AUBURN — This year’s budget is too tight for city councilors to pass without either raising taxes or making big policy changes, Manager Glenn Aho said Monday.

“This is not any ordinary year,” Aho said. “This is a year where new partnerships will need to be made between yourselves and city staff. Administratively, you cannot fix this budget.”

Aho presented his draft budget to councilors at a special workshop. As proposed, the budget calls for a $1.74 per $1,000 of value increase in property taxes. That’s an increase of about $298 for a $150,000 to $200,000 home.

But Aho said that’s just a part of the story. His draft budget is less of a plan for the coming year than a call for City Council action.

“Administratively, I cannot bring this budget into where you would like it,” Aho said. “I am asking for help to decide policy decisions.”

He asked councilors to review this year’s proposed budget especially carefully and be prepared to weigh in on city projects and programs that could be cut.

Last year, councilors adopted a budget that both cut staff and increased property taxes.

Councilors began working in March 2010 with Aho’s draft budget that called for a 9 percent tax rate increase. They adopted a budget in May 2010 that cut $537,764 from his proposed spending plan and spent $700,000 from the city’s fund balance. The result was a property tax payment increase of $135 for a $150,000 home and cuts in city staffing.

But Aho said simple belt tightening and administrative shuffling will not do the trick this year.

“This will be the third year in a row where we have run up against significant cuts,” Aho said. “But we have not yet adjusted to the changes we’ve made over the past two years, let alone prepared for another year of change.”

Aho said much of the increase in his draft budget was out of the city’s hands. He pointed to a drop in revenues of $475,768 combined with rising expenses of $983,004. The city’s overall valuation also decreased by $19 million, which will also drive up the city’s property tax rate.

For their part, some councilors were ready to get started. Councilor Mike Farrell proposed defunding the Lewiston Auburn Economic Growth Council and L/A Arts, trimming $191,767 from Auburn’s budget. And Councilor Dan Herrick said he wanted to cut every last increase from the budget.

“Glenn, when we hired you, one of the things you said was you could make the buffalo on the back of the nickel squeak, you squeezed it so hard,” Herrick said. “Well, it’s time to start that.”

Aho and his staff worked to complete the draft budget document right up until Monday’s meeting. He said a digital version of the entire draft budget should be online at the city’s website, www.auburnmaine.gov later on Tuesday.

The council’s next budget workshop is scheduled to begin at 5:30 p.m. Thursday. Councilors are scheduled to review budgets for the Finance, Assessing, Police and Fire departments and the Auburn library.

staylor@sunjournal.com

2012 Municipal Budget Message 3-14-11a

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