Fuel, power costs chill Bangor budget plans

BANGOR – Rising fuel and electricity costs are having an adverse effect on budget proposals for next year, city officials say.

As it stood Wednesday night, during the first of what likely will be several budget review sessions, city councilors were faced with a proposed $85.7 million budget for municipal and school operations in the fiscal year that starts on July 1.

Of that total, nearly $44.3 million is proposed for municipal expenses and $41.4 million is earmarked for the school department, according to budget documents prepared by City Manager Edward Barrett, Superintendent Robert Ervin and their respective finance directors.

If the budget is adopted as is, the city’s property tax rate would increase from today’s $18.80 per $1,000 in property tax valuation to $19.23 per $1,000, an increase of 2.3 percent. That, however, could change as councilors delve deeper into the budgeting process.

In a background memo dated April 14 – the day council members received their copies of the proposed budget – Barrett noted the cost of keeping city buildings warm and keeping the city’s fleet of vehicles running was projected to increase by $450,000 from this year, when the city was able to lock in at a relatively low costs per gallon.

He said a 40 percent increase was built into the city’s diesel and heating fuel accounts, but even that might not be enough, based on recent price hikes.

Earlier this spring, city administrators budgeted $3.20 per gallon of diesel, but as of the middle of last month, the actual price stood at $3.60 and has since risen. The heating fuel situation was similar, with $2.80 per gallon budgeted and the actual price at $3.20. With regard to electricity, Barrett said the city’s cost is projected to go up by $57,644.

In an effort to offset some of the increased costs, the city has eliminated a vacant position at its recycling facility and will combine two vacant posts in the engineering department with a single combined job.

The budget also reflected a 15 percent reduction in funding for most outside agencies, such as the Convention & Visitors Bureau and the Hammond Street Senior Center. And the amount budgeted for the cultural commission to divvy among arts, and cultural groups and events would be cut from $125,000 to $100,000.

Given the budgetary outlook, things that likely won’t be funded, unless councilors decide otherwise, include three new police officers and a deputy fire chief and Fire Department public education officer, evening hours and an outer Hammond Street route for the BAT Community Connector public bus system, and new front doors for City Hall, to name a few.