By Scott Taylor,Staff Writer

LEWISTON – Lower property taxes next year depend on the city’s getting out of the dump business, according to City Administrator Jim Bennett.

The city would contract with Pine Tree Waste to operate the facility, pay staff and be responsible for whatever goes into the dump. That would let the city cut as much as 20 cents off of the city’s tax rate.

The city save could as much as $37 million over the next 30 years and have someplace to put its trash once the current landfill is full, he said.

“In four or five years, the current landfill will be full,” Bennett said. “We have all the licenses and permits to go expand it, but we’ll have to borrow about $6.5 million to construct those next cells. But this way, we don’t have to do that. They assume all of those costs.”

Councilors are scheduled to continue discussing the budget Tuesday night, after the regular council meeting. The current schedule would have the final public hearing and a vote on ultimate City Council approval on May 17. Councilors would vote on Bennett’s landfill plan at that meeting, as well.

“I try and get councilors to decide about a policy change like this before they adopt a budget,” Bennett said.

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.

“The best part is, nothing will change from a citizen’s point of view,” Bennett said. “We’ll still provide curbside collections and recycling. We’ll still provide punch cards for people to bring in bigger items. The end users will see no change.”

But taxpayers would, he said – and right away. It would give the city about $900,000 in savings for the next three years that can be used to buy down the tax rate by 20 cents.

Overall, Bennett’s budget – which includes savings from new state homestead exemption rules as well as the landfill – reduces the city’s 2005-06 tax rate from $27.70 to $27.35, a savings of about $237.91 for a $160,000 home.

“I think people are going to be very surprised when they learn that their tax bill is actually going down,” Bennett said.