Boothbay town employees met with the board of selectmen and town manager on December 31 to discuss the proposed budget that will reduce staff benefits.

Last month Town Manager Jim Chaousis proposed a budget he claimed could save the town $26,143 for fiscal year 2015, which would help avoid cutting services and raising taxes.

But the 10 town employees, including those in public works, code enforcement and in the business office expressed anxiety about the budgetary cuts.

“It kind of puts us in that worry mode, like what's going to happen next year?” said Public Works Foreman Mike Alley. “It makes for unrest.”

The majority of the town employees do not favor the proposed benefit changes, which calls for higher co-payments and a larger retirement contribution from employees.

One staff member suggested changing the healthcare plans, but leaving the retirement benefits as they are. The town currently pays 10 percent of staff salaries into individual retirement plans, with no matching contribution from the employee.

But Chaousis' budget would require each employee to chip in at least 1 percent of the cost to the town's 9 percent, resulting in an annual savings of $5,010.

“What would $5,000 be as a percentage on the budget?” asked public works employee Barrett Fuller. “To sacrifice say us 11 employees, why not split it up amongst thousands of residents?”

Although $5,000 is seen as inconsequential percent of the total operating budget, Chaousis said the policy change is necessary to maintain a flat line operating budget.

According to a state revenue study conducted by Emily Shaw of Thomas College, Maine municipalities are relying more heavily on user fees than they did in the past.

When the state's biennial budget passed last year, a Tax Expenditure Review Task Force was assembled to find $40 million of savings in the state budget to avoid further reducing municipal revenue sharing. If no solution is found, Boothbay risks losing out on $60,000 in revenue.

With the recently approved Lincoln County budget increase of about five percent, Chaousis said the town of Boothbay could be accountable for an additional $54,000. Coupled with the reduction of municipal revenue sharing, the town could be faced with as much as $150,000 of new taxes, which would amount roughly 15 cents added to the current tax rate. 

“We may be walking into this with $150,000 with new taxes we need to generate, even before the town has adopted an operating budget,” Chaousis said. That estimate takes into account local, county and education taxes.

“My theory is if I don't propose a flat budget or concessions within the budget, when those tax rates hit, not just next year or the year after, eventually voters will get to the point where they will make us take concessions,” Chaousis said.

Selectman Dale Harmon said he had spoken with some constituents about the possible benefit cuts to town employees. Harmon said many people felt the high quality services they received from the town were a bargain, and if it meant adjusting the tax rate slightly to cover the town employees, they would happily do so.

“That says a lot for you guys,” Harmon said.

No decision was made by the end of the meeting, but the selectmen will reconvene at the board’s regularly scheduled meeting on January 8 to further discuss the proposed budget. A copy of the proposed budget is available at the Boothbay Town Office. 

Related: Town employees face possible benefit cuts