MEMORANDUM

 

HONORABLE MEMBERS OF THE CITY COUNCIL
MIKE ROY, CITY MANAGER
PATTI DUBOIS, CITY CLERK

FRQM: NICK ISGRO, MAYOR
soejnc?r: ynro or ORDER 121?2016
DATE: 6, 2016

 

After discussion with several members of this honorable Council, today I am vetoing the
passage of Order 121?2016, the Annual Budget for the City of Waterville and Waterville Schools.
This is not an action that I take however I feel it is necessary in order to highlight the reality
and the plight of many of WaterVille?s dear residents.

We have heard many times from our City Manager as well as others that this year?s budget
represents the most difficult financial challenge in over a decade. This begins with the simple
formula that we have all heard before but bears mentioning again. In the 2009?2010 fiscal years
budget state revenue sharing apportioned to the City of Wateryiile was $2.4 million, which was
down from prior year of 2008 when the city was allotted 332.9 million. This year, we are projecting
roughly $1.1 million Rather than waiting to adjust our budget to our revenues the City of Waterville
compounded the burden from 2011 2014 by borrowing $12 million. These expenditures included:

$1.5 lVIiliion \X/aterville Library

$500,000 Opera House

$250,000 Quarry Road

$3.4 Million new police station

$585,000 Airport

$350,000 Fire Department

$305,000 Property Revaluation (which is created enormous increases to our residents)
$125,000 City Hall

$5 Million towards roads and miscellaneous equipment



While it is true that when revenue sharing was at it?s statutory levels many capital expenditures were
paid for from the undesignated fund, we can see that while in times of depleted revenues there were
also many projects that while noble and worth investments were perhaps on the ?wants? rather than
?needs? list. As the saying goes, the chickens have now come home to roost with $1 Million in
annual fired debt expenditure that we are left to deal with from decisions made by prior
representation. This is why the State of Maine noted in its denial of Wateryiile?s Business Friendly
Community designation that we have ?failed to address Waterville?s ?prohlem,?? referring to
spending in relation of the city?s mil rate.

 

As is the case most of the time the city is not to take all of the blame. Not only did the state change
our school funding formula as it is related. to Title 1 funding and cut our revenue sharing, last year
the legislature increased the Homestead Exemption from $10,000 to $15,000. While legislators
touted this form of property tax ?relief? the City of Wateiville lost $13 million in assessable value.
Cities and towns all over the State are now having to work this loss into the local mil rate.

in the end this is not about fault or blame. A good look at the current city budget does not Show
much in the way of super?uous expenditure, and I believe that our Council Chair and others have
done a responsible and respectful job in guiding this year?s process to get to where we are now. That
said at the very heart of this matter lays a deeply moral issue that moves me more than any other
argument. Simply put, there are elderly retirees as well as other individuals and working middle?class
families that are being priced out of their homes. In some cases these are homes that have been in
families for decades. just today I received an email in my inbox that was copied to the City Manager
and Councilor White. It reads: ?l have no plans on moving as we will make things work, but it
will signi?cantly hamper my ability to provide for my family as part of the money I
designate for upkeep of my property, food, schooling, clothing, transportation, utilities will
have now go towards this increase in tax.?

I recall over the past year recognizing the food cupboard and community sandwich program. The
numbers have all heard about our friends and neighbors in need have been staggering. if we talk
about caring for our most vulnerable then urge you, take a stand for those voices crying out for
relief from the heavy burden of city levies. I understand it is difficult not the give grease to the
squeaky wheel but sometimes attention must be given to those parts which make no noise because
they have come to a grinding hault. So it is with our elderly and middle~class families. We will hear
from those who, like myself, may find the increasing tax burden difficult but will muddle through
that we must keep funding our budget as?is. The real question should be how many people are we
driving away from their homes and how many potential families will never come here because our
burden is one of the highest in the state. The taxpayers are not an endless resource but are rather a
well that is close to run dry. At some point those carrying the highest burden will no longer be able
to carry water for those have already run out.

Let?s get back to work, make some very painful and tough decisions, and rework our school and
municipal budget to bring in line with those whom we serve.

Respectfully submittedone. Wm
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