Tax cap group to hold public forum Houlton committee discusses how to outline impact of referendum

HOULTON – A public forum will be the arena for residents to learn more about the 1 percent tax cap referendum.

The Oct. 18 debate, hosted by the new tax cap council, will be televised on the town’s public access channel. Residents will be allowed to submit questions in writing to town officials before the event.

Interim Town Manager Phil McCarthy formed the new committee group to educate townspeople about the proposal, which would scale back assessed property values to their 1996-97 level and cap property taxes at $10 per $1,000 of valuation. It also would limit assessments to an increase of 2 percent a year while a property remains in a family. According to an impact analysis by the Maine Municipal Association, the town’s property tax commitment would be reduced by 58.1 percent if voters approve the measure.

During its second meeting on Monday evening, the group was frequently embroiled in debate with newcomer Stan Ginish, the only member who has spoken in favor of the tax cap and who maintained during the meeting that the group should discuss “both sides of the issue.”

“This group was formed to try and figure out a way to tell people about what the impact of the tax cap will be,” said panelist Mike Carpenter. “This group is not about debating.”

Ginish dismissed Carpenter’s comments and maintained that the group was biased.

Committee member Mitch Holmes disagreed, referring to a report that projects massive fiscal cuts in the municipal budget if voters approve the measure.

“This [report] shows no bias at all,” he told Ginish. “This is fact.”

Ginish insisted that the town could save money by consolidating schools and issuing taxes and surcharges to religious and fraternal organizations. He argued that the tax council should show the public “workable examples of how to cut” spending.

Bernie Reece, parks and recreation director, submitted a report on how the town might make his department self-sustaining. Currently, the department charges youths $25 to participate in T-ball. That figure could be raised to $134 if the cap passes, and a number of other fee increases could occur.

“And we all know that once you increase fees, a certain number of people won’t participate,” McCarthy said.

Before the meeting adjourned, Holmes expressed fear about losing local government control if the referendum passes.

“If this thing flies, somewhere along the line we are going to pay,” he said on Monday. “And we are going to have less control over our money.”

Carl Lord, chairman of the board of budget review, also is concerned. After the meeting, he expressed frustration at the Town Council’s recent decision to allocate $25,000 in surplus money to light the new pedestrian footbridge. Lord warned councilors last week that the town would need the money “and a lot more” if the cap were approved.

“We need that money,” Lord said on Monday evening. “Giving it away was a slap in the face to the taxpayers.”