Staff Writer
“Revenues are down and expenses are up.”
That was the succinct summary offered Monday by Caribou City Councilor Karla Bell after a lengthy review of the first four months of the municipal budget. Revenue generated by sources other than property taxes, such as the excise tax and investment earnings are under performing, according to Steve Buck, city manager. State revenue sharing also is down, he said.
“This is the most disappointing part of the report,” said Buck during his presentation to the council.
City officials are hoping that the situation will correct itself within the next few months. Historically, cash flow increases in May and June, he said. In addition a recent report from the governor’s office said that collections on sales tax, income and corporate taxes are expected to increase,
The added expenses are attributed to the increased costs for petroleum products and the costs associated with snow removal. According to Buck’s report, the costs of providing general assistance to needy residents almost doubled due to the need for emergency fuel and high costs of other commodities.
Other large increases included record levels of diesel fuels in the public works department. While the target price for fuel was $2.75 per gallon, the current yearly average is $3.21, according to the report.
Buck said that he and the department heads would continue to monitor costs and look for ways to curb expenses.
In other business, the council voted to table a request for additional funding from the Evergreen Cemetery from $1,500 to $4,000. Although the cemetery has not received an increase since 1988, council members said that increases should have been systematically built into the cemetery annual budget.
Buck said that the cemetery has been losing revenue to poor investment performance and that it loses funds when veterans choose to be interred at the federal Veteran’s Cemetery in Caribou, rather than at the city’s burial site.
The council has asked for more information on the request and the issue may be placed on the next meeting’s agenda.
Licenses and permits for the following businesses were approved by the council: Pine Tree Waste, McNeal’s Trucking, Star City Sanitation, Town Taxi and Aroostook Cab Co.
A liquor license and a special entertainment permit were approved for the Caribou Country Club.
The next council meeting will be held on Tuesday, May 27 at 7 p.m.
