Lincoln budget panel reviews $3 million plan

LINCOLN – Members of the town’s budget committee are reviewing a $3 million municipal budget proposal.

Town Manager Glenn Aho estimates the tax rate could drop by 1 cent, from $19.36 per $1,000 of assessed property value to $19.35.

The estimate is based on Aho’s budget proposal, which includes the Penobscot County tax assessment but no increase in the school budget. The total municipal budget proposal of $3,020,746.22 represents an increase of $9,857, or less than 1 percent compared with last year.

The amount proposed to be raised from local taxes is $1,309,638. It represents an increase of $70,454, or 5.7 percent, compared with last year.

Aho said his budget goal was simple – keep this year’s expenses as close as possible to last year’s. “We achieved our goal,” he said. “The bottom line is that fiscal year 2004 is a status quo year with very little changes from the year before. Both gross expenditures and the proposed tax rate are the same.”

The manager said the town was able to bring in a status quo budget and maintain growth and progress because of $690,000 in grant funds awarded to the town.

“Perhaps for the first time in Lincoln’s history, this year’s capital projects are nearly all financed with grant funds,” said Aho. “It is precisely why our municipal budget has remained relatively the same without sacrificing capital investments.”

Aho said Lincoln was able to obtain the grants because of the town’s aggressive, persistent and creative employees. He praised employees and the Town Council for its courage to accept the risk associated with grant obligations and planning.

He said the town was also able to achieve a status quo budget because of its consistent replacement of capital equipment in past years. “This has given the town some degree of budget predictability,” he said.

Although Lincoln’s revenues have decreased by $60,597, or 3.4 percent, because the town is using less reserve funds than last year, Aho said tax revenues and non-tax revenues have increased.

He said the town’s economic base has grown in value by $5 million, or about 2 percent. “This growth is representative of new homes, renovations, new businesses, and revaluation adjustments,” he said.

Aho said state valuation auditors had conducted an annual review and have directed Lincoln to increase its assessments for waterfront properties, wooded excess acreage, gravel pits, and logging roads because each are currently undervalued.

He said local valuation adjustments would be made so the town maintains its quality rating, which affects other state subsidies. “These adjustments will again increase our town’s value,” he said.

Budget committee workshops will be held at 6 p.m. in the municipal building on the following dates: today, April 24, May 1 and May 8. The Town Council will hold two sessions, on May 29 and June 5, to review the budget proposal. Public hearings are tentatively scheduled for June 16 and June 23.