CARIBOU, Maine — Multiple city councilors expressed concerns Monday over a projected rise in the city’s tax rate and advised City Manager Penny Thompson to work with department officials on potential cost savings.
If passed in its current state, the proposed city budget would contain a mill rate of 26.14, a nearly 11 percent increase from last year’s rate of 23.55, according to City Manager Penny Thompson.
The council did not take formal action regarding the budget during a special meeting held March 21. But councilors advised Thompson to discuss with the city’s departments how they might reduce the proposed expense budget of $9.7 million and proposed capital improvement budget of $2.1 million. The current revenue budget is projected to be $10 million.
The council chose to keep the tax rate flat last year. But this year’s budget includes many new expenses, including those related to a proposed new police station, the Nylander Museum and capital projects, prompting councilors to ask for more information.
Councilor Doug Morrell questioned the origin of $50,000 slated for Nylander expenses and expressed interest in the council voting on matters related to the museum’s future. Previously, the council voted to dissolve the Nylander’s board of directors and appoint Library Director Peter Baldwin to oversee the museum. The council has not discussed the museum since deciding to gauge interest in a potential volunteer advisory board.
Morrell also asked why an expense line of $50,000 has been slated for the new police station in 2022, which will not be voted on by residents until the June referendum.
“I can’t see putting money aside until we know what the people want,” Morrell said.
Councilor Joan Theriault, who serves on the Public Safety Building Committee, said that the $50,000 is earmarked so that the city can be prepared regardless of the voting results.
“We can’t spend the $50,000 unless the [referendum] passes. You can always decrease an amount but you can’t put money in, so either way we’ll be all set,” Theriault said. “The plan is to have the design ready before we begin construction.”
Councilors agreed that the correct next steps might be to continue discussions with city department officials on their proposed expense budgets. Several, including Mark Goughan, also pointed out how difficult that task might be given the rising costs of fuel and electricity. He said that those costs are already causing concern for the Public Works Department.
“You might want to be careful what you’re asking for. I know the goal is to reduce [the budget and mill rate] but a lot of things have happened since Jan. 1,” Goughan said.
The council will continue discussing the proposed budget during its next regular meeting at 6 p.m. on Monday, March 28, in the council chambers at 25 High St.
