BREWER – Despite a year when fixed costs have increased by more than $500,000, the Brewer City Council intends to keep the mill rate stable in its 2003-2004 budget. To that end, City Manager Steve Bost, aided by Finance Director Karen McVey, presented a budget proposal Tuesday of $23,803,211, of which $9.2 million is for municipal government and $13.9 million is for education.

The budget total represents a 5.6 percent increase compared to the fiscal year 2003 budget. The mill rate will remain at $24.38 for the third year in a row because of increased revenues from development-related efforts, such as construction impact fees, that will offset the 5.6 percent increase and keep the tax rate stable. The $24.38 mill rate means the owner of a $90,000 home in Brewer would have a total property tax bill of about $2,200 if the budget passes as is.

While the budget holds to the City Council’s mandate of no mill-rate increase, some difficult cuts are included, Bost told the five-member City Council. The cut that stirred the most reaction Tuesday night was a proposal to not give the city’s non-union staff any cost-of-living wage increase and to limit performance-based pay adjustments to 1.5 percent.

Speaking against the proposal were Councilors Michael Celli and Joseph Ferris. Celli said he could not support the budget if the performance-based pay was not at least equal to the inflation rate, which was estimated at 1.8 percent. Mayor Gail Kelly said it “breaks my heart” to not have the increases in the budget. She said it is not a goal to “balance the budget on everybody’s back.” That’s why both the municipal and school budgets are reviewed for possible compromises, according to Kelly.

On the school side, Brewer Superintendent Betsy Webb presented a budget totaling $13,938,302 that reflects an increase of $517,228 or 3.85 percent. “This is as lean a budget as I’m comfortable recommending to the school committee,” Webb said after a powerpoint presentation that outlined the school department’s goals and programs.

Webb said Brewer received a slight increase in state aid to education this year, but next year its share of state aid to education may decrease because development projects may increase the city’s property valuation. The school requested a $98,000 increase in city appropriation. There was some discussion of halving that increase request because the city’s mill rate would increase. No action was taken on the budget Tuesday.

In other business, the City Council, after some discussion, approved a liquor license and a separate, temporary amusement license for Johnny’s Pub at 448 Wilson St. The facility had been under scrutiny after reports of disorderly conduct and vandalism by bar patrons had raised City Council concern at a public hearing a few weeks ago. The licenses were granted with the understanding that pub owners John Hess and Louis Lekos will work in “good faith with city officials” to resolve problems.

The City Council also approved hiring CES Inc. for engineering and design services for the proposed cross-border business park and for related purposes. Brewer is scheduled to pay half of the $40,000 tab, with Orrington expected to kick in the other half.