Fort Kent prepares for tough financial year

FORT KENT - After the budget committee meeting at the town office in Fort Kent on Tuesday, Feb. 14, the fiscal outlook for Fort Kent appears bleak and includes some tax increases, in spite of budget cuts in most departments, due primarily to a loss in state and federal revenue. Even with the tax increases, residents will also see a reduction in town services.

"This is the worst experience I've had in 18 years," said Fort Kent Town Manager Don Guimond. "As a community, we've historically been very fiscally conservative. There hasn't been a lot of excess. This year, the reduction in the budget plus the increase in costs has brought us to a point where we cannot maintain the level of services we have now."

Rising heating oil and fuel costs are cutting deeply into department budgets and are the primary drivers for many budget issues. Some departments are being affected more than others, but all are feeling the pinch. Town departments are being affected by the rising prices in the same way that homeowners are, said Guimond.

To soften the blow to taxpayers, the budget committee approved a budget that is almost $50,000 less than the budget for 2011, said Guimond. But revenues are down by approximately $159,000. The cuts in spending are unable to compensate for the losses in revenue.

With the cuts in spending, Guimond said it's very likely that residents will see a reduction in snow removal, recreation opportunities, and in the hours of operation for some departments, such as the town office hours, among other financially-imposed limitations this year.

John Bouchard, acting chair for the town council, said the town council's intent in its recommendations to the budget committee was to spread the cuts across all departments.

The budget committee approved the town council-recommended reductions in allocations for every department except for two. In the face of a winter plagued with chimney fires and a recent chimney fire turned structure fire, the budget committee approved $1000 more for the fire department than the town council had recommended. The amount is still $1000 less than the fire department had requested.

The budget committee also approved the Airport Authority's request for funding for the Northern Aroostook Regional Airport in Frenchville in the most contentious debate of the evening.

Community contribution to the debate was in support of the airport, and was centered on the airport's role in helping to provide essential medical services in the area, through LifeFlight and Angel Flights.  CPA Lee Theriault spoke at the meeting about the benefits his family received from the service. Optometrist Tim Rioux sent a letter apologizing for being unable to make it to the meeting and describing the benefits his family has received as well.

Councilors Joel Desjardins and Bouchard both spoke about the issue and were in opposition in their views on support for the airport. In spite of the community support for the access to necessary medical services provided by the airport, Desjardins said some people in town see the airport as a "private club supported by taxpayer dollars," and this was a reason to disapprove the funding request. He also said it was unfair to require other departments to shoulder the spending cuts and then to approve the airport's budget request, and that the town council-recommended cut of $2500 was not excessive.

In response, Bouchard said the airport has historically operated under a financial shortfall. The budget monies requested by the airport would be invested in sorely needed infrastructure, such as a boiler that is not expected to make it through the winter, and in projects that will ultimately save taxpayers' money, such as new windows to help further reduce heating costs.

A budget committee member in opposition to the airport's request replied that banks were there for the purpose of funding projects that people cannot afford at the time.

One committee member in support of the airport's request pointed out that the airport is supported by a consortium of communities, and that the town of Fort Kent tends to lead the way in their financial decisions about the airport. If Fort Kent cuts funding to the airport, the other communities follow suit and a small reduction quickly becomes an exponentially larger reduction.

The financial situation the town faces is a reflection of the economy, Guimond said, and until the economy picks up, no change is foreseeable in the short-term future.

"Even if the economy turns around today, we are a few years out [from not feeling the pinch]," he said.

Guimond remains optimistic about long-term future change, however.

"The sun is going to come out, hopefully sooner rather than later," he said.