HALLOWELL — A budget proposal would lower the property tax rate slightly, but a lot about that proposal could change between now and July.
The $5.5 million budget proposed by City Manager Michael Starn would reduce taxes by 1 percent.
However, it assumes that state funding to the city will remain flat and that the city’s share of Kennebec County and Regional School Unit 2 budgets — which accounts for more than half of Hallowell’s spending this year — won’t increase. Also, it doesn’t factor in potential raises: The city will soon begin negotiations with the union representing 12 police, public works and City Hall employees.
All that makes the document “pretty sketchy” for now, said Starn, who’s required by city charter to submit a budget proposal in March for the fiscal year beginning in July.
“What I think of it as is a starting point for budget discussions; and as we get more information about the budget, it’s going to change,” he said.
Starn’s budget calls for an additional $100,000 in city spending, which he projected would be offset by an increase in revenue. Hallowell’s tax rate per $1,000 of property would move from $17.60 to $17.41, a difference of $38 in taxes on a $200,000 home.
Projects that would be funded in Starn’s budget include a $100,000 reconstruction of Mayflower Road, a pavement overlay on a portion of outer Central Street running roughly from Vicki’s School of Dance to Town Farm Road that would cost $55,000, and a culvert project on the same street that will cost $45,000. The city would get a new sidewalk plow for $73,000, and police would get a $30,000 cruiser.
Councilor Mark Sullivan, who chairs the council’s budget committee, said the panel’s goal is to avoid a property tax increase, but “at this stage, there’s so much uncertainty,” particularly about the state budget, that could include cuts to revenue sharing and General Assistance.
That leaves the city “really at the mercy of that process,” and the city may not know how the changes will affect it until June, he said.
Mayor Mark Walker called the budget a “moving target,” but he said large increases, particularly at the school level, will be “not palatable” to many in Hallowell.
“If we can come in neutral, I would be thrilled,” Walker said.
Michael Shepherd — 370-7652
Twitter: @mikeshepherdme
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