Public hearing May 12 on $30.8 million budget for Town,
school, county and Community Services
The Town Council's Finance Committee will hold a public hearing on a proposed
$30.8 million municipal budget for fiscal year 2009 on May 12, 2008, in the
Town Hall chamber.
The budget, which includes spending for Town, School Department, Community
Services and county services, is up $1.3 million overall, an increase of
4.49 percent.
The proposed budget carries with it a proposed tax-rate increase of 88 cents
per $1,000 of assessed valuation, up 5.5 percent from the current year's
rate of $16.46.
After the public hearing, the council will meet again on May 27 to adopt
the budget. On June 10, Cape Elizabeth will hold a school budget validation
vote, where the citizens of Cape Elizabeth will vote on the school budget,
as provided by new state law.
School Budget
The Finance Committee, a committee of the whole Town Council, is recommending
a $19.7 million school budget, 4.6 percent higher than this year's budget,
but less than the $19.9 million approved by the School Board and submitted
to the Finance Committee in March.
(Click here to
view/download School Board April 1 presentation to the Finance Committee
- pdf format)
At the council's meeting April 14, Finance Committee members voted 4-3 to
set the 4.6 percent school budget increase to public hearing, with Councilors
Anne Swift-Kayatta and Sara Lennon, and Finance Committee Chairman Jim Rowe
voting against. During budget deliberations earlier in March and April, Lennon
had supported a higher budget for school expenditures, while Rowe and
Swift-Kayatta said they favored a budget with a 4.3 percent target increase
based on the consumer price index.
The School Department is slated to receive a $237,427 increase in state subsidy,
bringing Cape Elizabeth's state aid total to just over $3 million for 2009.
Decreases in miscellaneous revenue mean a $211,326 increase in non-property
tax revenues for the School Department.
The tax rate for school spending, according to the proposed budget, is slated
to increase 45 cents per $1,000 of assessed valuation, to $12.24, an increase
of 3.8 percent.
Town Budget
The Finance Committee is recommending a $8.8 million Town budget for the
next fiscal year, up 3.37 percent over this year. Due to a projected revenue
shortfall of $217,060, or nearly 6 percent, taxes for Town services are slated
to rise to $4.04 per $1,000 of assessed valuation, an increase of 10.4 percent.
The Town budget set for public hearing is nearly $130,000 less than the one
submitted by Town Manager Michael McGovern in February. That budget, which
was up 4.88 percent, exceeded the Finance Committee's target increase of
4.3 percent.
A major change to the Town budget from the one originally submitted is the
privatization of the Town's fitness center, located at the rear of Cape Elizabeth
High School. Leasing the fitness center to a private operator is expected
to save more than $106,000 in salaries and benefits.
Also, deferred from the 2008 budget is $36,500 replacement of a pickup truck.
The line for advertising was reduced by $4,000, nearly half of the $9,000
budgeted this year, and funding for the Arts Commission, $3,000, was also
eliminated. A twice-weekly shopping transportation program for senior citizens,
$3,708, was eliminated because of a lack of use, but the committee added
a $1,200 payment to Independent Transportation Network to its budget for
human services.
Cuts to the Town budget were offset by a $42,350 increase in debt service
due to higher rates, and a $217,000 reduction in anticipated revenues from
state revenue sharing, excise tax, investment income and income from the
fitness center.
Community Services and county budgets
The Community Services budget slated for public hearing is just over $1 million
for next year, up 10.7 percent over this year's. The spending increase is
due to higher fuel and energy costs, as well as a one-time $17,000 retirement
contribution required by contract. It also includes a new, $36,580 budget
for the Middle School athletics program, to be offset by user fees.
Revenues for Community Services are budgeted at more than $922,000, up nearly
12 percent. The budget includes no increase in the 12-cent per $1,000 of
assessed valuation tax for Community Services.
Cape Elizabeth's share of Cumberland County's tax assessment is budgeted
at just over $1 million, an increase of 7.9 percent. The county's share of
the proposed tax rate is 76 cents, up 5 cents over this year, for an increase
of 7.4 percent.
More information, including links to full budget spreadsheets and summaries,
are available in the special budget section
of this Web site.
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