03/12/2019 - updated 03/21/2019

Municipal budget proposal up 6.6 percent, would increase tax rate 9.8 percent for town, Community Services

Town Manager Matthew Sturgis has presented a $13.62 million budget recommendation for fiscal 2020 for town and Community Services, up $848,754 over this year, an increase of 6.6 percent. [ pro forma]

The proposal would bring taxes for these services to $4.70 per $1,000 of assessed valuation in 2019-20, up 42 cents over this year, an increase of 9.8 percent.

The lion's share - $646,801 (76 percent) - of the spending increase is personnel related, Sturgis said in his budget message. The proposal provides for an average 2-percent wage increase, and an expansion from two to four per-diem fire personnel to improve the town's safety coverage, he said. An additional $75,000 is budgeted to convert empty space to bedroom space at the Town Center Fire Station to accommodate the additional personnel.

New fees from ecomaine for disposal of recyclable material ($35 per ton) and for solid waste ($73 per ton, up from $70 in 2018-19), also contribute to the spending increase.

Offsetting the increase is an anticipated $456,393 (9.1 percent) increase in revenues other than property tax. The budget projects $2.2 million from excise taxes, $50,000 more than this year; and, increases in revenue from Community Services programs. "Community Services revenues were adjusted to further reflect the current tracking revenues," Sturgis said. "However you will note solid gains in Community Services Revenues, specifically in Youth Programming, 'Cape Care,' and an increase in Richards Pool fees."

Capital expenditures are budgeted at $2,427,800, led by a $650,000 line for the third phase of improvements to Scott Dyer Road; $300,000 for further drainage and paving improvements; and, $225,000 to replace a Public Works front-end loader. Offsetting these increases, Sturgis said, is $750,000 in unassigned funds and continued appropriation of $375,000 against annual operating expenses. "This will lower the current amount of unassigned funds, but keep the overall level of unassigned funds properly in line with the current policy," Sturgis said.

The Finance Committee, a committee of the whole Town Council, will review the budget proposal in workshop sessions March 20 and 21, beginning at 7 p.m. at Town Hall. Click here for full budget review schedule