town juggles a contentious resignation, steep budget cuts and a new comprehensive plan

To say that the current atmosphere within South Berwick’s town government is hectic would be an understatement. As the southern-Maine community of 6,670 people labors to draft a municipal budget that some people have labeled a “crisis,” it is also recovering from the loss of former town manager Jeffrey Grossman, who resigned amid considerable controversy last month. At the same time, the town is finalizing an updated comprehensive plan that has been in the works for more than six years. On top of all that, Public Works director Terry Oliver submitted a letter of resignation late last month.

It is a time of transition, and the town’s future direction remains unclear. But many of the most pressing issues will be resolved, one way or another, within the next couple of months. Residents are invited to attend a final public hearing on the municipal budget at 6:30 p.m. on Monday, April 14, at Town Hall, and the public will vote on whether or not to approve a finalized budget on June 2.

The Town Council is searching for a long-term replacement for Grossman, who accepted a $102,000 package in exchange for his resignation on March 21. Grossman’s temporary replacement is his former executive assistant, Roberta Orsini, but she has only agreed to fill the slot for a few weeks. The Council plans to hire an interim town manager to take over the role for three to six months while it searches for someone to fill the position permanently. 

Grossman’s resignation came under pressure from councilors Jean Demetracopoulos, David Burke and Michelle Kareckas, who never saw eye to eye with the former town manager. The Council seemed ill-prepared for Grossman’s departure, however, and Town Hall actually closed down for several days the week after his resignation.

Asked if requesting Grossman’s resignation was a mistake, Burke answered with a simple “No.” He refused to comment on why he called for Grossman’s resignation, other than to say, “It was his decision.”

Although it was ultimately Grossman’s decision to accept the buyout package, he initially refused to resign. In fact, before the ordeal was over, attorneys for both sides were preparing to take the case to court.

Nevertheless, Demetracopoulos called the resignation a mutual agreement and declined to say why she wanted him out of office. “We want to be very respectful of the manager’s right to privacy, and so we are not providing public comment on any specific reasons,” she said.

Burke’s remarks were similar.

“It’s a very sensitive issue, and this is a pretty close community. It is one that is obviously suffering some pain because of this situation, and I would rather keep it within the community instead of slapping it across all the papers,” Burke said.
Grossman could not be reached for comment and did not return several phone messages from The Wire.

The fiscal year 2009 budget that will be presented to the public on April 14 is $5.8 million, up from $5.3 million in FY ’08. The budget that Grossman presented to the Council before he resigned was $6.2 million, which would have meant a 26 percent increase in the tax rate. According to Orsini, the Council has painstakingly made cuts to every major department, trimming about $400,000 in appropriations.

The budget debate is further complicated by the newly enacted LD1 tax cap, a state mandate aimed at reducing property taxes by strictly limiting municipal budget increases. In South Berwick, LD1 caps town funding at about $2.4 million. The city is projecting $2.4 million in revenue for FY ’09, down from $3.1 million in the current fiscal year. The projected revenue puts net funding for next year’s budget at $3.4 million, which is still close to $1 million over the LD1 cap.

“As it stands right now, we’re going to come in over LD1,” Burke said. “It’s been a rather sensitive issue with me personally as a councilor. We simply are still trying our best to make some cuts that will bring down that number.”

Where those cuts could be made remains to be seen. Some of the town’s five councilors are reluctant to comment on where there is still room to chop big chunks of funding.

“Every budget is taking a hit,” Demetracopoulos said. “We’re trying to work as a Council, as a group, so that means things that one of us may see as cuts, others might not see as viable, and we’re trying to reach a consensus.”

Pressed to suggest where the biggest cuts should be made, Demetracopoulos declined to share her thoughts. “I’m going to save my personal opinion for working with my fellow councilors. All of us have personal ideas,” she said.

A number of factors have led to sharp increases in the proposed budget. Burke noted increased fuel costs and salt prices, as well as requests for an additional police officer and another staff employee at Town Hall. Demetracopoulos pointed to a decrease in revenue sharing from the state. She called the cuts required to get under the LD1 cap “draconian” and said it will be up to taxpayers to decide where the town can afford to make funding sacrifices. She is encouraging more dialogue between the Council and the public so that responsible and sustainable decisions are made. If necessary expenditures such as road improvements are put off, she noted, costs could be even greater in the future.

The Council still has time to make alterations to the budget based on public feedback from the April 14 meeting. If the town approves a budget that is over the LD1 limit on June 2, residents must vote to override the cap and accept a potentially significant tax hike. 

While the Town Council struggles to trim the budget, it is also attempting to pass a new comprehensive plan for the first time since 1991. A number of public hearings have been held regarding the plan, which would not alter any town ordinances but would serve as a tool to guide future policies. A 200-plus-page draft of the plan is available at Town Hall and can be viewed at www.southberwickmaine.org/Public_Documents/SouthBerwickME_BComm/compplan. Burke is hopeful that the plan will be approved within the next month.

“We’re on the cusp of passing it,” he said.

Burke admitted that the Town Council has several challenges on its plate, but he is hopeful that the town will be able to move forward.

“We have a number of balls in the air right now,” he said. “We’re looking to move on, to heal and become a little bit more united and accomplish the things we want to do here in South Berwick.”

Orsini, who has been employed by the town for seven years, feels that the contentious atmosphere that reigned last month has already begun to cool. Everyone, she said, is looking to move forward.