City Administrator Jim Bennett is concerned a property tax cap will
gut city government.
LEWISTON – City budget planning favors roads and economic development for fiscal year 2005, councilors learned Tuesday.
Fear of a harsh property tax limit convinced City Administrator Jim Bennett to steer away from capital projects that require employees in this year’s Capital Improvement Plan. Bennett said a property tax cap that could be on this November’s ballot would gut city government.
“I don’t see the point in buying a new firetruck if we’re not going to have the money to pay for a fire department,” Bennett said.
The tax cap being proposed by Carol Palesky would limit property tax rate statewide to $10 per $1,000 of property value. That would cut the city’s property tax revenues from $38.9 million to $12.5 million. After Androscoggin County’s share is removed and debt service payments are made, the city would be left with about $3.1 million to pay for municipal and school services.
“We currently have $28 million in services to fund with that $3 million,” Bennett said.
The Legislature is debating whether to put the issue on the November or June ballots. It currently leads in the polls and no clear groups have stepped forward to oppose it.
“I hope it doesn’t pass, but we have to plan that it will pass,” Bennett said.
If it passed, the restrictions would take effect in July 2005 for the 2005-06 fiscal year. “That would make fiscal 2005 all about phasing out operations and figuring out how we are going to make our government work on $3 million,” Bennett said.
Bennett recommended councilors put their capital improvement money next year in road improvement projects and economic development. Other programs, such as city building maintenance and federally mandated sewer overflow drain construction should be cut, he advised.
“If we don’t have a community as we know it now, I’m not worried about the EPA or the (Maine Department of Environmental Protection) fining us,” Bennett said. Bennett said he will present his capital project recommendations to the Planning Board at their March 22 meeting.
Comments are no longer available on this story