Orono manager concerned about large increase in taxes

ORONO — Town officials peering into municipal coffers are likely to find only the inquisitive reflections of frustrated taxpayers.

If the Town Council were to pass the proposed $4.5 million 1991-92 budget without alterations, the document would include a tax increase of 21.34 percent.

The mill rate would increase to 21.6 mills from last year’s 17.8 mills, which Town Manager Nancy H. Orr said was “unpleasant, unpalatable, and intolerable.

“But it is necessary if the town is to maintain services and to extricate itself from the present financial difficulties,” Orr wrote in a budget message to town councilors.

This dismal picture is brought to the taxpayers by a number of sponsors — the state and federal governments, the recession, poor planning by the town in predicting revenues and appropriations in recent years, and just plain bad luck.

As councilors ponder the budget and the size of a possible tax increase, they also will consider the increasingly desperate financial condition of the town and state.

During the past three years, the town’s fund balance has been drained, decreasing from more than $650,000 to about $15,000, Orr wrote. Also during this time, the town has overestimated revenues or overspent appropriations by more than $625,000, she added.

“It is time that the town of Orono makes the decision to pay for the services provided out of current revenues, or makes the decision to cut services,” Orr wrote.

Among other things, the increase of 3.8 mills comprises increases proposed to remedy the fiscal situations — such as contributions to the operating reserve and the contingency fund, increases for the school department’s previously negotiated salary negotiations, reduced revenue from property taxes, and increases in contracted services, such as solid waste collection.

While it is perhaps tempting to try to escape the angry mobs at budget hearings by passing a budget with little or no tax increase, Orr included in her message proposed plans for cuts at four levels.

The first level includes joining the Maine Municipal Association risk pool and changing the property tax due date, which would reduce the tax rate to 21.3 mills.

The second level includes a number of changes, ranging from eliminating the town engineer’s computer to reducing the contribution to the operating reserve account. The first and second-level cuts would result in a mill rate of 20.6, an increase of 15.75 percent.

The third and fourth cuts would continue to slice municipal services from the budget, including the elimination of some positions. All four cuts would reduce the mill rate to 18.8, an increase of 5.1 percent over last year.