CARIBOU, Maine — The City of Caribou has about half a million dollars of unanticipated revenue from 2017, and City Manager Dennis Marker said during a Jan. 29 City Council workshop that it could used to offset any property tax increases in 2018.
Marker told councilors that 2017 finance records indicate the city spent $384,137 less than budgeted and received $50,622.73 more than anticipated in revenues, resulting in a total of $437,759.73 of extra money the city could apply toward its undesignated fund balance, or use toward offsetting 2018 property taxes.
“The city did pretty good last year,” he said. “The difference could go into a ‘rainy day fund,’ but as we look at the 2018 budget we anticipate some of that amount could be leveraged toward offsetting the mill rate.”
Councilor Phil McDonough said this is about “the third or fourth year” Caribou has ended up with a “rather large excess” of money.
“I think we need to start scrutinizing our budget a little bit more and watching our overages,” he suggested.
Councilors took no action as the session was a workshop.
Mayor David Martin then introduced 2018 budget revenues, and Marker announced that projected property taxes will stay roughly the same as last year.
He added that current revenue projections do not include any contributions from the Tri-Community Landfill or RSU 39. One aspect of the Tri-Community Landfill merging with Presque Isle includes Presque Isle’s payment of $1.3 million to the city over the course of eight years. RSU 39 also paid the City of Caribou roughly $75,000 to help offset taxes and, according to city officials at the meeting, will pay an additional $75,000 this summer.
With all funds combined, Marker said estimates indicate year’s budget will be about $40,000 short of last year’s and include a “slight reduction of the mill rate.”
