Council puts local referendum on ballot
Will ask citizens to reaffirm old debt, in face of cap initiative
By Elizabeth Prata

Gray--Gray Councilors voted to place a local initiative on the ballot for November 2. It will ask citizens to reaffirm existing debt so that if the Maine Tax Cap Initiative passes on November 2 the Town would be able to place old debt outside the cap.

The Tax Cap Language on the referendum states that any debt that a municipality had previously approved at a general election by 2/3 of the voters prior to 1999 would be exempt from the tax cap. Gray, like most municipalities in Maine, passes fiscal matters at Town Meetings, not general elections. Gray has a total of 11.5 million in debt outstanding, some of it overlapping, some direct.

Councilor Matthew Sturgis explained that direct debt is debt directly approved by the voters, such as Gray's public safety building and library work, and the sand and salt shed. This debt total is 1.5 million dollars. Sturgis explained that overlapping debt is not debt directly approved by citizens of the town but is debt that the Town is responsible for. Membership in the Regional Waste Systems consortium comes with it a share of 2 million in debt. In the unlikely event that the Gray Water District or the County or the School District should suddenly dissolve or forego their debt, the Town would be responsible for it. The Council seeks to include all debt in the proposed re-affirmation. Above, Sturgis

Sturgis said that in no way does the request at the November polls mean that it is a request for more debt. It simply reaffirms the old. If the Cap fails then nothing changes in terms of Gray's debt.

Andy Upham said that he approved of the idea. He asked why the Order spelled out the Town's Direct debt of $1,563,000 but only mentioned the overlapping and contingent debt with no numbers spelled out.

Manager Mitchell A. Berkowitz explained that it was a style decision in his choice of presentation of the Order.

Fran Monroe also agreed that it was a good idea. She said, though, that the Council should be clear and put in the exact numbers on the Order, and Sturgis agreed. The Council amended the Order to read, "Shall the following be approved: "Shall the Town of Gray's currently outstanding and authorized debt which has not previously been approved by the voters in a general election, including direct debt of $1,563,000 and all contingent an debt and overlapping debt ($10,336,369), be ratified and approved?" Below: Monroe.

The above question will face Gray voters at the polls on November 2 and will be accompanied by a Treasurer's certificate spelling out further details.
Monroe agreed with the principle of the idea but challenged the legality. She said she had read election law and it state that new referenda may not be placed on the ballot within a 35 day period prior to the election. Since the election is November 2, she said that the Council was remiss in not looking at the timing and the dates.

Berkowitz said that he welcomed Monroe to submit her documentation or legal citations and that he would also call the Maine Municipal Association. Both Berkowitz and Sturgis said that they had passed the idea by the Town Attorney and he indicated that a 10-day time period was the inside limit. Monroe said that she "doesn't believe a word that comes out of that guy's mouth," and urged the Town Council to delve further, using other sources, to determine the timing of the referendum request.