| Peter Bragdon, Budget Committee chair |
I wanted to take some time and summarize the changes that have been proposed to the budget and the reason behind them. Due to items discussed below, leaders have recommended that we only fund essential services that are required to run the town. I am not speaking in favor or against any of these; this is for informational purposes so you can make your decisions accordingly. In most cases the selectmen and budget committee agree but there are a couple areas that are noted below.
* During this current year $550k was used from the undesignated fund balance. For the coming budget the Board of Selectmen believe that we can only use $250K from the undesignated fund making a $330K gap.
* It is believed that excise tax will be down significantly secondary to the economy being down. The town collects upwards of $1.2 million in excise tax from registration of cars, boats, atvs, etc. It is predicted this will be lower than normal by upwards of 30%. In combination with building permits being lower and other revenues changes, it was noted that we were facing another $225k gap. It is very possible the revenues will be even lower than predicted.
* There are standard increases that must be covered, including utilities, insurance, wages, postage etc. I do not have this number but it is another gap that money must be used for.
* Looking at funding just essentials, the following adjustments were made:
– Reduce planner to part time. This will also eliminate insurance benefits. With the role of the planning board and a part time planner, the needs of the town can be met per the acting town manager Paul First who once served as town planner.
– Eliminate the parks and recreation director. This will also eliminate the benefit line. The select board recommends that flag football, soccer, gymnastic, cheering, Lego robotics and mad science be added to the budget and the budget committee agreed. These are pay to play and have some revenue. Each is run by stipend coaches. The budget committee added an additional $500 to cover Halloween or other possible events; the select board did not. There is still a recreation committee in place that can organize and offer programs possibly.
– Eliminate the assistant librarian and reduce library hours to 30 are the wishes of the select board. The budget committee has recommended the assistant librarian at 24 hours and the library director at 36 hours.
– Eliminate a position at public works. This will also eliminate the benefit line. The public works director feels that he will still be able to maintain the roads in the winter without this position. There is seasonal help budgeted as in the past.
– Cap employee raises up to 2.5%. In the past and most every recent year the employees have got up to a 3% merit raise. With the economy that we are facing and employees being laid off it was felt it was best to lower raises.
– Increase the amount employees contribute to the health insurance. This is a 1.5% increase. As an example, an employee with single coverage will pay 7.5% of the insurance instead of 6% in the past.
– Cut 4 hours per week that was added in to clean the new public works building. There is currently a person that works 12 hours a week cleaning the town office campus that will stay in place.
– Reduce the code enforcement officer to 36 hours. They will be put on hourly and not salary. It is felt that they will be able to keep up with the demands with the lower amount of the building/construction work being done.
– The budget committee recommends only putting $25k into the transfer station capital reserves saving account. Looking at the long term plan it shows the account is ahead of where it should be and some future years will not require funding. The select board believes now is the good time to put money into the savings if possible and recommend the full amount.
– Other miscellaneous adjustments were made throughout the budget including returning the selectmen wage back to this current year. The administration line was budgeted at $105k for the new town manager as this was recommended by the Maine Municipal Association. The prior manager was around $80k.
– It should also be noted that this year the town is using approximately $85k from the interest earned on the public works bond. While the money sat waiting to be paid out it earned interest. This money will not be available next year and will have to be covered. Also we most likely will be facing a bond payment on Stevens Brook as the project will be pushed off until next year. This meaning another deficit we will have to cover next year.
– It is important to note that the town is completing a revaluation. It is correct to say that the tax rate will go down. The key to this is that it does not mean you will be paying less in taxes! Despite what the tax rate is the same amount of money will need to be raised by the same amount of properties. Some houses will be paying more, some less, but it will be the same bottom line at the end of the day.
I hope this helps!
