Canton leaders brace for a tough budget year

Jan. 10—CANTON — The next Canton budget will look a bit different than in year's past — leaner, more focused on visible progress and with an eye toward generating recreation-related revenue.

Tasked with assembling a budget a fourth of the size after the closure of the paper mill in 2023, the town governing board all agreed fiscal sustainability was a top priority during a recent visioning session.

"We're facing budgetary cuts, which will be painful, but I'm hoping we can give people what they want and what they deserve," said Alderman Ralph Hamlett. "I know Labor Day is under consideration, and I would like to see it hold as much of a footing as it has had in past."

Board member Kristina Proctor acknowledged the town will be losing a significant amount of revenue.

"We may ask for things, but rely on you to say no and bring the real numbers," she told Nick Scheuer, town manager, Lisa Stinnett, assistant town manager and Natalie Walker, the finance officer. "We are here to be fiscally responsible."

Proctor emphasized the importance of strides the town has made in the area of recreation, as well as the need to phase in post-flood capital projects and forming partnerships with groups who can lead initiatives the town may not have the funds to continue.

Alderman Tim Shepard said it was important to prioritize town staff and ensure that the tasks undertaken show visual progress.

"We need to take care of our people first," he said. "I know we have to tighten our belt, but I am hoping that will be the last notch we have to go to. I'd like to see us not starting new things but to button up projects we have ongoing. That is in line with what Kristina said. Let's finish up what we have started, then look at what else we can do."

Mayor Pro Tempore Gail Mull self-identified as the "stingiest person on the board," and said she had no doubt the administrative staff would make things work. "That's what we've done — getting by with little."

Mayor Zeb Smathers compared the situation facing Canton to that of a hurricane when all is calm in the eye of the storm, but waiting on the other side is the worst of the storm.

"That's exactly where we are in 2024," he said, eyeing the administrative team. "There are steps we can take, but you three and the trinity are what stand between blue sky and the storm."

Just like the school board doesn't hire coaches, the town governing board does not oversee day-to-day operations, Smathers said. "Numbers don't lie, and we have to trust in you all. We can't make our tough decisions without having the evidence."

While the public has given the town grace in the wake of all that's happened in the past several years, the mayor predicted people will be looking for results in 2024.

"When people see progress, they will give us more room to do more things, so we need to pick things with the biggest impact," Smathers said. "In '23 we reacted, in '24 we will make decisions that will guide the next half century or more in Canton, and they are not going to be easy."

Staff weighs in

Scheuer reported that the steps forward will be clearer after Jan. 15 when property and sales tax data is available. He said it is important that salaries remain competitive for staff retention, but said one option is to give one-time bonuses rather than raises.

The Rhoda Street repair project has all but one easement signed, he said, and the project will go out to bid in January, while the all-abilities playground equipment is being stored all around town, which is a visible reminder that the new playground is in sight.

"When we move into a new fiscal year, major projects will be town hall, fire department, police department, the armory, the Colonial and Camp Hope. They will have to be phased, and we need to be strategic on when we do them. All at once would be problematic," he said. '"There are ways the department can generate revenue, or maximize a return on investment, we need to be looking at that. We prioritize facilities, we need to focus on revenue-generating ones."

Stinnett then discussed possible ways to narrow the revenue-expense gap in a department that historically is a big ticket item in the budget — recreation — focusing on the need to be responsible with every taxpayer dollar without penalizing those in the recreation world.

She proposed offering concessions at the IP Sports Complex and the swimming pool, perhaps charging non-school entities to use the fields and batting cages, and recruiting volunteers to handle the field maintenance work given that the three-person staff for that function is now down to one.

The ideas were ones the board thought were reasonable.

"For me, it comes down to the sustainability of a facility," Proctor said. "Will this help keep it open, or is it shut down because we can't financially support it. ... You can't give from an empty cup."

What to cut?

When it was time for Walker's ideas, there were audible groans. Through the years, the finance officer has been jokingly referred to by terms such as the Grinch, Dr. Death, the bearer of bad news and other synonyms referencing places where dreams go to die, but this year her suggestions got wider approval.

Her first recommendation was to eliminate the budget for the facade grants offered to businesses who plan to open in the downtown district. The amount was cut to $25,000 this year, but she recommended cutting it altogether.

The board understood the need, and reasoned that much of what they set out to do 13 years ago had been accomplished.

"With the right development, we could still do something," Smathers said, referencing the budget amendment process.

Walker then turned to the cost-of-living level, stating that personnel other than within the police department were on par with the most recent salary study.

While it would require an 8% salary boost to bring the police department personnel on par with the study, she suggested a 5% salary hike along with the Cost of living adjustment. The board left it open as to whether that amount would be 1% or 2%.

A water/sewer rate increase is needed not only because the town will need to begin paying for wastewater treatment in 14 months, an expense not previously required. That's because Pactiv Evergreen treated the town's wastewater at no cost and the agreement was terminated by the company shortly after the mill closure was announced.

Walker is proposing a 3% increase, which would raise the minimum water rates $1.18 a month and sewer rates by $.65 a month for those inside the town limits.

She also suggested eliminating the community promotions budget where the town kicks in to support worthwhile activities in town. The board was OK with the recommendation, but suggested a small budget amount be switched to advertising.

The one recommendation where groans appeared was when Walker suggested revisiting the municipal vehicle tax option, funds that would be used exclusively for street repair.

The town has 13 gravel roads, and potholes in many of the paved streets. The state money available for repair called Powell Bill funding has been exhausted and the $50,000 to $60,000 that could possibly be generated through a $30 per vehicle fee would be a way to address the needs, she suggested.

The jury is still out on the idea, and Walker will collect more data before any decision is made.