After some discussion and adjustments Tuesday, the Standish Town Council unanimously approved the municipal budget.
The approved budget reflects a property tax rate of $9.61 per thousand of valuation, a reduction of 50 cents from last year’s rate. The total municipal budget is $6.05 million, an increase of $130,000, or 2.2 percent, over last year.
The Budget Committee will have two weeks to act upon the new budget. If it is not approved by the committee, it will be returned to the council with recommendations. A majority of both the Budget Committee and the council or at least five councilors must approve the final budget, which will then be brought to the voters for approval at the June 17 annual town meeting.
Much of the debate Tuesday night centered on recommendations from Councilor Terence Christy, chairman of the range roads development committee.
Christy recommended adding $12,000 for roadway development. He also suggested that the council might want to “provide some money for the village study.”
This study, which has been suggested by the Comprehensive Plan Committee, would seek ways to preserve the character of the Standish Corner Village, suggest upgrades to avoid heavy traffic patterns similar to Route 302 in North Windham.
Although council members were told this study could cost between $40,000 and $60,000, Christy said the money allocated for land-use planning would cover one aspect of the study. He suggested that for $15,000 the town could obtain a basic study, a figure the council later approved.
Councilors also discussed several different figures to put toward comprehensive plan implementation and finally budgeted $12,500 for that purpose.
Of the eight issues left unresolved from the last budget discussion, all had been resolved. One significant savings that came under healthcare coverage was a quote from Harvard Pilgrim that came in 3 percent below the FY 2006 healthcare figure from Anthem. Anthem’s bid for FY2007 had gone up 7 percent. Coverage under the new plan would remain virtually the same.
The council also decided to go with a bond levelization program with the Maine Municipal Bond Bank. According to new Finance Director Dana Fischer, this would create equal yearly payments over the life of the bond, “reducing the length of the bond payments and the total interest amount.” Fischer said this plan also causes the mill rate to remain level for the life of the bond.
Because the town has posted relatively modest increases in taxes since LD1 took effect, it pegged the LD1 figure at a rate that is “clearly not sustainable” according to Fischer. Because of this, the council approved a warrant article for a secret ballot at the town meeting to approve going over by $193,155 the $1,719,825 amount the state has allocated under LD1.
“The current LD1 formula for determining municipal levies does pose some hardship on very low mill rate areas,” Billington said. “When you start low, you have a penalty.”
Councilor Dolores Lymburner asked Billington what happens to the LD1 figure in subsequent years if it’s exceeded this year. Billington said the increase would establish a new baseline limit.
Council Chair Cindy Hopkins said she thinks LD1 in effect penalizes Standish because the town has “been frugal” and that this could be confusing to many people. She recommended the town write a letter to state lawmakers expressing its frustration.
“I think our legislature needs to understand,” she said. “We’ve worked really hard to keep a low mill rate.”
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