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MANAGER’S REPORT
For Council Meeting
Tuesday, October 17, 2006
 

      TO:  MAYOR AND CITY COUNCIL
FROM:  Terry St. Peter, City Manager
DATE:   Friday, October 13, 2006 

I am enclosing a copy of the advertisement that ran in the Bangor Daily News last weekend for an Executive Director of the Belfast Area Chamber of Commerce (BACC). I think it ran in other papers as well. I am enclosing it, for your information, for two reasons: 1. So that you can see what the Chamber is looking for and 2. So that you can see the process that is being used. 

I keep hearing rumors and/or speculation that a person to fill the position of Executive Director has already been determined. I am strongly convinced that that is NOT the case. Whether it will be somebody from the area or somebody from away will be determined through an open selection process, as the ad illustrates. I am convinced that the Chamber Board (of which I am recently a new member) is open and committed to selecting the best-qualified person possible. I also look forward to seeing that position filled because I think we will see a major difference in our business and economic activity in this area, as well as enhancing the relationship between the business community and the city.  

Speaking of economic activity, I am also enclosing a copy of the notice of a grant award (Lilac) that the City of Belfast received to assist in regional economic development. Actually, although the City of Belfast is the stated recipient, this is a grant to the area office of Eastern Maine Development Corp., Alan Hinsey, in particular. Alan wrote the application, as you know, and needed one lead town to sign off on it, so I was available. 

Nonetheless, it is a very positive development for the Belfast-Rockland region and moves even further along in an economic development effort for the city and the region. 

On another matter, you have all received a communication from John M. Hyk, Chairman of the County Commissioners, over the apparent withdrawal of the jail variance approval next year. This is worth further comment. Clearly, something does need to be done about the corrections requirements in Waldo County, as well as other counties in Maine. The Somerset County commissioners just decided to postpone their plans for a $30 million collar jail, at least pending the outcome of the Tabor referendum. They have concluded that they could not pay for the mail if Tabor passes. So, governments are caught in between conflicting requirements.

Waldo County has indeed paid more to transport and board prisoners outside of Waldo County. But those costs, to date, have been far less than the $2 million annually that a new jail would cost county property tax payers (the new jail would carry about $1 million in debt service and $1 million in additional operational costs.). So far, it has been much less expensive to board prisoners out. 

But Waldo County is not the only county facing this dilemma.  

John Hyk’s letter asks municipal officials to suggest solutions. If you agree, I would like to suggest that Waldo County seek to have conversations with one of its neighboring counties, especially Knox or Penobscot, to join in having a shared jail. Apparently because of changes in the laws and judicial system, most counties are experiencing crowding problems, and it would seem like a good time to get together to address common problems. 

Waldo County has already spent a goodly sum in retrofitting the existing local jail, which of course, needed to be done just to maintain the facility until a new one could be built. It seems to me that Waldo should further fix up that jail so that it could be used for the long-term for prisoners who need quick access to the court, while a regional jail should be used for prisoners who are identified to serve a longer period of time.  

Distance for relatives to visit is no longer a real issue. Jails were built in separate counties in the 1800’s, before the advent of automobiles. Now, while we would not want to see long distances involved, such as going to Aroostook or York counties, it does not seem to be out of the question for prisoner’s families to visit in Rockland, or in Bangor, or some place in between. In fact, for many county residents a regional jail could be closer than a jail in Belfast. 

I don’t know if that would produce a savings or not, but it seems that it would. The costs, while somewhat greater that two counties, instead of burdening just one, would share each one alone. Clearly, Waldo County can not afford $2 million more each year on top of the existing already very-high County budget. If the towns in Waldo and Knox can agree to work together on economic development, surely the counties can work together on providing corrections services. 

Another major element, in conjunction with the above, is to seek the help of the state. The state has established the rules of incarceration, which has resulted in the new population boosts and additional costs. The property tax is not the appropriate tax to support a jail system. The state pays for the state correctional system through the sales and income tax but looks to the property tax to pay for county jails. The state ought to either assume those costs or help out. It seems to me that we ought to join forces with other counties to develop legislation for a statewide corrections bond issue, to relieve the property tax. 

John Hyk asks, “What is the solution in your mind?” I present these thoughts to the City Council to see if you think we should share these thoughts with the County Commissioners. 

Now, on the agenda:

11.B  Peirce School.  You have plenty of comment on this without needing any further word from me.  

11.C  Retail Review Commission.  I understand there will be more discussion on this, but the formal report will be delivered at another time. No action will be necessary at this time. 

11.D  Workforce Affordable HousingAt the last Council meeting, the City Council agreed to establish a Workforce Affordable Housing Committee. That decision has caused a strong, popular response. One thing we should be very clear about is that this should not be seen as a standing committee, a committee which continues in existence, but rather one with a specific goal, and when that goal is accomplished, the committee ceases to exist. 

