Newcastle’s initial budget proposal for fiscal year 2009 totaled $4,130, 921, an increase of 1.36 percent over the current fiscal year.
Over the course of three meetings in 10 days, ending Feb. 23, the Newcastle Board of Selectmen pared down the proposed budget substantially to $3,366,098, not including non-profit requests to the town.
The Newcastle Fire Department’s initial request for $106,267 included $36,100 for a full-time Fire Chief. In 2008, the Fire Dept.’s actual budget came to approximately $78,000. This year’s request is an increase of $28,267.
The selectmen first discussed this part of the budget at their Feb. 16 meeting, but tabled the issue for a special meeting held Feb. 18 to allow the board more time to explore the details of the issue.
Newcastle Town Administrator Ron Grenier suggested that the fundamental question residents need to ask is whether they want a private Fire Company with a contract to provide fire protection services, or a municipal Fire Dept. with all the cautions and internal controls.
“All I know right now is we have a hybrid, which is not unusual; most towns in Maine have the same thing,” Grenier said. “It is a struggle when it comes time to deal with administrative or budgetary issues. The arrangement we have now lacks the ability to have order or processes in place.”
The board recognized the increasing demands on the Fire Chief, but questioned the town’s ability to address the issue during these difficult economic times.
Most board members were adamant that the selectmen had the right to reduce the amount for the Fire Dept. this year, but could not tell the Fire Company how to spend those funds. “We don’t tell the library how much to pay the librarians,” Selectman Bob Plourde said.
Chairman Ellen McFarland said she was concerned about funding a new position for the Fire Dept., while in the same budget discussing cutting pay for School Board Members. Currently the Fire Chief receives a stipend like the Code Enforcement Officer and the Road Commissioner.
The board decided to allocate $2500 to the Fire Dept. to allow them to pay someone to assist with the paperwork. Additionally, they agreed to increase the Fire Chief’s stipend with a three percent cost of living increase, worth $205.
Pat Hudson made a motion for the board to recommend $85,690 for the 2009 Fire Dept. budget. Art Mayers seconded the motion.
During discussion of eliminating school board member stipends, McFarland said the stipends haven’t been included in the Union 74 budget. “We can arbitrarily remove the stipend to save $250, but it would be a real slap in the face,” she said.
Not afraid of leading by example, the selectmen voted to cut their annual pay in half, from $3000 per selectman per year to $1500, a savings of $7500 for the town.
The new warrant for Newcastle raised some concerns among board members, who were worried citizens might find it confusing.
“This presents differently than in years past,” McFarland said. “For the past three years there have been changes to the warrant every year. I want to make sure this is understandable for them.”
Grenier explained this year more detail will be present on the warrant than in previous years with itemized numbers for each department. Newcastle residents will still vote on each department total as in previous years.
The board tabled a discussion about the capital roads improvement program at their Feb. 16 meeting, and revisited the issue Feb. 18.
Last fall, C.E.S. Engineer Travis Noyes developed a program that would address the most critical road problems in Newcastle, plus a maintenance plan going forward for roads currently in good condition.
Original estimates said $1.5 million was needed to complete the plan, but rising prices over the past year increased the cost to $3 million. Financing options of seven, 10 or 15 years were given at the outset.
“I think it is not wise to put a capital roads matter before the town other than paving one or two roads in bad need,” Grenier said. “The long term funding could have a three to five year impact on the tax payers.”
The $350,000 debt service required to pay for the project over the 15-year repayment period would raise the Newcastle mil rate from 13.5 to 15, according to Grenier.
Of the $120,000 set aside this year for paving and road maintenance, $40,000 is allocated to fix Station Rd, Grenier said.
The board retabled the issue Feb. 18 and revisited the subject again Monday night Feb. 23. This week the selectmen decided to look at borrowing $1 million over five years at a flat interest rate. Grenier said the board advised him to begin speaking with the bank to be ready to meet with the Finance Committee next Monday March 1 at the Taniscot building at 7 p.m. to work out the final details.
The Feb. 23 meeting also included a discussion about developing a contingency plan, or rainy day fund, for unanticipated expenses throughout the year. The board decided to simply build contingency funds into the overlay, instead of developing a separate contingency plan, Grenier said.