Maine
Northern Maine town lost more than $700,000 in 2 years
FORT FAIRFIELD, Maine — Many residents have accused the city of spending an excessive amount of over the previous two years, however even they had been unaware of simply how dire Fort Fairfield’s monetary scenario has change into.
A latest audit exhibits that as of June 30, 2022 — the top of the city’s fiscal yr — Fort Fairfield had solely $199,000 within the financial institution and $875,000 in excellent short-term debt. On June 30, 2020, the city had $946,000 within the financial institution with no excellent short-term debt. With one other $400,000 borrowed in July 2022, the city’s short-term debt totals $1,275,000.
Particulars of the monetary issues townspeople have suspected had been there for months have come to mild underneath the brand new interim city supervisor, who has made precise numbers public within the curiosity of transparency of presidency.
“The rationale your taxes are going up isn’t due to the revaluation or the college price range,” Interim City Supervisor Dan Foster mentioned, whereas addressing residents Wednesday evening. “The varsity price range has solely gone up lower than 6 p.c within the final two years, however our city price range has gone up 76 p.c [in that time].”
Transparency and bringing Fort Fairfield again on its ft are Foster’s greatest objectives, he mentioned.
Foster, who served as supervisor 15 years earlier than retiring in 2013, stepped again into the position final week after the departure of former city supervisor Andrea Powers, who a number of councilors had accused of not offering them with correct and well timed price range info.
Although Foster mentioned that he prefers to not place blame on anybody specifically, together with Powers, he did attribute the city’s rising mill price this yr — from 19.5 to 26.5 per $1,000 of property worth — to monetary choices she largely stored from the general public and different city employees.
Fort Fairfield’s authorities had come underneath scrutiny lengthy earlier than its new interim supervisor made the city’s precise funds public. Confronted with rising tax payments as a result of city’s first revaluation in additional than 20 years, some residents pointed to the brand new ambulance service as one division whose prices could possibly be minimize.
After feeling that city officers had dismissed their issues, some residents shaped a controversial citizen advisory committee to offer councilors suggestions on the yearly price range. However after councilors handed a shock price range in June, many committee members mentioned that the city ignored their suggestions and was not being clear concerning the city’s monetary state.
However the core argument over the city’s funds stored circling again to the brand new ambulance service.
The hearth division’s price range was $140,000 4 years in the past, lengthy earlier than the city began its personal EMS service in 2020. In 2021 and 2022, that price range — which incorporates hearth and EMS — has been $1.3 million and $1.7 million, respectively.
That very same division’s income solely totaled $400,000 in 2021 and $200,000 this yr up to now, Foster mentioned.
The Hearth/EMS division has begun to see a rise in income after switching suppliers for ambulance billing, Foster mentioned. The city’s earlier service had not been billing insurances in a well timed method, which resulted within the city dropping much more cash.
However the main cause for the city’s elevated taxes at the moment is its extreme borrowing to make up for income that the EMS was not bringing in, although bills stored rising, he mentioned.
In late June, the council voted 3-2 in favor of a $5,258,950 municipal price range for the 2022-23 fiscal yr, with a projected income of $6,494,535. When the county and faculty tax contributions of $277,209 and $2,203,432, respectively, are included, the entire price range is $7,739,591, a $676,026 improve over final yr’s of $7,063,565.
Foster additionally attributed the brand new 26.5-mill tax price to an assessing error during which a calculation type was crammed out incorrectly final yr that Powers declined to deal with.
“The tax assessor added state income sharing of $170,000 twice. When the assessor discovered [about the error] in April, he went to the city supervisor however she didn’t deal with it with anybody,” Foster mentioned.
That error made it appear as if the city acquired extra income than it really did, thus justifying the 19.5 mill price that councilors handed in 2021. In actuality, that price ought to have been 22.5 mills, Foster mentioned.
At Wednesday’s council assembly, Foster promised the greater than 50 residents attending that he would discover methods to scale back the city’s price range over the subsequent yr and cut back the tax burden on residents.
Councilors unanimously permitted Foster’s beneficial tax anticipation notice of $800,000, which is cash borrowed towards the anticipated tax income to be collected. Fort Fairfield sends out tax payments each October after approving the mill price in September.
The tax anticipation notice will assist the city keep away from a income shortfall because it postpones sure funds, together with county taxes, till early 2023, Foster mentioned.
Although most residents at Wednesday’s assembly didn’t converse throughout the public remark interval, Foster’s statements acquired sturdy applause and plenty of praised the previous supervisor for stepping up throughout the city’s time of want.
Gary Sirois, a Fort Fairfield resident for 58 years, mentioned that Foster’s management is a step in the correct path, and inspired those that can afford it to pay their tax payments in full as rapidly as doable.
“These of us who can have to do our half and make our small contribution to get our city price range on observe,” Sirois mentioned.