Select board continues work on spending requests; Focus on Tax Increment Financing

by Mary Grow

At a special meeting Feb. 21, China select board members continued work on spending requests to be presented to voters at the June 14 town business meeting. Their main focus was on recommendations from the Tax Increment Financing (TIF) Committee and from Town Manager Rebecca Hapgood on spending TIF money in the 2022-23 fiscal year.

TIF funds come from taxes paid by Central Maine Power Company on its north-south transmission line through China and its South China substation – about $265,000 this year, select board chair Ronald Breton said.

The money is allocated as prescribed in China’s voter-approved and state-approved TIF document, usually called the TIF Second Amendment. Its full title is “Town of China, Maine, Second Amended Central Maine Power/China Lake Tax Increment Financing District and Development Program.”

Hapgood’s proposed expenditure is for a survey of the South China boat landing to determine the boundaries of the town-owned land, as a first step toward planning and carrying out run-off control measures.

China Region Lakes Alliance (CRLA) Executive Director Scott Pierz commended Hapgood for proposing to start work soon, calling the boat landing a “high-impact site” for phosphorus loading into China Lake that needs prompt attention to protect lake water quality. Select board members unanimously approved recommending the expenditure to voters.

On Feb. 9, TIF Committee members unanimously recommended select board members present to voters requests from four town organizations: $34,600 for the Thurston Park Committee; $55,000 for the CRLA; $30,000 for the China Four Seasons Club (CFSC), for trail work; and $40,000 for the China Broadband Committee (CBC). The fifth request on the select board agenda was for $5,000 for the CFSC and the China Village Volunteer Fire Department for Ice Days fireworks.

Select board members approved all but the CBC request unanimously and with little discussion. Board and audience members argued for half an hour over the CBC request before select board members added it to the town meeting warrant on a 3-2 vote. Breton, Jeanne Marquis and Janet Preston were in favor, Blane Casey and Wayne Chadwick were opposed.

The request is in two parts, $10,000 to cover another year of service from consultants Mission Broadband and $30,000 to start on a broadband expansion project if the town receives an acceptable proposal in the next few months. If the $30,000 is not needed in FY 2022-23, it will carry forward, Hapgood said.

Board member Casey said Governor Janet Mills had promised to provide broadband to everyone in Maine within two years. Why, then, he asked, does China need to use local money for broadband?

Preston pointed out the governor’s promise is not supported by a state plan. Marquis added that the town would need its own plan to apply for state funding. But, Casey said, there’ll be no application – Mills offered a gift.

CBC chairman Robert O’Connor chimed in via Zoom to support Marquis; O’Connor expects state funds to require a town match, for which the $30,000 could be used.

Chadwick questioned the other part of the request: why continue with Mission Broadband, which in his opinion has done “not much?”

O’Connor replied company representatives had explained technical information to the benefit of the China committee members. CBC members plan to use their expertise in a detailed community census of broadband facilities and needs, he added.

Resident (and TIF Committee member) James “JJ” Wentworth, also participating by Zoom, asked why the CBC is still pursuing broadband after China voters rejected it at the polls Nov. 2, 2021.

No, Breton said, China voters did not reject broadband. They rejected a specific plan, refusing to authorize a $5.1 million bond issue to finance expanded infrastructure construction. In theory, user fees would have repaid the bond; should user fees be lower than projected, taxpayers would have been responsible.

After the Nov. 2 vote, Breton said, select board members unanimously asked the CBC to continue seeking options. Personally, he said, he considers quality broadband service “a good investment for the town.”

The Feb. 21 agenda item after the TIF applications was to be a discussion of employee retention, but Breton called it too early in the budget process and, over Preston’s protest, skipped it.

At a Jan. 31 budget discussion, board members approved a three percent pay raise for FY 2022-23. The vote was 3-2, Breton, Casey and Chadwick in favor and Marquis and Preston preferring a more generous increase.

Board members are considering instituting a pay scale that would provide automatic annual raises. Breton said repeatedly that until they have job descriptions (on which Hapgood is working) they cannot consider a pay scale.

When board members turned to 2022-23 budget recommendations, Preston made a motion to add longevity increases for employees, to a total of $7,500. She and Marquis were again outvoted.

The two women argued that in the present job market, China needs to be generous; otherwise, employees will quit and the town will spend more recruiting and training replacements than it would have on higher pay.

Chadwick and Casey have said at past meetings that when benefits are considered, town employees are well treated. Both argue that they have a responsibility to all townspeople, including those on fixed incomes who do not get raises or longevity increases; therefore a goal should be keeping taxes as low as possible.

Select board members made one non-budgetary decision: they unanimously rescinded their Feb. 14 decision to ask voters to approve or reject two ordinance amendments proposed by the planning board (see The Town Line, Feb. 17, p. 3).

Responding to questions raised at the Feb. 14 meeting, Hapgood said the planning board had not held a public hearing as the amendments were developed in the spring of 2021, and some Department of Environmental Protection changes were omitted.

The next regular China select board meeting is scheduled for 6:30 p.m. Monday, Feb. 28.