HOULTON – The Town Council and town Board of Budget Review on Monday talked about funding for the Economic Development Department that councilors created this fall. But when the work session ended after an hour and a half, no funding plan was in place.

The whole process rankled Lloyd Chase, a budget committee member. He said it was pointless for the panel to sit down with the councilors while they debated how to operate a department they created.

“It has nothing to do with our function,” Chase said, noting that even at this point, the council is still deciding whether it wants separate departments for economic development and community development. “It’s utterly, totally wasted for us to sit here night after night” while the Town Council debates policy,” he said.

When the Economic Development Department was created this fall, the council’s intention was to have the yet-to-be-hired director of that department market the town outside the area. Simultaneously, Charles Upton, the community development and planning director, would concentrate on working with existing businesses and grant writing.

For the past six years, Upton has done the job of both departments, but with little funding.

“We just imposed on him to do it and we cranked out funds for him to do it with,” said Town Manager Allan Bean.

Of the approximately $71,500 budgeted last year for Upton’s department, Bean said, about $18,500 was used for economic development.

He noted that other communities in Aroostook County, such as Presque Isle and Caribou, have more than $1 million to use to market their towns. And that figure doesn’t include funding to operate economic and community development departments.

“You’ve got to back your salesman,” Upton said, adding that the council should establish clear goals for the new department before trying to fund it.

One option that was discussed would be to raise an extra 1 mill in taxes – the equivalent of about $172,000 – with half of that amount going to operate the new department and the other half used to build up the town’s war chest to help attract business to the town.

The town has about $250,000 in that fund, which is administered through the town’s Shiretown Development Corp.

Using the equivalent of a half mill to build up the economic development fund would be a step toward getting the $1 million needed for the town to “get into the game” with other towns, Bean said.

The problem with raising taxes to fund any expanded development plan is that the town could potentially have up to a 2.5 mill increase next year to cover costs of insurance for town employees, fuel and other items.

“We’re at the point where we need to make some important decisions,” said council Chairman Paul Romanelli.

“We need to look at this carefully or we’re going to have ourselves a $200,000 project here,” he said. “I don’t think you can sell it to the people of Houlton.”

Following additional workshop sessions on the 2001 municipal budget, the Board of Budget Review has tentatively scheduled a recapitulation meeting for 7 p.m. Thursday, Jan. 4, at the town office. The council will meet for the same purpose Jan. 9.

A public hearing on the budget has been tentatively set for 7 p.m. Monday, Jan. 29.