RUMFORD — Selectmen at Thursday night's meeting set a goal of cutting 10 percent from Rumford's $6 million budget to alleviate the decrease in town valuation.
The conserved money would be used to decrease next year's tax rate.
"I think we all agree, we've got to do something," Selectman Robert Cameron said. "I'm concerned that if we set a goal of 5 percent and get there, we'll be successful, but it will only be 5 percent."
"But, if we set a goal of 10 percent and only get to 8 percent, we won't be successful, but we will save more money," he explained.
The rest of the board agreed and voted 5-0.
However, that quick reasoning followed much discussion about trying to stave off the impact of a 22½-percent increase in the tax rate due to the loss of nearly $116 million in the combined value of the NewPage Corp. paper mill and Brookfield Power Co., Rumford's two largest taxpayers.
Town Manager Carlo Puiia started the discussion, which then subsided until the cost-savings goal topic came up.
He clarified or corrected previous statements he made to the public through the media by saying that in addition to the Board of Assessors, townspeople — not selectmen — also decide the tax rate when deciding budget matters on initiated articles at town meeting.
Additionally, Puiia said that his previous figure of $93 million for NewPage's drop in value was off by more than $3 million.
Instead, it is $96.6 million and caused by depreciation and market offsets due to changing trends and the recession.
That, combined with a loss of about $19 million from the hydropower company, brought the total drop to about $116 million, causing a reduction in the town's value from $614 million to $498 million.
"We realize that our mill (tax) rate is going up 4.4 mills," he said. "We knew all along that the mill was not going to be at full value and, this past year, we experienced a significant drop in their valuation."
Generally, Rumford has experienced small tax-rate increases over the years.
"We've been very fortunate, but this is not one of those years, unfortunately," he said. "We're still very fortunate to have this industry in our town."
He said that last year, the mill generated about $80 million in payroll and benefits to workers.
"Now, we know they're not all residents, but, still, that's a big cog in the economy, and we're grateful for that," Puiia said.
But the huge reduction in the town's value means either services must be cut or taxpayers must shoulder a greater burden, or some livable combination of the two.
"It's going to be a tough year for the town, not only for municipal government, but also for the citizens and we realize that," Puiia said.
"But we have to make sure our streets are safe; we have to look at the police force," he said. "But we just had a double homicide this past year and we have acts of violence, so we have to have an appropriate law enforcement agency that is funded well enough."
"We have a fire department and their budget was reduced this past year, and we're doing our best to accommodate staff reduction," he said. "Our public works department is very good at clearing and preparing the roads."
"We all expect our winter roads to be safe and we've come to believe that salt and sand is a necessity, not an option," he said. "So, these are all things we decided we don't want to move from much."
"I just want you to know that in no way did this board want to raise the mill rate in a way that would be unaffordable," Puiia said.
He then suggested that taxes don't have to be paid in one lump sum, but can be paid in installments, albeit with an interest penalty applied if the Nov. 16 deadline is bypassed.
In the cost-saving discussion, Selectman Mark Belanger urged the board to try to realize a percentage of savings from the town's $6 million budget to offset next year's taxes.
Selectman Greg Buccina suggested establishing a spending freeze with no capital spending and stopping all unscheduled overtime in any department without prior sanction from a department head through Puiia.
Police Chief Stacy Carter objected to the overtime freeze, steering selectmen instead to set a reachable goal, which they did.
"My goal is keeping this community safe and keeping crime down, so I think that cutting overtime is really going to hamper us," Carter said. "That would put the safety of my officers and our citizens at risk. Don't handcuff us so we can't do our jobs."
tkarkos@sunjournal.com

verified Last night, the moderator, who could not attend the selectmen's meeting recommended Randy Welch for appointment to the finance committee. Mr. Welch did not show up for the meeting at which he was asking for said appointment. Candice Casey submited her name before the last regular selectmen's meeting and the appointmentments were skipped. I was told in the office she was the only one who had turned in papers. Candice has been working hard to better the town and shows up at all selectmen's meetings and other meetings and volunteers around town and in the schools. I don't know if the selectmen knew she submitted her name to volunteer her expertise on the finance committee or not as only Mr. Welch's name was brought up. He was unanamously voted in. He was not there to accept, I hope he attends the finance committee meetings as I know Ms Casey would have given her demonstrated comitment to the betterment of the town. I would like to thank her for all her hardwork she will be missed when she leaves next year.
