By Scott Taylor,Staff Writer

LEWISTON – Debates and decisions about privatizing the city landfill will wait until May 17, councilors agreed Tuesday.

Councilors finished their last budget workshop after Tuesday’s regular City Council meeting with praise for City Administrator Jim Bennett and themselves. They’ve scheduled a final vote and public hearing on the budget at that May 17 meeting.

Bennett said he wanted to be sure councilors approved the privatization deal allowing Pine Tree Waste to take over management of the landfill before approving the budget.

If councilors approve, Bennett plans to use about $290,000 of the $1 million savings from that deal to lower the city tax rate by 20 cents. That would set the city’s tax rate at $27.35 for each $1,000 of property value.

“If you don’t approve the deal, I need to find some other way to cut $290,000 out of the budget,” Bennett said.

That might not be necessary.

“I’m about 90 percent of the way to approving privatizing the landfill,” said City Councilor Stavros Mendros. “But even if we don’t, I’m comfortable setting the tax rate at $27.55. I’m very excited to be actually cutting taxes in Maine, to be an island in this state.”

According to the plan, Pine Tree would pay the city $75,000 to monitor environmental conditions at the dump. Bennett said the city would pass that job and the money to an outside consultant. The company would also agree to pay a fee instead of property taxes – estimated at $43,200 in 2006 – and an annual hosting fee to the city. That would amount to about $78,000 in 2006 but should increase to $168,000 in 2007.

In exchange, Pine Tree would get the estimated $260,000 in annual fees from dump users. The city would also pay dump fees of about $30 per ton.

Bennett pointed to other savings in the budget. An increase in marriage licenses and vital statistics and burial permits recently approved by the Legislature will give the city another $39,250 in revenues. About $1.5 million more in property values citywide will mean $41,000 more from taxes. The city also decreased its annual bond issue, which saves the city about $127,000 in debt service payments and interest.

Bennett also said Lewiston homeowners should see tax bills decrease between 5 and 11 percent, depending on property values, because of the state’s new Homestead Exemption rules.