initiative is adopted by the voters, when would the reductions in excise tax rates go into effect?  According to information the council reviewed there are two answers, depending on a legal interpretation. The pertinent law is found in Maine’s Constitution at Article IV, part third, section 19. Generally, initiatives become effective 30 days after the govenor announces the certified results of an election, which takes place about 10 days after the election. In that case, the reduced excise tax rates and excise tax exemptions would go into effect around Dec. 15, 2009.
    However, that constitutional provision also delays the effective date of an initiative that, “entails expenditure in an amount in excess of available and un-appropriated state funds.” Since this initiative is defined as a “tax expenditure,” it is possible this constitutional provision would be invoked. In that case, the initiative becomes effective 45 days after the next the time the Legislature convenes after the November election. The Legislature is scheduled to convene on Jan. 6, 2010, so that would make the effective date sometime around Presidents’ Day 2010.
    The excise tax question will be the third referendum question on the November ballot.
    While wanting the community to be aware of the important factors this vote will bring about, Councilman Christopher Bell commented, “1.77 mil is a significant increase and while our job is about not increasing taxes, not telling citizens how to vote, I would urge caution.”
    “I believe these are scare tactics,” said Councilman Mark Goughan, “I see some inconsistency in this resolve. I can’t tell someone how to vote.”
    Councilman David Martin commented, “My vehicle is seven years old like 68 percent of every other vehicle, I will gain zero benefits if this passes and will see a raise in my property tax.”
    “Overall, should this referendum question pass during the November vote, Caribou’s mil rate will most certainly go up to cover the loss of revenues,” said Caribou City Manager Steve Buck.
    Other agenda items considered by the council included:
    • The renewal of a Bingo Game of Chance license for the Lister/Knowlton VFW Auxiliary No. 9389, at 253 Van Buren Road. This request was approved.
    • The acceptance of a donation of land to the city of Caribou. The land in question is located on North Main Street, Tax Map 35, Lot 103, Book 1159 page 692. Councilors agreed to accept the land donation in lieu of $108 in outstanding taxes and notify abutting landowners of the land availability for a minimum bid of $4.500; should neither abutting property owners be interested in the small but buildable portion of land, the city would then approach the public for bids.
    The next Caribou City Council meeting will be Tuesday, October 13.