HOULTON, Maine — If the proposed 2014 budget is approved as presented, residents of Houlton may see another hike in their property tax bills next year.
The town council agreed to bring forth a 2014 spending package in the amount of $9,853,105 during a special meeting Dec. 17. That budget figure is based on the recommendation of the Board of Budget Review and the town manager.
A public hearing, in which residents can weigh-in on the budget, is scheduled for Monday, Jan. 13, at 6 p.m.
“My original goal was a zero-percent increase in the municipal budget,” said Houlton Town Manager Eugene Conlogue.
Councilor Sue Tortello stated the proposed budget was “realistic” and met the requirements the council spelled out of no employee layoffs while trying to keep the mill rate somewhat stable. A half-mill increase is a possibility if school and County budgets come in as projected.
The municipal side of the budget is $7,088,535, which is an increase of $133,264 (1.9 percent) over the previous year. But when projected increases in the RSU 29 budget and County tax are factored in, the overall budget is up $373,804 over the 2013 spending plan.
The tax rate has risen steadily in recent years. In 2013, the tax rate was 21.75, while in 2012 the rate was 19.95. Conlogue said it was too soon to say what the projected 2014 property tax rate would be.
“We do not yet have the new property values for 2014 so an estimate of the 2014 mil rate would not be accurate,” he said. “It is also unknown what may happen in Augusta related to revenue sharing and school aid.”
Municipal spending has also gone up slightly over the past two years. In 2012, the town spent $6,877,774 to run the local government; while in 2013, municipal spending was $6,955,271. Therefore, over the past two years, town expenses, not including the school or county, have gone up $210,761 (3.06 percent).
The increase in local spending last year was attributed to increased energy costs and a 2 percent raise for employee wages.
According to Conlogue, this year the increase in municipal spending is being driven by a projected increase of $45,000 in funds to be set aside in the town’s tax-increment financing districts; a $31,000 increase in the police department; and a $25,000 increase in benefit costs. There are also several wage increases in the first six months of 2014 that are required by union contracts.
The increase in the police department stems from the town having to pay its share of a COPS (Community Oriented Policing Services) grant.
Houlton Police Chief Butch Asselin said the grant funded a police officer position in the town for three years, with the stipulation that the town’s obligation is to fund the position for one budget cycle at the end of 36 months. In this case, the town budgeted for the position from April through December.
“COPS allowed us to hire an additional person at no direct cost to the town,” Asselin said. “We were the recipients of the grant based on the drug issues we face in southern Aroostook County.”
The Houlton Police Department has 14 full-time law enforcement officers, one grant position and an officer assigned to the Maine Drug Enforcement Agency. The town has to fund the COPS position for one budget cycle (12 months). That means in 2014, the town will pay nine months of the position and in 2015, the remaining three months will be paid.
Wages featured only a slight adjustment, Conlogue said.
“Any wage increases in this budget are due mostly to contractual obligations that will expire when the current union contracts expire on or about June 30, 2014,” he said. “Union required wage increases between Jan. 1 and June 30 are relatively small. The rest of the staff will receive no increases in 2014, based on the current budget.”
The town is also projecting a large increase in the RSU 29 budget again this year and is therefore allocating additional money to that line.
During the Dec. 17 meeting, the only reductions suggested by the council came from member Tortello, who suggested the town reduce the amount it gives to the American Red Cross to $1,500. In previous years, the town has given $3,500 to the charitable organization to assist local families.
Tortello said her reasoning for the reduction was due to the fact that towns such as Presque Isle and Caribou give a donation equivalent to 25 cents per capita. Houlton, by giving $3,500 each year, was making a donation equal to 58 cents per capita.
Councilor John White said he would rather see the board take a closer look at ways to make more substantial cuts to the budget.
“We’re nickel and diming these other agencies, yet we fly right through everything else,” White said.
The Board of Budget Review also suggested the town consider securing a one-year loan in the amount of $50,000 to purchase several high-priority items. This loan was suggested because the original budget only includes $800 for capital equipment needs.
Board of Budget Review Chairman Matt Carr said that group felt additional funding was needed for the town to take a more proactive approach to replacing items, such as computers.
