Staff Writer
PRESQUE ISLE — The city’s mil rate will remain the same as last year, at 23.5 mil —$23.50 per $1,000 in valuation — following councilors’ unanimous approval of a few changes recommended by City Manager Jim Bennett to the 2012 municipal budget.
City Council’s meeting July 9 began with a workshop to consider what, if any, changes needed to be made to the budget to maintain the mil rate, with Bennett providing details of options available to councilors.
“The forecast in December regarding the projected total value of the city as of April 1, 2012, unfortunately did not anticipate events that caused the actual taxable value of the city to decline by $4,177,500. It was assumed the county tax would remain flat. It actually increased $30,351. These two events would have caused the tax rate to have to increase by 26 cents or 1.1 percent. To reduce the impact, staff is recommending decreasing the budget and reserves by $145,974,” said Bennett.
Bennett said the increase was brought about largely due to changes to the county and school portions of the budget, not the city’s portion.
“This has nothing to do with the budget you’ve done,” he told councilors. “My assumption is you’d want options so not to increase taxes.”
Councilor Dick Engels expressed his concern, saying, “The thing I’m always worried about, when you cut capital and reserves, you’re putting off until tomorrow that which should be solved today.”
“By putting off a capital item, you’re doing just that — kicking the can down the road,” agreed Bennett.
“If we had three months to prepare as opposed to two to three weeks, we might have had different options,” said Bennett, who indicated department heads worked together to come up with the least intrusive ways to cut their budgets yet maintain services. “In the short term, it’s a pretty good solution offered up, but we can’t sustain this and maintain our current level of services.”
Bennett said cuts were made in various departments, with money taken from three accounts: capital, operating and reserves. Some cuts mean postponing services, like chip sealing a road, while others delay the purchase of equipment, including hose for the fire department. Cuts included:
• Capital: Industrial Council buildings account, $15,000; Presque Isle Fire Department, Engine 8, $12,500; Forum sound system, $10,000; Presque Isle Police Department trailer, $1,000; Northern Maine Regional Airport terminal repairs, $15,000; and Finance Department for aerial photos, $5,000 — for a total of $58,500;
• Operating: Human Resources for wages due to personnel restructuring, $10,000; Public Works delay chip seal of Reach Road, $11,500; PIPD overtime, $10,000; PIPD dog traveler (vehicle modification for carrying police dog), $2,200; PIPD prisoner expense, $5,000; Finance Department TAN interest, $4,000; various benefits, $2,500; and citywide turnover credit, $5,000 — for a total of $50,200; and
• Reserve: NMRA air show, $10,000; PIPD sale of equipment, $6,521; PIFD hydraulic extraction equipment, $324; PIFD hose and equipment, $310; Recreation Department bike path work, $2,553; Recreation Department for the outdoor pool, $7,500; Recreation Department sale of bus $732; Recreation Department insurance claim, $1,035; Recreation Department water softener, $24; City Hall building upgrades, $7,500; Public Works loader, $8; and Public Works to refurbish sweeper, $767 — for a total of $37,274.
Councilors discussed what the cuts will mean now and how they will impact taxpayers down the road.
“The school board took over $800,000 from savings, that’s more than a mil. There’s the Community Center as well. We’re conceivably looking at a three-mil increase in a very short time,” said Councilor Peter Hallowell.
“There’s always the question what do you pay for things. You have to pay for them at some point, but will things be better or worse next year?” questioned Engels.
“I don’t think you can put a three-mil increase on the back of taxpayers, if things don’t get better,” noted Hallowell.
Bennett said a big part of the problem was the state’s handling of revenue sharing and how fewer funds are coming back to municipalities, leaving city and town officials scrambling to make ends meet.
“We need to be educated. Can we get by or will it hurt us? Personally, I just don’t know. Will it bite us in the future? I just don’t know,” said Engels.
Councilor Randy Smith credited department heads with coming up with necessary cuts on such short notice.
“At first glance, even after my first study (of the cuts) — impressed isn’t the right word to use but I’m grateful staff could come up with these figures. They’re workable sacrifices, with thought. In the future, we can’t continue to go down this road,” said Smith.
Discussion continued for about an hour, with councilors’ unanimously approving the adjusted 2012 budget, which includes county and SAD 1 figures.
The net to be raised by local property tax commitment is $12,314,149.60.
