FORT FAIRFIELD, Maine — The Taxpayers Group of Fort Fairfield is asking the Fort Fairfield Town Council to use American Rescue Plan Act funds for property tax relief, as well as reject several proposed FY 21-22 municipal budget increases to avoid a nearly 32 percent property tax increase to cover potential budget shortfalls.
Taxpayers have been expressing their concerns at town meetings since January about out-of-control spending, following last year’s surprise property tax bill increase as high as 28 percent for some property owners. And as each month passed without resolution, contentious town meetings were crowded with unhappy residents who continued to ask the town council for relief from another hugely inflated budget.
Nonetheless, this year’s proposed FY 21-22 municipal budget, slated for town council discussion on Wednesday, has a more than $1 million deficit along with spending increases in Fire and EMS of $292,041 — on top of a more than $1 million increase last year and $13,996 increase in administration expenses.
“We as citizens need to step up, leave the complaining and bad blood at the door, and ask the difficult questions that are necessary to obtain correct, accurate information that our council members need to do their jobs,” the Taxpayer Group formal correspondence to the council said. “The Council needs our support and assistance now more than ever as they face the enormous task of reconciling the large discrepancies in this budget and bringing it to a balance.”
The proposed FY 21-22 municipal budget reports $6,076,379 in revenue for a proposed $7.1 million in expenses for the coming year. In comparison, in FY 2018-2019 town expenses were budgeted at $5,026,962, with revenues at $5,186,761 (surplus of $97,599); in 2019-2020, expenses were budgeted at $5,634,272 with revenues at $5,491,774 (deficit of $142,498) ; in 2020-2021, $6,885,634 with revenues $6,618986 (deficit of 266,648).
“Citizens have the opportunity to share any thoughts with Council on the budget,” Town Manager Andrea Powers said, regarding repeated requests by the Taxpayer Group. “Council, If there are any changes they wish to make, direct me to do so. And at the May Council Meeting [May 19] the final proposal is decided on, and will be voted on, at the June Council Meeting.”
Property taxes could potentially rise another 32 percent without conservative spending and if the deficit is not alleviated with other forms of revenue, the Taxpayer Group contends.
“We can all agree that the 32 percent increase in property taxes that this proposed budget would require if passed, is unacceptable,” they said. “This would be in addition to the large increase in property taxes from this past year, due largely to a roughly 22 percent increase in spending and roughly $500,000 in lost revenues from the closing of the energy plant.”
The Taxpayer Group is asking the council to take the following actions:
For administration expenses, reject the proposed increase of $13,779; for Fire and EMS expenses, reject the proposed increase of $292,041; for recreation, reject the proposed increase of $23,738; remove the $180,900 increase in the town reserves because total reserves are already at nearly $1 million; and reject the new proposed increase in property taxes, keeping the FY 20-21 property tax flat at $3,657,906 or less.
Town Council Chairman Mitchell Butler has said on several occasions that the taxpayers are misinformed and do not understand the budgetary process. Butler berated the public for their comments regarding the budget and Town Manager Andrea Powers at the start of the April council meeting.
Conversely, the Taxpayer Group said that Butler and other council members do not necessarily have the statistical analysis expertise to scrutinize the proposed budget and its implications for the taxpayers.
Among others, the taxpayer group includes several business people and a mathematician.
The Taxpayer Group is also asking the town council to include an American Rescue Plan Act disbursement allocation of $327,508 as a new line item in the revenues section of the proposed budget.
“States also may not use their ARPA funds to either directly or indirectly offset a reduction in the net tax revenue … or delay the imposition of any tax or tax increase,” according to a Maine Policy Institute April report. “Local governments are not bound by the same restriction, so temporary relief to property taxpayers can, and should be on the table for local officials.”
If the town council does not comply with Taxpayer Group requests, the group said they will be forced to gather signatures for a petition to take this budget increase to a referendum election that would likely happen in July.
This option is outlined in the Town Charter, section C-33, posted on the Fort Fairfield town website.
“We are proud of the hard work done by the taxpayers and the council throughout the winter,” Taxpayer Group of Fort Fairfield member Sharon Ouellette said. “Now is the moment of truth for the council. But the buck stops here, with the taxpayers.”
The Town Council will discuss the budget at 6 p.m. Wednesday, May 19, at the Community Center.
