The Town Council is planning a workshop meeting for Feb. 18.
MECHANIC FALLS – Town officials are asking $2,520 less from local taxpayers than they did last year, according to the 2004-05 proposed budget.
Increased insurance costs and minimum pay raises are being offset by cuts in other areas and a projected increase in local revenue. The draft budget calls for a total expenditure of $1,612,806, and an increase of $69,125 over last year. However, the town expects to bring in $874,820 this year, which is $71,645 more than last year.
Town Council members will review the budget during a Feb. 18 workshop. A public hearing will be scheduled later in coordination with the School Union 29 budget hearing.
An 8 percent rise in medical insurance has affected the amount of salary increases for town employees. While most towns offer a 3 percent pay increase, Mechanic Falls is holding the line at 1.5 percent.
“Due to the rapidly increasing costs of medical insurance, the ability to afford medium to large raises is becoming very difficult,” stated Town Manager Dana Lee in his draft budget for the Town Council’s review.
However, employees can earn additional pay based on their job performance and annual evaluation score. Instead of receiving an increase based on a percentage of their current pay, employees can earn a flat amount in merit pay bonus.
Possible scores range from 0 to 5. Employees need to score 2.5 to receive an additional total bonus of $150. The highest score of 4.5 to 5.0 carries a $750 addition to an employee’s annual salary. The Town Council recently renewed Town Manager Dana Lee’s contract after giving him a score in the 4.0 to 4.49 range, which resulted in a $600 merit pay bonus.
The largest proposed increase in town spending is in the category of solid waste disposal. A jump of $13,664 is projected as necessary to cover personnel, contracts and other operating costs.
Areas slated for cuts include the fire and rescue departments, public works, and street lighting. Significant increases in revenue are expected in the areas of vehicle excise taxes and revenue sharing with other agencies.
To head off future capital improvement costs, Lee has proposed a $286,000 bond issue primarily for road repairs. Several road improvements scheduled for future years could easily double in costs as the repairs turn into full road reclamation projects, according to the budget justification. Lee suggested that borrowing money now at a low interest rate will save the town money in the long run. Any bond issue would have to be approved by town residents.
Comments are no longer available on this story