City budget proposal would cut four positions

Because of declining revenues and a desire by the Eastport City Council to not increase the tax rate, acting City Manager George "Bud" Finch is proposing a new budget for fiscal year 2011 that would include eliminating four positions in the Eastport municipal government. The budget proposal, which does not consider any possible increases in the local share for the school department budget, will be presented to the council at its April 12 meeting. Along with council review it has not yet been looked at by the city's Budget Committee.

Positions that are proposed for elimination are: the fifth full-time police officer; the city clerk; one and a half positions in the highway department; and one half a position in the sewer department. Finch is proposing that reserve police officers and overtime for the four full-time officers be used to provide additional help as needed during the summer months. The city clerk, Helen Archer, is retiring, and Finch is proposing that she not be replaced at present. Most of the city hall staff are cross-trained for the different responsibilities, and Finch also is proposing that city hall be closed to the public half a day each week, so that staff can have time to accomplish other tasks.

The public works, sewer and cemetery departments would be placed under one umbrella. With a reduction in the public works positions from three to one and a half, a tier system for plowing certain streets first during winter storms might have to be adopted. The sewer department would be reduced from two to one and a half positions. One person will work half time for the sewer and half time for the public works department. With the proposed cuts, the municipal operations budget would drop by over $47,000, or 4.9%.

"These are short-term fixes until the economy changes," says Finch. "We can't cut more on the municipal side. It puts a lot of things at risk, but it holds the tax rate flat."

The proposed cuts would be necessary both to keep the local property tax rate from increasing and to absorb some declining revenues. An earlier budget proposal that Finch had presented to the council in February had proposed higher municipal costs for an increase in the tax rate from 20 mills to 20.24 mills. Revenue sharing funds that the city receives are expected to decline by 14.3%, with that funding having declined by $100,000 from the $244,000 received in 2008. Excise tax funds are also expected to decrease. Increased expenses include a $47,000 increase for hydrant rental and a $10,000 increase for municipal solid waste disposal.

In his notes, Finch states, "This budget does not meet the level of services we can provide, as drastic cuts in municipal services have been proposed and in some cases already implemented. These cuts will provide the city the ability to survive until the economic conditions improve but could become permanent or further reductions could be necessary if the economy doesn't improve."

He comments that "there is a high probability increases in educational expenses and a decrease in educational revenue could lead to as much as a 20% increase in taxation should the school board and council fail to require similar reductions in the educational budget." Education currently accounts for 60% of the Eastport budget and 40% of the taxes raised locally.

Finch observes, "We can't continue to fund the school through raising taxes and reducing municipal services, with a large part of the population of town being older."