Budget proposal for Eastport seeks no increase in taxes

The local property tax rate in the City of Eastport would remain flat, with no increase in the mill rate, under the proposal brought forward by Eastport City Manager Jon Southern and the city budget committee. Although the total budget would increase by $218,350, or 5.1%, to $4,498,131, projected revenues from other sources would make up most of the difference, increasing by $196,677. The tax rate would remain at about 21.8 mills for this coming year, and the local share for education would also remain the same, at $1,141,778. The city council will hold a public hearing on the budget on Monday, July 11, at 6 p.m. at Shead High School.
"To keep the budget flat, given the year we've had, is pretty incredible," says Southern, who attributes the maintaining of a tight budget in part to the work of the budget committee. He says he realizes that people cannot afford to have their taxes keep increasing. "We're seeing more foreclosures; people are struggling, and the economy is not going to get better anytime soon." However, costs to the city, such as the county tax and health insurance, keep increasing.
"I ask people to be reflective about what they get for their taxes," he comments, noting that city has a professional team of employees who provide administrative, public safety and public works services. The city also has managed to keep operational the wastewater treatment plant that is facing issues. "That's a lot to manage with a small amount of money. We only have 1,331 people, but we have the same infrastructure needs as a large city."
Reviewing specific line items, Southern notes that the police department budget would increase 3.6%, but that amount reflects a transfer of costs to that department for running the A&P building, where the police station is now located. He also points out that the police chief will be a salaried, instead of an hourly, position. The cemetery budget is down 20%, and he observes that the crew previously helped maintain the Boat School and Coast Guard properties, which is no longer the case.
The airport budget is up by $51,000, and Southern explains that increase is caused by the addition of the fuel farm. That expense will be offset by revenue from fuel sales to airport users. The city's capital reserve budget has been dropped down $20,000 to $50,000, which is the amount that had been held for that purpose in previous years.
Expenses that are increasing that the city has little control over include: ambulance, up 5.8%; municipal solid waste, increasing 10%; and the county tax, up 12.2%. Southern notes that solid waste fees could end up increasing even more. At the June 22 city council meeting, councillors suggested that the city manager approach the towns of Perry and Pembroke about having them share in some of the additional cost, beyond the per-capita fee, that Eastport pays for having an ambulance base in the city.
Funding for the Peavey Memorial Library, the senior citizens center and recycling would remain the same.
Southern has added a line item for the former Guilford mill building owned by the city, noting that at present it is not generating any profit for the city. That could change if a composites manufacturing facility ends up locating in the building.
A 22.6% increase in city debt, projected at $232,993 for next year, is caused by previous budgets not showing a $65,000 annual payment on a $500,000 loan for work that was done at the former A&P building, Southern says.
Concerning the Boat School property, which is also owned by the city, Southern says that expenses this year could total around $140,000 to $150,000, with over $80,000 in lease payments offsetting much of that cost. The cost to taxpayers could be $60,000 to $70,000 this year. He notes that it previously had been anticipated that revenues from the former mill building and A&P building would have covered that amount.