RUMFORD – Nearly 400 residents raised nearly $2.7 million at Monday’s annual town meeting. With other revenues, that represents a 3.8 percent increase over last year’s $6.9 million budget.
Despite the budget hike, residents will likely see a 5 percent drop in property taxes because of extra state aid to education.
Town Manager Steve Eldridge said the tax rate may drop to $18.22 per $1,000 valuation, down from $19.15.
The tax rate will be set in August after the assessment of NewPage Corp. is completed. Residents must pay property taxes by Oct. 1 and April 1 to avoid penalties.
Town spending could change, however, contingent upon requirements by the State Fire Marshal’s Office for bringing the Municipal Building and fire station up to code.
Residents narrowly denied a raise in the state imposed tax cap, 190-201, that would have allowed a renovation and building project to the two buildings to meet state life and safety codes. Officials had sought to raise the cap from $2.7 million to $3.2 million.
Eldridge said Tuesday afternoon that he’s waiting to learn the state’s response to the denial of the project.
If the State Fire Marshal’s Office requires work on one or both of the buildings, then a special town meeting may be required to raise the money, he said.
Town officials presented three proposals for bringing the Municipal Building and the fire station up to compliance. They ranged from $800,000 to address violations in the Municipal Building, to $1.8 million which would have brought the Municipal Building up to code, made some code improvements to the fire station, renovate the police department, and build a lobby and entrance between the two buildings.
The highest figure, $2.9 million, would have brought both buildings up to code and paid for a 15,000-square-foot addition between the two buildings and to the fire station.
The board will decide what steps to pursue at its June 15 meeting.
The four-and-a-half hour meeting brought out three times the usual number of participants. The grassroots group Concerned Citizens for Fiscal Responsibility mailed a letter to approximately 850 people last week requesting their attendance because of financial concerns. The group organized a few months ago to try to change the procedure for adopting a municipal budget from town meeting to putting most questions on a referendum ballot. A vote on that will be held at the June 13 primary election.
Residents approved town borrowing of up to $1.2 million to build a 60- by 100-foot building in the business park off Route 108. Central Maine Power Co. would purchase the building. Also approved was a possible exchange of several acres in the park for the CMP building on Canal Street.
Eldridge said the utility company is expected to decide whether to go through with the deal on Friday.
Residents approved an application for $400,000 from the Community Development Block Grant program that would help revitalize downtown. If successful, the town would be required to appropriate $100,000 toward the project from its road and sidewalk fund.
Voters also approved an application for $150,000 from the state’s enterprise grant program that would be used to improve downtown businesses facades. No town match is required; however, business participants must pay half the cost of making such improvements.
Residents approved just under $2.5 million for public safety, about $40,000 more than this year’s budget. The money will cover police, fire, civil defense, pensions and retirement, and code enforcement. Voters also approved $751,000 for general government expenses, up 13 percent, and $1.1 million for public works, virtually the same amount as this year.
Eldridge said most of the increase in the 2006-07 budget was the result of salary and benefit increases, and higher health and other insurances premiums.
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