Exactly how much should it cost to run the town of Houlton or any other community for that matter? That is the question that town managers, councilors and selectmen must wrestle with when putting together municipal budgets.
The Houlton Town Council agreed to bring forth a 2014 spending package in the amount of $9,853,105 during a special meeting last month. That budget figure was based on the recommendation of the Board of Budget Review and the town manager.
A public hearing, in which residents can express their thoughts on individual line items in the budget, is scheduled for next Monday at 6 p.m.
Spending is up this year for the town. The municipal side of the budget is $7,088,535, which is an increase of $133,264 (1.9 percent) over the previous year. But when projected increases in both the RSU 29 budget and County tax are factored in, the overall budget is up $374,804 (3.9 percent) over the 2013 figures.
The tax rate has risen steadily in recent years. In 2013, the tax rate was 21.75, while in 2012 the rate was 19.95. Town Manager Eugene Conlogue said it was too soon to say what the projected 2014 property tax rate would be, but an increase appears likely.
According to the town manager, this year’s increase on the town’s side of the budget is driven by a projected increase of $45,000 in funds to be set aside in the town’s tax-increment financing districts; a $31,000 increase in the police department; and a $25,000 increase in benefit costs. There are also several wage increases in the first six months of 2014 that are required by union contracts.
Balancing a budget at the municipal level is really not that much different than a budget one does for their home. There are two choices, you either increase your amount of money coming in (revenues) or decrease what you spend (expenses).
It’s that simple.
One way a town increases its revenues is by raising taxes. It’s not popular, but if residents want to see the same level of services they have has had in the past, a tax hike is inevitable. If people do not want to see continued increases in their tax bills, they need to encourage their councilors or selectmen or school board representatives to sharpen their pencils and make some difficult cuts.
Other communities in Aroostook County are making those tough choices. Presque Isle made the difficult decision to close first its outdoor swimming pool and then its indoor pool when it was learned that costly repairs were needed for both.
Reductions could be made in the town budget, but people may not like the cuts that are made. Cuts in a municipal budget can often mean people lose their job, roads don’t get plowed as much or other popular programs get cut.
Houlton has a tremendous amount of services that benefit the community and many have stated they do not wish to see the time spent building up these programs and services over the past 10 years or so be systematically torn down in one short year.
But really, that is nothing every single person doesn’t ask himself or herself when looking at their own finances. If your monthly expenses are higher than your income, you make cuts. Maybe it means going without cable television or Internet for a few months, or maybe it’s switching from name brand products to store brand ones.
Balancing a budget at home comes down to “wants” and “needs” for most people. Needs tend to be more fixed, while wants are something that one could live without if they had to. Towns could do the same thing. The town council could easily go through the 2014 budget and identify what its “wants and needs” are for the next year and make their choices accordingly.
In private business, if the owner needs to trim expenses, reductions in salaries across the board for all employees are not uncommon.
No cuts are ever popular, but sometimes they have to be made.
Joseph Cyr is a staff writer for the Houlton Pioneer Times. He can be reached at pioneertimes@nepublish.com or 532-2281.e
