HOULTON, Maine — Homeowners will be paying higher taxes this year barring any unforeseen influx of cash or miracles from above. Without invoking the proverbial double negative, “we can’t do nothing,” the Houlton Town Council held their noses Monday evening and, in a 5-1 vote, authorized the transfer of $100,000 from the Undesignated Fund Balance. In a separate 5-1 vote, they reduced the 2009 budget by $75,500 through departmental cuts. Those reductions were for fuel allowances, administrative costs and future purchases of public works equipment.
Councilor Paul Romanelli was the lone dissenter who advocated an alternate scenario of a possible structured reduction to avoid the imminent 1-mil increase property owners will see when their tax bills hit the mailbox in the near future.
The current 18.25 mil rate will most assuredly go up to 19.25 in an era that councilors agree is “uncertain.” Walter Goodrich said he was not comfortable with dipping into the reserves not knowing what the future may hold for an already “bare-bones budget” since “we have cut every dollar we can.”
As the councilors struggled with how low the reserves can dip safely, they hashed out the ramifications of dropping $100,000 or more from the current $922,000 in reserves. Douglas Hazlet, town manager says currently the town is on track and under-spending the budget. He added that, ideally, there should be about two months’ of operating expenses in reserve or $750,000.
Sue Tortello said the only real increases in expenses are due to the school budget and payment of county taxes. Tortello added a $100,000 draw down on reserves was as far as she was willing to go. Romanelli said “we have to live on a lot less” and he floated the possibility of spreading out the 1-mil increase in two phases: “point eight and then point two.”
Chairman Paul Cleary pointed out that as bad as the current scenario is, next year could be worse without stimulus money from Washington and lower revenue streams from Augusta forcing Houlton to push the mil rate even higher on now higher valued property. He suggested the possibility of future workshops to hammer out more budget solutions to hold down taxes, and keep the town viable for business and investors.
The council attributed much of Houlton’s fiscal dilemma to a 30-percent drop in revenue-sharing from the state on top of other funding cuts out of Augusta like reductions to Homestead Exemption reimbursements to the town. Adding to the Houlton’s misery is a higher than expected contribution toward the SAD 29 school budget. The anticipated $2 million-plus school budget — rejected by voters in the recent referendum — is still $44,000 higher than expected.
In a sharply worded, prepared statement, Tortello harshly criticized the voter-rejected SAD 29 budget saying it should not have increased and “should have been flat” in this period of recession. She cited increases in administrative staff, reliance on stimulus money and refusal to cut the district budget as “arrogant and foolish.” Also singled out in her remarks was the printed format of the budget that she termed as difficult to understand and compare with last year’s.
She punctuated her remarks by saying she will vote against the school budget in the next referendum.
Polls will be open in Houlton at the Gentle Memorial Building from 10 a.m. – 7 p.m. The following town offices will be open for voters as follows: Monticello and Littleton from 10 a.m. – 6 p.m.; Hammond from 4—8 p.m.
The council recognized retiring firefighter Gene Ross for his long service to the community and will sign a letter to that effect since he could not be at the meeting.
The council authorized the following: notification for the school referendum; prepayment of taxes which in essence allows residents to pay through the town’s tax club on a monthly basis; location of the community market in Monument Park; acceptance of Cargill, Inc.’s bid of $76.92 per ton for winter salt.
Various members of the council cited the volunteer and community support for the success of the Houlton Fair, Midnight Madness and holiday weekend events which were without incident.
The next council meeting is at the Town Office, 6:30 p.m. Monday July, 27.
