By Rick Wright

Staff Writer

Property owners in South Portland may see a slight increase in tax bills next year.

Most city councilors at an April 14 workshop for the 2011 school and municipal budgets supported a tax rate increase.

City Manager Jim Gailey said the school department’s budget of $37.8 million would require a 1.5 percent tax increase. 

The increase is needed to raise $506,623 for a capital reserve fund that would pay debt service on renovations and additions to the middle and high schools. 

The increase would add $26 to the school portion of the annual property tax bill for a South Portland resident who owns a home with an assessed value of $200,000.

The budget, approved by the school board in March, would eliminate 25 positions, close Hamlin School, cut the middle school football program and eliminate salary increases for non-bargaining employees, said board Chairman Rick Carter.

More than 50 people attended the workshop, most to testify about the school budget. South Portland resident Albert Dimillo spoke in opposition to the school department’s proposed budget.

“They’ve overstated their budget every year for the last five years. They do not know how to budget. We should not give them that extra $500,000,” Dimillo said. 

Vickie Smith, a South Portland resident, disagreed with Dimillo. 

“I like paying property taxes. I’m happy to take an increase in my tax bill in order to keep the school system strong,” Smith said.

Every city councilor appeared to favor the school budget except Rosemarie De Angelis. She said all 25 job cuts affected teachers while no administrative positions were eliminated.

“There’s not a single administrative cut in this budget. In my mind, that’s unconscionable. It is not administrators that make schools good, it’s teachers,” De Angelis said.

Councilor Linda Boudreau defended the school budget.

“I think this increase is very appropriate and it’s something I can support. I didn’t see any violation of the public trust in this budget. It looks good to me,” she said.

The city council will vote on the school budget April 26. Residents will vote May 6 whether to validate it.

During the meeting Gailey asked the council to make some changes to the $27.1 million city budget he gave the mayor March 15.

Gailey offered the council three options that would increase the tax rate from 1 to 1.5 percent in the municipal portion of the tax bill.

After more than two hours of debate, the council was evenly divided between the options.

Finance Director Greg L’Heureux suggested an amendment to the first option that would round up the tax rate impact from just over 4 cents to 5 cents.

The council accepted L’Heureux’s amendment, which will increase taxes 1 to 1.25 percent, according to a written statement from Gailey. 

“This will add some funding to option 1, how much we don’t know yet,” Gailey wrote.

The original option would have raised the tax rate 1 percent, an increase of $9.82 per year for a home with an assessed value of $213,000. 

 The option, as amended, allows the council to retain one firefighter’s job, one police officer’s job, add an assistant human resources director’s job and provide a 1 percent cost-of-living allowance to non-union employees.

The second option would have required a 1.25 percent and the third option a 1.5 percent tax increase. 

The second option included everything from the first option plus dog bags for parks. The third option also added a senior parks maintainer position.

Rick Wright can be reached at 282-4337, ext. 237 or news@inthesentry.com.