The municipal budget was formally presented by the Town Manager and Superintendent of Schools to the Town Council on Wednesday, March 29. The presentation of the proposed budget establishes the starting point for ongoing discussion and review. This is a critical period each year, as the budget is a representation of our town’s priorities for residents. We respect the responsibility the residents have placed with the Town Council and staff to be the stewards of your tax dollars and deliver high-quality public services.
The costs in the FY2024 proposed budget are largely driven by the economic realities being faced in our community and beyond—namely, inflation, a competitive job market, and an increased demand for social services. The budget was developed during a period of inflation that has not been seen in over four decades, and the same impacts experienced in our households are also felt in our municipal operational expenses. Even with budget items that remain consistent year after year, there are marked increases in the cost of utilities, electricity, vehicle fuel, and supplies and parts that are a necessary component of town operations. Staff wages are also highly correlated to inflationary forces. Municipal wages are dictated by a Bureau of Labor Standards metric and are presented in the budget as a cost of living adjustment between 4% and 4.7% for Town employees.
Along with high inflation is a competitive job market, straining the ability to attract staff to fill vacancies for our essential services as easily as in past years. This limitation has caused an increasing reliance on existing staff, now working longer hours to meet the needs of our town. The FY2024 budget proposes funding for two (2) additional law enforcement officer positions to support the increased demand for service. Within the Fire Department, staffing challenges are further exacerbated by a rapid decline in part-time staff and a change in operational deployment. The FY2024 budget proposes to hire four (4) additional full-time firefighters.
Over the course of the last year, the Town of Scarborough has seen an increase in the need for social services. Our General Assistance program sees more clients seeking aid for housing, food, and other public assistance. The proposed budget expands the general assistance budget to support the growing demand. It presents the opportunity to hire a full-time Social Services Coordinator, which would support our Social Services Navigator and become the primary role of General Assistance administration. The net costs of many of these new staff investments are reduced by decreasing related budgets for part-time or contracted wages; however, even with these offsetting reductions they still demand a net increase of $266,000.
Among these economic realities is also a changing housing market. The Town’s residential and commercial property valuations are very likely lagging behind their true market value. As proposed and subsequently deferred in the FY23 budget, the Town will be undertaking a full in-house property revaluation in 2024.
Despite the circumstances and absorbing expected inflationary increases, the Town is committed to maintaining quality service and operations. The budget also looks beyond daily operations with a commitment to maintaining the sustainability of Scarborough—continuing to support our citizens’ quality of life for years to come with strategic capital investments. The FY2024 budget proposes a number of forward-thinking initiatives in its capital planning budget, in line with core goals outlined by the Town Council at the start of the year.
Sustainability, conservation, and climate change have become ever more prioritized areas of opportunity for Council and staff projects. The budget includes an update to the Red Brook Watershed Management plan, to fund a Sawyer Street/Spurwink Marsh Restoration Study and the replacement of our Catch Basin Truck, an important piece of equipment for our MS4 Stormwater Plan.
Other initiatives that fall under the broad council goals are traffic and transportation improvements to Spurwink Road (Phase 2) and Payne Road Traffic Signal Upgrades. Two direct Council goals are the proposed funding for the purchase of land for a new community center and an update to the Town’s Community wide survey. Full descriptions can be found within the exhibits and capital plan of the full budget document on the Town website.
The initiatives reflected throughout the FY24 Budget are driven by current economic realities and propose to fund strategic priorities aligned with the Town Council’s goals to support a more sustainable Scarborough. The net budget as currently proposed requires a 7.4% increase from this year’s budget to be raised through property taxes. Based on the proposed budget and the expected increase in the Town’s total valuation, the projected mil rate suggests a 4.4% increase. This is a starting point, and will launch many further discussions on how this could be reduced while continuing to provide high-level Town and School services to our community. In the end, we expect the Town Council’s goal of a property tax rate increase of “as close to 3% as possible” will be attained and we invite all residents to be part of this conversation in the coming weeks.
What’s next? The Finance Committee will go through several drafts, collecting feedback from the public, Town Council and the School Board, to determine funding priorities and what is affordable in the year ahead. A final budget should be adopted in June. Follow along the process by accessing budget materials from the Town of Scarborough website homepage, and save the date for Budget Roundtable discussions with councilors on April 10 and April 24 (details available online). To share your thoughts, questions, or concerns, please do not hesitate to email the Town Council at towncouncil@scarboroughmaine.org.
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