News

Gray, New Gloucester develop budget parameters
'Zero,' a word heard a lot
By Elizabeth Prata

In the citizen world there may be seasons such as Summer and December Holidays, but in the municipal world, there's election season and budget season, and both Gray and New Gloucester have entered the budget season - with similar approaches.

In New Gloucester Monday night, Selectmen developed their budget parameters with straight talk and minimal fuss. Chair Steve Libby opened the discussion by reviewing last year's parameters, which included zero increase in expenditures, and any overages requested by Department Heads had to be justified in front of the Selectmen. "Last year we experienced no decrease in services with the zero increase in expenditures, and it caused a decrease in the tax rate. That's why we got all those nice phone calls when the tax bills went out." Right, Mr. Libby

This year Mr. Libby suggested that the Town might want to have a zero increase in the tax rate; no extraordinary use of undesignated fund balance (UFB) to reach that goal; no new employee positions unless department heads can make a strong case to Selectmen for the need. The Town typically uses some of the UFB to dampen spikes to the tax rate so it is more predictable for the citizens in their own budgeting plans.

Selectmen David Lunt said he felt comfortable with last year's parameters and was also comfortable with Mr. Libby's suggestion to have zero increase in tax rate this year instead of zero increase in expenditures like last year.
Mr. Libby asked Town Manager Rosemary Kulow if there had been any requests from Department heads for increase in staffing. She said no, but that one part-time staffer may need to go to full time. "An increase in hours is all I have heard so far," she said.

Selectmen Dale Maschino was comfortable with the parameters and it was decided that the parameters the Board include: no increase in the tax rate; no extraordinary use of undesignated fund balance to reach that goal; no new employee positions unless department heads can make a strong case to Selectmen for the need. An exception for increasing one part-time position to full-time may be made.

Gray Councilors are working on their budget, too, and their parameters this year are similar to New Gloucester's but markedly different from other years of budget development in Gray. In the past there was an expectation that there would be an increase, jut the amount of the increase was debated.

This year, Chair Gary Foster said, the Council has directed the manager to direct his Department Heads "to generate a bare bones budget that is based on what we need, not the assumption that the budget automatically increases. If what we need is an increase, fine. But we may not." Left, Mr. Foster

The Council's parameters include no increase in the tax rate; no extraordinary use of undesignated fund balance; no department overages unless department heads can make a strong case to Council for the need. Chair Gary Foster doesn't see that levels of service would be impacted. The Council is also developing a fiscal policy to accompany the budget.