HOULTON – After rejecting several amendments, the Town Council on Thursday unanimously approved a budget of $7,438,243 for 2003.

The approved budget leaves a gap of about $142,000 between expenditures and expected revenues.

In August, when the town’s tax commitment is determined, the council will set a property tax rate. That rate, which was 27.5 mills last year, could be increased to offset the budget gap.

The alternative would be for the council to use a portion of the town’s $1.2 million undesignated fund balance for that purpose.

Amendments were rejected to reduce the administration account by $2,200, Chamber of Commerce funding by $5,500, Cary Library by $12,248, the Southern Aroostook Development Corp. by $20,000, and cut a combined $3,000 pay raise for Milton Cone, who heads the town’s fire, ambulance, and cemetery departments.

Amendments were approved to cut $24,100 for a proposed downtown manager and a $3,000 raise for the town’s grant writer-planner.

An amendment to restore $75,000 in proposed cuts to unionized employee health benefits also was approved.

At Thursday’s hearing, Cone, who has been a town employee for almost 29 years, pointed out that in 2001 and 2002 there were new heads in all departments except for his. Each of the replacements had been given a raise over what their more experienced predecessors received.

As a result, Cone, the most senior department manager in the town, was at the bottom of the pay ladder.

Councilor Michael Carpenter, who offered the amendments to deny Cone a $1,000 raise in each of the department’s he oversees, nevertheless agreed with Cone’s assessment of the situation.

“Milton’s being punished because he’s the old guy on the block,” said Carpenter, who ultimately supported the raises for Cone.Carpenter also offered the amendment to cut funding to the Southern Aroostook Development Corp., which he said was not effective in bringing business to the town.

“I’m not comfortable with giving $20,000 of our tax money to this organization,” he said. “I don’t feel it’s justified.”

Councilor Gerry Adams concurred, stating that “they haven’t proven themselves to the town.”

With regard to employee benefits, the town had been considering layoffs to offset increases in benefit costs. That became unnecessary when it was learned that there would be $300,000 more in the town’s undesignated fund balance account than had been projected last December.

Town Manager Peggy Daigle cautioned, however, that the benefits problem could resurface next year.

“It’s not just a Houlton issue,” she said. “It’s a statewide issue; it’s a nationwide issue.”