KENNEBUNKPORT, Maine — The town’s fiscal year 16 municipal budget is proposed at $6.48 million, a two percent increase over 2015.
The majority of the increase is related to salary and benefit increases, and succession planning as long serving employees begin to phase in retirement plans, Town Manager Laurie Smith said.
The administration budget includes an additional month of salary and wages for a new town clerk next June. Town clerk April Dufoe announced her retirement effective in June 2016, and she will stay on to train her replacement through next spring’s municipal elections, Smith said.
Smith said the town is projecting a 16 percent decrease in nonproperty tax revenue because of the one-time transfer of $200,000 from the undesignated fund for the Government Wharf dredging project, and the loss of the town’s credit with Maine State Retirement. The credit equated to about $210,000 per year according to Smith. The balance of the credit is estimated to be $10,000 by July 1, resulting in a $200,000 loss in revenue for fiscal year 2016.
Other operating budget highlights include a 91 percent increase to the contingency account, or $54,000. The town’s union contract expires on June 30 and the added funds are in anticipation of salary, FICA and retirement increases. Smith said any leftover funds will be released to the various departments from the contingency account once a final agreement is reached with the union.
IT services for the town are in need of an upgrade to safeguard various programs and maintain security, Smith said. A total of $10,000 has been allotted under this line item in the fiscal year 2016 budget. Smith said the town’s IT services are currently provided on an as-needed basis through a contract with the county.
The highway budget has a proposed increase of about $21,000 to provide additional funding for overtime, which has been “woefully underfunded” in past years, Smith said.
The town’s planning and development budget is down by nearly $20,000 for 2016. This is in part because of a reduction in health insurance costs because of actual employee participation, and a reduction of funding needed for FEMA flood mapping.
The proposed budget also includes a decrease in legal fees due largely to the fact that this is the anticipated final year in the Goose Rocks Beach litigation. This line item is down 13.75 percent or $22,000.
The proposed budget is under review by the Board of Selectmen and the budget board before a final budget is approved by both boards and sent to voters in June.