Bangor puts debt question on Nov. ballot

BANGOR – A referendum question asking city voters to ratify debt already authorized by city councilors is headed for Bangor’s Nov. 2 ballot.

The Bangor ballot measure aims to address a wrinkle created by another ballot question, namely the Palesky tax cap.

After a Monday night public hearing, city councilors unanimously agreed to put the local question on the ballot, though Councilor Geoffrey Gratwick had one reservation about doing so.

It could, he said, “make Palesky seem slightly more palatable to the people of Maine,” which he hoped would not be the case. He is among many elected officials in Maine who believe the proposed statewide tax cap is too drastic a means for cutting costs.

A citizen initiative led by Carol Palesky and the Maine Taxpayers Action Network seeks to reduce property-tax bills by capping tax rates at $10 per $1,000 of valuation based on 1996 property valuations, and strictly limiting future increases.

It also would make it tougher for the state’s cities and towns to borrow money by requiring voter approval.

As things stand, the Palesky proposal allows municipalities to repay “voter approved” debt with tax money raised beyond the $10 cap. While the vast majority of Maine’s municipalities have a town meeting form of government, where voters approve debt, Bangor is among about 40 in which that authority rests with elected officials.

As a result, Bangor’s debt doesn’t qualify as “voter approved” under the tax-cap proposal. Bangor’s debt would have to be paid using a portion of the $10 per $1,000 that otherwise would be used for city-school operations. This year’s $70.8 million city-school budget includes $4.2 million for debt service, which translates to $2.38 per $1,000 in property valuation, City Manager Edward Barrett noted in a written briefing for councilors.

To that end, Councilor John Cashwell suggested an approach that calls for asking Bangor voters to reaffirm debt that the council already has approved. As he sees it, that would put Bangor on an even playing field with most other municipalities. He also says the measure would protect the city’s bond rating by ensuring the city has the capacity to cover its debt.

“It’s a shrewd move. It’s a good move,” Dennis Marble, a Bangor resident who spoke during Monday’s public hearing, said.

State Rep. Patricia Blanchette, D-Bangor, a former Bangor council chairwoman, thanked councilors for being willing to take a proactive step to mitigate the tax cap’s impact.

“It’s a step in the right direction,” she said.

Though her own property tax bill increased $200 this year, Blanchette did not see the city’s tax rate as excessively high, given the high caliber of such city services as fire and police protection.

“I’m not saying that we need to keep everything as it is now,” she said, noting that “Palesky is not the answer for us.”

Consolidating services on a regional level might be part of the solution leading to property tax relief, she said.