In April 2004, a citizen task force began meeting to assess
the impact passage of 1-percent property tax cap
initiative, up for election Nov. 2, would have on
the Cape Elizabeth town budget.
A complete notebook on Tax Cap Task Force proceedings, findings and
recommendations is available at the Thomas Memorial Library, 6 Scott Dyer
Road.
Below are links to key documents in the Task Force's report, as well as links
to other informational documents.
Task Force Documents
Other documents:
Complete copy of Palesky Tax Cap Proposal:
Additional websites:
Town of Cape Elizabeth
Palesky Tax Cap Task Force
Executive Summary
September 1, 2004
Introduction
In April 2004, then Cape Elizabeth Town Council Chairman Mary Ann Lynch invited
56 citizens of the community to participate in a task force to study the
impact of the citizen initiative on the November 2004 ballot that would limit
property taxes to 1% of value and create other limits upon the right of local
communities to assess taxes. 21 citizens and most of the elected members
of the town council and school board participated in 9 subsequent meetings
of the task force. In addition, subcommittees were formed and met to review
a communications strategy and potential fees which would permit some services
to continue.
Overall Financial Impact on Cape Elizabeth
The task force reviewed financial projections and determined that nearly
$4.6 million dollars would need to be reduced from current budgets to meet
the restraints of the tax cap. This amount would double if the Maine Supreme
Court rules that valuations are to be returned to 1996-1997 values as is
proposed in the actual ballot question. For planning purposes, the task force
decided to use the lower amount as a narrowly decided advisory opinion from
the Maine Supreme Court provided guidance that the court would rule that
returning to the 1996-1997 values is unconstitutional.
The $4.6 million reduction in income from the property tax could be addressed
in several ways. First, the tax cap task force recognizes that reductions
will need to be made in spending in nearly all service areas. Second, the
group believes that non-property tax revenues may be adjusted to provide
additional income to the town. Third, the task force recognizes that some
revenue may be forthcoming as a result of the June 2004 citizen vote to direct
the state to provide 55% of statewide educational costs. With no action of
the Maine Legislature since the June vote, the task force was unwilling to
predict any specific income amount to Cape Elizabeth.
For planning purposes, the tax cap task force used as a guideline that Cape
Elizabeth schools would suffer 68% of any loss and the municipal government
would suffer 32%. The Cumberland County assessment may not be reduced. The
Community Services program would need to move to a self supporting basis.
If the tax cap is adopted, the exact cuts would be determined through the
annual budget process.
Loss of Local Control
In addition to the direct fiscal and service impacts, the tax cap task force
recognized that the tax cap initiative is a statewide vote. Unlike other
states, there is not an opportunity for any local override. With the many
mandates from the state and federal governments that remain for services,
the ability to locally make decisions would be severely impacted.
Impact on Municipal Services
The impact on the municipal budget is approximately $1.5 million. The task
force reviewed impacts prepared by staff including:
-
A 33% reduction in police services with resulting impeded responses to rescues
and to other incidents
-
A 33% reduction in public works services with slower snow storm response,
slower drainage issue response and no fall clean up week.
-
Closure of the Thomas Memorial Library for 50% of its hours
-
Closure of the Community Pool
-
Elimination of 90% of Street Lights
-
Elimination of funding for water rescues
-
80% reduction in animal control services
-
Elimination of the planner, assessor, and the police community liaison positions.
-
Elimination of facilities manager position with resulting maintenance challenges
-
Elimination of the only full time fire department position
-
Reduction in town office hours and administrative support
-
Elimination of funding for human services needs
-
Reduced maintenance of field and community property
-
A total of 17 full time positions would be eliminated and another $600,000
would need to be cut
Impact on School Services
The impact on the school budget is approximately $3.0 million. The task force
received a report from the departing superintendent of schools indicating
that 24.5 teachers, 14.5 additional professional staff and 20.5 support staff
positions would need to be eliminated. The school staff also indicated that
with required mandates, the ability to actually make cuts is restricted.
Among the specific changes discussed by the task force in part based on the
superintendent's report were:
-
Larger class sizes
-
Elimination of all co-curricular positions including coaches and program
advisors
-
The elimination or substantial reduction of funding for school sports/athletics.
-
Elimination of music, art and other allied arts positions
-
Reduced maintenance of school facilities
-
Elimination of curriculum planning position
-
Reduction of supplies and equipment
-
School day to be reduced by one hour
-
Elimination of other administrative and support positions
Revenues Other than the Property Tax
Subcommittees considered the potential of meeting some expenses through the
use of fees. Among the fees suggested for consideration were:
-
Pay per bag fee at the Recycling Center
-
Fort Williams Park admission fee
-
Increased building permit fees
-
Fees to participate in school sports up to $900 per player per season
-
Fees to participate in school dramas and speech and debate fees
-
Higher parking fees and fines
-
A 25% increase in all community services fees
-
A 25-35% increase in all pool and fitness center fees in order to try to
keep the pool open
It was suggested that the community services fees pay all operating expenses
and debt service fees for the community center and for the community services
programs. Pool and fitness center fees pay all operating expenses. Sports
and co-curricular fees pay all operating expense for these programs. The
pay per bag and other disposal fees cover all costs of the recycling center
and the Fort Williams fees pay for all expenses related to Fort Williams
Park. These fees could aggregate to over $1.5 million and would not be tax
deductible.
Communication Strategy
The task force decided that information should be provided to citizens on
the potential impacts of passage of the tax cap initiative. A "Question and
Answer" format two page summary of the ballot measure and its impacts on
citizens was prepared and is being circulated through the Cape Courier. A
number of "op-ed" articles and letters were also encouraged to be written
to local newspapers. Every meeting of the task force was open to the public
and to the press. Local newspapers covered and reported on every meeting.
It was also agreed that the town's web page should include information on
potential impacts and a notebook should be available at the Thomas Memorial
Library with all information reviewed by the task force.
Conclusion
The tax cap task force agreed that passage of the ballot measure would have
significant impacts on the citizens of Cape Elizabeth. The impacts will include
lower property taxes, reduced services and the potential of increased fees
and new user fees. We believe that citizens should receive information from
the town as prepared by the tax cap task force showing the impacts. We do
not believe that it is our role as a task force to urge citizens how to vote
on the ballot measure.
The task force process was an open process and every member enjoyed the
opportunity to meet with other members and with staff to discuss diverse
views on taxation and service issues. We appreciate the opportunity to have
served on the task force and we thank our committee leadership, Co-Chairs
Seth Brewster, Steve Simonds and Mary Townsend and the municipal and school
staff who assisted us with material and questions throughout our process.
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Minutes of the Palesky Tax Cap Task Force
meetings
