Staff Writer
HOULTON — Houlton Town Councilors greeted new Town Manager Eugene Conlogue during its Monday night meeting. Conlogue’s first day in office is Oct. 15.
“I am very pleased we have filled the Town Manager position,” said Councilor Sue Tortello. “I am very optimistic about the positive direction we will be heading. I don’t want to steal any thunder from Mr. Conlogue, but we would be remiss if we did not acknowledge the tremendous amount of commitment, time, energy and talent our Interim Town Manager has put in the last six months. Frankly, I don’t know how we could have done it without you. I don’t think we can thank you enough.”
Cathy O’Leary has been Interim Town Manager since Doug Hazlett left the office in March.
In other business, councilors were told that a mid-year review of the town’s finances would be better served prior to budget discussions.
Ron Smith, principal of RHR Smith & Company, reviewed the town’s mid-year financial report saying Houlton at this point in time should be about 50 percent spent in expenditures, “which is right about at that level,” he said, and that revenue was slow in coming in. But, it wasn’t a red flag.
“Your ambulance billings, excise and revenue sharing are a little slow to come in, but they were last year,” Smith said. “You are actually a little ahead of where your collections were in 2011. Being off five to eight percent, is that reason for alarm? You were at 10-12 percent last year.”
The review is a compilation fulfilling the town charter mandated mid-year review for Houlton finances.
“Back in the late 1970s, you had a real bad year to the point where you overspent your budget badly,” recalled Smith. “That put you guys in some harm’s way.”
As a result of that action, the charter provision put a mid-year financial review in place.
“Its purpose was to forewarn you if you head down that path again,” explained Smith.
Looking at the mid-year compilation, Smith cautioned the council.
“Your fund balance is down below 30 days,” he said. “It was about 20 days at the beginning of the year about $475,000. I remember four years ago, you were at 60 or 75 days. Going back with history, four years ago, you didn’t have a tax anticipation note to get you through the much needed cash flow months during the summer. You now do and you have it.”
It equates to the town borrowing $1.7 million in the last two years.
“They go hand-in-hand,” said Smith. “As you use the fund balance, it depletes your cash.”
Historically Houlton was in a tough spot, but Smith credits tough decisions for a turn around.
“You made a conscious choice to maintain,” he said. “I think that was a wise and prudent fiscal move.”
After Smith’s presentation, Councilor Tortello asked Smith his opinion on the value of a mid-year report or if there was something else the town could do to get more useful information from the report.
“People who know me, know I don’t mince words,” he said. “I think this is a waste of $1,700 to $1,800 of Houlton’s money.”
Smith recommended the review be presented in November or December before the pubic hearing on the budget.
“As you are knee deep into your budget process [RHR Smith & Company could then validate] where you stand financially at the end of the year,” Smith said. “It’s hard for us to forecast June.”
Though Smith understood the logistics and need for a mid-year review, he said times have changed.
“The town of Houlton demonstrated it understands its business,” he said.
But, with a low fund balance, Smith said Houlton’s money would be best spent on a year-end review to garner more accurate financial figures before setting the 2013 budget.
“There is a small window of opportunity to miss,” he said.
The next council meeting will be held Oct. 9 at 6:30 p.m. in the council chambers located upstairs in the Houlton Town Office.
In other business, the council approved Chester L. Briggs American Legion Post 47 to cater off premises on Sept. 22.
Also, the council accepted a donation of $201.60 from Pizza Hut and another $165 from children of the “Just For Kids” playground to be used for
the Playground Improvement Project.
“I wanted to thank everyone who participated in our fundraiser at Pizza Hut and Pizza Hut for cosponsoring it with us,” said Marie Carmichael, Houlton Recreational program director.
During summer playground program, the children wanted to help with the project, so a change contest was held between the boys and girls.
The Playground Improvement Project could cost as much as $100,000.
“We are doing good and applying for some matching grants,” Carmichael added.
Next Monday, Sept. 17, the council will hold a budget workshop at 6:30 p.m. with all department heads, board of budget review, as well as RSU 29 Superintendent Mike Hammer and school board members. The workshop is open to the public, but there will be no public comments. The workshop will be televised on local channel.
“We have the final say in regards to the budget next year,” said Chairman Paul Cleary. “It is good to build a budget based on the direction of the council and department heads, with everyone working together. Maybe we can send a message to the school on the difficulty we are facing as a town as we prepare the budget and get a little help from them with their budget, as well. New ideas and new revenue thoughts, may help make next year better.”
