LEWISTON — Councilors adopted a zero tax-rate increase for city services Tuesday with a proposed budget that would lead to staff layoffs and service cuts.
Councilors voted unanimously to trim $1.26 million from the fiscal year 2014-15 budget presented in March by City Administrator Ed Barrett.
Those include cuts councilors favored at their last workshop meeting earlier this month and an additional $225,000 cut in employee salaries needed to keep the tax rate for city services level with the current year.
Combined with a proposed 15 cent per $1,000 tax-rate increase for schools that voters approved last week, it will mean a $13 tax bill increase for a $150,000 home.
“Implementing this further reduction will require that currently filled positions be eliminated and employees in them be laid off,” Barrett said.
Finance Director Heather Hunter said the details of those layoffs and the number of employees lost should be released later this week.
Barrett said the effects will be felt in reductions in city services. City Hall hours will be reduced by 30 minutes in the morning and another 30 minutes in the afternoon. City Hall will open at 8:30 a.m. and close at 4 p.m. once the new budget takes effect July 1. Extended afternoon hours at the Lewiston Solid Waste Facility on the weekends will end, as well.
“I think we’re going to have to wait and see how things work out during the year, once the last set of reductions have been implemented,” Barrett said.
Councilors began their budget reductions faced with a 66-cent tax hike in March. They agreed to eliminate vacant positions and to reduce spending for joint agencies.
In all, councilors approved 160 line items in Barrett’s proposed budget.
“There is very little in this budget that was not closely reviewed and adjusted,” Barrett said.
Councilor Mark Cayer said he would support the proposed budget despite the staff layoffs.
“We have great staff and every single year we demand more and more from them,” Cayer said. “But when you look at our budget, it’s the biggest portion of where our dollars are going. We’ve cut everything else before we considered staff layoffs.”
Cayer urged councilors to work on finding ways to bring in new, non-property tax revenue to preserve city services going forward.
“We are the second-largest city in the state and I think our voice in Augusta needs to become more powerful,” Cayer said. “We as a council can make that happen.”
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