Greenville to weigh financing 4 projects

loading...
GREENVILLE – The first draft of the municipal budget reflects a 9.36 percent increase in expenditures, or about $128,000, over the current budget. The municipal projections do not take into account county and school costs. The draft Greenville spending plan, which includes…
Sign in or Subscribe to view this content.

GREENVILLE – The first draft of the municipal budget reflects a 9.36 percent increase in expenditures, or about $128,000, over the current budget.

The municipal projections do not take into account county and school costs.

The draft Greenville spending plan, which includes a 3 percent cost-of-living increase, will be reviewed by selectmen at 6 p.m. March 26, and later by the budget advisory committee before it is presented for adoption at the annual June town meeting.

Town Manager John Simko has projected the proposed $1,493,651 municipal expenses will be decreased by revenues of $680,307.

“I have given you a draft budget [manager’s budget] which allows the town to continue to function, a budget which delays some major projects for fiscal reasons, and one which is realistic, in my opinion,” Simko said.

The town’s contribution to county government increased by $41,367, because the town’s state property tax valuation increased from $126 million to $144 million. That valuation jump eventually will decrease the school’s share of General Purpose Aid, Simko said.

Although school costs are unknown at this time, Greenville will not receive an Isolation Grant; will likely not receive much, if any, hardship cushion funds; that labor costs in the schools will increase by 1 percent to 3 percent as per the new contract; and local option expenditures are likely to go up between $100,000 to $130,000, Simko said.

Despite a projected increase in the mill rate, Simko suggested that this is the best time for Greenville to move ahead to finance four capital improvement projects: $450,000 for road improvements; $75,000 for a wood composites incubator, $105,000 for the purchase of a snowmobile trail groomer, and $327,500 for renovation of the municipal building.

Simko said the debt service payments on three of the projects have the ability to be paid back without tapping into property taxes. He suggested the road improvement project, the trail groomer and the incubator could be paid with revenues associated with the projects, such as state revenue sharing, snowmobile grants and donations, as well as rent from the incubator. A portion of the municipal building costs would be shared by other communities, he said.

A second option provided by Simko for the municipal building indicated that the town could set aside $25,000 for the project this year and then borrow $263,000 next year.

The town is indebted $550,949 that includes the sanitary district loan, landfill construction, the Route 15 land purchase, shorefront purchase and firetruck loan, according to the town manager. His research into the town’s financial condition indicates the town could handle the additional debt service over time for the projects.

Selectmen plan to review Simko’s bond proposals and will decide whether or not to present them for consideration at the annual town meeting.


Have feedback? Want to know more? Send us ideas for follow-up stories.

comments for this post are closed

By continuing to use this site, you give your consent to our use of cookies for analytics, personalization and ads. Learn more.