By Mary Kate Barbosa
The City Council started this tremendously difficult budget season with a financial gap of $1,262, 201 as compared to last year. This initially bleak picture was due to a combination of changes in both the expense and revenue lines. Expense increases included the capital improvement plan, restoration of pavement programs, police academy training, and employment costs all totaling $362,547. Non-property tax revenue was affected by a $230,000 decrease in state revenue sharing, a $42,000 decrease in federal/state Urban Rural Improvement Plan funding, a $18,000 decrease in general assistance reimbursements, a $118,000 loss of Ryder A Medicaid reimbursement, and a $490,000 loss of Super Rural Medicare Reimbursement. The Council directed that department heads examine their budgets, and the City Manger examined each city expense and revenue line for possible savings. In the first round of reviews, the Council considered all suggestions. Due to a mild January, a $52,500 savings was realized in public works, and CIP reductions totaled $192,745. The Council discussed closures of the outdoor pool and the Nylander, paying off the debt service for the Wellness Center early in order to save on accrued interest, hour reductions at the public library, and reductions in general government. This initial review yielded an anticipated net reduction of $764, 623. At this time, the City Manager continued to communicate the financial impacts of losing Super Rural Funding under Medicare to all three congressional offices and Maine and National Ambulance Associations; he cooperated with the Maine Ambulance Association regarding the loss of Ryder A or Maine Care reimbursements; and he participated in phone conferences with state senate and house members seeking solutions to the state’s and resulting city’s budget crisis. Department heads continued to examine their programs and propose reduced service levels, reduced programs, reduced or eliminated capital projects, and the deferral of any possible expenses.
An increase of $180,000 due to state amendments to revenue sharing, $290,976 in Medicare Super Rural reimbursements restoration, and $510,000 in a one-time payment from the Tri- Community Landfill bolstered the second review. CCC&I funding was decreased; Council salaries were removed; adjustments were made for union contracts, insurance, and wages; an LED street light retrofit funded by Efficiency Maine will garner $4,500 in savings; the library bathroom renovation was postponed; and other suggested savings allowed the outdoor pool and the Nylander to remain open.
In the end, the Council is very appreciative of all the hard work of the department heads and the city manager in working diligently to examine, recommend, re-examine, and amend all levels of service provisions to move the initial budget gap of $1,262,201 to a resulting gap of $113, 044. Within this budget, the Council retained all essential programs and services. Minimal service level changes were made after numerous programs, service level changes, and operational aspects were reviewed. The Council believes that the overall budget situation could improve prior to tax commitment, and such adjustments will be made in June. Finally, further program review, service level priorities, cost saving measures, new revenues sought, and further amendments to operations will continue throughout the year in anticipation of similar circumstances for the year 2011.
Having made significant progress in balancing this year’s final budget, the Council now invites the community to participate in a public hearing to share constructive comments and suggestions which may further assist in the process. Citizens are welcome to attend the public hearing which is to be held at 7 p.m. in council chambers on March 29, 2010. Citizens may also provide their comments in writing to the City Manager at the city office at 25 High Street or at manager@cariboumaine.org.
