HOULTON – Nearly three weeks ago, Town Councilor Gerald Adams suggested that the group think about giving the next council a $1,500 raise.

A short time later, however, the councilor reconsidered because of an issue that municipal officials say could result in the town losing money, not gaining it – the Palesky tax cap.

“I withdraw my motion because of the Palesky initiative,” Adams told councilors. “I think this is the wrong time to ask for a stipend increase.”

The council unanimously agreed, but Adams told the group he “might bring the issue back up” after Election Day.

At a Sept. 15 meeting, the group accepted Adams’ motion that the council consider raising the stipend from $500 per year to $2,000 per year. The measure also included raising the chairman’s salary from $600 to $2,500.

None of the councilors commented on the subject at the time, but agreed to discuss the proposal at the next meeting.

Before the discussion began on Tuesday evening, however, Adams cited trepidation about the impact of the tax cap referendum, which voters will decide on Nov. 2.

The cap, named for Topsham tax activist Carol Palesky, would scale back assessed property values to 1996-97 levels and cap property taxes at $10 per $1,000 of valuation. It also would limit future assessments to 2 percent a year while a property remains in a family.

The rollback to previous values, state Supreme Court justices and the state attorney general have advised, is unconstitutional.

According to a Maine Municipal Association analysis, the town’s property tax commitment would be reduced by 58.1 percent if voters approve the measure. Local officials say Houlton would lose about $2.7 million in revenues.

In 2000, a council embroiled in lengthy meetings about cable TV and other issues debated raising councilors’ pay, but took no action.

At the time, members received $250 a year for their service. New councilors began receiving the current stipend several months later.

The sitting council cannot increase the stipend for itself, but may increase it for future councils through the ordinance process, which requires a public hearing.

Two new councilors will be elected in November.