ORONO – Rising fuel prices, an increase in county taxes, and a decrease in revenues are the main forces behind the council’s proposed tax increase, according to Town Manager Cathy Conlow.

“We’re paying 9 percent more in county taxes than we did last year,” Conlow said Tuesday.

The municipal budget figures are slightly confusing because the town received an $850,000 grant last year to purchase a new firetruck.

“It’s kind of skewed us,” Conlow said. “Overall our budget is down, but the actual operating budget is up.”

When the firetruck is included in budget figures, the overall budget appears to be down 0.93 percent, but when the firetruck is removed from the equation, the town’s expenditures are down, but actual operating spending is up by 1 percent over last year.

“Even though expenditures are down, we’re still requesting an additional $224,000 in tax revenues,” Conlow said.

Excluding the firetruck figure, the town’s total revenues are down more than 6 percent.

“Spending decreases and excise taxes haven’t come to the level that they were supposed to be at this year,” Conlow said. “People are buying fewer cars.”

The town also is anticipating a small decrease in state aid to municipalities and less in state road subsidy funds, she said, “because people are buying less gasoline.”

The town eliminated the town nurse position and a part-time public safety employee, but the council voted that vacant police and fire positions needed to be filled.

“Right now there’s no more eliminating of positions,” Conlow said.

She noted that the town also has reduced the amount of road salt to be purchased next year and will use more sand. It also has re-evaluated capital improvement projects and purchases, scaling back some plans while pushing off others.

For the school, the board’s original budget proposal came in with an increase of about 12 percent. At the council’s request, that figure has been reduced to about a 5 percent increase over last year, resulting in a 3.27 percent or $139,000 increase in the amount to be raised by taxes for school expenses.

Overall, that increases the amount to be raised by taxes for the school and the town by about 4.7 percent or about $363,000.

For taxpayers, the proposed increase comes out to $20.54 per $1,000 of property valuation, which is 54 cents per $1,000 higher than the current tax rate.

Residents will have a chance to speak about the budget at a public hearing at 7 tonight, at the municipal building.

adolloff@bangordailynews.net

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