Elimination would mean higher taxes, budget cuts and possible loss of jobs

Rockland City Council worries about Maine revenue sharing cuts

Tue, 01/14/2014 - 10:00am

    ROCKLAND —  Once again, the notion of eliminating municipal revenue sharing is under discussion in the state capitol, and that is causing concern in Maine’s town and cities. In Rockland, the City Council voted unanimously Monday evening, Jan. 13, to resolve it is of critical importance that the Maine Legislature preserve the Municipal Revenue Sharing Program to avoid further reductions in municipal services and the further increase in property taxes.

    The Council convened at Rockland City Hall for a regularly schedule meeting.

    Councilor Elizabeth Dickerson urged all citizens to write or call their state legislators, or the Legislature’s Appropriations Committee, and ask them not to cut anymore money from revenue sharing.

    Maine reserves 5 percent of sales tax receipts from retail sales throughout the state to stabilize the property tax burden and support the local government services provided on behalf of the state by municipalities. That money is then redistributed to municipalities.

    Councilor Eric Hebert said that almost as many budgets as he’s seen while serving a city councilor the state has been picking away at the revenue sharing program.

    “For communities like Rockland, in particular, that act as service centers for surrounding communities, MRS was one of the very few mechanisms that helped level the playing field, so that people who come and enjoy the city, pay for it in someway.” said Hebert. “Otherwise, the burden of the entire infrastructure that we need, which far exceeds the resident base, falls squarely on the shoulders of the local taxpayers. There has been a shift that has been taking place for years now that is placing more and more burden on property tax payers and getting nothing in return except a bigger tax bill. It’s very upsetting to see the state continues to pick away at this MRS. If they want to make it go away then the state needs to step up and take more infrastructure projects in the municipalities.”

    Hebert said he did not trust the state to do a good job and wanted the money delivered to Rockland so that it could be best used to address the city’s own infrastructure needs.

    Acting City Manager Tom Luttrell said that during the development of the 2014 budget, the city took a huge hit from cuts in the MRSP.

    “Originally we had budgeted $722,000, which was a decrease from the previous year already,” he said. “After all was done from the state we lost an additional $280,000, so that brought us down to the $443,000 range. If this goes through again and we lose that $443,000 it’s really going to hurt the residents of Rockland. Taxes will have to go up. I don’t see any way around it.”

    The state’s last-minute cuts to the revenue sharing program for the FY 2014 and FY 2015 biennial budgets threw the municipal budgets for FY 2014 into disarray, necessitating budget cuts, layoffs and tax increases. In Rockland, the cuts, and the cuts to school budgets, forced the city to eliminate four municipal positions, reduce the hours of two additional employees and take $150,000 from the reserve fund to balance the FY2014 budget and forestall a tax increase.

    The FY 2015 component of the state’s biennial budget further reduced MRS from its original level of $146 million to $60 million. The state threatened to effectively eliminate the program with additional reductions of $40 million in the event the state is unable to adopt budget amendments hat reduce state tax expenditures.

     

    In other business

    The Harbor Management Commission evaluated a piece of property in Snow Marine Park, known as the Sea Scout Building, and is recommending the city lease it, as opposed to selling it. The commission concluded that leasing the property better serves the city’s long term interest.

    During the public comment portion of the meeting  Tom Hammermeister, a volunteer at the Sail, Power and Steam Museum and member of that organization’s board, spoke to commissioners about the opportunity for the museum to use the Sea Scout Building. 

    “I’m here on behalf of the Sail, Power and Steam Museum, he said. “We have two proposals. One is to buy the building and one is to lease. The museum is now under way with its planned boating club and would like ton use the SSB long-term as its headquarters. It would be used for a classroom and depository for equipment. It is convenient to our own launch facility, not the public one. In addition there is an established rowing club [Station Maine] on the property that is engaged in a very successful year-round rowing instruction program for school age children. We wish to establish this as a trail head for the Harbor Walk.”

    Hammermeister said there are no restroom sewer connections except what is provided at SPSM. He also noted the building was suffering from a lack of maintenance inside and out and that SPSM would provide with a crew of volunteers. Lawn care and landscaping would also be provided. He ended hoping for a mutually beneficial negotiations with the city.

    Councilor Louise MacClellan-Ruf thanked the Sail and Steam Museum for speaking at the meeting.

    “We think that Snow Park has been a real benefit to the South End,” she said. “Everything that you and your volunteers and Captain Sharp have done really enhances that neighborhood and the Harbor Trail. What the Council decides to do with that building is not for me to say, but we thank you coming.”