Council OKs $9 million budget, funds rest area

Houlton Pioneer Times Photo/Joseph Cyr
BUDGET TALKS — The Houlton Town Council approved the 2012 fiscal budget Thursday. Taking part in the discussions are from left, Town Manager Doug Hazlett and councilors Sue Tortello, John White, Paul Cleary, Nancy Ketch, Michael Jenkins, Robbie Hannigan and John Fitzpatrick.
By Joseph Cyr
Staff Writer
    HOULTON — The town now has a 2012 municipal budget following Thursday’s public hearing and council vote on the $9,045,947 spending package. Only one member of the public attended the budget session, which lasted about one hour and 40 minutes.
    “We recognize the necessity of keeping spending in check to minimize the burden on Houlton taxpayers,” Town Manager Doug Hazlett said Tuesday. “As such, the 2012 budget is actually over $60,000 less than last year’s budget. While we were faced with the need to budget additional funds in several areas including fuel and the rest area, we were able to offset these costs with cuts in other areas. Despite the loss of revenue from the state, the town’s total revenue budget is expected to be up slightly compared to last year, due mostly to new development projects in town.”
    The 2012 budget represents a decrease of $60,364 over last year’s spending. Revenue for the town is estimated at $9,113,953, which is an increase of $7,611 over the 2011 figure. That revenue figure, however, includes a $38,380 payment in lieu of taxes figure that was forgiven for the Houlton Band of Maliseets in 2011. If a similar PILOT request is granted in 2012, the revenue for the town would actually be slightly less than it was in 2011.
    Roughly 55 percent of the town’s budget is funded through property taxes. Houlton also supports itself through state revenue sharing, and excise taxes paid to register vehicles.
    An attempt was made Thursday to slash the budget by $62,657 from the rest area account by councilors John White and Michael Jenkins.
    Back in June, councilors agreed to move forward with discussions with the state’s Board of Tourism to take over the rest area property located near the Interstate 95 southbound ramp. The council was advised by MDOT in 2009 that it was looking to turn ownership of the property over to the town, or risk the state closing the rest area.
    At that time, Hazlett estimated the cost of maintaining the rest area to be between $6,000 and $8,000 per year. However, that figure has grown dramatically, to $62,567 per year for maintenance and staffing. The town currently has the deed to the property and is responsible for maintaining the facility as long as the Maine Bureau of Tourism remains on-site. If the bureau ever closes, or the town stops maintaining the facility, Houlton would then have the option of purchasing the land at fair market value. The property is currently assessed at $763,500.
    “I went through Doug’s proposal and I agree that it could be a good thing for the town,” White said. “However, going through his proposal, the figure I come up with is $79,425. I just think it is too much money for us to spend. Every time we hear something more, the price seems to go up. I have heard from a lot of citizens and I have to wonder, ‘If this were on a referendum, would it pass?’”
    “I am not advocating going higher than $62,567,” Hazlett said. “It is an expensive proposition, but it is significantly less than what the state was spending to run it. I will be the first to admit this has been an uphill learning curve and I think that is going to continue.”
    Hazlett suggested it was in the best interest of the town to explore options for running the facility in the least expensive manner possible.
    Council Chairman Paul Cleary asked what would happen if the council did not fund maintenance of the facility.
    Hazlett said because the property has been deeded to the town with the caveat that it maintains the site, not funding the item would be “real messy.”
    “The question would then become, ‘Would the Tourism Bureau want to stay in a facility (not maintained)?” Hazlett said.
    Councilor Rob Hannigan stated he would like to see the rest area funded at $15,000 or $20,000 to give the town a three-month window to find out how much it really will cost to maintain. He also suggested one option could be to remove the bathrooms altogether, which would allow another group to come into the facility.
    Councilors Nancy Ketch, Sue Tortello and John Fitzpatrick each gave their endorsements to funding the rest area and operating it as it has been in the past. Tortello said that nearly 24,000 individuals signed the guest registry last year, serving as testament to how many people visit the facility.
    “It’s a nice building and it’s used by folks who live right here in town,” Tortello said. “It’s like having an extra park. People go up there and walk, picnic in the summer. We would be very short-sighted if we decided not to fund it.
    Ketch added she had not heard from anyone who expressed they wanted to see the rest area closed. White, however, stated a number of people he spoke to did not want the town taking on the financial burden.
    White’s amendment of not funding the rest area failed 2-4. The measure was then approved to fund the facility at $62,567 passed by a 4-2 vote (with White and Jenkins opposed.)
    On Tuesday, Hazlett said no decision has been made on what hours the rest area bathrooms would be open to the public.
    “They (the bathrooms) will be open most of the time, but we are investigating closing them over night,” he said.
    No decision was made on who will perform the maintenance at the facility. Councilors are expected to continue their discussion of the rest area staffing and hours of operation at future meetings.
    Jenkins also made an effort to reduce the administration account by $24,000, with the intent of removing the money the town allocates for Southern Aroostook Development Corporation (SADC). Councilor White seconded the amendment, prompting a 20-minute discussion on the subject. Jenkins questioned what involvement SADC had in the various projects that took place within the town in 2011.
    The town pays $2,000 per month to SADC, which is used primarily for its one employee, Jon McLaughlin.
    “The number of hours that they (SADC) contribute are pretty significant,” Hazlett said. “I probably talk to Jon once or twice a day. They follow a lot of legislative issues. Generally, if there is contact with (prospective) business, whether it’s local or out of state, Jon is there with me. I see value in that.”
    Councilor Fitzpatrick, who also serves on the SADC board, said the amount of money Houlton gives to the group is a small portion of the SADC budget. However, Jenkins countered that Houlton gives the largest single amount of funds of any municipality in the area.
    Councilor White questioned to what extent SADC was involved with all of the economic development projects within the town, especially since the town already has a paid economic development coordinator position on its payroll.
    “It seems to me that they just take credit for a lot of the stuff,” he said.
    “They are involved in virtually everything we do with economic development,” Hazlett said.
    “SADC is our economic development organization,” Fitzpatrick said.
    Jenkins then suggested that perhaps the town should have hired McLaughlin as its economic development director when the position came open.
    “It would have cost us five times as much as we are paying now,” Fitzpatrick said.
    Cleary suggested that it would be beneficial to have McLaughlin come before the board on a more regular basis to update them on all of the projects he is involved with.
    Following the discussion, Jenkins’ withdrew his motion to amend the administration line, which then passed by a vote of 6-0 at its original $417,650 amount.
    Audrey York, speaking on behalf of Vital Pathways, made a plea to the council to reinstate a $1,500 request from the group, citing unforeseen hardships and health issues by several of the group’s members in 2011.
    Councilors rejected her pleas, stating last year the board gave Vital Pathways a one-time stipend of $1,500 with the caveat that the group must increase its fund-raising efforts.