MADAWASKA, Maine – Madawaska town officials are working on a budget that does not include any mill rate increases this year. Last year, the town set the mill rate to $25.40 per $1,000 worth of evaluated property, an increase of $2.65 over the 2022 mill rate of $22.76.
Last year’s increase, according to former town Manager Gary Picard, was due to departments seeing 10 percent increases across the board.
Madawaska Interim Town Manager Dan Foster said during an April 23 finance committee and selectmen meeting that he and Finance Director Caryl Albert are working to present a final budget which does not include any mill rate increase.
“We are working with the department heads [on] how we are going to be able to do that and meet our main goal of not having a mill rate increase this year,” he said. “I think that that is a goal worthy of pursuing.”
Officials have not yet finalized the budget, but in the meantime they have discussed and taken action on some items that will help prevent a mill rate increase.
The select board on April 23 voted to use ARPA funds to offset an increase in this year’s county taxes. The Aroostook County Commissioners recently moved from a calendar year to a fiscal year for their annual budget. This change will result in larger tax bills for all Aroostook County communities this year.
Because of the change, Madawaska needs to pay an additional six-month bill to the County government for $337,692. If they add it to the $650,000 that is already owed for the upcoming year, then it would be close to a million dollars. Instead, Foster suggested using $284,000 in leftover American Rescue Plan Act (ARPA) funds to cover most of the six-month bill.
“That leaves us with $53,000,” he said, “which I think we could incorporate into our budget without negatively impacting the mill rate.”
The ARPA funding was initially approved at the town’s last annual meeting to be used for broadband infrastructure. Foster said the funding, however, could be used for other purposes, and that tackling the six-month bill would meet that criteria.
Foster also suggested raising rates for ambulance contracts with surrounding towns, which includes Frenchville, St. Agatha, and Grand Isle.
“The ambulance generates revenue, but they do not make money,” he said. “The revenue they generate is less than the cost to provide the service that generates the revenue. So the citizens of Madawaska are subsidizing the ambulance.”
Foster said the town could be doing a better job determining exactly what rate to charge these communities. He said the town is expecting $710,000 in revenues for the ambulance service, but is envisioning that number to be higher in the final budget.
One resident asked Foster if he could provide a rough estimate of how much these contracts should increase.
“I do not have the information to accurately determine what that rate should be,” he said. “I don’t think it is high enough. That’s just a personal opinion.”
The finance committee will meet on May 2 at 6 p.m. to review the final budget. The committee and selectmen will meet again on May 14 at 5:30 p.m. to discuss any potential changes that need to be made prior to bringing the budget to the annual town meeting. A date for the town meeting has not yet been set.
Foster said on Monday that he and officials hope to have a completed budget by Tuesday, April 30.
