Town Council Minutes 10/11/2004

MINUTES
                        CUMBERLAND TOWN COUNCIL MEETING
                                     Town Hall, 290 Tuttle Road
                                       MONDAY, OCTOBER 11, 2004

                                    
7:00 p.m. - CALL TO ORDER
Present:  Chairman Stiles, Councilors Savasuk, Damon, Storey, Moriarty and Porter.
Excused: Councilor Kuntz.

I.      APPROVAL OF MINUTES
a.      September 27, 2004

II.     MANAGER'S REPORT

Blanchard Road intersection.  "We expect final pavement to happen at the end of this week.  He reported the price of the project was able to be reduced as a result of the town"s traffic control efforts.

III.    PUBLIC DISCUSSION

estate taxes that are apportioned to the school department can be funded in another way?  Councilor Porter responded by referring to past efforts to bring in dollars through businesses and Chairman Stiles noted the regional efforts that have occurred.

IV.     LEGISLATION AND POLICY

04  132.       To hear a presentation from Town Attorney Kenneth Cole and Tax
               Assessor William Healey regarding the tax cap initiative.

        Kenneth Cole, Town Attorney from the Jensen, Baird, Gardner & Henry law firm gave an overview of the Question One Citizen Initiative, also referred to as the Palesky initiative.  He explained this question is initiated legislation, not a constitutional amendment.  In Maine, citizens cant initiate a constitutional amendment.  The original Proposition 13 in California is basically imported to Maine.  He stressed, the State Legislature can come in in December and repeal it; they can come in and amend it.  This initiative also seeks to set a ten mill tax cap.  However, he noted, in order to roll back (assessments) to 96/97, (the assessor) will have to maintain two sets of books. The ten mills is an ad valorem tax  taxes based on the value of real estate.  Nothing prohibits the municipality from implementing other types of taxes altogether.  In fact, it authorizes it.  The municipality may raise fees as needed, as long as the fees relate to the actual cost of the service.

        Comments from the council including the following:  Councilor Savasuk stated In theory, I like what it can do&but thats not the tool to solve the problem.  Objectively, its too much of a nightmare.  Councilor Damon questioned how the idea of a new revaluation falls within the spirit of this initiative?  Mr. Cole replied, What this requires is there to be a new&annually appraised number every year.  It truly creates huge assessing departments to compute the numbers and comply with the valuation requirements. Councilor Storey expressed his faith in the residents of Maine, stating I have all the faith in the world that Maine people will come up with something better than they already have. He believes the voters hope to send a message to Augusta through this legislation.  Chairman Stiles questioned how the town will meet its obligations if they exceed the ten mills.  Mr. Cole explained the town is obligated to pay it and you will need to look for other income.  Under current law, the SAD and county are entitled to sell property in the town to collect their dollars; any real property in town.  Councilor Moriarty clarified that this measure requires only a majority vote and that the local vote is not controlling for that community.  If Cumberland turns it down we will be bound by the statewide vote.  In response to Councilor Storeys remarks, he noted the spending decisions the legislature makes are funded by income and sales taxes, so Im not so sure what sort of message we send to the state on state spending if we cut local spending.  I dont oppose it across the board. I do support a cap on annual appreciation of property.  Tow key principles bother me  the loss of local control and the loss of majority rule.  The bill attempts a two-thirds provision  in effect it creates a veto power in a one-third minority.  Councilor Porter offered If we feel this community needs to cut taxes, we should do that.  But, that should be a decision for us.  The legislation is so fundamentally flawed.  Were talking about the largest loss of local control that I can imagine.  

