Methuen homeowners face tax hike

June 18--METHUEN -- A divided City Council last night approved a roughly $150 million budget that officials estimate will result in a tax increase of between $180 and $200 on the average homeowner.

Of the roughly $4.6 million increase in the budget over last year, $3 million went to the School Department and was required by a state minimum spending mandate and a fine for appropriating less than was required in past years. Another $1 million increase came from fixed costs like health insurance and bond interest payments.

Auditor Thomas Kelly said the city's operating budget that the mayor proposed increased over last year by about $638,000, a figure that included four new firefighters and several new cruisers for the police department.

But councilors cut about $290,000 from Mayor Stephen Zanni's proposed budget.

"The worst case scenario now is $200," Zanni said of the tax increase.

Councilors voted 8-1 to ax Zanni's proposed $20,000 pay raise, though several councilors said they agreed with the need to raise the salary.

Councilor Thomas Cuilla voted to keep the raise.

"I just think this is the wrong time to do it, and that's what my people are saying to me," said Councilor Ron Marsan.

Several councilors said the raise should come as an ordinance, rather than being tucked into the budget.

"Everyone says it warrants a raise," Zanni said. "I'm being transparent. It's in the budget. That's why it's in there."

Zanni argued that his salary is low compared to other communities, and many of the department heads he manages earn substantially more.

The largest cut was a $200,000 appropriation to the reserve fund, one of three funds where money is kept aside. That vote was unanimous.

Two councilors, Marsan and Daniel Grayton, voted against many of the department budgets, and ultimately against the municipal budget, as a protest against a handful of employee reclassifications that included raises. Zanni and department heads said the employees were taking on added responsibility or working additional hours and should receive new titles.

Marsan and Grayton said the salaries should be kept the same so the existing system for giving raises to employees can be addressed.

"We need to fix the system," Marsan said.

Zanni said he agreed and urged the council to review the salary ordinance and make changes. Council Chairman Jamie Atkinson said he planned to appoint a committee at the next regular meeting July 7.

Grayton said after the meeting he voted against the budget because it raised taxes while giving out salary increases. "It's not a fair budget," he said. He added the salary system fix should have started last night with the budget.

Kelly said he could only give a range for the tax increase because the city's entire property value has not yet been finalized. The council typically sets the tax rate near the end of the calendar year.

The $149,679,702 budget goes into effect July 1.

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