Special to the Pioneer Times
Houlton residents will soon find the tax bill in the mail as town councilors voted unanimously Monday night to maintain the current 18.25 mil rate for the 2008 tax year.
Councilors opted to transfer $300,000 from the town's Undesignated Fund to help preserve the current rate. Town Manager Doug Hazlett cited the 3.6 percent increase in local valuation as a factor placing Houlton in a relatively good position despite difficult economic times nationwide.
Public comment centered more on the accuracy of reporting than the decision itself. December 2007 figures placed the Undesignated Fund at $1.2 million. Councilors added another $1.5 million of borrowed money to ease the burden until tax bills are paid. The Council maintains that the fund is solid at $500,000.
Hazlett explained that it is typical for cash flow to become depleted prior to tax season. While the accounting reports are accurate, cash flow varies. “The closer you get to the date when taxes are due, you begin running out of cash,” said Hazlett.
Council Chair Paul Cleary concurred, stating, “Once people start paying their tax bills, that money comes back in, and we replenish that account.”
Not everyone was satisfied with the explanation, implying that the funding formula requires deficit spending. Some fear that residents will not pay — or will not be able to pay — their tax bills.
Councilor Paul Romanelli elaborated upon other councilors' remarks. “We're depending on the fact that people will pay. We operate on historical precedent,” explained Romanelli. He added, “There has to be a little bit of faith that people will pay their taxes if they want to keep their town.”
Local resident Phil Bernaiche offered a dissenting opinion regarding the amount taken from the Undesignated Fund to lower the mil rate.
Bernaiche was happy to see councilors used funds to help “ease the pain,” but noted that he would like to see more money — as much as $100,000 more — used to lower the tax burden.
Despite challenging economic times, the current mil rate is lower than the 18.5 mil seen 2005 and 2006.
As the Council moved on to the related business of examination of the 2008 Long Range Program, Cleary cautioned that lower taxes may not be as appealing as they first appear. He argued that putting off necessary expenditures now may cause undue future hardship. “I understand the budget next year is going to be a tight one for everybody, but three years from now, does that mean it's not going to be even tighter?” he asked.
In other business, the Council approved five members to the Board of Assessment Review. Three-year reappointments included Chairman Dana Delano, Frances Fitzpatrick and Joyce Fitzpatrick; Dorothy Donahue also received a three-year appointment. An amendment to the meeting agenda allowed Phil Bernaiche's appointment for the same term.
The Council is actively seeking volunteers to fill the other two vacant seats. Anyone wishing to serve on the Board of Assessment Review should contact the town office.
Councilors ended the meeting on a less formal but cheerful note, recognizing the youth of the community and the latest successes in Little League and an 8th place national finish in the Soap Box Derby by Lucas Grant. Councilor Sue Tortello modeled a T-shirt that supports the youth playground initiative. These shirts are also on sale for $10 at the town office.
The next Houlton Town Council meeting is set for Monday, Aug. 11 at 6:30 p.m. in the Town Council Chambers.
