Calais struggles to avoid tax rate increase

The City of Calais has avoided increasing the property tax rate for over 15 years, and this year councillors are struggling to avoid taking that step. Following a request that municipal departments present line item recommendations to reduce each department budget up to five percent, the council reviewed proposed reductions during a July 23 budget workshop. The proposed reductions totaled $100,750 or 1.78% of the proposed municipal budget.

Proposed reductions ranged from 1% for the finance department to 100% for subsidies and donations. In many cases, however, there would be no reduction in the actual budget, but funds from reserve accounts or other sources would be used to decrease the amount raised this year through property taxes. Most of the proposals also reflect a one-time-only reduction or elimination, with the funding from taxes restored for fiscal year 2028.

Reductions that were approved included travel for the council, clerk, fire department, public works and city manager, for a savings of $2,275; the city manager recommended combining the full‑time office assistant with the shared economic development director position, reducing the total wages and benefits expense needed. Additional reductions include $15,000 for recreation department part‑time employment, which was noted as being highly dependent on weather and on what the state does with the minimum wage. Better weather or an increase in the minimum wage may result in overspending that line item.

The recommendation is to fund the $17,000 for subsidies and donations, such as LifeFlight and the International Festival, using TIF funds for the current year. There was a discussion concerning the $10,000 for adult education that is provided to the school department. City Manager Mike Ellis explained that it is a requirement of the grant funding that pays the majority of the cost to a contractor that the funding pass through a local education department. The $10,000 is the required local match with the majority via the federal government contract.

Councillor Michael Sherrard reiterated his call that the school department cut its total $10 million budget, not just the $1,579,811 local share, by 5%, or $500,000. Sherrard reiterated his concern over the city paying an additional $255,982 above the state-mandated minimum local share. The school committee was scheduled to meet on August 12 to consider adoption of a revised budget. It was unknown at the council meeting how much the committee is proposing in reductions.

Ultimately, the recommendations for reduction or change in funding amounted to far less than the original $100,000 proposed by the municipal departments.

A public hearing on the $7.2 million budget is scheduled for Thursday, August 20, at 6 p.m. As proposed, the budget would increase by $719,491, or 11%, over the current year’s budget.