PRESQUE ISLE, Maine — City councilors had their first look last week at a proposed 2015 municipal budget that starts out about $310,000 higher than 2014’s budget.
As presented by City Manager Jim Bennett on Oct. 6, the recommended budget for the coming year is $10,750,026 — less than the $11,770,243 sought by department heads, but up slightly from 2014’s budget of $10,440,474.
The city manager said that despite the state continually cutting what it returns to the city in revenue sharing, Presque Isle’s mill rate has increased only slightly over the last five years.
“The history of the tax rate shows in 2009, the mill rate was 24.50 [per $1,000 in valuation]. In 2014, it was 24.75. The major impact on the budget continues to be revenue sharing. Since 2008, about $6 million has been used to pay state budget problems. The result of using state funds [that should go back to municipalities] to pay state bills costs the average business over $3,000” per year, Bennett told the councilors.
Bennett said the “unbalancing by the state raises local taxes and lowers services.”
He credited city officials, including the councilors, for helping make the necessary cuts to maintain the budget and keeping much-needed services, through the elimination of positions, reducing hours of operation for municipal offices and the closing of the two swimming pools.
“The 2015 budget, as proposed, includes no staffing changes, reductions or elimination of services. There are no changes in fees, charges or other costs, including for solid waste,” said Bennett.
Councilors will begin reviewing the proposed budget when they hold their first budget workshop 6-8 p.m. Monday, Oct. 20, at City Hall.