MECHANIC FALLS – The Town Council postponed until January a decision on pay raises for municipal employees.

Town Manager John Hawley asked the council Monday night to set a figure for pay raises that department heads could use as they prepare their budget requests for the town’s next fiscal year, beginning in July.

Hawley said that based on state and federal estimates of cost-of-living increases running anywhere from 2.28 percent to 4 percent, he would recommend the council set pay raises at 3 percent.

Hawley noted, however, that this is a “very uniquely tight year” and pointed out that the state has cut $33,000 from funding the School Department had budgeted for this year and that he expects to hear any day that the governor will reduce the amount of state revenue sharing the town is expecting.

And, Hawley said, he has no idea what cuts the town might see in money coming from the state next year.

Councilor Nancy Richard said that some people in the private sector are willing to take pay cuts in order to keep their jobs.

Councilor Robert Small, who works at USM, said that he expects up to 65 people will lose their jobs there. “The university system is being hit hard.”

In the past two years town employees have received pay raises of 4.7 percent and 4 percent respectively.

The council approved drawing up to $4,000 from the public works equipment reserve account to rebuild the old public works trailer.

In October, the town received a bid of $12,000 for a new flatbed trailer with a 20-ton capacity to haul town equipment, generally the bulldozer, to job sites. The council deferred action with the hope that the town might split the cost and ownership with Poland. However, the $12,000 trailer is too small for Poland’s needs, and Poland decided against a joint purchase.

Hawley said that with $2,500 for parts – the trailer needs new axles and brakes – and $1,000 for labor plus about $500 to strip and repaint the old trailer, the town could have a DOT-roadworthy trailer that could last another 20 years.

Waiting paid off on another purchase, Hawley told the council, as he was able to lock-in an agreement with Maine Power Options to supply electricity for $.0896 per kilowatt. He noted that while this is up from the $.075 rate the town has paid for three years, it is lower than the $.11 rate the town was looking at in July.

Hawley also reported that he agreed to loan the town’s code enforcement officer, Nick Richard, to Poland for 10 hours a week for the next six or seven weeks while Poland conducts a search to replace Arthur Dunlap, who resigned as CEO effective Dec. 1.

Town Clerk Lisa Palmer said the Nov. 4 voter turnout, with 1,646 votes cast, set a record for the number of people voting in an election, up 11 from 2004’s 1,635, but because there are a large number of new registered voters, the percentage turnout was not a record.