WATERVILLE — City councilors and Mayor Nick Isgro on Tuesday scrutinized a proposed $39.1 million budget for 2015-16 that the city’s finance committee recommends cutting by $600,000.

The proposal represents an increase over the current $37.2 million budget with increases reflected mostly in salaries and insurances and a loss of state revenue sharing.

City Manager Michael Roy said if the plan is cut by $600,000, the budget increase would be slightly more than $1 million. If the cut is made, the tax rate would increase by about $1.75 per $1,000 worth of valuation, according to Roy. The current tax rate is $27.40.

The finance committee, he said, discussed the city’s maintaining a surplus amount that is 12 percent of the total budget.

The $600,000 would come from the use of $400,000 of surplus money, as well as a $50,000 reduction in annual paving, $70,000 from the Public Works Department, $10,000 from the contingency account, $32,000 from eliminating a proposed new police cruiser, and cutting $38,000 for outside agencies including the Kennebec Valley Community Action Program’s transportation services, the Kennebec Valley Council of Governments, the mayor’s coalition and Kennebec Behavioral Health.

Councilor Karen Rancourt-Thomas, D-Ward 7, asked whether the city must increase the budget, with Roy replying that it would be a mistake not to do so, as the city has been spending its surplus down, and to maintain a 12 percent surplus, an increase is necessary.

Councilor John O’Donnell, D-Ward 5, said the budget has to increase because revenue sharing is disappearing. The $942,000 the city is losing in revenue sharing is about what the city is proposing as a budget increase, he said.

Isgro said revenue sharing is a piece of the issue, but if the city wants to do business in a way that increases spending on a regular basis, it can’t keep pointing its finger at the state and saying it’s the state’s fault.

About 40 people, including councilors, department heads, Board of Education members and residents turned out for the budget workshop held in the council chambers at The Center.

Eric Haley, superintendent of Alternative Organizational Structure 92, which includes Waterville, Winslow and Vassalboro schools, said he has heard some good news in that schools may get $21 million to $28 million more in funding, which could mean $260,000 more for Waterville. The proposed $21.4 million school budget represents a $652,000 increase, and that figure would be cut about in half if Waterville receives that money, he said.

“We could be, in the very near future, in a much better place,” Haley said.

But Isgro, who has argued that city and school salary increases are too high, said he still thinks there is room to make cuts in nonsalary places. Haley said he would welcome a meeting with anyone to discuss that.

Rancourt-Thomas said the city has asked a lot of taxpayers, including introducing the new pay-as-you-throw trash collection system and through other spending, and it’s time to stop raising their taxes.

“When do we stop?” she asked. “The taxpayers have really taken a beating for the last few years now.”

Isgro agreed, saying taxpayers are not getting salary increases like those of city and school employees.

“The majority of people I’ve talked to have not seen those kinds of increases in their pay. In fact, I’ve talked to a lot of people who got zero increase,” Isgro said.

He claimed more and more people will sell their homes and move out of the city if taxes increase.

But O’Donnell said the city generates sales taxes and excise taxes — money the city is entitled to but the state is taking away. He asked where cuts can be made in the proposed city budget.

“I hear Karen (Rancourt-Thomas) say we’ve got to do something. I want to hear a proposal for where we’re going to cut.”

O’Donnell said Gov. Paul LePage wants to cut income taxes entirely and LePage’s “theory” is that municipalities can cut spending — which the city is doing.

“I just don’t agree with the governor’s theory,” O’Donnell said.

Rancourt-Thomas retorted: “A lot of people don’t like Gov. LePage, but we have to deal with what we’re dealt.”

Councilor Nathaniel White, D-Ward 2, asked what will happen if voters repeal pay-as-you-throw and curbside recycling in the scheduled June 9 referendum. Roy said the city would have to make up $432,000. Councilor Dana Bushee, D-Ward 6, asked where the city would find that $432,000.

“The city would probably have to get out of the trash business altogether,” she said.

Meanwhile, Roy said a recommendation is in place to increase fees to Winslow and Oakland for technology assistance and phase that in over a two-year period. Plans to increase public pool fees also are in the works.

Jim Wood, the KVCAP transportation director, said a lot of people use its bus service, and if Waterville cuts the proposed $6,100 funding, the Waterville bus would have to be eliminated.

Rancourt-Thomas and Bushee opposed cutting that service.

“This is one cut I saw that I thought would affect the most in terms of people,” Bushee said.

Ross Nason, a KVCOG planner, stood to defend his agency’s $18,400 funding request, saying it offers a lot of services. Roy said Nason was a big help to the city in working on pay-as-you-throw. Last year, KVCOG brought $2.3 million into the region in the form of grants, according to Nason.

“Municipal dollars leverage our federal contracts,” Nason said. “That goes away if we go.”

Resident Patty Vashon stood to defend teachers’ salaries, saying people move to places where high-quality teachers provide high-quality education. Isgro said teacher salaries should be increased based on performance evaluation and review and there should not be just blanket increases.

Meanwhile, Rep. Thomas R.W. Longstaff, D-Waterville, said legislators are working hard on the state budget every day and one of the things being discussed is whether county jails will be returned to counties or have state oversight. He said he thinks revenue sharing to municipalities will be at least flat-funded.

“The idea of taxing nonprofits is probably dead in the water,” Longstaff said. “I just don’t think that’s going anywhere.”

If the state budget is not decided by June 17, he said, special sessions must be held.

“The real cliff is, if we don’t have a budget by July 1, we go into state shutdown, which everyone wants to avoid,” he said.

Meanwhile, Roy said the city budget ought to be decided by July 1, the first of the new fiscal year.

Amy Calder — 861-9247

acalder@centralmaine.com

Twitter: @AmyCalder17

 

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