HOULTON – Town Councilors expressed optimism about the municipality’s fiscal future on Monday evening after Town Manager Douglas Hazlett told them that the first draft of the 2007 budget was “encouraging.”

During a brief meeting on Monday evening, Hazlett presented the group with an initial estimate of what the coming budget would look like.

“We are going to try to hit an 18.5 mill rate,” Hazlett said, speaking of a move that would keep the tax rate at the same level as it is now. “We have addressed some capital needs and town building projects, and the first pass at this budget is encouraging.”

The first draft of next year’s more than $8.2 million budget reflects an increase of approximately $482,061 over the fiscal year 2006 forecast. The projected figure could change, however, as the town is expecting to see a more than $181,000 increase in revenue as well.

Keeping the tax rate at 18.5 mills has been a consistent goal of the council, especially after the board accepted the town’s capital plan in September.

The extensive report identifies and sets priorities for major projects that the town should spend money on in the next five years and estimates a price tag for each undertaking.

The report identified several projects that need attention. Among other things, it pointed out that the furnace at the town’s Public Works Department building is more than 60 years old, and the gymnasium floor at the Gentle Memorial Building needs to be replaced.

The board has talked at length about finding a way to secure the estimated $1.1 million that is needed to complete the projects without inflating the tax rate.

In order to address some capital needs next year, town officials have drafted a plan that calls for them to invest in only the most essential items, replace old furnaces to enhance fuel efficiency and save money in the long term, and put aside money to fund future projects.

Councilors were pleased with Hazlett’s preliminary budget report on Monday evening.

“I think that we can maintain the 18.5 mill rate without affecting public safety,” said Councilor Carl Lord.

Councilor Paul Romanelli agreed.

“Realistically speaking, [a mill rate of] 18.5 is in sight,” he noted.