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Brewer holding line on taxes for 10th straight year
Monday, May 16, 2011
As it has for the previous nine years, the city of Brewer has held
or lowered its mill rate, but unlike last year, it was able to do so
without any painful cuts of services or personnel.
“Last year we had a very difficult budget. We did maintain a flat
mill rate, but we made a lot of sacrifices with staff reductions,
changes in service priorities and levels on the city and the school
side,” said Karen Fussell, Brewer’s finance director and treasurer.
“Those difficult decisions we made last year created a very solid
foundation for us to build on this year.”
Brewer’s proposed municipal budget of $32,520,767 for fiscal year
2012 represents a 1.13 percent increase over the 2011 budget.
Despite the slight increase in the proposal, Brewer would maintain a
stable mill rate of $17.95.
“I have to say, I think you’d be pretty hard-pressed to find another
community that’s done that, especially in these last couple years
when revenues have absolutely gone off a cliff,” Fussell said.
Impediments to keeping the budget flat include:
*Continued declines in
property and nonproperty tax revenues.
*A $45,000 (5.5
percent) rise in
Penobscot County tax assessment.
*Steep increases in
many nondiscretionary expenses such as
health insurance ($60,000, or 8 percent), rapidly
increasing fuel costs ($100,000, or 50 percent), Maine Public
Employees Retirement System contributions ($49,000, or 26 percent),
and higher workers’ compensation costs ($18,000, or 18 percent).
*A 4 percent ($24 per
household annually) increase in the sewer rate because of declining
revenues and increased sewer fund costs stemming from a 15-year-old
federal mandate to separate sewage lines from stormwater lines.
“I wouldn’t say it’s easy, but we’re very fortunate to have
department heads who are very knowledgeable about their expenditures
and who know where council wants to go,” said Fussell.
Some steps taken to save money include:
*The consolidation of
four public schools (Washington, Capri, and State Street along with
Brewer Middle School) and the opening of the Brewer Community School
for prekindergarten through grade eight.
*A freezing of city
employee salaries for the third consecutive year.
*A holding of the
water rate after a decrease of 7 percent last year.
*The use of sheltered
tax increment financing revenues to offset more than $1 million in
general fund expenses. This will be the fourth straight year TIF
revenues will be used to fund the entire annual budget of the
Economic Development Department ($267,000) plus a notable amount of
debt service ($746,000). The 2012 debt service installment
($208,000) on the performing arts center located at the new school
also is being paid with TIF funds.
*A $1.2 million
federal grant and $300,000 in city TIF money dedicated to the
construction of Brewer’s Capital Improvement Plan waterfront jogging
and cycling trail, which will be started this summer, as well as
funds for the remediation and demolition of two vacated schools:
Washington and Capri Street.
*Continued development
of the new Business and Commerce Park near adjacent Wiswell Road and
Elm Street, where Maine Liquid Methane Fuels is still pursuing a
plan to build a facility; the purchase of the former Lemforder Parts
buildings, which now house several business including a startup
called SnapSpace Solutions; and Cianbro taking over full ownership
of the former Eastern Fine Paper property from South Brewer
Redevelopment.
*Early and continued
success of Brewer’s expanded recycling program, which has increased
recycling rates 400 percent, and the pay-as-you-throw trash
collection system, which has helped reduce trash volume 50 percent
since its institution in January.
Fussell and City Manager Steve Bost also point out a 28 percent
decrease ($214,000) in the use of fund balance money, which has been
used to help keep the tax rate stable over previous years.
“It’s like dipping into your savings account to buy something when
you no longer have the cash or the money in your checking account,”
said Fussell. “We’ve been dipping into it for awhile, but using less
of those funds this year gives us a chance to build it back up and
the more fund balance money you have, the better your bond rating.”
Both Bost and Fussell encourage Brewer residents to review copies of
the proposed budget either at the city clerk’s office or the Brewer
Public Library before a May 24 council meeting. The council vote on
the budget is scheduled for June 7.
A copyright
story from the Bangor Daily News, Monday, May 16, 2011 by Andrew
Neff of the BDN staff.
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