Staff Writer

 As Town Manager Tom Hall presented his draft of the fiscal year 2011 municipal budget last week, he cautioned it was not set in stone.

“In fact, the sands are shifting almost daily,” Hall said, referring to  state revenue questions that affect how the municipal and school budgets are funded.

What is proposed is a tax increase of about 55 cents on the fiscal year 2010 tax rate of $12.15 per $1,000 of assessed value. The $68.57 million budget will fund municipal services, education, the town’s share of Cumberland County taxes and school and municipal capital improvement projects.

The proposed increase would add $110 to the tax bill for a property valued at $200,000. The budget calls for an additional $2.31 million in property taxes, Hall said.

“It is a reasonable place to start the conversation,” Hall said.

State revenue sharing is decreasing in the proposed budget. Hall anticipates $1.81 million in fiscal year 2011, or $300,000 less than fiscal year 2010. Hall’s budget also anticipates $150,000 less in excise taxes for the coming year.

While the proposed school budget could eliminate 34 positions, Hall said his proposed municipal budget would not lead to layoffs and still maintain services and provide reasonable compensation for town employees.

Overall spending was reduced 5.2 percent in Hall’s budget from the fiscal year 2010 amount of $72.35 million. Reductions in state aid are primary reasons for the need to increase property tax rates.

“Our focus was on spending,” Hall said. “The revenue is out of our control in some ways.”

The Public Works Department budget will be reduced by more than $183,000, Hall said, due in part to employees accepting early retirement packages. In all, Hall said six town employees accepted retirement packages. Appropriations to town departments were reduced by more than $268,000.

There will also be a shift in the way the Public Works Department maintains a parts inventory, which Hall described as similar to a private company’s “vendor-based inventory.”

The budget does include 3 percent raises for unionized town employees, although Hall noted the police and dispatch employees were due to get 6 percent. Non-union municipal employees are scheduled to get a 2 percent raise, a provision Hall asked councilors not to cut after wage concessions last year.

Hall last week said property values are expected to increase about $20 million. A reduction in state reimbursements from $13,000 to $10,000 on properties could lead to an additional $10 million in valuations for the town.

While those estimates provide the basis for tax levies, the full valuation amount will not be determined until  summer when Town Assessor Paul Lesperance completes his work, Hall said.

Hall said the budget is a starting point for the council to consider. Deliberations on the budget began with a council finance committee meeting held Thursday, after the Leader deadline.

The council finance committee includes Judith Roy, Shawn Babine and Karen D’Andrea. Committee meetings are open to the public and the next is scheduled for 4 to 6 p.m., Thursday, April 1, at Town Hall.

A council vote on the municipal and education budgets is expected late next month. The education budget also must be approved by voters in a referendum scheduled for 6 a.m. to 8 p.m. on May 11 at Town Hall.

Staff writer David Harry can be reached at 282-4337, ext. 219