WATERVILLE — City Manager Michael Roy will continue as manager for at least three more years, as the City Council on Tuesday voted 7-0 to renew his contract for that period of time.

Roy, 64, will be paid an annual salary of $117,500, the same amount he now earns. His contract was to expire Dec. 31.

Roy, who has been working for the city since 2004, said he is pleased his contract was renewed.

“Twelve years ago, I served as the first city manager for Waterville because prior to that time, it was a city administrator working under a mayor,” Roy said Wednesday. “So when the city charter was changed the year after I got here, I assumed that position of manager, which was a lot different than the position I came into when I came here.”

Roy said he is very proud of the fact that he has served as the city’s first manager.

“Things are just too exciting now to think about retiring,” he said. “I think the city is on the cusp of really, some significant changes — the downtown, of course, leads the way.”

He was referring to an ongoing effort by the city, Colby College and others to revitalize the downtown, with Colby’s having purchased five buildings in the heart of the city and torn down two to make way for other projects. Colby plans to build a student residential complex downtown, as well as a boutique hotel and currently is renovating the former Hains Building at the corner of Main and Appleton streets to house the technology company, Collaborative Consulting, on the upper floors. Collaborative, now located at Hathaway Creative Center, plans to employ about 200 people over the next five years. Roy also pointed to an interchange that is being built on Interstate 95 at Trafton Road, and the city’s plan next year to go from sending its solid waste to Penobscot Energy Recovery Co. in Orrington to Waste Management in Norridgewock.

“I certainly imagine the city’s going to stay with recycling and curbside pickup (of trash),” he said. “I think pay-as-you-throw has worked extremely well — our volume is down 54 percent. We dispose of 1,900 tons a year and Winslow disposes of 3,000 tons, and our population is more than twice that of Winslow.”

Roy said the prospect of having more jobs come to the city as a result of the revitalization effort, Trafton Road interchange and Collaborative Consulting also is exciting.

“I think those incomes coming into the city area are huge — huge,” he said.

In other matters Tuesday, councilors took a second, final vote to transfer a tax increment financing credit enhancement agreement to a potential new owner of Hathaway Creative Center. The vote was 7-0. A TIF allows a developer to use money from tax reimbursements to make improvements to a property. As part of the 25-year credit enhancement agreement with Hathaway, now in its ninth year, the city reimburses a percentage of taxes paid on the building.

Hathaway co-owner Paul Boghossian said earlier Tuesday that he could not reveal who the prospective owner is, but Hathaway has signed a purchase and sale agreement with a firm that has strong Maine roots and does a lot of business in Maine. Hathaway, a former shirt factory, houses retail and office space, as well as 67 high-end apartments on upper floors overlooking the Kennebec River. About 550 people live and work in the building.

Boghossian will continue to own the two adjacent buildings, a former Central Maine Power Co. building and the former Marden’s Industrial Building, which he plans to redevelop with funds form the Hathaway sale.

The council also heard a review of the city’s 2015-16 audit from Erik Nadeau of Nicholson, Michaud & Co., of Waterville, which for the second year has conducted Waterville’s audit.

Nadeau reported no negative findings or difficulties with the audit and said the combined city and school financials showed a $1.1 million surplus over what was budgeted for the year because more revenues than expected were received and less was spent than budgeted. The city’s surplus is at 13 percent, and the city’s policy is that it be kept at least 12 percent. Nadeau said the staff and management of the city do a good job and provide information for the audit in a timely manner.

“They’re prepared and experienced and knowledgeable,” he said.

Roy said he thinks the reason Nadeau found the financial books in such good order and controls in place is Chuck Calkins, the city’s former finance director who recently resigned his position to pursue other employment. Calkins, who had worked for the city five years, was present at Tuesday’s meeting.

“Chuck is a big reason why I think our financials look as good as they do,” Roy said.

He added that department heads also contributed to the results and said a lot of them do not spend all the money allocated to them.

Mayor Nick Isgro also commended Calkins for his work.

“You’re going to be extremely difficult to replac,” Isgro said. “We thank you very much.”

Councilor Rosemary Winslow, D-Ward 3, concurred, saying Calkins has made a big difference while serving on the Waterville Opera House Board of Directors.

“You and I have spent the last few years on the Opera House Board, and it is amazing how we have really, with your assistance in setting up the financial packages and moving the board so well — that we have an Opera House that’s in a good place,” she said.

Councilor Sydney Mayhew, R-Ward 4, recognized Winslow and Council Chairman John O’Donnell, D-Ward 5, for their 26 years of combined service to the council. Winslow and O’Donnell, who chose not to seek re-election in November, were attending their last council meeting Tuesday.

“I think they deserve high praise for their tenure of service,” Mayhew said, to applause from the council chambers.

Councilors also voted 7-0 to amend the contract with Gorrill Palmer, a consulting firm hired to work on a downtown traffic study, to add $3,386 to the original contract. The $3,386 pays for extra efforts to analyze more concepts than originally expected and for incidental expenses to complete the study. The city, Colby and state Department of Transportation will share equally in the cost.

Roy said Wednesday that the complete traffic study report will be posted Thursday on the city’s website, www.waterville-me.gov.

The council voted 7-0 Tuesday to express solidarity with citizens from all races, religions and creeds and against all forms of hate, discrimination and intimidation, in response to an incident in which a swastika was painted recently on a rock at the city-owned Quarry Road Recreation Area. Councilors also voted to issue notices to new registered voters, welcoming them to the city and providing them with information about their legal responsibilities to register their vehicles in Waterville; and authorize submitting an application for federal funds under the Land and Water Conservation Fund Act for the Kennebec River Walk. The city has secured $300,000 in private contributions as Waterville’s required match for the $600,000 project.

Amy Calder — 861-9247

[email protected]

Twitter: @AmyCalder17

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