Yes on Bangor Question 2

Should the Council of the City of Bangor adopt the following order ratifying all existing city of Bangor indebtedness?

The abundant flaws in the 1 percent tax cap – Question 1 on Tuesday’s state ballot – mean it should be rejected by voters. In the event it is not, Bangor residents have a chance to reduce the cap’s harm by approving municipal question 2. A yes vote simply approves past borrowing by the city so that debt payments are not included in the tax cap limit.

Proponents of the tax cap say it was their intent to exclude municipal borrowing from the 1 percent of value towns would be able to collect on residential real estate. However, as written, the referendum question only excludes voter-approved debt from the tax cap.

Residents of many small towns vote on borrowing at annual town meetings. In larger communities like Bangor, the city council is empowered by charter to make borrowing decisions, so technically such debt is not “voter approved.” Municipal question 2 asks Bangor voters to ratify what the council has done. It is a procedur-al step with big consequences.

As of June 30, Bangor had nearly $109 million worth of debt. More than half this amount consists of pension obligations and funds for improvements at the city’s wastewater treatment plant, the latter of which is being repaid by user fees. Other borrowing was for items like road repairs, airport improvements, new vehicle purchases and school repairs.

Bangor voters are not being asked to approve new borrowing. By approving this question, they can improve a bad situation in the event that the tax cap passes.

This year, the city spent $4.2 million on debt payments. To raise this amount requires a tax rate of about $2.35 per $1,000 of value. The tax cap would limit residential real estate taxes to $10 per $1,000 of assessed value. With $2.35 required to pay off Bangor’s debt, the tax cap would leave the city with a maximum tax rate of $7.65 to fund all the remaining government services. Rather than facing a reduction of $16.4 million from its operating budget, the city may face $20.6 million in cuts.

This local question is about helping Bangor make the best of what could be a bad situation. A yes vote will accomplish this.