HOULTON, Maine — The 26-year old entrepreneur who took over an Aroostook County town’s leadership role earlier this year, is offering town officials new avenues to getting the bills paid while also increasing revenue.
Newly appointed Town Manager Cameron Clark began poring over Houlton’s finances when he was appointed interim town manager in January. His accounting and finance background led him to explore ways to make balancing town expenditures and tax payer concerns easier.
Like many of the state’s rural towns, most problems come down to money, and from the start, Clark has sought new approaches to old problems.
About 55 percent of the town’s revenue comes from taxes, and almost immediately he realized that the town would not have enough revenue to support expenditures before taxes were collected from property owners in the fall.
That’s when he introduced the idea of securing a $1.5 million tax anticipation note to the Town Council. Although a common municipal option, it had been six years since Houlton had secured such a note, Clark said.
Other municipalities look to have one in place every year in case they need it, he said, comparing the note to a line of credit someone may have on their home or business.
“When we only collect those taxes once a year basically over half of our revenue only comes in once a year,” he said. “So that’s what’s creating the need for the tax anticipation note because we don’t have enough money in the bank right now to make it until October.”
Houlton put out a request for bids from banks for the town’s note and they are due on Friday. Following a review, the council will approve one of the bids in an upcoming meeting.
“There is a lot more conversation around finances that has come up now,” Clark said, adding that he likes to bring these issues to the Town Council and explain publicly why they are important and how they will help the town.
A change in state law last year altered the way towns sold tax-acquired properties. The new, more challenging requirements led many towns, including Houlton, to delay such sales.
Previously, towns put tax acquired properties out for bid with the property going to the highest bidder. Under the change, properties must be listed on the Multiple Listing Service to make more buyers aware of properties, Clark said.
To get the process moving, Houlton by law was required to hire a realtor to sell its properties.
Currently, the town has seven tax-acquired properties. Two were approved to be put for sale at the April 14 council meeting, and several more will come before council at the next meeting, he said.
New to the process, the town has stated conditions and language in each deed.
“With every sale, the buyer has to bring the property up to code within nine months,” Clark said. “Oftentimes these properties are in bad shape and that gives the town the authority to follow-up on the sales.”
Under the new law, any additional dollars collected above the amount of taxes owed and the town costs associated with the sale must go back to the previous owner.
“That’s a big change,” Clark said.
Another recent change Clark recommended was that the town secure a bond for much needed road projects. And next week, May 6, voters will decide on a $750,000 bond referendum to pay for the reconstruction of Reservoir Hill Road, a dilapidated and sometimes flooding town road.
Moving forward, it’s Clark’s intention to let the council know about potential financial issues before they become big problems.
“This accounting stuff doesn’t happen overnight,” he said. “In forecasting financials you can see these things. This budget year will look very different. There needs to be a little more work done during the budget process.”
