BANGOR, Maine — Cost shifts, wage increases and a push to keep on top of a growing backlog of infrastructure projects are resulting in a city budget with a 1.4 percent spending increase over the current one.
That could cause the city’s property tax rate to increase for the fifth straight year, from its current mill rate of $21.95 to $22.50 — a 2.5 percent increase.
City Manager Cathy Conlow shared her proposed fiscal year 2017 budget with Bangor city councilors for the first time Monday night. They’ll hold the first in a series of workshop sessions at 5:15 p.m. Wednesday at City Hall.
Factors and numbers are likely to change before the council votes on the budget this summer.
The city expects to spend a little less than $51 million in the coming fiscal year, about $961,000 more than it budgeted for this year. Paired with the Bangor School Department’s proposed budget, Bangor’s total expenses are expected to reach about $95.5 million, a 1.4 percent increase from this year.
The budget doesn’t include any service or staff reductions, Conlow said.
“However, staff is continuing to work on examining city programs to optimize efficiency and make reductions as necessary,” she added.
The city and schools both cite reductions in state aid and other sources of revenue as contributing factors. For example, last year the state approved a change in General Assistance reimbursement rates from 90 percent to 75 percent. The city also expects to lose about $280,000 in revenue due to changes to the Homestead Exemption.
Those costs are shifted to the city, which ultimately has to bleed positions and services or turn to taxpayers, city officials have argued.
“Since 2012, state funds for municipal operations have been reduced over $3 million annually, resulting in the loss of more than 50 positions,” Conlow said.
Wages also are increasing, contributing to the hike in expenses this year. Bangor’s agreements with eight of its 11 employee collective bargaining units include a 1.25 percent wage increase this year. Non-union employees will get the same raise.
“The proposed budget includes over $12 million for capital expenditures, new programs, and downtown improvements to be funded from a variety of sources including TIF funds, reserve accounts, trust accounts, grants, operating funds and bonds,” Conlow said. The capital projects funded in the budget include road improvements, a new ladder truck for the Fire Department, city bus refurbishments, remediation of coal tar in the Penobscot River and more.
The full budget and related documents are available on the city’s website, bangormaine.gov.
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