Houlton to explore effects of tax cap Councilors call Palesky a ‘wake-up call’

HOULTON – This November, taxpayers in the state will vote on the proposed 1 percent tax cap referendum, and the outcome will have lasting effects for towns across the state. In Houlton, municipal officials are preparing for whatever the outcome of that vote may bring.

At a Town Council meeting on Monday evening, Town Manager Peggy Daigle presented the group with information that she had gathered about the cap, proposed by tax reformer Carol Palesky of Topsham. Daigle urged the council to explore the issue, which would freeze tax rates at $10 per $1,000 valuation if approved.

Councilors pledged to discuss the issue frequently at meetings in the near future.

“It is enticing to taxpayers,” Daigle acknowledged on Monday evening. “The council needs to develop a process between now and Nov. 2 to get the citizens involved.”

Houlton’s tax rate stands at $26.50 per $1,000 valuation, and Daigle said that the town needed to prepare for the revenue that would be lost if voters accept the proposal. “Within a year, the town of Houlton will be shut down,” the manager estimated, noting that funding for education and desired services would be hit. “But that is a broad statement that smacks of fear to the citizens. … we have to inform the public about the economic impact.”

School board members across the state recently have joined officials in examining the tax cap more fervently. Last week, residents in SAD 42 in Mars Hill began exploring which school services are required to be funded under state and federal law. Jim Krysiak, Presque Isle fire chief, said last week that he feared a huge manpower loss if voters support the referendum.

In the tiny town of Smyrna, town Manager Candy Roy worried that officials would have to forgo lighting the streets if the measure were approved.

Daigle suggested on Monday evening that the council appoint a citizen task force to provide “information that is neutral” to the public.

Councilor Gerald Adams said that the referendum would be “devastating” to the municipality if it passes, but said that he could see both sides of the issue.

“There is a message to us as government officials,” the councilor said on Monday evening. “We have to watch how we spend. It is a wake-up call, and we still should not miss that message. We need to prioritize our spending.”