CARIBOU, Maine — Caribou residents face a tax rate hike of 4.2 mills following final budget declarations by Aroostook County and the RSU 39 school district.
The increase prompted the Caribou City Council on Wednesday to consider having department heads cut a combined $1 million from the city’s 2025-2026 budget.
The council passed a $12.5 million budget in March, which will raise the tax rate by 2.5 mills. Increases from Aroostook County tax and RSU 39 school funding will raise it by another 1.7 mills. With more people struggling to pay property taxes, Caribou residents will be hard pressed to afford that increase, so cuts must be made, several councilors said.
“Without significant growth in the city of Caribou, taxes are going to go up. We have to live within our means,” Councilor Dan Bagley said. “I think a 2.5-mill increase is just out of the question.”
Caribou’s ability to attract businesses and new residents will also suffer, he said.
The original budget was proposed at $12.9 million, with capital requests totaling $1.9 million and anticipated revenue of $12.2 million. Councilors in February voted to reduce capital expenses by $900,000, and asked department heads to cut 10 percent, which most did not achieve.
A March public hearing on the budget drew no input from residents, and that night the council voted to pass the reduced $12.5 million budget.
The city doesn’t control county and school rates, so serious steps are needed to reduce municipal expenses, City Manager Penny Thompson said. For instance, leaders could choose to cut services or not to fill open positions, but that’s not ideal, either.
“Those are all important to run the city, and if we’re cutting these important things, what does that mean for the city we’re running?” she said. “But the savings have to come from somewhere.”
Councilor Tamara Lovewell advised against cutting essential services. City lights and winter plowing are all necessary, and people will be upset if police and fire personnel can’t be dispatched when there’s an emergency, she said.
Councilor Paul Watson argued unions are part of the problem, such as those representing teachers, because they lobby for regular salary increases for members while other people struggle with lower pay.
The group debated whether to ask department heads to cut more from their respective budgets or have Thompson determine further reductions. People have different priorities, so it’s difficult to decide where to cut from, several councilors said.
The council defeated a motion to have Thompson recommend $1 million in additional budget cuts by a vote of 4-2. Thompson said she would discuss the financial situation with department heads.
Councilors discussed what to charge event organizers for emergency services when they are called to stand by during public events. Bagley proposed $60 per hour for emergency medical services support, $35 per hour for fire support and $40 per hour for police support.
Some people putting on events require such coverage as part of their agreement, Spud Speedway co-owner Troy Haney said.
Caribou Fire and Ambulance Chief Brian Lajoie said those fees are inadequate, particularly when the department is down three people and staff are overworked.
Councilors voted to accept the fee schedule as presented.
The group also honored city employees David and Susan Ouellette on their retirement and presented them with trophies.
Susan Ouellette retired in April, having worked 12 years as family self-sufficiency coordinator in the Caribou Housing Agency.
Public Works Director David Ouellette served 27 years in the department, starting out as a mechanic. He will retire June 2, and all were invited to stop by and wish him well on that day.
Among other business, the council approved an agreement with Caribou firm Aveist Engineering for project engineering and management of the Caribou Mill Pond rehabilitation project, which is funded by federal money; approved a Thompson and Madawaska road detour for Greenlaw Bridge work; accepted a new policy manual for the Caribou Public Library; and voted to abate property taxes for Scott Walker’s 465 Main St. property in the amounts of $563.55 for 2023 and $680.60 for 2022.
The next regular council meeting is slated Monday, June 23.
