The Scarborough Town Council adopted its budget for fiscal year 2024 at our June 7 meeting. This action establishes the municipal budget for next year, and determines what amounts will be sent to the voters for approval in the school budget validation referendum. Absentee ballots can be cast on the school budget today, and you can vote in person on June 27.
The town of Scarborough is accepting applications to join the Ad Hoc Community Center Committee. The application deadline is June 7. Kelley Bouchard file photo/Press Herald
Like most things in government, establishing the budget is a balancing act. It’s a combination of preparing for what we know lies ahead, while properly funding the needs that we have today. A common theme this year related to mitigating the increasing impacts of inflation and rising interest rates while improving our fund balance position. That’s no simple task, but I’m pleased that we made some good progress.
The budget specifically earmarks funds to improve our fund balance (savings) and it makes a solid effort to reduce our reliance on debt for some capital items. In particular, we are relying upon cash and reserves to fund our next batch of school buses, a plow truck and a modern Computer Aided Dispatch system that will enhance our public safety capabilities. We are also utilizing cash, and not debt, to fund roughly $2.3 million of capital expenditures compared to around $1.3 million last year.
The budget also earmarks funds for an updated Open Space plan, a climate change vulnerability assessment, a replacement catch basin truck, expanded social services capabilities and improved staffing in our police, fire and school departments. We established three goals as a council to guide our budget adoption process:
1.) Mil Rate increase as close to plus-3 percent as possible: The budget will likely produce a mil rate increase closer to plus-4 percent. We missed the target. Inflation is real, and many costs are going up much faster than we could reasonably accommodate without impacting the mill rate. We took some solid steps to prepare for better days, however, by setting aside funds to improve fund balance and paying for recurring capital items with cash instead of debt. Over time, these decisions will save the taxpayer money.
2.) Gross Budget Appropriation <$121.9 million (plus-5 percent): This year’s gross budget appropriation is $114.7 million. We exceeded this target.
3.) Taxpayer funded capital and fund balance of $15.9 million: This was a new goal this year in recognition of our declining debt service burden. We didn’t want funds that would normally be used for capital costs to be used for regular operating expenses. We allocated $15.6 million for capital expenditures and fund balance improvements with this budget, which met the target.
The town council deliberated on last-minute budget reductions to help us come closer to a plus-3 percent mil rate target, but rejected that option. We wanted to ensure that our approved budget is properly funded, and does not rely upon artificial and short term benefits that will create upward pressure on future budgets.
It has been a pleasure to work with the council, board of education, and staff to approve a budget that positions us well to accommodate the needs of today and prepares us for what lies ahead.
John Cloutier is a member of Scarborough Town Council and can be reached at 207-602-8455. The views and opinions expressed in this column are those of the author and do not necessarily reflect the official policy or position of the Scarborough Town Council.
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