HOLDEN – After hearing that the Palesky tax cap initiative, set to go before voters in November, would leave the town desperate for cash, the Town Council on Monday night endorsed a resolve supporting the defeat of the measure.

“This means if the tax cap passes, there will be no money for fire, police, highway, trash collection or administrative services such as vehicle registrations,” Town Manager Larry Varisco said in a letter to the community.

Under the tax cap, Holden would be allowed to raise approximately $1.7 million through the property tax. With other revenues, such as excise tax, building fees and state funds, the total revenues available to the town would be approximately $2.6 million.

From the projected amount, Holden would have to first pay its county tax and the SAD 63 assessment, which this year totaled $2,428,951.

“This would leave $217,254 to run the entire municipal operation,” the town manager said. “The town is also required by law to provide certain services such as animal control, general assistance and a septic waste disposal facility. In addition we have contractual obligations like debt payments, hydrant rental and municipal waste disposal (PERC). These alone add up to more than the $217,254.”

Some services likely would be provided by the county or the state, and others could be made available on a fee basis, Varisco said.

The Palesky initiative would cap property taxes at $10 per $1,000 of valuation. It also would limit assessments to an increase of only 2 percent a year as long as the property remains in a family.

Holden’s resolve also asked the state to increase state funding for education, which would in turn reduce property taxes.

During the meeting, the council also discussed its position in the debate over the connector route between Interstate 395 and Route 9.

The U.S. Army Corps of Engineers is reviewing a permit for the Maine Department of Transportation to mitigate wetland impacts and is accepting public comments until Friday.

The Army Corps is considering two routes – 2B2 and 3EIK-2. The Holden board voted on Monday, however, to endorse a route known as 2B, which was eliminated in 2002.

In a 3-2 vote, the council decided to “support 2B as the preferred alternative for the town of Holden,” Varisco said Tuesday.

DOT and the Federal Highway Administration have selected 3EIK-2 as their preferred route.

Town Councilor John Bryant submitted 2B to the Army Corps last fall. The choice 2B extends I-395 at its current Wilson Street junction and skirts the Holden town line, along the eastern side of Brewer, until entering Eddington and ending at its connection with Route 9.

The 2B-2 route is similar but connects with 4.5 miles of improvements to Route 9.

The 3EIK-2 route would extend I-395 by almost 2 miles along the southern side of U.S. Route 1A in Holden before turning northward and winding through mostly unpopulated areas until crossing Route 9, circumventing East Eddington and reconnecting to Route 9 at the Eddington-Clifton town line.

Comments to the Army Corps should be marked with the permit request number, File No. NAE-2004-2472, and can be made by letter or e-mail until the end of the workday Friday. Letters can be mailed to the U.S. Army Corps of Engineers, New England District, Maine Project Office, ATTN: Jay Clement, 675 Western Ave. No. 3, Manchester 04351. E-mail comments can be sent to jay.l.clement@usace.army.mil.