County Budget calls for 13% increase in amount from taxes

The Washington County commissioners approved a $5.9 million budget, with a 13% increase in the amount to be raised from taxation, at their December 2 meeting. The total budget, though, is only up $21,766, or 0.4%. The budget was approved by Commissioners John Crowley and Kevin Shorey. Commission Chair Chris Gardner was out of town on business.
As reasons for the additional $557,289 having to be raised through taxation, Commissioner Shorey cited a $143,289 decrease in state revenue, insurance cost increases, and a budget increase caused by the "Calais $150,000 dispatch service transfer" to the county. That responsibility, he said, is not something the county can refuse to take on.
But the most significant decrease in revenue was in the undesignated fund ( a much smaller amount than in the past. For the 2011 budget that line item is $98,300 as opposed to $516,645 in 2010 and $311,370 in 2009. County Manager Betsy Fitzgerald notes that health insurance costs had eaten into the surplus, "which is why there is not any significant balance that can be returned in the 2011 budget." She explains how the undesignated fund works. "The county can only retain as undesignated fund balance 20% of the operating expenses. For the past few years there has been a healthy balance that could be returned." Not including the amount raised through taxation, county revenue will be $1,153,829, a decrease of $535,572.
Shorey told the audience of 22, "It's been a very difficult year for the budget committee. Communities all across the county are facing challenges; we're no different." He noted that county personnel are receiving no raises, third party requests have been cut and there will be a delay on getting the registry of deeds online. "The entire budget since 2005 has not changed significantly." He pointed out that third party requests, which total $64,450, "have been able to leverage millions of dollars."
Kathleen Caso, a new Calais councillor, asked Fitzgerald, "Do you have any idea what the mill rate will be?" Fitzgerald explained that the county does not have all valuations in yet, but that municipalities should receive a letter with the county tax notification by the end of January.

Unorganized territories budget
The 2011 budget for the county's Unorganized Territories also tried to hold close to 2010 numbers, with an increase of $11,104 for a total appropriation of $1,156,127, and with a total tax assessment increase of $25,473 for a total of $808,442. Other revenue increased over 2010 by $15,631, for a total of $327,685.
Caso questioned the commissioners why the tax increment financing (TIF) funds brought to the UT by the First Wind electricity-generating wind turbine farms couldn't be used to offset the budget, not only in the UT but in the county as a whole. She called into question the use of the TIF funds for a proposed project that would supply UT residents with the tools to create raised-bed gardens. Commissioner Crowley explained that the TIF funds were not something the commissioners or the county could touch. TIF programs are approved by the legislature for specific economic development funding purposes.
UT Supervisor Dean Preston's budget draft explained the UT budget process. After being approved by the commissioners, the UT budget is then forwarded to the fiscal administrator for the county's UT. As part of the municipal cost component legislation the budget is submitted to the legislature's Taxation Committee. Once approved by the committee, the legislature may make any changes it deems necessary before then voting on final approval. The budget must be approved by a two-thirds vote by both houses of the legislature.