02/24/2011

'Stewardship' is hallmark of 2012 municipal budget proposal

Town Manager Michael McGovern has submitted an $8.9 million municipal budget proposal for 2011-2012, a proposal he characterized in one word - Stewardship.

"It's about taking care of the roads, the Town properties, the Town buildings," McGovern said.

Foremost on the list of Town assets is Fort Williams Park, with $83,000 budgeted for additional maintenance. "The economy is still struggling and in such times it is important to maintain the assets entrusted to us," McGovern said in his annual budget message to the Town Council.

What he called a "spending and service plan" for 2012 proposes a 1.2-percent increase in the tax rate for municipal (non-school) services, adding $15 to the tax bill of a home valued at $300,000.

Proposed spending is up $350,000, or 4.1 percent over this year. At the same time, the budget anticipates $200,000 more in revenue from sources other than property taxes, an increase of 6.6 percent.

Most of those additional revenues, $140,000, will come from the undesignated fund balance in accordance with Town policy. The policy stipulates an undesignated fund balance of 8.33 percent of annual operating general fund revenues.

Maine State Revenue Sharing is predicted to increase under Gov. Paul LaPage's proposed budget, and excise tax income is expected to rise after three straight years of decline. Investment income and revenue from building permits, however, are expected to decline.

Personnel

Personnel costs make up just over half of the municipal budget at $4.5 million. This includes a proposed 2-percent wage increase for municipal employees. "We also need to realize the value of our employees," McGovern said in a telephone interview. Most employees outside of the police department received no cost-of-living wage increase last year, he said.

A seasonal parks and trails laborer has been added to the budget at $13,000 to help maintain the Town's Greenbelt system.

The budget is also impacted by a $49,000 contribution to the Maine State Retirement System. Cape Elizabeth withdrew from the system 21 years ago, McGovern said, but a total of 52 retired employees still draw from the system.

5-cent tax-rate increase

The proposed increase would bring the tax rate for municipal, non-school services to $4.06, up 5 cents over this year, but 3 cents higher than fiscal 2010 and 1 cent higher than fiscal 2009.

Major budget impacts

Fort Williams Park Additional Maintenance	$83,120
Municipal Buildings Additional Maintenance and Heat	$60,062
Support for Funding for Ongoing Capital Needs	$99,822
Expense for 2% Cost of Living Adjustment	$91,790
Contribution to Former Retirement System	$49,548
Gasoline and Diesel Fuel	$23,152
Seasonal (24 wks) Parks and Trails Laborer	$13,400
Debt Service Savings	($37,069)
Reduction of ½ Time Town Office Position	($30,000)
ecomaine (waste disposal) fees	($23,555)
Net of Everything Else	$26,668
	$356,938

The Finance Committee, a committee of the whole Town Council, will begin to review the 2012 budget proposal in workshop sessions beginning March 16, 2011. Budget Review and Adoption Schedule