The Waldoboro Board of Selectmen was deadlocked in a 2 to 2 split on how to resolve lingering budget issues at their Sept. 17 meeting while the town faces a potential cash flow problem.
After two referendum town meetings, budgets for some of the town’s departments remain unapproved and voters have yet to get behind an accommodation for a $106,000 shortfall in anticipated state revenue sharing.
Now, with the budget not yet finalized, an analysis by Finance Director Eileen Dondlinger shows the town has about enough cash on hand to pay its bills through roughly Oct. 1, according to Town Manager John Spear.
The selectmen may need to take out a loan unless the budget is approved, the mil rate is set, and tax bills can be mailed to get some cash flowing, Spear said.
If the selectmen decided on an open-style special town meeting on the budget issues and the warrant was executed by about Sept. 21, the meeting could be held on Oct. 1, according to a memo from Spear.
The tentative plan for a referendum-style town meeting would be to hold it on Tuesday, Nov. 5, according to the memo.
The selectmen took no vote at their meeting on whether to hold a third referendum on the budget or to hold an open meeting, but several people in attendance spoke in favor of the open format.
George Seaver, a member of the town’s Economic Development Committee, said holding an open meeting gives the opportunity for the complicated issues relating to the budget to be discussed and clarified.
Even if budget items are separated on the ballot of a referendum, a ‘no’ vote does not state why the voter made their choice, Seaver said.
“You only will find out why it was voted down if the group speaks,” he said.
Budget Committee Chair William Blodgett said a quicker turnaround on an open meeting could help the town have a faster resolution to the cash flow problem.
Bob Butler, chairman of the Transfer Station Committee, said the referendums are costing the town $1700 each.
“That’s an argument for an open town meeting,” he said.
Selectman Vice Chair Ronald Miller spoke in favor of the referendum, citing the higher percentage of turnout for referendum voting versus open town meeting.
Kyle Santheson, the town’s recreation and EMA director, countered Miller, saying the the last referendum drew only 400 voters, whereas the last open town meeting drew 700.
Selectman James Bodman pushed for the board to decide on which style of meeting to hold, but no vote was taken.
Both proposals were aimed at resolving the $106,000 shortfall of anticipated state revenue sharing and solidifying the police department and finance and customer service department’s budgets, which have yet to be approved by voters for the current year.
Additionally, both proposals call for the cut of one position from the police department at $49,411, the adjustment of benefits for the finance director position at $2710, recognizing $8830 in savings from hiring the new planning and development director late in the year, and transferring $5600 from a project at the Waldoboro Transfer Station.
The difference between the proposals lie in how each would accommodate the remaining $39,499 of reduced anticipated revenue.
Miller proposed non-specific cuts of $9000 to public works and a further $10,589 to the police department, the use of $9196 from the town’s un-designated fund balance, and a $10,664 reduction to six town office staff positions in the form of a three hour per week reduction to most of those positions.
Miller’s proposal would also include closing the town office on Fridays and extending operating hours Monday through Thursday: Mondays, Tuesdays, and Thursdays the employees would work from 8:30 a.m. until 6 p.m., with the office open to the public until 5:30 p.m.; on Wednesdays employees would work from 8:30 a.m. to 7 p.m. with the office open until 6:30 p.m., according to Spear.
Spear’s proposal would accommodate the $39,499 entirely through the appropriation of un-designated fund balance.
Between revenues over budget, expenses under budget, and overlay remaining at the end of fiscal year 2013, preliminary numbers show even with using $40,000 to accommodate the revenue shortfall in the current year, at least $300,000 would be able to be added to the town’s fund balance, Spear said.
The total fund balance as of June 30, 2013, would be $686,435 with the $300,000 addition, according to a memo written by Spear.
“This means the fund balance ‘rebuilding plan’ is well ahead of schedule,” Spear wrote.
Speaking in favor of his plan, Miller said many people in town cannot make it to the town office during normal business hours because they are working themselves, and extending the hours would help accommodate them.
Additionally, Miller said his goal was to provide a solution which could be on-going for future years instead of relying heavily on the use of a fund balance, a crutch which may not be around in the future.
Dondlinger confirmed the town was on track for rebuilding its fund balance, which is supposed to help level out “dips and peaks” between years.
“Using all of it is just as bad as never using any,” she said.
Santheson spoke in favor of using the fund balance.
“We use this column as a rainy day fund, and I think it’s pouring right now in Waldoboro,” Santheson said.
Spear agreed with Miller that the change in hours would be an on-going solution, but voiced a concern on practical grounds on changing five different budgets, including one which just passed, in order to implement it.
“I just see this as being very confusing to people,” Spear said.
Miller said he thinks people would pass his proposal as it was explained as a scheduling change.
“I just think if it was drawn up right, my feeling is that people would accept it,” Miller said.
In the board’s vote, Selectmen James Bodman and Ted Wooster were for Spear’s plan; Miller and Chair Craig Cooley were against. Selectman Carl Cunningham was not present at the meeting.
Later in the meeting, after the deadlocked vote, Santheson suggested a compromise between the two plans by replacing the non-specific cuts to the police department and public works proposed by Miller with the use of the fund balance.
None of the selectmen responded to Santheson’s suggested compromise, and the board sat silently for a few moments before moving on.
No vote was taken on Miller’s proposal, and the discussion on budget proposals was tabled until the board’s joint meeting with the budget committee scheduled for Thursday, Sept. 19 at 6 p.m.
Just before the meeting adjourned, Bodman said he thought it was “ridiculous” that the board could not get anything done due to the absence of one member.
“We are such a dysfunctional board,” Bodman said. “We can’t even work together.”
