HOULTON, Maine — By a split vote, the Houlton Town Council approved a $10,399,677 spending plan for 2015 during a special meeting Jan. 20, but not without considerable discussion, and a little bit of controversy.
Councilors Phil Cloney, John White, Jane Torres and Matthew Carr voted in favor of the budget, while councilors Dan Peabody and Brent Dickison opposed it. The final budget figure is actually higher than originally presented as councilors added some items back into the budget, despite reducing one area.
“I am voting no on this budget because I feel it is short-sighted to have a contract made by our town manager and then not to put our support behind the town manager,” councilor Peabody said, referring to his fellow councilor’s decision to slash the community development department by nearly $9,000.
Municipal spending at $7,620,612 is up $532,077 (a 7.5 percent increase) over last year’s level. Municipal spending has risen considerably over the past three years. In 2012, the town spent $6,877,774 to run the local government; while in 2013, municipal spending was $6,955,271; and in 2014, municipal spending was $7,088,535.
Houlton Town Manager Butch Asselin said the reason that the municipal side of the budget is up so much is due to a number of factors. Some of those reasons include a $103,000 plan to lease ambulances for the next five years; $57,000 for Maine State Retirement costs; $69,000 for cost of living wage increases for employees; $30,000 for a new police cruiser; and $138,000 for capital improvement projects. Those capital improvement projects include a new salt and sand shed, replacement equipment for public works, upgrading the municipal phone system and new computers.
When factoring in the RSU 29 and County share for the 2015 budget, total spending is up $546,572 (a 5.5 percent increase) from the previous year’s figures.
However, the municipality has seen a spike in its revenues to help offset this increase, so local property taxes in Houlton should be able to remain stable, barring any dramatic increase in the RSU 29 budget.
Much of that increase in revenues comes from the state turning over Maine Public Employees Retirement System funds this year. The town has allowed the state to manage its retirement fund in the past, opting to leave those funds with the state and have the town’s yearly share for retirement costs deducted from that fund.
The state has opted to discontinue this practice, effective June 30, and is turning any excess money back to the respective towns. For Houlton, that means a one-time bump in revenues of about $344,375, which is being used to hopefully offset any tax increase for the coming year.
While that is a boon for this year, the town will now have to budget retirement funds as an expense item for upcoming years. That means an additional increase of about $80,000 per year will be featured in future budgets.
The town also received revenue from the Aroostook County Commissioners and the Maine Tourism Association to be used to fund the Visitor Information Center for one year. Revenue from the Houlton International Airport is also on the rise thanks to a big jump in the sale of aviation fuel.
The controversy in the budget stemmed from a reduction of the Community Development account. As originally presented, the department was funded at $55,850, which was an increase of $8,775 (18.6 percent) over the previous year. The total department is comprised of one employee, Nancy Ketch, who joined the town in December. The $55,850 total includes salary, benefits and a new town cell phone.
“When we conducted interviews, Nancy Ketch was the unanimous choice of the committee,” Asselin said. “Her salary was negotiated between she and myself.”
Asselin stated that a town cell phone plan, at a cost of $1,800, was also factored in to the department.
Councilor Torres asked why other department heads do not have town-owned cell phones.
“I have most of their personal cell phone numbers and they are using them for business,” she said.
Asselin said he consolidated several departments under one cell phone carrier. The airport, code enforcement, public works and fire department all have town phones.
The original motion of funding the department at the town manager’s recommended amount failed 1-5, with Peabody the lone councilor to vote in favor.
Chairman Wade Hanson then asked the group what they would like to have for a dollar figure for the department.
“I think this conversation can’t be had here,” Carr said.
Town Clerk Cathy O’Leary said personnel discussions could not be discussed in open session, but a dollar figure needed be voted on before the council could move forward.
Councilor John White made a motion to fund the department at last year’s level of $47,075.
Asselin expressed frustration over the council’s course of action, stating the person’s salary was negotiated in good faith.
“This person left a job to come work for the town,” he said. “She has done a very good job. I am bothered by this (decision). The price discussed for salary was well within our range.”
The amended amount passed 5-1, with councilor Peabody opposed.
The ambulance department also garnered considerable discussion as the topic of whether to lease or purchase new ambulances was back in front of the board. At a previous meeting, councilors directed Milton Cone, fire chief and ambulance director, to come back with a plan to purchase two new ambulances. Originally, a presentation was made to turn in all three of the town’s vehicles and lease four ambulances.
Cone presented the board with options to both lease and purchase. Councilors voted 4-2, with Dickison and Peabody opposed, to move forward with a leasing option for the department.
After lengthy presentations by Bob Clark, president of the Northern Maine Development Commission, and others speaking on behalf of the group, councilors agreed to put back $10,456 that it had originally eliminated from the budget.
Salaries for union employees featured a 6 percent cost of living adjustment spread out over the three-year term of the contract. Some departments, however, opted for a 4 percent increase this year, followed by a 2 percent increase next year and no increase in the third year.
The police department is once again the single largest cost center in the town budget at $1,037866. This account is up $22,909 (2.25 percent) over the previous year. The department will see a reduction of one officer this year as patrolman Gary McGuire is transitioning to the Maine Drug Enforcement Agency.
The public works is second at $888,681, which is a decrease of $4,117 (0.4 percent). Two longtime employees, including the director, retired from this department last year.
The tax rate has also risen slightly in recent years. In 2014, the tax rate was held steady at 2013’s rate of 21.75 mils, and in 2012 the rate was 19.95. The tax rate is not set until July, after the school budget is passed.
