By Joseph Cyr
Staff Writer
HOULTON, Maine — The Houlton Town Council has agreed on a “tight” 2014 municipal budget in the amount of $9,953,105.
And while the mill rate will not be set until sometime in July, based on the figures presented during Monday evening’s public hearing, a tax increase seems inevitable.
The municipal side of the budget ($7,088,535) is an increase of $133,264 (1.9 percent) over the previous year. However, when anticipated increases in the RSU 29 school budget and County tax are factored in, the overall budget is up $373,804 (3.9 percent) over the 2013 spending plan. Houlton Town Manager Eugene Conlogue said his original goal in putting the budget together was a “zero increase,” while also trying to juggle the council’s objective of no employee layoffs, while trying to keep the mill rate somewhat stable.
Several councilors described the budget as “tight” or “barebones,” with no room for cuts to be made.
“There are lot of things we did not buy, even though people think we seem to purchase everything we want,” said council chairman Paul Cleary. “A lot of our town employees are basically getting a zero percent increase and I don’t think that part is right. We shouldn’t try to balance the budget on the backs of our employees. It’s too bad that we have to do it that way.”
If all of the anticipated expenses and revenues come in as projected, the town would be looking at at least a half-mill increase in taxes. 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.
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).
According to Conlogue, this year the increase in municipal spending is 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 hike in benefit costs.
Nearly 30 individuals, many of whom were department heads for the town, attended Monday night’s public hearing. While members of the public were allowed to offer comments, ask questions, or suggest cuts to each account, only three individuals — Scott Dionne, Meg York Scott and Lori Weston — addressed the council. None of them asked for any cuts to be made, however, and instead urged the group not to cut any funding for the Southern Aroostook Development Corporation. SADC receives $24,000 from the town.
In fact, no reductions were made to the budget during Monday’s public hearing.
Councilor John White made several attempts to reduce the budget, but each time his suggestions failed to generate support from his fellow board members. White grew exceedingly frustrated with the process and midway through the meeting excused himself and left the council chambers. As he exited, White exclaimed, “Enjoy your tax increase Houlton.”
Contacted Tuesday morning, White said he was not sure if he would tender his resignation to the council, as he wanted to take some time to think before making any decision. White was re-elected to a three-year term last November.
Councilor White attempted to reduce the administration account by 1 percent, stating he wanted to see a 1 percent reduction across the board for all line items. His motion failed to generate a second from any councilor and therefore died.
White also attempted to eliminate funding for the rest area. The town budgeted $41,650 to fund the facility. That figure is down considerably from two years ago when the town spent $62,567. After his motion to eliminate the rest area account failed to garner support, White left the council meeting.
Later in the meeting, councilor Dan Peabody attempted to shave $100,000 from the roads account.
“Nobody wants cuts, but this is a good place where we can cut for one year without it having a huge impact,” he said.
Councilor Sue Tortello said the account might be one the town could look at later on, if it needed to save some money, but reducing it in half at this point was premature.
Peabody’s motion failed by a vote of 2-3 (with councilors Tortello, Robbie Hannigan and Phil Cloney opposed).
The town budgeted a higher amount for RSU 29 than it has in years past. In doing so, the town is preparing itself for the event that RSU 29 has to absorb all of the teacher retirement costs, should the state legislature’s budget call for that.
“We are planning for the ‘what-if?’ scenario, but if that doesn’t happen, we hope they (RSU 29) will go back to the number we originally thought,” Cleary said. “We need to send the message that we don’t want them to spend it. We as a town cannot afford another 1.8-mil increase,”
The council budgeted just $800 for the “capital plan” account, which is used to purchase items such as computer equipment when needed. Conlogue said the $800 figure was in no way adequate for what a capital equipment fund entails, but suggested a one-year loan in the amount of $50,000 could be taken out at a later time if needed.
Near the end of the meeting, both Cleary and Tortello stated that simply because the budget passed it did not mean the council would not continue looking at ways to save money.
“We are very cognizant of what this budget represents right now — an increase in taxes,” Tortello said. “We certainly do not want to do that, but we have a lot of unknowns out there. It’s very important, as we go through the year, to look at every single line item before we decide what our tax commitment is going to be.”
“The other thing is the taxpayers in the town of Houlton need to get involved,” Cleary added. “We as the seven councilors can only do so much.”
