The Scarborough Town Council started out this budget season with a goal of not increasing the tax rate, but that goal will be tough to attain given the realities the town faces.

While the council aims to control spending in anticipation of the tax impacts of the $140 million school project the town voted on last November, just maintaining the current level of services and staff positions will require a 4-5% increase in net spending, according to Town Manager Tom Hall.

Scarborough’s proposed $171.9 million budget represents a 5.97% increase in the tax rate. The $97.4 million the town would need to raise from taxpayers is 7.83% higher than this year. The net budgets of the past five years were, on average, 7.26% higher than the previous year, Hall said, so this year’s first budget is consistent with previous years.

After the first reading of the budget and workshops and revisions throughout April, the council will vote on a municipal budget in May. In June, Scarborough voters will decide whether to approve the school budget at the polls.

Here’s what you need to know about the proposed municipal budget:

PERSONNEL COSTS

Wages and benefits are the major cost drivers in Scarborough’s budget. Personnel costs make up 81% of the school budget and 65% of the town budget, and health insurance costs are expected to increase by 14% and 11%, respectively.

This year, the town added 16 new positions, 13 of which are public safety positions. Hall said the town has seen returns on those investments, such as being able to staff a third ambulance and increasing minimum staffing on police officer shifts.

CAPITAL BUDGET

The capital budget this year includes three major projects, totaling $26 million. One project — which has been years in the making — involves making improvements to East Grand Avenue, including traffic calming measures and new bike lanes.

Scarborough also is considering options to repair failing culverts near the marsh. The town is exploring grants to help fund the removal or replacement of the culverts under Scottow Hill Road, but in order to keep all options open, the council directed Hall to request money through the budget for the most expensive option. But it’s likely the town won’t have to use that money, Hall said.

The third and costliest project involves upgrading the outdated radio communications system used by the public safety, public service and school departments in Scarborough and Old Orchard Beach. It would cost Scarborough close to $10 million to update its system to a more reliable and comprehensive 800-megahertz digital system, but the upgrade will require voter approval from both towns. 

The town funds many of its capital investments with long-term general obligation bonds, and the town will use TIF revenues to cover some costs.

OTHER COSTS

The school budget makes up about two-thirds of the total net budget. To meet student needs and state and federal requirements, the department is hiring new special services staff. The department is also expanding its pre-K program to offer 64 additional spots for students, but thanks to state funding, the program is actually a revenue generator, Gallagher said.

Scarborough’s portion of the county budget is increasing by almost 10% because its valuation increased at a faster rate than other municipalities. The increase is also attributable to lost revenue from a canceled federal contract and higher personnel expenses, Hall said.