New ordinance governs town spending

By Elna Seabrooks
Staff Writer
    HOULTON — Management of the town’s undesignated fund balance will now be guided by three spending tiers: a minimum, a target and a maximum — all in relation to the approved expense budget.    In other words, specific actions will be taken based on the amount of available undesignated funds at one-, two- and three-month levels to cover operating expenses. And, by establishing those levels through the new ordinance, non-emergency spending is prohibited when the fund balance falls below the minimum level. Currently, the undesignated fund balance is close to the minimum level.
    Chairman Walter Goodrich said the new measure “sets guidelines for future managers and councils.” Councilor Paul Romanelli applauded the mandate saying “future managers and councils should not lose sight that the money belongs to the people.” The  new ordinance was passed unanimously when councilors met Monday evening.
    And, since the new regulation is not in the charter, Councilor Sue Tortello commented that periodically “it should be reviewed to make sure it meets our needs.”
    The ordinance resulted from urgings by RHR Smith & Co., Houlton’s auditor, that a policy be developed regarding undesignated funds. The strategy calls for efforts to hit a 60-day spending level, if finances fall below that target while still allowing a benefit to taxpayers by alleviating the budget’s impact on the mil rate.
    At a level above the maximum, the policy also allows a benefit to taxpayers as long as the level does not fall below the 60-day target. However, the new ordinance always allows the council to approve spending of undesignated funds for emergencies.
Future planning
    The council also approved a long-range capital plan for 2010. It does not obligate the town to any expenditures. But, it does assess capital needs. Among those needs discussed was funding to replace the gym floor at the Rec Center. A potential capital need is a salt shed that may be required by the state. Some concerns have been raised about salt leaching into the ground from its current location. The town’s IT needs were also discussed as it relates to updating software, computers and the file server.
Appointments and discussions
    The council made several reappointments to the Personnel Board of Appeals: Christopher Anderson, Richard Goodwin and Vicki Moody through August 2012; Dana Delano through August 2011; and Joseph M. Skehan and Margaret Hill through August 2013.
    Before adjourning, Town Manager Doug Hazlett addressed the concern raised by resident Phil Bernaiche  during the public comments portion of the meeting. Bernaiche said the council should look into “talk about a $1 million plus” wood boiler he heard SAD 29 was planning to build.
    Hazlett said “the town has no jurisdiction over the school board.” However, Romanelli suggested inviting the interim superintendent to a council meeting to discuss the matter and its impact on taxpayers.
    The next meeting of the council will be Monday, Aug. 23 at 6:30 p.m. in Council Chambers at 21 Water St.