HOULTON, Maine — If the town’s proposed 2015 budget is approved as presented, residents of Houlton may see yet another hike in their property tax bills.
The town council agreed to bring forth a 2015 spending package in the amount of $10,389,996 during a special meeting Monday. That budget figure, which is an increase of $536,891 (5.1 percent) over last year, is based on the recommendations of the Board of Budget Review and Town Manager Butch Asselin.
A public hearing, in which residents can weigh-in on individual lines of the budget, is scheduled for Tuesday, Jan. 20, at 6 p.m. in the council chambers.
During Monday night’s meeting, the council made a few changes to the suggested amounts in the budget. Funding for the Northern Maine Development Commission was eliminated from the budget by a 3-2 vote. Councilors Jane Torres and Brent Dickison opposed the reduction. It would be the first time in many years that the town did not provide funds to NMDC for its services. The council could change its mind on NMDC funding during the public hearing.
Councilors also rejected a $2,000 line item for “homeless shelter” and reduced the amount it would give to the American Red Cross to $1,500, which is the same amount as 2014. The Red Cross had been seeking $4,000.
Municipal spending has gone up over the past three years. In 2012, the town spent $6,877,774 to run the local government; while in 2013, municipal spending was $6,955,271; and in 2014, the municipal budget was $7,088,535.
This year’s municipal spending plan is $7,568,519 (an increase of $479,984 or 6.3 percent), not including the town’s share of the RSU 29 budget or the County tax.
Asselin said the reason that the municipal side of the budget is up so much is because of a number of factors. Some of those factors include $103,000 to lease ambulances; $57,000 for Maine State Retirement; $69,000 for cost of living wage increases; $30,000 for a new police cruiser; and $138,000 for capital improvement projects.
Those capital improvement projects include a new salt and sand shed, replacement equipment for public works, upgrading the municipal phone system and new computers.
Estimates for the RSU 29 budget are conservative, with the town projecting $2,452,221 as its share. Last year, Houlton’s share was $2,449,570, while in 2013 that figure was $2,215,030. Asselin said he based that estimate on conversations he had with RSU 29 Superintendent Mike Hammer.
The tax rate has also risen slightly in recent years. In 2014, the tax rate was held steady at 2013’s rate of 21.75, and in 2012 the rate was 19.95. The tax rate is not set until July, after the school budget is passed. Asselin said it was too soon to say what the projected 2015 property tax rate would be. An increase, however, seems likely based on preliminary figures.
“I think it is a good budget and a pretty lean budget,” he said. “There are no frills in it and it takes care of some of the things that the town has been putting off.”
A bond package will likely be sought to cover many of these expenses, Asselin said. That bond could be around $586,000, or it could be even higher. Because of the large amount, voters would have to sign off on the bond during a referendum vote, likely in June.
