Sanford council OKs warrant for May 27 town meeting

Tag : Eps Compactor

SANFORD — The Sanford Town Council approved a 47-articlewarrant last week, setting the stage for town meeting members totake up a proposed 2008-09 budget of $54,331,865 on Tuesday, May27.

The budget breaks down to roughly $19 million to fund municipalservices, including town offices, police, fire, libraries andvarious outside agencies; $33.2 million for the Sanford SchoolDepartment, including adult education, and $717,082 for Sanford'sshare of the County tax.

The figures represent an increase of about 2.9 percent in municipalspending and an increase of about 1.7 percent in school spending,not including debt repayment.

Town officials estimate an increase in the tax rate of just under2.9 percent based on an estimated total valuation of nearly $1.6billion — an increase of $17 million over Sanford's 2007-08valuation. Treasurer Paula Simpson emphasized that the figure is anestimate, however, and an accurate valuation figure for the Townwill be determined in late June or early July. The increase in Townvaluation is based on new growth — new homes, businesses andimprovements to existing real estate — as well asdepreciation and other factors.

The estimated 2.9 percent increase in the tax rate translates toapproximately 43 cents per $1,000 of valuation, but Simpson pointedout the figure is just an estimate.

If all appropriations in the warrant are approved as recommended bythe Finance Committee, the $54.3 million budget will be offset byprojected revenues of $29,905,603 and an additional $650,000 fromthe undesignated funds account, leaving $23,776,262 to be raisedthrough taxation.

Despite cuts of more than $1.1 million from the budget originallyproposed by the school department, the school budget recommended bythe finance committee is $55,963 over the amount required as theTown's share under the state's Essential Programs and Services(EPS) formula. This is the first time in four years that the schoolbudget has been over EPS, according to School Business Manager DeeLebel, and is largely the result of large cuts in state aid toeducation.

Sanford is expecting about a one-per-cent cut in state funding foreducation this year, said Sanford Finance Committee Chair DavidNickerson. "One percent may not sound like a lot, but it adds up to$200,000 less in state aid than we received last year," Nickersonwrote in an email.

"To put this in perspective," he continued, "in the past two fiscalyears, State education aid to Sanford increased about 4 percenteach year," just above the rate of inflation. If Sanford were toreceive the same 4 percent increase for 2008-09, the schooldepartment would receive $1 million more in state funding than iscurrently anticipated.

In light of continually rising fuel prices, the school committeeand school administration "deserve a lot of credit for making thetough decisions to keep Sanford's tax rate under control,"Nickerson said.

Among other articles on the warrant is a request for a $1,350,000bond for a new salt shed for the Public Works Department, thepurchase of a property for a new police department building, a fuelfarm and taxiway at the Sanford Regional Airport, some road workand energy improvements to Town buildings. The bond — whichwould be issued in the fall — would be paid back over 15years at an estimated interest rate of 4.79 percent, resulting intotal debt service of an estimated $1,888,468.

The Town is also requesting that town meeting members approve abond for $6,210,000 that would be issued in the fall of 2009 orspring, 2010. The major portion of the bond money would be for theconstruction of a new police building, which has been estimated at$5 — $5.5 million. Other projects included in the bond arethe purchase of a compactor for the Public Works Department andimprovements and renovations to the town hall.

Total debt service for the bond is estimated at $10,354,537, whichincludes interest of $4,144,537, calculated at a rate of 5.03percent over 20 years.

Town meeting will be held in the Sanford High School Cafetorium onTuesday, May 27, beginning at 7 p.m.

There will be an informational meeting on the proposed budget onThursday, May 22, at 7 p.m. in the Council Chamber of the Town HallAnnex.