LEWISTON — It is budget season again.
That means plenty of late nights and tough decisions for officials in Lewiston and Auburn as they pore over their respective budgets.
Over the past week, officials in both cities unveiled the initial numbers, which will likely be whittled down during budget workshops over the next two months.
In Lewiston, the proposed municipal budget for fiscal year 2019-20 is $48.91 million, an increase of $2.8 million, or 6 percent. If that figure holds, it would — combined with the county budget increase — add 85 cents to the property tax rate.
The proposed Lewiston school budget is up 4.2 percent, but the department is receiving a significant increase in state aid and is proposing to use $1.76 million from the fund balance, meaning it will not result in an increase to the tax rate.
During his initial presentation to the City Council last week, City Administrator Ed Barrett said the biggest factor in the city’s budget increase is personnel, up $1.9 million. He said the increase is based on negotiated salary adjustments, additional public safety overtime, health care costs and additional
workers’ compensation funding.
“Personnel services increases alone represent 95.7 (percent) of the increase in the proposed city operating budget, excluding the county and debt service,” his report states.
Regular salaries and overtime rose by a combined $1.2 million.
Barrett said new program requests by city departments equaled $1.1 million, which includes money for 13 new positions. The positions are not included in his proposed budget, but he told the council they should “receive careful consideration.” The positions include an additional fire inspector, which was proposed by the city’s committee on rental registration, and a school resource officer for the School Department.
“I guess people are thinking the economy is pretty good, we haven’t really seen these (requests) in the last few years,” he told the council.
Also requested in the budget was $2.6 million in Capital Improvement Plan items. But, Barrett said the city’s current fund balance will play into how much is ultimately bonded for capital expenses.
Barrett said one part of the budget that is lower is General Assistance, part of the Social Services budget.
He said the General Assistance budget is declining as the city is seeing fewer clients. The number of immigrant and refugee clients is part of that, he said, which could be related to declining numbers nationwide. The numbers mean the city will receive $268,000 less in General Assistance aid from the state, based on the state’s 70 percent reimbursement level.
The city’s assessed value is up 3.2 percent, or about $61 million, which Barrett said was the “largest increase we’ve seen in some time.”
The 85 cents added to the tax rate would increase it to $29.52 per $1,000 of assessed value. A home valued at $150,000 would see an increase of $113 annually. A home valued at $250,000 would see a $198 increase.
Barrett said a proposal by Gov. Janet Mills’ administration to increase the percent of revenue-sharing returned to municipalities from 2 percent to 2.5 percent would result in an additional $725,000 for the city. It is not reflected in the budget, but Barrett said if funded, it would mean a 36 cent reduction in the tax rate.
Since the initial budget roll out, Lewiston officials have held budget workshops, which will continue into April.
AUBURN
In Auburn, officials are proposing a city budget of $45.68 million, an increase of $1.19 million, or 2.68 percent.
City Manager Peter Crichton provided the first look during a workshop Monday. The information states the city increase would add 43 cents to the tax rate. Combined with the proposed school and county budgets, the total increase would be 57 cents, making a tax rate of $24.25 per $1,000 of assessed value.
Crichton’s initial presentation did not offer insights into the biggest factors in next year’s budget.
The School Department, which held a joint meeting with city officials Monday, has proposed a budget increase of $1.7 million, which would mostly be covered by $1.5 million in state educational funding.
Several city councilors wanted the budget to go lower, in light of a June 11 vote on a proposed $125.8 million Edward Little High School.
The proposed tax rate increases would result in $85.50 more in property taxes for a home valued at $150,000, or $114 more for a $200,000 home.
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