CARIBOU, Maine — With revenues higher than anticipated this year, Caribou city councilors are hopeful they can lower the local tax commitment.
The council will discuss that option at its May 4 meeting.
Last month, Caribou City Manager Dennis Marker reported that 2020 revenue projections could be up as much as $547,394 over last year. A large percentage of those revenues stem from the city charging neighboring towns $100 per capita for ambulance services, as opposed to the previous rate of $11.50.
City officials say this new rate is more in line with what Caribou residents are paying for the service.
Out of the neighboring towns, the majority of Caribou’s revenue from this decision is coming from Limestone. The town had been receiving emergency medical services from Crown Ambulance, which had shut down as of Jan. 1. Earlier this year, they signed onto Caribou’s annual ambulance contract for $203,000.
Now, with more revenue than anticipated, Caribou Mayor Mark Goughan said it is up to the council to decide how to utilize those funds and suggested that they should ultimately benefit Caribou taxpayers.
“I think we have enough money for the Aroostook County government, and I think we’ve got enough to pay for a slight increase in the school budget,” ,” said Goughan. “ I think we can cover it all and do pretty good.”
The RSU 39 budget will also play a significant role in what the tax rate ultimately is set at.
The RSU 39 (Caribou and Stockholm) Board of Education recently discussed its budget on April 15. School officials are looking at what cuts would need to be made in order to prevent a tax increase, as many residents may not be able to afford additional expenses amid the COVID-19 pandemic.
Councilor Thomas Ayer suggested placing an item on the next agenda to look into how the council could reduce the overall tax commitment by one mill.
“I think we owe it to the city of Caribou to give back a little bit,” he said. “I pay $6,300 in taxes and would like to see that reduced a little bit, hence why I got on council — to manage our money a little better. I’d like to take a hard look at dropping it by one mill, knowing full well that next year we can keep it the same.”
Goughan agreed, and also requested that this be added to the agenda so councilors can discuss the pros and cons of any tax reduction at the May 4 meeting.
