MENTONE - Mentone Town Clerk-Treasurer Barb Ross told town council members Tuesday night they could expect to have close to $10,000 less in their budget for 2011 compared to 2010.
She also said the state could cut even more.
The budget cut is because of property tax caps. Homeowner property taxes will be capped at 1 percent of gross assessed value, rental housing and farmland taxes at 2 percent, and all other taxes at 3 percent. In November, voters will decide whether or not to make the caps permanent in the state constitution.
As the council went through the budget proposal for 2011, they decided to keep most accounts at the same amount as 2010.
The council pay, clerk-treasurer pay, legal fees, building inspector pay and deputy clerk pay in the general fund all were kept at the 2010 amounts.
When it came to police pay, and because of at least a 4-percent expected increase in insurance, Council President Tim Croy wanted to keep police salaries also at the 2010 amount. In 2010, Town Marshal Jim Eads and deputy Terry Engstrandt received a total of $74,600.
"No raises? That's what I'm hearing?" Eads asked.
"Right," responded Croy.
After going through several more budget line items, the council got to the new equipment line item and wanted to reduce it from $44,000 in 2010 to $40,000 in 2011. That prompted Eads to speak up again.
Eads said new equipment is where the biggest expenses come from "and you're going to cut it? I guess I don't understand that."
He said the sidewalk, curbing and tree trimming account was barely used and the council was going to cut it only by $6,000 from $16,000 to $10,000. The new equipment account was used more often and the council was going to cut it by $4,000.
Eads then said the town employees have done everything the council asked them to do and toed the line, but they weren't getting a raise. He said the insurance premiums going up was not a part of the town employees' wages.
Jill Gross, councilwoman, said they were.
"Once we total things and see where we're at, we should be OK. You don't want to go into budget hearings (with the state) with a low budget," said Ross.
After Eads repeated how the town employees have done what's been asked of them and held the line, Councilman Jack Simpson suggested they could give all town employees a 2 percent increase across the board. The sidewalk and curbing line account could be cut by another $5,000, Simpson said.
Gross asked if any changes in the town insurance caused any changes for the town employees. Eads said even with the increase in insurance premiums the town employees' deductibles still went up.
Eads is the highest paid town employee, according to Ross later in the meeting. With a 2 percent increase, Eads will receive an additional $797.08. Engstrandt will receive slightly less than that. Utilities Department Superintendent Eric Carlin and utilities department employee Josh Shepherd get paid out of the sewer and water funds, and not out of the general fund like the police.
After further discussion, the council decided to propose a 2-percent increase for all town employees; reduce the sidewalk and curbing line item from $16,000 to $10,000; and keep new equipment at $44,000. When Ross goes before the state later this year, she may make cuts to those line items if required.
The total proposed amount for the general fund for 2011 is $432,027. In 2010, the budget is $433,741.
After the employee pay raises were approved, Eads and Engstrandt left the meeting. Later then in the meeting, Croy said he still disagreed with the pay increases. The insurance will go up at least 4 percent and giving town employees a 2 percent increase means a total of a 6 percent increase for the town's 2011 budget.
Gross said next year, before the insurance renews again, the town needs to sit down as a group and look at all its insurance options.
The other fund amounts for 2011 are being proposed as: Motor Vehicle Highway, $39,650; Local Roads & Streets, $11,000; cemetery, $3,700; Cumulative Capital Improvements, $6,000; Cumulative Capital Development, $0; County Economic Development Income Tax, $72,000; Rainy Day Fund, $0; and Riverboat Fund, $0.
All those funds were kept the same as 2010, except the cemetery was increased by $500 to give the sexton an increase because of all his good work; and CEDIT was increased by $10,000 for local funds for the storm sewer project. Mentone recently received a $1 million grant to fix its storm sewers for the northern part of the town.
