Damariscotta will have to dip into contingency funds to pay for a 14.23 percent increase in the town’s annual contract with the Nobleboro-Jefferson Transfer Station.
The transfer station calculates the bills of the three towns it contracts with – Bremen, Damariscotta and Newcastle – based primarily on each town’s population.
Last year, Damariscotta benefited from a billing error, the result of the transfer station using an outdated population figure to calculate Damariscotta’s share of the budget, according to Damariscotta Town Manager Matt Lutkus.
The $124,270 Damariscotta will pay in calendar year 2013 represents a relatively small increase of 3.43 percent more than the 2010 and 2011 figures, before the 2012 error.
Damariscotta already pays more of the station’s budget than any other town and, in 2013, will pay almost $25,000 more than the second-highest payer, Newcastle.
For budget purposes, the town operates on a July-June fiscal year instead of a calendar year, like the transfer station, so it could not budget for the contract increase. According to Lutkus, the town will have to draw $4530 from its contingency account. He said the account balance is sufficient to cover the expense.
The Damariscotta Board of Selectmen approved the $124,270 expense 3-0 at its Jan. 2 meeting. Chairman David Atwater and Selectman Robin Mayer were absent.
Lutkus said the selectmen asked him to discuss the billing formula and Damariscotta’s voting rights with Station Agent Dick Spear before the town signs the 2013 contract.
Overall, however, Lutkus and the selectmen remain satisfied with the arrangement.
“We’re very pleased with the services provided by the transfer station and the convenience it provides our citizens,” Lutkus said.
In other municipal business, the Damariscotta and Newcastle boards of selectmen will gather at the Newcastle town office Monday, Jan. 28 at 6:30 p.m. for their biannual meeting about joint public works operations.