CARIBOU, Maine — Caribou city councilors approved a property tax increase on Monday, though it was lower than initially expected.
With an increased school budget and higher county tax bills, Caribou City Manager Penny Thompson originally projected a mill rate of $22.30, up from last year’s $19.50.
Councilors opted to cut $426,000 from the city’s expense and capital improvement budgets, putting the new mill rate at $21.40, which represents taxes paid per $1,000 in property value.
Several of the cuts from the $11.7 million expense budget came from salary and benefits from positions that were unfilled for the first half of 2024.
For example, the city did not hire its new code enforcement officer, John Gibson, until June, so that allowed for a $30,000 reduction in salary from $137,014 to $107,014 for the first six months of the year. That position’s health insurance, social security and retirement benefits were also reduced by $10,000, $2,500 and $1,000, respectively.
Thompson used the same rationale for a new assistant city manager position that remains unfilled. She reduced the six-month salary expenses by $45,000, social security benefits by $5,000 and retirement benefits by $2,000.
“We are still looking to fill that position,” Thompson said.
Several utility budget lines also saw decreases for the first six months of the year, including $2,000 taken from electricity expenses for Caribou Municipal Building, $4,000 from heating fuel and $5,000 from diesel fuel for the fire station, $7,000 from heating fuel from the recreation department and $1,500 from the parks department’s heating fuel.
Public Works will eliminate $80,000 from regular pay, $20,000 from overtime pay, $25,000 from diesel, $10,000 from rock salt purchases, $9,500 from liquid deicer purchases and $20,000 from sand purchases, all of which were used to treat roads and pay employees during winter storms.
“There was less snow than normal during the first half of the year, so less overtime,” Thompson said. “We haven’t used as much sand or other materials as we normally would.”
Caribou Fire & Ambulance is able to eliminate $100,000 from its capital improvement budget because it received a $100,000 American Rescue Plan Act grant from the county to purchase new ambulance stretchers, Thompson said.
Councilors unanimously approved all budget cuts but were more divided on whether to reduce the $21.40 mill rate to an even $21 with $194,790 from a 2021 tax relief fund.
In 2021, Caribou received $238,000 after state legislators opted to fully fund public education at 55 percent, which left the city with a $194,790 overlay for that tax year. Councilors decided to put the overlay into a property tax relief fund for a future year.
Thompson did not recommend that councilors use the $194,790 to reduce this year’s tax burden, out of fear that the city’s education and county tax-based expenses might go up even more in 2025. Several councilors agreed.
Others argued that any tax relief funds should benefit residents much sooner.
“There are a lot of senior citizens who were hurt last year because their taxes went up, then the senior [tax] freeze they thought they were getting is not happening. Plus, the RSU 39 [school budget] is increasing,” Councilor Tamara Lovewell said. “So it’s worth keeping everyone in the forefront as we make this decision.”
Councilor Jody Smith motioned to use the $194,790 for tax relief, with Lovewell and Councilor Dan Bagley agreeing. But the motion failed 4-to-2, with the remainder of the council not in favor.
Councilors set July 29 as the city’s tax commitment date. All 2024 property taxes will be due Monday, Aug. 12. Interest of 8.5 percent will start accumulating Oct. 1 for all unpaid taxes.
In other business, Thompson said that the city received no bids from contractors for the removal of debris from 15 Prospect St.
The former home at that property burned in a fire last September. Prior to that, the city had sued the homeowner, John Barretto, for alleged code violations. A Superior Court judge ordered in December that Barretto would need to remove all debris from his property, or else pay the city to remove it.
Though Barretto has made progress since then, much debris still remains, including parts of the former home’s foundation, wooden floorboards, doors, a bathtub and windows, Thompson said. She and Gibson inspected the property July 2, and Gibson returned July 16.
Thompson said that councilors would need to approve a contract at their August meeting if they chose to hire a contractor outside of the typical bid process.
Fire Chief Brian Lajoie said that he recently revoked Barretto’s burn permit after he and others on the property continued burning debris and posing a fire hazard. He said that if he catches illegal burning again, he will issue Barretto a summons.
Several residents also complained of another blighted property at 91 Collins St., which many have brought up at several council meetings this summer.
Though Gibson placed a notice of violation on the front door, trash is still piled up in the garage and many neighbors have witnessed people breaking and entering, said nearby resident Bruce Hagelstein.
Thompson said that the homeowner, Fred Corey of Monticello, has been in touch with the city about potentially selling the house.
Police Chief Corey Saucier encouraged the residents to keep him and city staff informed on activities at blighted properties.
“I hear your complaints and concerns and I wish that we could work harder at this,” Saucier said. “If you tell us what’s going on, we could move forward with that.”
The council honored Saucier for his new role as police chief and his predecessor, Michael Gahagan, who served Caribou Police for 51 years, including 19 years as chief.
The next Caribou City Council meeting will be held Monday, Aug. 26 at 6 p.m. at Caribou Municipal Building, 25 High St.
