By Gillian Graham

Staff Writer

 Saco city councilors continue to work on a city budget that will raise property taxes.

City councilors are expected to adopt the municipal budget at a meeting set for 7 p.m. May 16. Councilors heard from residents during a public hearing Monday night.

The proposed $20.6 million budget is an increase of 2.76 percent over the current $20 million budget and uses $1.9 million from the city’s undesignated fund. The budget maintains service levels and does not eliminate any positions, according to city officials. If passed, the budget will increase the mil rate by 60 cents.

Finance Director Cheryl Fournier said that mil rate increase translates to an extra $120 on the tax bill of a $200,000 home.

The city is facing an anticipated revenue drop of 9.8 percent, or more than $1 million. That includes an anticipated reduction of more than $952,000 in excise taxes and $323,000 less in state revenue sharing.

Mayor Ron Michaud said about 12 people spoke at the public hearing, primarily regarding a Dyer Library/Saco Museum request for an additional $50,000. He said several residents also expressed concerns about the possibility of combining dispatch services with Biddeford.

Michaud said city officials are looking at the possibility of combining dispatch to save money, but that it would require council approval. The city council rejected a similar plan a few years ago, he said. Michaud said residents said they worried the level of service would decrease.

Michaud said he is concerned about the use of $1.9 million from the undesignated fund. Using the funds would “virtually drain” the account and leave a shortfall in the next budget cycle.

“I’m concerned if we move in this direction, we’re setting ourselves up for failure next year,” he said.

Leslie Rounds, executive director of the Dyer Library, said she requested an additional $50,000 so the library does not have to use the principal of its endowment to cover operating costs. The library last year received $386,000 from the city and raised additional money through fundraisers such as bake sales.

“The city of Saco provides less support to its public library than almost any city or town in York County,” Rounds said.

Rounds said her staff members have had their salaries frozen for several years. She also has turned off lights to save on electricity costs and turned the heat down to 63 degrees to save oil. Library circulation has increased by 44 percent in the past five years and expenses have increased 1.75 percent.

Rounds said she cannot make further reductions without cutting services, hours or staff.

“There’s no place for me to go,” she said. “I’m asking the city to recognize their responsibility to support the public library.”           

The city council will hold a budget review workshop at 7 p.m. May 9 at city hall. It is scheduled to adopt the budget at the May 16 meeting.

Staff Writer Gillian Graham can be reached at 282-4337, ext. 213.