FORT FAIRFIELD, Maine — As Fort Fairfield attempts to rid itself of debt, residents are debating whether the town’s next budget should focus on repaying that debt or lowering the mill rate.
In September 2022, newly appointed interim town manager Dan Foster revealed that Fort Fairfield had only $199,000 in the bank on June 30, the end of the fiscal year, compared to $946,000 in June 2020. The town had 1,275,000 in short-term debt, including more than $350,000 for a new ambulance service.
Former town manager Andrea Powers resigned earlier that month amidst accusations of not providing accurate or timely information about the town’s financial state. Since then, Foster has said he is determined to reduce Fort Fairfield’s 26.5 mill rate and get the town out of debt within two years.
To accomplish that, he is proposing town councilors pass an expense budget of $7,454,238, a $3 million drop from the 2022-2023 fiscal year budget of $7,743,565.
If passed, Foster’s proposed budget would result in at least an 0.75 percent reduction in the 26.5 mill rate. The town council could vote to use the projected $270,000savings to reduce the mill rate even more, possibly paying their remaining $925,000 of debt by January.
The town could reduce the mill rate to 22 or 23 the following year if the debt is paid, Foster said.
“If we budget this way, our next town manager won’t have to deal with paying off the debt,” Foster said, during a budget public hearing Wednesday.
The proposed budget includes numerous staff and department cuts that Foster said are necessary for reducing costs.
When combined, the fire and EMS departments have a proposed $878,324 budget compared to $1.4 million the prior fiscal year.
Since taking over the departments in October, Chief Mike Jalbert has sold one of the town’s two new ambulances in place of a used one. He has also sold a ladder truck and SUV and recruited more than 20 volunteers, leading to reduced costs since full-time employees require benefits and higher wages.
“Now our debt [for the ambulance] service is paid,” Foster said.
The public library, parks and recreation department and town office are also relying more on volunteers and part-time employees, he said. The proposed library and parks and recreation budgets are $55,811 and $169,023, respectively, compared to $135,269 and $296,158 from 2022.
At the town office, Tax Collector Ella Leighton will shift from 40 to 20 hours per week starting in July. Deputy town clerks Crissy Emery and Shannon St. Pierre will shift their roles to human resources director/treasurer and tax collector, respectively. The total administration budget would be $638,623 compared to $656,200 last year.
Foster justified an increase in the police department’s budget — $572,880 from the previous year’s $557,011 — to more employees. Since taking over in 2021, Chief Matthew Cummings has recruited four full-time and six part-time officers.
“When Matt took over in August 2021, he was a department of one,” Foster said.
Despite the cuts, several residents favored more reductions and a larger mill rate decrease.
“If you slow down the [debt] repayment process, you can give more to the taxpayers. That would mean a lot to our senior citizens,” David Dorsey said.
Kevin Bouchard praised Foster’s efforts to reduce expenses but said more budget reductions should be done. He did not specify which departments he thought should be cut further.
If the town passes the proposed budget as is, Bouchard said, the financial burden on most taxpayers will be too much to bear.
“A good case can be made to, over time, return all of [last year’s] tax increase back to the taxpayers,” Bouchard said. “A good start in that direction could be to return at least half, or 3.5 mills, back to the taxpayers this year.”
Several other residents were concerned that any more budget reductions would negatively impact the quality of the town’s services.
Parks and Recreation, for example, has already seen major cuts, Daniel Hapgood noted.
“If we lose the pool, something people rely on, there will be a lot of underserved kids with no place to go,” Hapgood said. “Once you lose programs like that, it’s hard to get them back.”
Former public works director Mike Cyr said he would rather see the town solve its debt before lowering the mill rate. If too many programs see reductions, he said, that leaves little room for department officials to put aside reserve funds for newer equipment.
“[Public Works Director Darren] Hanson has done a great job keeping his budget good. But we’ve got some equipment that’s old enough to vote and others that are old enough to buy liquor,” Cyr said. “It’s time we have more money for equipment and paving roads.”
Town councilors did not offer comments but will continue negotiating with Foster, department officials and the budget advisory committee until voting on the final budget in June.
The next town council meeting will be held at 6 p.m. Wednesday, May 17, at the town office. Copies of the budget are available on Fort Fairfield’s website and at the town office.