If we could only return to common sense...
The selectmen voted to set 10% as the goal for savings from each of the town's department's budgets. I was grateful to be able to eeport the good news I gathered from my calls to the state (see below) and asked that those funds not be included in determining the success or failure of the savings effort. These funds should not be included in the budget period. We are lucky that we will receive an estimated $29,000 per month in revenue sharing as a result of the valuation changes and have our school taxes reduced. That money should be set aside in an interest bearing account and forgotten (DO NOT TOUCH IT.).
I was stated Rumford has been lucky over the years not to have suffered significant tax increases over the years, = suggest, with the significant decline in populaation, Rumford should have seen declines in budgets resulting in declining tax rates or growing savings accounts that combined with smaller budgets would have had the tow prepared for this event.
An item absent from this article is the announcement of selecman Rob Cameron of his resignation. He could not have picked a worse date. He could have resigned so his replacement could be elected at the regular June or November elections, now we are faced with the expense of a special election at a time the town is already in financial crisis. Mr. Cameron's resignation is effective the second meeting in November just in time for the budget processes to begin but before a replacement can be elected leaving the 5 person board short to start and with an even number of members ripe for stalemates and grater risk for not having a quorum.
I hope Mr. Cameron enjoys his retirment, I just wish he had chosen a different time to resign. If anyone else on the board is considering resigning I hope they will do it now so they can be replaced at the same time as Mr. Cameron and we will not be looking at two wpecial elections before June.
At Monday's emergency selectmen's meeting, Town Manager Carlo Puiia reported that vy filing with the State Bureau of Reveneau Services, Rumford could see adjustments to school funding and revenue sharing next year.
After learning this I took it upon myself to make a few phone calls. I have be come very concerned about the accuracy and reliability of any information coming from the town manager and some selectmen given resent experience. It was with great pleasure that I was able to provide the selectmen and the people of Rumford with some good financial news at Thursday's selectmen's meeting. I learned from my calls, that by filing a letter listing property owners who received a reduction of 2% or greater in valuation along with the comitment document which will be signed after the special town meeting October 15, to the State Tax Asswssor, State House Station 24, 26 Edison Dr., Augusta, ME 04330, we will receive additional revenue sharing this year (not beginning next year as Carlo said). I have been advised by one reliable source that this amount will be $29,000 per month though actual calculations will be made once the documents arrive.
In addition, our town manager, stated that we would not see relief from school funding until next year. It was brought up at Monday,s meeting that our school funding formula was unique to our district and has stops similar to an ajustable rate mortgage and changes could only be made in certain years and we might not even get relief next year. I checked and found neither situation to be true. We have a standard 75% valuation 25% pupil population funding formula dictated by the state. Once the state tax assessor receives our documents with the bad news on the drops in valuation, the assessor will forward to the department of education. We get adjusted this year, 2009-2010, that is to say for this school year. I spoke with both the Departmtent of Education and State Tax Assessor and received verification on the fact we WILL get relief for the 2009-2010 school year.
It would be wonderful if the town manager came to a meeting with the numbers correct. Wasn't he an account? Last night he brought different numbers for the NewPage reduction in valuation, stating he had given the wrong numbers at Monday's meeting. He did not correct the numbers for Brookfield Power which he preciously gave as $18 million reduction which is also wrong. According to the Tax Assessor, who I am certain knows what these facilities were given as reductions, NewPage received $96,680,000 and Brookfield received $29,340,000 for a total of $96,680,000. I consider more than 11 million dollars to be a significant discrepaency (Brookfield) alone. These numbers are direct from the assessors office and available to the town manager and certainly he should be getting accurate information from proper sources to provide the selectmen and the people to make sound decisions.
Carlo still got it wrong on who set the mil rate. He and the selectmen are dodging responsibility. Who put the proposed budget numbers on the ballot for the people to vote on? ONE CHOICE WAS FROM THE SELECTMEN AND THE ALTERNATE THE FINANCE COMMITTEE. The cchoices weren't much different either and we had no way to put in our own like the old days. if everyone stuck to the assessed value , the state standand that has always been used for retained line and overlay that would have been the end of it bu no, some selectmen and the town manager went further and adjust those numbers which is why I say they or at least some of the selectmen and town manager set the mil rate which was supposed to be a simple mathmatical formula.
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