FARMINGTON — Discussions about the proposed 2022 budget have mostly focused on the expense side but increases in revenue will help to keep the mil rate down, officials noted during a recent interview.

This year the mil rate was 0.01920 or $19.20 per $100,000 of valuation, Town Manager Christian Waller noted. The anticipated rate is 0.01960 or $19.60 per $100,000 of valuation, a $0.40 increase, he said.

“The last two years we have lowered the mil rate, it was $19.94 in 2017,” Selectman Chair Matthew Smith said. “That’s not an excuse to increase it, we do have a cushion to work with.”

Surplus funds won’t be used to lower the mil rate as was done last year, Waller said. “It’s significant we are able to do that.” The rate should even out long term, he noted.

“Farmington is in a unique position, very sound right now,” Smith said. A lot of income is coming in,  it’s the right time to look at spending responsibly, he noted.

This year is the first time Farmington will receive taxes from the solar farm on routes 2 and 27, the Farmington Falls Road. A payment of $1.37 million is expected this year, according to information provided by Waller. In the first 20 years of the farm’s operation the average annual tax would be $708,902. The average annual tax for 30 years is $520,826 with annual payments of $144,674 during the last 10 years.

Additional revenue is also expected in the coming years.

About one third of the budget is for employee pay, another third is funds for non-personnel and the last third to address anticipated but unknown economic conditions, Waller said. The already weird dynamics from COVID-19 coupled with inflation is driving prices upwards, he noted.

When Waller became Town Manager he brought a new set of eyes and was asked by selectmen to look at everything, put together a budget based on the factors and issues he found.

“It was a very broad request,” Waller said recently. A key factor found was the pay scales of town employees, which were off from what was recognized as fair compensation, he noted. Waller used pay studies from similarly sized Maine towns to determine the range Farmington should be paying employees.

Rising inflation and interesting dynamics in the labor market in the last three to six months are other factors Waller identified.

“Last fall Jay was paying $23 per hour for a truck driver, we were paying $15,” he said. Jay was still having a hard time finding drivers, there were similar situations with the Maine Department of Transportation, other towns, he added. Waller began looking at departments by priority starting with police, fire and public works then all departments.

He set about creating a fair and reasonable system of compensation “to allow the town to get the talent we need.”

“The selectmen had asked Christian to look at the wages as a whole with no parameters,” Selectman Chair Matthew Smith said. “He did that, was very fair. It wasn’t just the pay scale, in the next year look at all our ordinances with a fresh set of eyes.”

Smith said the new town manager walked into the wage issue. Cost of living adjustments had been granted to employees but no pay raises had been given for years.

“All of us selectmen need to take responsibility,” Smith said. “We let it slide for so long, now have to play catch up. There’s no choice. The Town of Farmington deserves the best employees.”

Systems are being put in place so any future adjustments will be nowhere near as impactful, Waller said. Recruitment and retention of employees are two big factors since the town is competing against all other sectors, he noted. Qualified candidates with municipal government experience, the right knowledge and skill sets are needed, he added.

The police department has a small pool of candidates and because of the department’s high standards, once officers are trained other departments often poach them, Waller said. “Our existing officers are giving above and beyond, working 12-hour shifts. We would be in a perpetual recruiting mode if pay wasn’t addressed.”

Another aspect of the pay adjustment is the number of people who have been with the town for decades, he noted.

“They have served the town faithfully, at an age where should they choose they could retire,” Waller said. Institutional knowledge would be lost, delays and interruption of services could result if they do, he noted.

Making sure there was time to build in a cost effective succession plan is important, Waller said.

The budget is also impacted by having to replace some equipment, building needs, Waller said. Engine 2 for the fire department is rusted out halfway through its shelf life, two plow trucks will need replacing – one this year and one next, he noted.

The town has ignored the community center roof for years, Smith said. “We are at the point now we have to deal with it. Thankfully American Rescue Plan Act funds will cover the majority. We can’t ignore this any more or we will have to close the building.”

It’s a large building, a good meeting space with a safe and pleasing environment to do activities, Waller said. “COVID-19 and the uncertainty caused by the conflict in Eastern Europe has taken a toll on people’s spirits, mental health. The Community Center is a way to bolster physical and mental health, it’s important.”

Waller hopes to preserve the air watch tower for historical purposed.

“A lot of very productive conversation came out of the budget process,” he said.

Budget mailings will be sent to all residences and businesses, Waller said.

Budget information is available on the town’s website https://www.farmington-maine.org/, by calling Waller at the town office at 778-6538 or Smith at 491-2743.

Any taxpayer who hadn’t had a raise in a long time wouldn’t be happy, Waller said. People have been here decades, it’s not the best way to treat staff, get the best service for the community, he added.

“I believe this is the right thing to do, it passes the straight face test for employees and taxpayers,” Waller said.

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