Wayne Marshall has drafted a mission statement for the committee, and it is included here (Salmon). I think this forms a good basis for this committee to go forward.  

In addition to coming up with a mission statement, the Council asked us to offer some names for committee membership. Some names we suggest for your consideration are:  

ü      Paul Dean, a member of the Comprehensive Plan Committee (he has said yes)

ü      Paul Hamilton, a member of the Planning Board who is familiar with housing and construction (he has said yes);

ü      a City Councilor who would be better for you to choose than for me to recommend;

ü      Sam Mitchell, from the real estate community, if he is willing; he is very familiar with residential real estate trends;

ü      Alan Wood, a real estate broker who has volunteered for the committee, should be considered, although there are others as well. I would recommend two real estate people, but no more than that.

ü      Ed Varney, a local resident and banker, if he is willing; if not, another banker from the community who knows real estate and financial matters;

ü      A local, major employer or HR person, who is a Belfast resident. We will need to make some further phone calls to find the right person, but I strongly suggest we include this category, since they deal with the kind of individuals seeking the kind of housing we hope to address. Maybe we should be thinking about two or three people in this category. 

This would give us seven members on the committee, to be staffed by both Wayne Marshall and myself. We would want to call on other real estate people, builders, financial providers, state and regional agencies as resource people but they need not be on the committee. The committee should be from seven to nine people in number, so if you want to add two people, that would be o.k. 

Incidentally, although we are not talking about subsidized housing in this instance, I do happen to have a 2001 summary of subsidized, low-income housing available in Belfast and am enclosing it (Salmon) for your information. You can add to that the added housing that is now ready to be constructed (after a long litigation) on Searsport Avenue in the near future. The next item, in fact, addresses that project. 

11.E  Innovative Housing Program Resolution. Years ago, the city sought and obtained a Community Development Block Grant to assist in the development of low-income housing (as distinct from workforce, affordable housing) and this project is going coming to fruition, i.e., construction start. Wayne has prepared the enclosed resolution that is required under the CDBG guidelines.  (Gold)

11.F  TABOR.  I don’t know whether the City Council will want to take a position or not, but since there is a referendum question on the November ballot which could have serious repercussions for local government, we ought to discuss it a bit. 

I will try not to repeat a lot that you already know on the issue but do want to add some information I have just learned in the past week or so. The legislation is more than just limiting increases to the rate of inflation plus population growth and is actually many pages thick. 

Of course, the measure affects all levels and forms of government in Maine: the state government, although the legislature could legally, if not politically, ignore it; school systems, county government, utility districts. Our concern is local government. 

The legislation, if approved by the voters, would limit any spending increase by local government to the rate of inflation and population growth (schools would be limited by the inflation rate and student enrollment change).  

If the Council needed to spend more than that, the budget would have to be submitted to voters in a separate referendum to approve the increased amount (an override). However, to send it to a referendum will require a two-thirds vote of the Council; in other words, a minority vote could block the will of the majority. In Belfast’s case, it would take four councilors voting in favor of submitting it to referendum, since two-thirds of five requires four votes. Two councilors could veto the action. 

What I have learned recently, or had missed earlier, is that this applies to a mill rate increase also, even if the increase in spending is under the inflation-plus-population limit. For example, if the inflation plus population change is 3.5%, and the budget came in at a 3% increase, but the increase in valuation for the year was 1.5%, this would necessitate a mill rate increase and thus be subject to the referendum requirement. (Unless everybody’s evaluation was increased.)  

Further, should a budget override go to referendum, the Tabor legislation requires that the City Clerk write a 500-word (up to) essay equally balanced between the argument for the increase and an argument against increase (good luck, city clerk).   

That’s not enough. The Clerk then will have to mail that essay to every voter in Belfast. The question arises on how you budget for the additional postage when you don’t know whether these essays would have to be sent or not until a budget is ready for adoption, but that is just another inconsistency in the bill. It is also worth noting that we have around 4,000 registered voters, but usually only around 1,000 vote in a municipal election. The essay will have to be sent, of course, to all registered voters. 

I am enclosing a copy of a draft resolution (Green), as prepared by the Maine Municipal Association that has been adopted by a number of town governing bodies to help notify the electorate of their position. As a Council, you can choose to use that or not take a collective public opinion. But it is here for your information. 

That’s everything I have for this report. Bill Kelly has asked for an executive session to discuss the legal issue of rights of way. If you are up to it Tuesday night, and it is not too late and you are not too tired, we could also have an executive session for an updated discussion on collective bargaining with the Police Department personnel. We are close to finishing, and it would be good to review some final thoughts before the committee wraps it up. 

Have a good weekend.*

 

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