Caribou officials brace for tight funding future

CARIBOU – With the funding situation looking tight, city officials are starting the 2001 budget process earlier than usual in order to garner as much public input as possible.

The proposed $6.5 million proposed spending plan presented on Monday to the Caribou City Council includes a 7-percent increase over last year.

But with a $430,985 increase anticipated and only about $83,600 of new money coming in, the city would need to raise $316,000 in additional property taxes, according to the budget message accompanying the proposed budget written by City Manager Richard Mattila. The budget does not include funding for local schools.

“Normally, this budget is presented to you in January,” Mattila said in the budget message.

The increase is being attributed to higher costs of wages, health insurance, fuel and the funding of a community development office.

In funding last year’s budget, $234,000 was taken out of the surplus account in order to keep the tax rate at $21.25 per $1,000 of property valuation. The city manager said, however, “that resource” is not available this year. Mattila also said it’s unclear what amount of surplus the city will have when the current year ends.

A public hearing is scheduled for Monday, Dec. 11 by the City Council. In addition, workshops are being scheduled before and after the hearing, according to city officials. Passage of the budget is not required until the beginning of March.

The proposed 2001 budget includes an overall increase of $89,000, or 3.5 percent, in wages, primarily as a result of wage hikes made during this year. City officials discovered that many city employees were “substantially underpaid” when compared to their counterparts in surrounding communities. The increase also includes a 2.5 percent cost-of-living raise, about 1 percent less than the consumer price index, the city manager pointed out.

The cost of health insurance would add an additional $98,000 to the budget next year. Traditionally, the city pays 80 percent of the cost. This year, the city is facing a 23.2 percent increase in premiums for the coming year.

Heating fuel costs have risen 72 percent, while diesel fuel has risen 56 percent over the past year.

The increased costs of petroleum products also have contributed to the higher cost of paving and road maintenance since paving products are oil based.

An added cost of $55,000 has been placed in the community development account, which previously has been unfilled. Most of the funds are to be used as matching grants, but are necessary if the city plans to continue its aggressive community development plans, according to Mattila.

Another account has $100,000 also to be used as matching fund requirements for two $400,000 Community Development Block Grants.