HOULTON, Maine — The review process began Monday evening when the town’s Board of Budget Review held its first session to go over anticipated expenses and revenue in a lean budget with virtually no increases except for mandated programs. Town Manager Doug Hazlett said maintaining public safety and services, narrowing the gap between income and expenses while continuing to invest in roads and sidewalks without raising taxes “is a formidable challenge.” The state is cutting about $240,000 of the town’s revenue. But the gap between revenue and expense is small enough, Hazlett said, to be filled by the fund balance.
And, there is some good news in the budget, according to Hazlett. “Despite a loss in revenue from the state,” he said, “we are expecting a substantial increase in revenue.” He attributed that to the growth in assessed property values in the town and a substantial increase in ambulance revenue due to improved billing through another service. He added that fees have not increased to taxpayers saying the new service is more efficient than the previous one.
In summary, Hazlett said there are four major factors driving budget increases: restoration of the road budget that had been taken out last year, higher health insurance premium costs, a projected 3 percent increase in the school budget and the full cost of the road bond. With the town on a calendar year and the school on a fiscal year, the school budget increase is only an estimate.
Among the first items of business was the election of a chairman. Don Keiser got the nod for the second year in a row from fellow board members with five votes after Carl Lord’s nomination failed with only three votes.
Keiser assumed the chairmanship and the group then tackled revisions to the meeting schedule before hearing from several representatives of groups that receive funding from the town.
The organizations that sent representatives were the Aroostook Agency on Aging, Greater Houlton Chamber of Commerce, Cary Library, Aroostook Historical Society. Others sent letters or had scheduling conflicts. All asked for the same level of support to provide services to residents with the exception of the Pine Tree Chapter of the American Red Cross that requested an additional $256.
The group reviewed several budget lines for city services and expressed appreciation that department heads and non-union staff had accepted a salary freeze for 2010. Major capital expenditures are being deferred.
Keiser said the prior experience of the current review board helped expedite the first meeting. And, even though the town manager and department heads had done a good job in developing the budget for review, there will probably be more discussion about larger budgets. Keiser also expressed some concern over cuts in state funding to Houlton and mandated expenses over which the town has no control.
The popularly-elected Board of Budget Review is responsible for reviewing proposed budgets in the best interest of the town and is empowered to make recommendations to the Town Council. Current review board members are Benjamin Adams, Philip Bernaiche, Mitchell Holmes, Donald Keiser, Richard Kelley, Dana Lapointe, Carl Lord, James Pinarde and Galen Wilde.
They meet again tomorrow, Thursday, Nov. 19 at 6:30 p.m.
And, there is some good news in the budget, according to Hazlett. “Despite a loss in revenue from the state,” he said, “we are expecting a substantial increase in revenue.” He attributed that to the growth in assessed property values in the town and a substantial increase in ambulance revenue due to improved billing through another service. He added that fees have not increased to taxpayers saying the new service is more efficient than the previous one.
In summary, Hazlett said there are four major factors driving budget increases: restoration of the road budget that had been taken out last year, higher health insurance premium costs, a projected 3 percent increase in the school budget and the full cost of the road bond. With the town on a calendar year and the school on a fiscal year, the school budget increase is only an estimate.
Among the first items of business was the election of a chairman. Don Keiser got the nod for the second year in a row from fellow board members with five votes after Carl Lord’s nomination failed with only three votes.
Keiser assumed the chairmanship and the group then tackled revisions to the meeting schedule before hearing from several representatives of groups that receive funding from the town.
The organizations that sent representatives were the Aroostook Agency on Aging, Greater Houlton Chamber of Commerce, Cary Library, Aroostook Historical Society. Others sent letters or had scheduling conflicts. All asked for the same level of support to provide services to residents with the exception of the Pine Tree Chapter of the American Red Cross that requested an additional $256.
The group reviewed several budget lines for city services and expressed appreciation that department heads and non-union staff had accepted a salary freeze for 2010. Major capital expenditures are being deferred.
Keiser said the prior experience of the current review board helped expedite the first meeting. And, even though the town manager and department heads had done a good job in developing the budget for review, there will probably be more discussion about larger budgets. Keiser also expressed some concern over cuts in state funding to Houlton and mandated expenses over which the town has no control.
The popularly-elected Board of Budget Review is responsible for reviewing proposed budgets in the best interest of the town and is empowered to make recommendations to the Town Council. Current review board members are Benjamin Adams, Philip Bernaiche, Mitchell Holmes, Donald Keiser, Richard Kelley, Dana Lapointe, Carl Lord, James Pinarde and Galen Wilde.
They meet again tomorrow, Thursday, Nov. 19 at 6:30 p.m.
