OLD TOWN – The Old Town City Council reviewed its projected budget shortfall for this fiscal year and it appears that under the worst case scenario the city will be short by about $750,000. This means the school board and City Council will each have to cut $370,000 from their proposed budgets.

“That’s taking our anticipated shortfall and dividing it by two,” said Councilor Jeff Plourde.

During a meeting held April 15, the council projected a $600,000 shortfall and instructed all municipal departments to cut 10 percent from their budgets and instructed the school board to cut $300,000.

City Manager John Lord said the final assessed evaluation of the Georgia-Pacific Corp. mill is not ready but is close enough to estimate the city’s assessed value for the year.

“The reduced evaluation is $350 million down from $391 million [last year],” he said.

The council and school board already have cut thousands from their budgets and officials say they are down to cutting positions. The final assessment of G-P’s mill should be done by the end of next week, according to tax assessor Bill Mayo.

“I think we ought to be realistic and live within our means,” said Plourde.

The council asked for an itemized list of what’s on the chopping block be made available for them to review for discussion.

“When we start the actual budget process we need to be prepared to make some decisions,” said Councilor Alan Stormann.

Stormann asked that at least three different tiers of cuts be proposed.

There is hope that Gov. John Baldacci’s administration may do something to help with the budget problem, said Lord.

“Governor Baldacci has proposed a bill that might change state evaluation so we might gain back a slight amount of revenue,” he said.

Lord said he didn’t have all the facts on the bill but said it dealt with assessed value. He added he hopes the bill will pass quickly and will affect this year’s revenues.

“They tell me we will be able to recoup revenues for fiscal year 2003-04,” Lord said.

When it came time to decide on whether to purchase a $67,700 sidewalk plow for the Public Works Department, the council decided to put the project on hold.

“I don’t think it’s very responsible to spend $67,700,” said Councilor Scott Cates. “If we’re going to be looking at positions versus equipment and it’s equipment we don’t use; why are we buying equipment?”

Another big issue the council discussed was the $45,000 one-time cost incurred for switching dispatch over to the Penobscot Regional Communications Center on Franklin Street in Bangor. The switch goes into effect on the morning of May 6.

“If they don’t use the money, it will be reverted back,” said Lord.

The funds will be used to pay for 22 new portable radio pagers at a cost of $15,108, surveillance equipment for the department, a new nondirectional beacon for the airport, changing the phone lines for the Police and Fire departments and voicemail for public works.

The council discussed how to reduce costs and suggestions were made to either cut back on the number of radio pagers or stick with the pagers the department currently uses. Problems with reaction times and compatibility with the regional computer system convinced the council to pay for the new equipment.

“I’m absolutely against any system that delays reaction time,” said Stormann. “We just need to support the system.”

The next meeting of the council is May 12.