In a budget workshop on Tuesday, Gray Town Council members and department heads frequently discussed how town finances and spending decisions are being affected by large-scale international events.
Excluding capital expenditures, the municipal budget will increase by $144,646.59, or 1%, to $12.6 million. In terms of percentages, the department seeing the biggest increase to its budget is elections, which will increase by $3,988, or 21%, to a total of $23,228, while the department seeing the biggest cut is public works, which will see its budget decrease by $458,083.43, or 21%, to a total of $1.73 million. The latter is due to a 72% cut to the department’s operations budget, caused by a $500,000 line item for annual paving being removed, with paving being paid for by TIF money.
The tax rate is expected to increase by 39 cents per $1,000 of valuation, or 4%, from $9.68 to $10.07.
This is the second budget workshop in as many weeks, covering half of the town’s departments, including recreation, public safety, public works, facilities and parks, and debt services. The other departments spoke at a March 10 workshop.
During the workshop, discussion frequently veered toward how the effects of global events trickle down to affect the finances of a small town. Concerned about fuel price increases due to the Iran war, council member Anne Gass asked Fire Chief Kurt Elkanich if he was increasing the budget for vehicles and heating. Elkanich said he was concerned, but was unsure how that would be handled. Gass also asked public works DirectorTimothy Estes about his department’s plans for rising fuel costs, and Estes said it has a contract with Dennis K. Burke at a fixed price.
There was also discussion on how tariffs were affecting the departments’ budget planning. In addition to concerns from Gass about how the budget for public safety equipment would be affected, Estes told the council his department’s spending on plowing and sand supplies had risen by 6%, owing to ongoing tariffs on the cutting edges used for plows, which are sourced from Canada. Facilities and parks Director Mo Russo said that, while his department was initially concerned that the cost of propane would be affected by rising tariffs, the per-gallon cost ended up being reduced from the previous fiscal year, saving the town roughly $39,000.
A public hearing on the budget will be held on Tuesday, March 31, with the warrant articles being approved by the Town Council on April 7. After two months of community outreach and budget education, the budget will be voted on in the June election.
