LEWISTON — Councilors wrapped up the first stage of their 2014-15 fiscal year budget discussions Tuesday with a review of their expected revenues and some accounting changes that knocked $488,000 off a proposed property tax increase.
City Administrator Ed Barrett said councilors would begin working on their own budget-trimming proposals at a special workshop meeting at 6 p.m. Thursday in City Hall.
As of Tuesday’s meeting, the new budget called for a 71 cent increase in the property tax rate — a $106.50 increase on a $150,000 home.
“I’m assuming the council is still not happy with a 71 cent property tax increase,” Barrett said.
The city’s non-property tax revenues show a $1.2 million increase for the coming fiscal year compared to the current year’s budget. That includes decreases in interest and cable franchise fees and increases in city fees and permits, rents and excise taxes paid for automobiles.
“We are projecting an increase of $155,000 and that’s probably one of the bright spots in the overall revenue,” Finance Director Heather Hunter said. “There are not that many, so I like to highlight them when they are.”
State revenue-sharing shows a large increase of $2.5 million, but most of that is devoted to the schools. Better fee revenues represent adjustments the City Council approved last year, Hunter said.
She said the staff’s proposed budget changes presented Tuesday called for paying for some items out of the city’s fund balance. That included some vehicles and equipment, building repairs and severance pay.
Other cuts came from policy changes. For example, an employee decided to delay retirement, saving the city $8,000 this year. In another example, the city will use existing flags to decorate veterans’ graves for Veterans Day this year, saving $1,955. State law requires the city to decorate all known veterans’ graves each year.
Other reductions came from better forecasts — reduced insurance rates and revised General Assistance estimates, for example.
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