        Public comments were also received from Deb Lovsin, Lisa Marchese, Laurie Woods, KC Putnam, Jane Frizzell and John Ash.  Ms. Marchese suggested I am concerned by the comments regarding a catalyst for change.  So, then we really need to look at whos representing us in Augusta.  Ms. Wood echoed the comments, stating If the legislature didnt fix this problem before, what makes us think theyre gonna fix it with Palesky in front of them?  She questioned whether it is legal to consider income when determining taxes, and Mr. Cole responded We do that to some degree now through the circuit breaker program.  You can not constitutionally affect the valuation, but the legislature can take the money it raises from all the other sources and give it back to allow a portion of real estate taxes to be defrayed.  Mr. Putnam noted that the change from a property tax base to a user fee base has tax implications because it is not deductible on your income taxes.  The IRS does not allow you to deduct user fees.  Mr. Ash questioned whether the town could raise money through local control.  Mr. Cole explained the towns do not have any right to raise taxes other than by property taxes, but they can impose user fees.
                                           
        Councilor Porter requested the council consider adopting a Resolution opposing the tax cap and motioned to adopt the Resolution (as read);
        Councilor Moriarty seconded the motion, for discussion purposes.

        Councilor Savasuk moved to table the item to the next agenda;
        Seconded by Councilor Damon.
        VOTE:         PASSAGE 4-2 (Councilors Porter and Storey opposed)
                                           
04  133.       To receive a request to accept roads within the Jordan Farms subdivision.

        It was determined the council would not consider the acceptance of roads until Palesky is voted upon.  Councilor Porter and Storey noted this request should not come back before the council until the development is substantially completed.

        Motion by Councilor Moriarty to table generally;
        Seconded by Councilor Storey.
        VOTE:         UNANIMOUS Passage

04  134.       To hold a public hearing to consider and act on the Rines Forest Property
               Committee guidelines.

        The Town Manager gave a brief powerpoint presentation and introduced three members of the committee.  He explained further policies regarding forest use, forest management, and protection of the property through a third party easement will be considered by the committee in the future.  Councilor Moriarty referenced an amendment proposed by Bob Heyner to change principle number one to and will, within limits established by any town council, provide the human and fiscal resources necessary to do so.
        
        Councilor Porter moved to adopt the guidelines and mission statement as proposed by the Rines Forest Committee and as amended as referenced;
        Seconded by Councilor Savasuk.
        VOTE:         UNANIMOUS PASSAGE

04  135.       To hold a public hearing to consider and act on a request for financial
               assistance by the Cumberland Historical Society.

        The Town Manager requested tabling this item to the November 8, 2004 meeting.
        Motion to table by Councilor Moriarty;
        Seconded by Councilor Porter.
        VOTE:         UNANIMOUS PASSAGE

04 -136.        To consider and act on appointments to the Private Road Winter
               Maintenance Committee.

        Motion by Councilor Moriarty to table;
        Seconded by Councilor Savasuk.
        VOTE:         UNANIMOUS PASSAGE

V.      NEW BUSINESS
Councilor Savasuk  none
Councilor Damon  What is the mission statement for the town?  We have a purpose in the Charter, but what are our priorities?  The emphasis in recreation is on athletics; should it be?  We are not providing a balanced program offering&and it has far reaching implications.  On the broader sense, we need to think about this.  
Councilor Storey  large trash week was abused terribly.  We ought to take another look at how we handle it.
Chairman Stiles  received letter of invitation from RWS re: open house to welcome new general manager, Kevin Rouche, 10/21 from 4:30 to 7:00 p.m.
Councilor Porter  questioned when the town will release the tax cap document suggesting it had received ample review and was ready for distribution.

        Motion made by Councilor Porter to endorse the tax cap implications document;
        Seconded by Councilor Moriarty.
        VOTE:         PASSAGE 5-1 (Councilor Storey opposed)

Councilor Moriarty  requested and received the following information from the Manager re: two items (1) A neighborhood meeting 7:00 p.m. Wednesday re: the water tower off Main Street. Eileen Wyatt will represent the Portland Water District and neighbors have been invited to share concerns related to the possible sale of the tower in order to construct a single family home.  (2) Cumberland meets Friday night with school district and North Yarmouth representatives for an open, televised forum to discuss the impending tax cap vote.
Town Manager  approached by a company whose primary mission is selling banners.  They are offering free video streaming services to the town in exchange for the opportunity to place several banners throughout town.  He sought the councils interest in pursuing the request further. There was no general interest at this time.

VI.     ADJOURN