In the wake of an economy shaken by the coronavirus pandemic, Cumberland has shaved its proposed budget for next year by more than $900,000. Contributed
CUMBERLAND — Given the economic strain caused by the coronavirus pandemic, Town Manager Bill Shane has reduced his proposed municipal budget for next year by more than $900,000 – making it nearly $200,000 less than the current budget – as tasked by the Town Council.
The $10.6 million fiscal year 2021 spending plan – down from $10.8 million this year – would result in a 33-cent reduction on the town’s tax rate of $19.85 per $1,000 of property valuation. With assessments from School Administrative District 51 (up 86 cents) and Cumberland County (2 cents) factored in, the town’s overall net tax rate would climb 55 cents to reach $20.40.
That hike could result in a $219 tax bill increase ($7,940 to $8,159) for a typical $400,000 Cumberland home. The town budget by itself could reduce taxes by $133.
“We looked at the environment, we looked at the potential of our income going down, and we felt this was a time we needed to give our residents as much of a break as we can, by cutting a lot of stuff,” said Councilor Bill Stiles, who chairs the town’s Finance Committee. He acknowledged that the cuts will “make budgeting for the next couple of years particularly strenuous.”
Cumberland’s original $11.5 million municipal budget, which Shane unveiled in February, would have grown spending by 6.8%. Included was just over $900,000 toward capital projects such as paving, which Shane reduced to $180,000 – a $729,000 drop.
About $30,000 would go toward federally mandated stormwater system improvements. Next year’s paving program is suspended, but the approximately $150,000 left in capital reserves could serve as a first-year payment on a $1.2 million bond to fund paving and equipment or instead go toward a small amount of paving, according to Shane. The town would also borrow $1.2 million in both fiscal years 2022 and 2023 to continue the program.
“It’s going to be a while for us to get back to the level that we need to be at,” he said, “and I’m just afraid we’re going to get very far behind on paving and equipment replacement.”
Streets slated to be paved in fiscal year 2021, but on hold for now, include Blue Heron, Heritage and Surrey lanes; Carriage, Conifer Ridge, Hallmark, Island Pond, Ledge, Powell and Town Landing roads; and Ebb Tide, Island View, Teal and Thomas drives.
The town also looks to cut $170,000 budgeted to implement three railroad quiet zones. Staff wages would be kept at current levels and there would be a hiring freeze next year.
The Town Council could adopt the budget at the end of May.
SAD 51, which had no effect on the tax rate last year and a two-year average tax effect of less than 1.5%, is looking at making reductions to its proposed $40.3 million fiscal year 2021 budget, which Superintendent Jeff Porter noted already calls for more than $388,000 in reductions, $338,000 in personnel.
Porter pointed out that in the last three years the district has cut more than $1 million in operating expenses, although enrollment since 2016 has risen by 111 students, from 2,018 to 2,129.
Most of the $1.9 million increase includes $1.2 million in raises for staff salaries and benefits, along with a $387,500 increase in debt service, primarily due to the first principal payment on the district’s new Greely Center for the Arts.
SAD 51’s Finance Committee will recommend any adjustments to Porter’s proposed budget to the full School Board in the coming weeks, Porter said.
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