Town still searching for new manager

The search for a new town manager is still under way, but councilors may get a step closer next Monday, July 16, when they meet in executive session to consider applicants for the position.
At Monday night’s council meeting, Houlton councilors authorized the Downtown Development TIF District’s and the Airport Development TIF District’s captured assessed value percentage be reduced from 100 percent to 66 percent for the 2012 fiscal year.
    “Reducing the percentage of these two districts will allow us to transfer additional funds into revenue that will help minimize the need for any more than a one-mil increase,” said Interim Town Manger Cathy O’Leary. “Due to increased costs for the town, such as the school budget, county tax and fuel, we have reviewed the budget and revenues in depth to determine the best course of action and have worked hard to try to minimize the impact to taxpayers. We will continue to work hard to keep future increases to a minimum. No projects would be affected by a reduction in these two districts.”
A home assessed at $85,000 — with a one-mil impact — will see a tax increase of $85 per year.
“Individual increases will vary depending on home values,” added O’Leary.
“We are doing this to basically offset any increase, but we are still facing an increase,” said Chairman Paul Cleary. “We are facing a one-mil increase.”
Councilor Mike Jenkins explained though no one is in favor of a tax increase, the public should realize that the town has to pay its bills. Tax dollars pay for everything from police, fire, ambulance, maintenance of roads, recreation and library services to schools, street lights and hydrants.
“Our job is to not only look out for the best interest of our citizens, but also to promote the town in a positive light,” he said. “We have a pretty lean budget. There isn’t anything in there that doesn’t need to be in there. We will work as a council the rest of this year to try and come up with ways to hopefully offset that.”
Jenkins noted Nedra Hanson, Laureen Bither and O’Leary were to be complimented on holding the increase to a mil this year.
“They deserve a lot of credit,” he said.
Jenkins also added that the school board and the town council don’t think the same way.
“Probably over the past years, we have used our undesignated fund balance, maybe unwisely, to hold down the mil rate and now we are in a position where our undesignated fund balances isn’t there any more, it is all sitting up in the school’s undesignated fund balance,” he said. “Apparently, they are saving it and we are spending our’s to offset taxes.”
Jenkins noted in 2009, the mil rate was 19.25 and then it dropped in 2010 to 18.45.
“We were taking money out of undesignated fund balance without replenishing it,” he said. “It has caught up to us. It is time to pay the piper, unfortunately, for all of us.”
Cleary agreed.
“There is no money,” he said. “There is nothing in our budget that we as a council know [shouldn’t be there]. Department heads know [the situation] and they are already working on a slim margin as it is. The sad fact of this is, next year could be even worse than this year because of different reasons, school being the biggest one. It is a scary time.”
This year’s school budget is up $188,000 over the previous year.
“That difference is affecting our budget,” added Cleary. “As Mike said at the last meeting, TIFs are a good thing because they encourage development, but it also ties our hands in regards to evaluation, which can offset some of the mil rate increase.”
“This is an unfortunate situation,” added Councilor Sue Tortello. “But, I think they have come up with the best solution for us right now. We are only in July, we have a lot of the year left and [there are] unknowns.”
Tortello said if the town has to start snow plowing earlier, that in itself, could impact the budget.
“I think they did very good work looking those numbers over and coming up with this idea,” she added.
In other business, the council passed the amendments for General Assistance to reduce the total maximum monthly allotment allowed by a 5-1 vote, with Jenkins opposing.
“As a result of actions by the state legislature, these amendments are necessary to incorporate law changes that began July 1. The changes are 10 percent reduction to the overall maximum limits and a nine-month limit on housing assistance,” explained O’Leary.
The council also approved a grant agreement between the town of Houlton and the Federal Aviation Administration for reconstruction of an aircraft tie-down apron and taxiway edge lighting. The grant is for $688,500, with the state and town shares both set at $38,250.
Council accepted a $1,366 donation from the Downtown Merchants to assist town with the cost of the Riverfront fireworks — total $2,500 — held during Midnight Madness, July 3.
“We appreciate their donation and thank Lynn York for all his efforts,” said O’Leary.
“It was a great addition to Midnight Madness,” added Tortello.
Cleary agreed, “It was a good investment on our part.”
In the last order of business, the council accepted and thanked the Houlton Rotary Club for its donation of $7,500 for new playground equipment at the “Just for Kids” playground in Community Park. This is Rotary Club’s second donation, as they made a previous one for $7,000.
The playground project cost is between $65,000-$90,000.
““Thank you to the Rotary Club,” said Marie Carmichael, program supervisor. “Thank you for supporting our program.”
The playground committee is working hard toward raising more money, including a Pizza Hut fundraiser on July 23 from 4-8 p.m. Pizza Hut will be donating 20 percent of each purchase to the playground organization. Currently, the playground fund has $21,000.
In closing remarks, councilors raved about the July 4th town celebration and thanked those in charge, department heads and volunteers for all of their efforts. Tortello recognized the efforts of the Houlton Little League baseball and softball teams.
Cleary, who is also the Houlton State Agricultural Fair president, said the fair committee appreciates the support of the town and its volunteers for the annual event.
“Everyone makes the fair successful,” he said. “Numbers were down this year, but it was a really good fair. It was a fun fair. No issues. No problems. People enjoyed themselves. It helps Houlton and a lot of the hotels and the stores were busy. It’s all volunteer effort. We, as a town, need to realize that for a community our size to put on events that we do, not just the fair, our volunteer base is incredible.”
The Maine Association of Agricultural Fair Board committee members were here last Saturday and were impressed with the town and the fair.
“It’s a good statement for us,” said Cleary. “What  a community. We can complain about taxes, potholes or the weather, but you know what, it really is a good community we live in.”