Council opposes TABOR II, Excise Tax referendum question

By Elna Seabrooks
Staff Writer
    HOULTON — Two citizen-initiated petitions on the Nov. 3 ballot were unanimously renounced last Tuesday evening at the Houlton Town Council meeting with resolutions opposing them.

TABOR II
    Town Manager Doug Hazlett said TABOR II — Question 4 on the ballot — is “a slap in the face to our charter and the democratic process that was put in place.” He added that there is sufficient citizen input through the board of budget review and public hearings. He also said, if passed, TABOR II would require a referendum every year on the budget adding “considerable time and expense” to the budget process. Hazlett stated that the majority of Maine towns have passed resolutions opposing it.
    TABOR II is similar to an earlier version defeated by voters in 2006. Supporters say that it would rein in government spending and require voter approval by referendum for spending over those limits and for increases in state taxes.
Excise tax referendum
    The excise tax referendum — Question 2 on the ballot — would cut municipal excise taxes on motor vehicles less than six years old and exempt hybrid and other alternative-energy and fuel-efficient vehicles from sales tax and three years of excise tax.  
    That ballot question was also opposed by the council with a formal resolution that said, in part, “the second largest source of municipal revenue comes from municipal excise taxes. In 2009, Houlton will raise $784,000 from excise taxes. A loss of 40 percent of this revenue, $320,000, will require significant cuts in town service and/or an increase in taxes.”
    Chairman Paul Cleary said “the next council will have to figure out how to come up with $320,000 if it passes.”             Hazlett said “it would be very detrimental to communities all over the state of Maine …  Excise tax stays in the community. It does not go to the Federal government. It does not go to the state government.” Adding that the measure has a fundamental flaw, Hazlett also said a hybrid with low mileage could get a tax break while another car with better mileage would not qualify because it is not a hybrid thus defeating any environmental objectives.
Airport leases
    A lease for property, co-owned by Houlton and the Federal Aviation Administration, at Houlton International Airport with Aroostook Renewable Energy, a partnership for a pellet business, generated some discussion over the viability of the business and risks to the town.
    Blaine Jackett, a Houlton resident, asked what would protect the town if the business failed since the property is highly desirable. Hazlett responded that the lease has several stipulations that are safeguards if the partners fail to start building within one year or violate terms of the lease. The partnership, however, can cancel in 90 days if its financing is not achieved. The town can cancel for any reason with 90 days’ notice.
    Councilor Paul Romanelli called the arrangement a “win, win” for the town. Cleary said it meant as many as 40 jobs and Councilor Nancy Ketch said the details of the lease had been “in the process for some time.”  
    Another lease at the airport involved two identical contracts for two parcels of land for a business operated by Beals Aircraft Service.
    The councilors unanimously authorized Hazlett to sign all of the pending lease agreements.
Houlton Police Department
    The council accepted a Stop Violence Against Women grant for $11,800 to supplement law enforcement training. It requires no matching funds from the town.
    The police department will get a second officer for the drug task force at no cost to Houlton, thanks to an agreement with the Maine Drug Enforcement Agency (MDEA). Hazlett said the salary, benefits, and clothing allowance will be totally reimbursed. Chief Butch Asselin said he is a big supporter of MDEA’s work in Maine and “they don’t have enough staff to deal with drugs” in the area.  
Road and sidewalk update
    In a brief update on the work done to repair roadways and sidewalks, Hazlett said substantial progress was made on an “aggressive agenda” despite weather conditions in June and September.
    Twenty roads were completed and work in Market Square was deferred until next year due to the construction on the senior citizens complex. Work on the Mechanic Street parking lot, he said, was cancelled since it was not considered critical.
    The town manager said 10 sidewalks and related billing was completed. Six more are completed, but final accounting is forthcoming. Two small projects, deemed unnecessary, have been cancelled. Five sidewalks have been deferred until 2010. Although, one — Military Street to County Yankee — will be completed this year, weather permitting.
    The remaining four, North Street, School Street, Randall Avenue and Randall Court — will be completed next year as well as the new sidewalk on North Avenue. And lawn repairs will be done if possible before weather makes that prohibitive.
    Hazlett said with a $240,000 carryover until next year, the entire $1 million will be spent — 78 percent for roads and  22 percent for sidewalks.
    The next council meeting is Monday, Oct. 26, 6:30 p.m. at 21 Water Street.