LIVERMORE FALLS — Selectmen held a public hearing on June 3 to provide more information on articles that will be reconsidered on June 24. They stressed that not passing the debt service article would affect the town’s ability to borrow money.

Polls on June 24 will be open from 2 to 6 p.m. at the town office. Six budget articles are to be voted on again after being rejected at the April 29 town meeting.

Chair William Kenniston said more information was being provided this time because people might not have understood the articles during the previous vote. He read the warrant article and more in depth description, then accepted questions and comments on each from the more than 50 residents in attendance.

One lady asked why the articles had to be voted on again.

“Because it’s up to us to put it back out to vote to try to get the budget to pass,” Kenniston replied. “I could not find a lot of good reasons or get anybody to speak with me on why they voted no.”

Debt Service

This article gives the treasurer permission to pay $474,879 for bonds previously approved by voters. This must be voted on annually, the funds have already been obligated and the town is required to make the payments, the additional information states. If payments aren’t made, the town defaults on the loans and legal action will be taken, it notes.

The town has eight bonds – three for the fire department (Park Street station repairs, East Livermore substation and the new truck approved in April) and five for the sewer department (Paid for by rate users, not general taxation. If not approved, sewer users will become responsible for $3 million in lost principal), information states.

When asked about the substation, Town Manager Carrie Castonguay said voters approved it last year, the first estimated payment had to be included then, money hasn’t been borrowed for it yet. It’s the same for the fire apparatus approved on April 29, she noted. Approval of articles on borrowing the money, capital projects and debt service are all needed before purchases can be made, she stated.

The bills have already been approved, Selectman Ernest Souther said. “The penalties this town would face if that portion does not pass would far exceed what it costs to pay our bills,” he stressed. “If you don’t understand what debt service is, vote yes because the pain and suffering it will cause if it doesn’t pass is beyond comprehension.”

Castonguay stressed money can’t be taken from other lines. “We have to have that dollar number approved by the legislative body on a town meeting warrant in order to be able to pay those bills,” she stated.

“Another detriment is that it would totally destroy the credit rating for the town,” Selectman Bruce Peary noted. “We would not be able to get any money from anywhere else.”

Sewer interest rates

This article seeks to set an interest rate of 8% to be charged to sewer users who have not paid their bills.

“The rate has been 8% for the last two years,” Kenniston said. “This only affects sewer users who are delinquent in their payments.”

“If this article fails, and it doesn’t go back for a third vote, there will be no interest charged on delinquent sewer bills, because we wouldn’t have permission to assess an interest rate,” Castonguay noted.

Interest rates encourage people to pay their bills, Kenniston stated. “It will eventually cost the rest of the payers money if you have to pay for somebody that was late on their account.”

Is this considered a referendum vote if it’s brought back, John Benedetto asked.

Kenniston said it was.

Bryce Bilodeau asked what the state law was for voting on referendum votes that have already been voted down.

Castonguay said she didn’t know the statute, it was no different than when the school budget is brought back until it passes. That is considered a referendum vote as well, she noted.

Selectmen have to have permission to charge the interest, that’s why it’s on the ballot, Peary said.

The rate has been 8% for two years, was 7.5% before that, Castonguay stated.

There are a lot of people on fixed incomes, charging an extra 8% doesn’t help them make payments, Benedetto said.

When asked, Castonguay said there are about 670 sewer rate payers and over 2,000 properties in town.

General government

Raising and appropriating $515,953 in this article includes Select Board, committees, administration, elections, treasurer, assessing, code enforcement, general assistance, contingency and legal.

Every transaction done in town filters through this department, additional information notes. Primary reasons for increases are higher costs for supplies and software and wage adjustments, it states. Expenses are projected to increase $90,052, revenues are projected to increase by almost $400,000 for a decrease of $304,032, it continues.

Benedetto asked why so many items were lumped together. “Seems like things are being lumped together to get them to pass all at once instead of itemizing them out to allow the townspeople to actually vote on what they want to pay for,” he said.

“This is actually the way the budget was constructed last year,” Castonguay replied. “It is a directive of the town’s auditor. We changed the chart of accounts so we’re following safe practices now, this is the cost center that those items are under.”

Kenniston noted the wording allowed on ballots is limited when asked about itemizing each item. Castonguay said the list would be posted on the town’s website.

When asked about the revenue increases, Kenniston said Castonguay worked with the bank to get a better interest rate. Castonguay said the rate is now 3%, about $120,000 more in interest revenue,

Income from the summer recreation program is also increasing, it was noted.

Reserve and TIF funds, money that’s sitting in the bank is being used to reduce the amount of taxes needed, Castonguay stated.

Benefits

This article seeks to raise or appropriate $900,248 for insurances and benefits. An estimated $111,200 is paid by sewer ratepayers for sewer and sewer treatment departments – representing a 3% increase, the information notes.

Kenniston said there are limited choices for insurances, the cheapest found are being used. “We’ve offered better retirement for police officers in the hope to retain people,” he noted. The department is back up to five officers after being down to one, he stated.

One resident said people are still catching up from the last four years, have issues when seeing the budget increases. The wording needs to be different, he stated.

“Costs have increased,” Benedetto said, suggested more scrutiny on spending. From the outside it’s hard to understand purchasing new police cruisers, equipment, he noted.

“It’s really hard to run off older equipment,” Kenniston responded. It can cost $30,000 to rebuild an engine, using older equipment can lead to problems, he stated.

No one wants their road to not be plowed, Peary stressed. There’s a choice, shovel it yourself or add equipment, he said.

Police Chief Abe Haroon said the replaced cruisers had a lot of hours on them, a police department takes investment from the community. Officers want to work for a community that offers them better things, he stated. “I think we are doing very good with what we have,” he noted.

Capital projects

This article seeks to raise $450,500 for capital projects: paving, headgear and dump body for new truck, second half of the town wide reevaluation and the fire apparatus approved in April (approval of this article is needed to borrow the funds).

Revaluation is mandatory, it’s been 23 since one was done, Kenniston said. “We have to contract with a private
company, the fee Is quite high,” he stated.

Use of TIF funds

This article seeks to appropriate $45,275 from the town’s tax increment financing district (TIF) for Androscoggin Valley Council of Government dues, a donation to the Jug Hill Riders snowmobile club and half of the CEO/planner position.

TIF money raised through taxation is in an account to be used for development activities, the information notes. These funds have strict criteria attached and have not been used in several years, it states.

Castonguay said Jug Hill asked for town funds to help purchase a used groomer and TIF funds may be used for trail maintenance. The board and Budget Committee decided to make a $5,000 donation to the club using TIF funds, she noted.

Castonguay said she doesn’t know what the TIF was established for, it has been in existence some 20 years.

“It was to encourage new businesses,” Souther stated. “That money just sat there for years. In the past four or five years it’s been looked at to try to find a way to use it.”

One resident said improved trails would bring riders into town from elsewhere meaning more money for local businesses.

When asked about code enforcement/planner salary, Kenniston said the planner part falls under economic development which is approved under the TIF. Funding next year will likely have to come from somewhere else, he noted.

“I contacted the Secretary of State today about reconsideration of referendum,” Bryce Bilodeau said. “I have the statute here. There’s quite a lot of rules that need to be followed that aren’t being followed, according to what you said.”

Kenniston said he would review the statute.