Caribou council solicits input on spending plan City facing dwindling surplus funds

CARIBOU – The City Council decided to do something different this year by soliciting public input on the 2001 budget before beginning work in earnest on the spending plan.

“This is the first time in my memory that we’ve done it in this fashion,” said Caribou Mayor Phil Bennett Jr., during a public hearing on Monday. “It makes a great deal of sense.”

Faced with raising more than $500,000 extra this year and a dwindling surplus fund, the council decided to start the budget process early. According to the city’s charter, the budget is not required to be ready until March.

The entire proposed budget is $6.5 million, up from $6.1 million last year. The city expects $3.4 million in revenues this year, an increase over the previous year, according to a budget summary presented Monday by City Manager Richard Mattila.

However, the amount to be raised in taxes has increased from $2.7 million in 2000 to $3.1 million to fund the proposed budget. Last year, $234,000 was taken out of the surplus account to keep the tax rate down, but this year city officials have proposed taking no funds out of surplus.

Reasons for the increases include rising wage and health insurance costs. City officials found that local employees were paid less than their counterparts in other communities the size of Caribou.

Other costs include the increases in fuel prices and in road maintenance which involve using petroleum-based products.

Three workshops, with the city manager and department head explaining the budget, have been held with council.

“I don’t envy you at all,” said Robert Tardiff, a Caribou resident, speaking during the public hearing. “The spending choices you make affect us more than state or federal (budgets).”

Tardiff said the city has three options: raise taxes, deplete the reserves or explore innovative ways to fund city government. He proposed asking neighboring communities about consolidating some services.

“I’d like to see some type of county government,” said Tardiff.

Another speaker, Mark Goughan, proposed that the city should revert back to having a separate agency to foster economic development. Up until the last few years, the Caribou Development Agency worked on attracting business, while the local Chamber of Commerce handled tourism issues.

The two agencies merged into the Caribou Chamber of Commerce and Industry.

“The private sector deserves its own organization … to bring together a business plan for the city,” Goughan said.

Such a plan would provide for continuity from council to council, Goughan said. In addition, Goughan also questioned why the CCCI, which receives city funding, is not graded by its performance, similar to schools, who test students, and public works, which would be called to question if the roads weren’t plowed.

Another resident, Maynard St. Peter, also questioned the effectiveness of the CCCI.

Council member Christopher Bell said that the agency had provided the council with a report for 2000. “There were significant events last year,” he said.

A former council member, Roy Doak, reminded the assembly of a situation 22 years ago when the council kept dipping into surplus to fund its budgets and keep taxes level. As a result, taxes went up five mills, or $5 for every $1,000 of property valuation in one year.

“I want you to know there were some mad people in this town,” said Doak.

Looking for alternative energy supplies, such as windmills, was suggested by Bob Price.

Another resident, Bill Hersey, suggested contracting out some jobs, such as lawn mowing and snow removal. Some department heads responded to the issue, saying that no real savings are realized by privatizing the work.

Hersey proposed that an independent commission look at potential savings by putting work out to bid.

The council approved a motion that the budget be taken under advisement and further discussion on the spending plan was deferred until after Jan. 1 when actual year-end figures will be available.

Bennett said the council will take the comments under advisement and more workshops will be held.

“I can assure you that we’re going to go back and tweak this budget more,” the mayor said.