Encourages school board to curb spending
By Elna Seabrooks
Staff Writer
HOULTON — In a move to maintain roads and sidewalks, Monday night, the town council restored $67,000 to the $9 million budget proposed by the town manager and approved by the Board of Budget Review.
The council also left funding for the SAD 29 mandated budget at $2.2 million with strong words from several members encouraging transparency and openness to keep taxpayers from footing the bill for an even higher school budget that would have to be covered by an increase in the current mil rate.
Councilor Fred Grant said the school board should be concerned about the budget, especially with the huge cuts coming from Augusta. And, he recommended that as representatives of the taxpayers, the council should “put a hand out to the school board to find ways to reduce the budget and achieve transparency when it comes time for the town to vote on the budget.” The school budget, however, is a mandated expense for the town.
Donald Keiser, Board of Budget Review chairman, said the very tight budget reflected mostly unavoidable increases like expenses for salt, sand and road marking, higher employee health benefits, and salary increases hinged to contractual agreements in addition to an extra pay cycle in 2010.
He was the only speaker to address the council for their review. A public hearing is tentatively scheduled for Monday, Jan. 25 following the regular council meeting at 6:30 p.m.
Although expenditures for Roads 2000 were set at $200,000, Keiser said the budget panel had agreed generally that the account should be brought up to a full mil of $267,000. He also commended the review board’s efforts for an orderly process and the town manager and his staff for work on the budget.
Councilor Paul Romanelli said Roads 2000 is a “planned program that is very, very valuable” but “it is not a general maintenance program and only covers a miniscule portion of the roads.” Grant said “thank God we had the bond” referring to the million dollar road and sidewalk repair bill approved by taxpayers.
Romanelli also said “we are right on the line for increasing taxes.” He remarked that the mil rate went up last year and to “keep this prosperity going we want to keep the mil rate under control.”
Councilor Nancy Ketch pointed out that the council “can override the Roads 2000 ordinance which was put in place for a reason.” But, she added, “if we’re not going to abide by it we need to get rid of the ordinance.” Councilor Sue Tortello commented that she favored putting in the full mil adding that she expected voters to “put our feet to the fire.” Councilor John Fitzpatrick said he had no problem with putting the extra $67,000 back into the budget but it might require a mid-year review to keep a handle on expenses and income.
And, despite the fact that the SAD 29 account is a mandated expense, Keiser said there was considerable agreement in the budget sessions that it was time to send a clear message to the school board about spending. He acknowledged the importance of providing a good educational product for students but he said the public needs to be aware of the impact of spending on taxpayers.
Following Keiser’s presentation to the council, was a line-by-line review of revenue and expenses. Anticipated revenue for 2010 is budgeted at $8,712,150. The biggest shift in revenue is a near 56 percent hike in ambulance income due to improved billing procedures, followed by an almost 10 percent increase in revenue from taxes.
Ambulance revenue is up, according to the town manager, because the new billing service takes into account the higher Medicare reimbursements for advanced life-care procedures performed by town paramedics and an increase in use of ambulances by residents, many of whom are aging.
Anticipated income from ambulance billings jumps by $425,000 and probable real estate and business taxes shoot up by $452,500. The deepest cut in revenue is a projected $240,900 drop in funding from state agencies. With other expected cuts in revenue, the town’s 2010 income is estimated at $8.7 million which is still up 8.2 percent from 2009.
On the expense side, employee benefits loom as a continuing issue for contract negotiations in the future. A $56,000 jump in health care benefits would have been even higher without an increase in employee contributions for premiums and higher deductibles.
Another big jolt to the budget is the expected increase in debt service due to a full year of interest on the million dollar road bond. In 2010, it goes up from $88,051 to $156, 984. The fund balance of reserves is, according to Town Manager Doug Hazlett, in a position to cover the difference between revenue and expenses.
The budget, as reviewed and approved by the council, goes for a public hearing with the unknown factor of the final school budget expense. SAD 29 is on a fiscal year; the town is on a calendar year. The school budget process should begin within a few months.
The next regularly scheduled council meeting is Monday, Jan. 11, 6:30 p.m., 21 Water St.
