The administration has proposed a budget that would reduce Westbrook’s property taxes by 5 percent if the budget were approved in its current form.

The 2005-2006 budget proposed by Mayor Bruce Chuluda calls for a tax rate of $22.58 per $1,000 of valuation, which represents a 5 percent decrease of $1.18 from the current rate of $23.76.

Chuluda said the proposed budget is in accordance with his directive of last November to fund the city and school budget at their current levels, with the exception of increased costs for debt service and increased county taxes. To that end, with the increased debt service from the new Public Safety Building and the Congin School project factored in, the total proposed budget stands at approximately $47.4 million, which is $957,000 or 2 percent higher than the current budget.

While spending is up 2 percent, the actual amount to be raised through property taxes is going down thanks to additional revenue from the state. Chuluda said that total overall revenues are projected to be up $1.89 million this year, mostly thanks to an additional $2.1 million in state aid to education.

While the school revenues are up, the city revenues are actually going down. Chuluda said the city is facing a revenue shortfall of approximately $283,000, mostly because of the underperforming downtown TIF district.

City Administrator Jerre Bryant explained that the city is facing a shortfall in the downtown TIF district because the city undertook projects designed to improve the downtown to spur economic growth. The city planned to pay for those improvements with the revenue from the additional growth, but so far that growth has been behind the pace anticipated by the city.

“The rate of growth in the development of downtown has been way, way behind projections,” Bryant said.

Currently, the downtown TIF district is facing a deficit of over $400,000. The administration is proposing that the city use the money from last year’s sale of the old police station to address that shortfall.

“This is a deficit that has been building up over three years, and it needs to be addressed,” Bryant said.

Even with the increased revenue from the state, Chuluda said it was important for the city to reign in spending. “This revenue increase of more than $2.1 million provides us with a rare opportunity to actually reduce the property tax burden for our residents and businesses,” Chuluda said. “However, if we choose to dramatically increase our spending, we will squander this property tax relief opportunity.”

Unlike last year’s proposed budget, which included a controversial pay-per-bag trash pickup plan as well as a widespread restructuring of city government, this year’s proposed budget does not make changes on such a wide scope.

The proposed budget does not contain a pay-per-bag trash program, even though Chuluda had previously indicated that it would. Ever since the provision was rejected by the City Council last year, the city has explored bringing the program back in some form. With the city still looking into the plan, Bryant said the administration decided to leave it out of the budget.

“It’s a very important policy issue, but we don’t want to make it a budget issue,” Bryant said. “We continue to feel that this is the best option, but we don’t want to force it down anybody’s throat.”

The administration is seeking to make one change to the way the city picks up its residential trash. Chuluda said he wants to limit city trash pickup service to single family residences and multi-family properties up to four units. Currently, the city picks up trash at properties containing up to 10 units.

“We’re cutting it off at four units because beyond that you’re really dealing with a commercial property,” Bryant said.

The change would require an amendment to the city’s ordinances, which would require City Council approval. Chuluda said that by limiting where the city picks up residential trash, the city could reduce its trash disposal costs by $38,000.

The city also eliminated two and a half positions. The city eliminated an administrative level position in the Public Services Department, a clerical support position at the Public Safety Building and a part-time clerical position in the city’s finance office.

This resulted in only one layoff of the person filling the part-time position, Bryant said. The other two positions were eliminated through attrition.

The city will also postpone filling the vacant library director position at the Walker Memorial Library until Jan. 1. Chuluda said the Walker board of regents is working with the Warren Memorial Library board of trustees to see if the two libraries can collaborate on some programs to save money.

“I do not feel it would be prudent to move forward with this important hiring decision until the study is completed and recommendations are presented,” Chuluda said. “Through the dedicated and very capable staff at the Walker Library, the patrons continue to receive a high level of quality service during this interim period.”

While the city eliminated some positions, Bryant said it is adding three additional positions. The city created a new mechanic’s position in the Public Services Department and an additional building maintenance position in the city’s custodial department. The city will also be looking to add one new police officer starting Jan.1. Bryant said the continued streamlining of city government has allowed the city to add these positions into the proposed budget while still maintaining a flat-funded budget.

“This is about restructuring the budget to make it more cost effective,” Bryant said.

The budget now goes to the City Council’s Finance Committee for review. As of press time, no date for the first Finance Committee deliberations had been set. However, the administration said it expected deliberations would begin after the school’s April vacation week.

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