HOULTON, Maine – The nine-member Houlton Board of Budget Review heard from town department heads regarding proposed expenditures in the town’s $16.1 million 2025 budget on Monday night at the town office.
As it stands, next year’s budget is $2.45 million more than this year’s $13.7 million budget with some of the highest increases coming from police, ambulance, public works, employee benefits, roads and RSU 29.
“The budget has to get cut,” said town councilor James Peters during the Nov. 12 meeting. It was the first time councilors saw the proposed figures.
Initially, there were five vacancies on the review board, but an increased interest in how the town is spending taxpayer dollars led several community members to apply for the remaining seats.
“I think this is the first time in a long time that we have had a full board,” said Sue Tortello, the board’s chairwoman. During Monday’s first budget review meeting, town manager Jeremy Smith explained to the board members that the 17.8 percent increase over 2024 is tied to a dramatic rise in costs.
“The cost of personnel, the cost of equipment, the cost of materials, the cost of schools, all went up. So we are looking at that burden going on to the community,” Smith said. “Our job is to say, ‘OK, obviously all these wish lists probably aren’t going to happen,’ because that’s going to be a significant burden on taxpayers.”
Smith posed questions to the board.
“What are the priorities, what can we whittle down a little bit, what can we whittle down a lot, and what do we absolutely have to have and can’t change, ” he said. “We have to make sure we are as accurate and responsible as possible.”
The hefty proposed increase comes at a challenging time for town property owners who have been hit hard with tax increases in the past several years, after a town property revaluation, decreased state contributions and school district increases.
In the 2023 revaluation of the town’s 3,109 properties, 333 property valuations increased more than 40 percent; 17 neighborhoods were more than 40 percent and the remaining 86 were below 40 percent, according to the town assessor Terry Duff.
If the proposed 2025 budget is approved without changes, it will increase taxes again by approximately 5.5 mills, according to Smith.
That means that a property valued at $100,000 would get $550 added to their property tax bill or a $200,000 property’s tax bill would increase approximately $1,100, he said in a recent town council meeting.
Smith detailed some of the increases including a $793,000 RSU 29 school budget increase for next year, an additional county tax of $211,000, a part-time minimum wage increase, as well as an increase in police department spending, a four percent cost of living increase across the board for all staff and employee benefits due to a nine percent rise in medical plan costs.
The roads repair budget projection jumped from $200,000 in 2024 to $600,000 in 2025.
For the past several years town roads have been deteriorating and Smith said they need to dedicate money to roads because the more that maintenance is deferred it will cost more in the long-run and take longer to repair.
The Houlton Police Department was first up for review on Monday night. The 2025 police ask is $1.7 million, up from $1.3 million in 2024.
Chief Tim DeLuca said the bulk of his increases are contractual and related to pay increases and salaries for several new officers.
This is not the first year DeLuca’s proposed expenditures increased significantly, only to be cut under final review which may happen again this year.
“The police budget will likely see cuts,” said Peters in the Nov. 12 town council meeting.
During his Monday night review by the board, DeLuca explained that a budgeted $90,000, includes $15,000 built-in overtime for emergency dispatchers and that it is more cost effective than hiring additional staff.
The board also discussed $43,266 paid to the Houlton Humane Society by the police department.
DeLuca explained that the department has a contract with the humane society to take stray dogs, veterinary services for injured animals, and dangerous dog quarantine.
Other departments reviewed on Monday night include, fire, ambulance, cemetery, public works and airport.
The next public budget review meetings will be held at 6 p.m. on Dec. 4, 10, and 16, with a public hearing slated for Jan. 6.
