Council gets first look at proposed 2012 budget

13 years ago

Council gets first look at proposed 2012 budget

By Kathy McCarty

Staff Writer

PRESQUE ISLE — Councilors were given their first glimpse of the proposed 2012 city budget during Monday night’s session at City Hall.

City Manager Jim Bennett used a PowerPoint presentation to review spending projections, condensing the draft’s hundreds of pages into about 30 slides.

The 2012 budget, as proposed, reflects a slight increase over last year’s, with the 2011 final figure coming in at $12,471,035 and 2012 estimated at this point at $12,575,638. This would mean only a slight increase in the mil rate, from $23.50 per $1,000 in valuation to $23.70.

“At this point, it is considered a draft only,” said Bennett.

Bennett said copies of the draft were available for public viewing at both the city clerk’s office and at the Mark & Emily Turner Memorial Library.

“This gives a snapshot of how much is spent by year’s end. Some items don’t get spent right away. We forecast what’s spent based on assumptions (from past year’s expenditures),” said Bennett. “Budgets are based on past experience and future expectations.”

Bennett went over last year’s budget, noting that some of the items of concern, such as state revenue sharing and the cost of fuel, continued to be a concern as he and city staff worked to put together the 2012 document.

“We’re projecting no increase in revenues. The legislature has raided the revenue sharing account, reducing amounts municipalities get. If the legislature hadn’t fooled around with the revenue stream, your property taxes would have been less,” Bennett said.

Bennett said given past fluctuations in the cost of heating fuel, the city had “locked in” the price for the coming year, which will allow a set amount to be budgeted, rather than the constant changes that occurred in past years.

“We’re looking at over $136,000 increase over last year’s heating cost. Health insurance is another item that’s gone up by almost $105,000,” he said.

Bennett said the “easy stuff was done last year,” and that it “will become more difficult to find ways to reduce.”

“Revenue reductions are killing us — making the budget process more difficult. Our goal is to help you understand the choices available and what ultimately impacts will be (to the community and its citizens),” said Bennett.

“This is the ultimate policy decision you have to make for the citizens of Presque Isle. It’s the single most important decision with regard to services. The number presented most likely won’t be the number you adopt,” said Bennett, noting he was still working on Council’s request to try to find a way to reduce the budget by 1 mil, or approximately $500,000.

“The budget as it’s printed would require another $104,503, raising taxes by 20 cents. It’s our goal to have a menu of possibilities for $500,000 in reductions by the first of November,” said Bennett.

The city has set several dates for councilors and city officials to begin the task of coming up with a final 2012 budget. A Council workshop has been scheduled for Oct. 17, with the first public budget hearing slated for Nov. 7. Council budget workshops will continue on most Mondays in October, November and December. A final public budget hearing will take place once councilors have reached agreement on the 2012 figure. Dec. 12 has been set as a tentative date for budget adoption, with Dec. 31 given as the last date the budget can be approved.

During Monday’s meeting, Council addressed the following items:

• Held the first hearing on a request to amend Chapter 16 Land Use and Development Code, Section 12 Retail Business Zone and Section 28 Downtown Retail Business Zone, scheduling the next hearing for Nov. 7;

• Held a second hearing, approving an amendment to Chapter 36 Dog Ordinance;

• Held a second hearing, approving the rezoning of Map 39, Lot 30 from Urban Residential Zone 2 to Business Zone;

• Approved a special permit for music, dancing and entertainment for the My Tai, 449 Main St., and the Northeastland Hotel, 439 Main St.;

• Approved a nude entertainment license for KBS Enterprises, d/b/a Presque Isle Inn and Convention Center, 116 Main St.;

• Approved consent agenda items, including proclaiming Oct. 15 as White Cane Awareness Day and appointing Jim Bennett as delegate and Darrell White as alternate voting delegate for the Maine Municipal Association;

• Removed without prejudice discussion of consolidation of the Water and Sewer boards;

• Scheduled Oct. 17 as the date for a workshop with the Water and Sewer boards;

• Set April 1, 2012 for the completion of an internal audit;

• Approved an order to remedy a malfunctioning waste water disposal unit on Barton Street;

• Approved a Grant-in-Aid Program application on behalf of the Presque Isle Snowmobile Club;

• Approved an agreement with SH & E for a business travel survey to determine usage at the Northern Maine Regional Airport; and

• Discussed but took no action with regard to establishing a fireworks ordinance, following the state’s approval of public use of fireworks which will go into effect in 2012.

Council’s next regularly scheduled meeting will take place at 6 p.m. on Monday, Nov. 7, at City Hall. The public is welcome and encouraged to participate. For more information, contact 760-2785.