Budget proposes 8.1% increase in Eastport mill rate

Eastport residents would see an 8.1% increase in their property tax rate under the proposed fiscal year 2011 budget for the city. The $4.25 million total budget is actually $625,000 less than last year's budget. The proposed city and school budget increase of $220,152 from local property taxes is being sought because of a loss of over $860,000 in revenues, primarily from a significant drop in state school subsidy and high school tuition income and the loss of surplus funds because of accounts running over budget this past year. The city council will hold a public hearing on the budget on Monday, July 26, at 6 p.m.
For a property valued at $100,000, the proposed mill rate of 21.69 would mean a $162 increase in the tax bill, to $2,169. City Manager Jonathan Southern acknowledges that taxes are high in the city already and residents are struggling to pay their tax bills. He notes that 96% of the property owners pay their taxes, which is "an exceptionally high percentage." He adds, though, that the 8.1% mill rate increase being sought is "relatively low" compared to the possible increases of perhaps 25% in some communities. "We've made significant cuts to get to that amount."
Although the budgets for municipal operations and programs would increase by nearly $57,000, Southern says the municipal portion of the budget has shared with the schools in the burden of cutting. Earlier this year the city eliminated four positions, including a fifth full-time police officer, a position at city hall, one and one half positions in the public works department and one half a position in the sewer department. Through monies from the port authority, a fifth officer is being funded this summer. The budget proposal does include the addition of funds for hiring an on-call, part-time administrative assistant at city hall and part-time staff for public works, especially during the winter, as recommended by the budget committee. The committee's recommendations eliminate funding for a health officer and animal control officer and would not provide any funding for the Eastport Recreation Board, thus eliminating the program. The budget committee also recommended having property taxes due within 60 days before late fees are applied, increasing airport lease and hangar fees and burial lot and grave opening fees, and more accountability for spending at the school.
As for additional municipal expenses, Southern notes that the budget for hydrant rental fees has increased $47,000 and health insurance and utility costs have increased. The city has little or no control over costs such as for solid waste disposal, county tax, ambulance or streetlights. Also, a number of budget lines were over-budget this past year, and local property taxes had to subsidize the deficit in the sewer department.
For the school portion of the budget, the school board on July 15 adopted its $2.25 million budget, which is a decrease of $656,584 from last year's budgeted amount. This spring the school board cut nine positions at the elementary and high schools to reduce its budget, which is down nearly 23%.
Southern supports the budget committee's recommendations for a year-round school budget committee and a school sustainability committee. He also encourages residents to support the school budget, noting that the schools are an integral part of the community and help attract new families to the city. "It's your community identity," he says. "If we don't educate our own kids locally and encourage them to live here, we won't have a community. We will have a ghost town for two-thirds of the year. We won't have services and businesses," he says. "It's such a bigger part of the picture than those without a school could ever imagine."
Southern says the city will be looking at innovative ways to help the schools, including vocational training. Although the schools have been hit hard with subsidy losses, the city manager says, "The American spirit is not to give up easily. We're optimistic. We have a year to change things. To simply close the school without trying something innovative is not how communities progress."
At its June 15 meeting, the council set Monday, August 9, as the date for the referendum vote on the school budget. Shead Principal Paul Theriault noted that the citizens can also be given the opportunity, at that time, to vote to eliminate the special referendum on the budget for future years.
Husson lease
In other business at the June 15 council meeting, Tom Johnston of Husson University outlined a proposal for a lease agreement with the city for Husson's use of two buildings at the city-owned Boat School facility. Under the proposal, Husson would pay $52,000 a year, with the city responsible for covering costs including heat, electricity, water, sewer, grounds, snow removal, telephone and Internet service. The $52,000 figure is proposed because operating costs have been about $92,000 and the city has been receiving $40,000 in lease income from other users. The lease amount would be reduced by those costs that Husson ends up assuming. The lease could be converted to a $1/year lease if Husson exercises an option by July 1, 2011, to assume all occupancy costs. The city would contribute 25% of the cost of major maintenance expenses, if they are jointly agreed to by the city and Husson, since the city as landlord would be gaining the long-term benefit. Husson would act as referee on use of the Travellift bay by different parties. Councillors indicated their support for the proposal, and a formal lease agreement now will be developed.
Other business
The city manager reported that the new fuel farm at the airport is unfinished, because of design flaws and safety issues. Jet aviation fuel cannot be pumped, although low lead fuel can be. A new airport consultant will be chosen, he noted.
On the recommendation of the city's Downtown Committee, the council chose QA13 of Bangor as the architectural firm and Wright-Pierce Engineers as the engineering firm for the Overlook Park project and the downtown facade program.
The council and city manager presented a letter of thanks to the Fourth of July Committee, with co-chairmen J. Roland Mitchell and Barbara Hicks receiving a standing ovation from the audience. The city manager said the committee had "done a tremendous job."
The city manager also acknowledged the public works crew, Rene O'Dell and Howard Johnson II, and cemetery crew member Jim Elliott for their work cleaning up over the Fourth.
Code Enforcement Officer Robert Scott reported that the Zoning Board of Appeals had approved a special exception permit for the Mousse Island Clipper hair salon on Washington St. and the Historic Review Board had granted Certificates of Appropriateness for Fundy Bay Charters, the Quoddy Crafts building, plantings in front of the former A&P building, and the repainting and relocation of the Vortex sculpture.
The new auditing firm, Hollingsworth and Associates, will give a presentation to the council when the audit for the past fiscal year is completed.
The council approved special entertainment licenses for the Blue Iris Restaurant and The Pickled Herring. The 1947 Chevrolet fire truck was sold to Ron Spinney for $527.