Norway to 'spread sacrifices' to save money

NORWAY —  The Town of Norway may require sacrifices from every department in the next fiscal year budget, reported Town Manager David Holt at the February 7 selectmen's meeting. 

Holt said every department head has been asked to plan for cuts of at least 10 percent to absorb the revenue loss incurred if Governor Paul LePage's 2014-2015 state budget proposal is passed.

Holt told selectmen two separate budgets will be created for each individual town department –  one would give all department heads an opportunity to make their requests, as they have in the past, and the other would reflect the possible cutbacks in LePage's proposal. 

"This is a way, in a time of uncertainty, for us to at least put the parameters out there," Holt said. He suspects that the final decision will be made somewhere in the middle of both budgets, he said.

"I find this workable," Holt said. 

The town will try to "spread the sacrifices around," Holt said, but "they won't be perfectly even. Things just don't align that way," he added. 

Impact

At a January 17 meeting, Holt said LePage's tax shift would result in a $250,000 loss in revenue sharing, a loss and shift of homestead exemption of $113,472 and a personal property reduction of $80,000 –  a $443,472 total increase. 

A projected $285,177 increase in Norway's share of the SAD 17 budget means the impact to next year's budget could be $728,649. According to Holt, at the time, the number did not include the loss of truck excise tax proposed by the LePage administration. 

Holt said if the governor's budget passes, there may not be any money available in the town budget to pay for a membership in Androscoggin Valley Council of Governments, the Lakes Association or Norway Downtown. 

The town will only consider layoffs of town employees after all other scenarios are considered, Holt said. The town will instead try to retain its employees and consider cutting back elsewhere.

Holt said the town might stop using part-time help and contractors for duties like mowing and take advantage of its full-time employees to save money on possible unemployment. 

"We self-insure for unemployment," Holt explained. 

"The first year laying people off we don't save as much as a lot of places do," he said. 

Holt said two separate budgets for road improvements will be presented to voters at town meeting in June. In addition, he said, while the town aims at having serviceable equipment, "the days of buying a new truck every year are probably gone for awhile."

Money-saver

When the highway union negotiated with the town earlier this year, its contract included a buyout of health insurance that could save the town money and reduce financial impact on taxpayers, Holt told selectmen.   

"For instance, if you have a spouse who has an insurance plan, you can elect not to take it [insurance] from the town and get on your spouse's plan," Holt said; that way, the employee still has coverage and the town saves money. 

"It's in the town's best interest," Holt said. 

According to Holt, some years ago, town employees would double-dip on health insurance, which would save the employee money when having to pay for a major surgery, or other costs.  

"The time when anyone can afford to pay for that double coverage is kind of gone," Holt pointed out.

An amendment to the personnel policy allowing health insurance buyout to non-union employees would prevent double coverage, Holt said.

"It's certainly a money-saver for the town when it [the buyout] is taken advantage of," Holt said. 

Board members approved the health insurance policy change at the February 7 meeting.