Peru Budget Warrant for FY2014

Embedded below are:

1. the town budget proposed by the Peru Board of Selectmen for the 2013-14 fiscal year.  Townspeople will be voting on this budget by referendum on Tuesday, June 11, 2013.
2. a comparison with the prior year's budget.
3. the audit for the Town of Peru's 2011-12 fiscal year.

[click on < to collapse the thumbnail margin]

Town Auditor Delivers (Finally)

The Peru Selectmen have just received a draft audit for FY2012, a mere five months after the fiscal year closed.  The figures are viewable here.

Some highlights:

• Revenues exceeded expenditures by $165,487.
• The "unassigned" fund balance (i.e. the surplus) grew to $558,842.
• Net assets increased by about $263K.
• Cash and cash equivalents increased by about $307K.
• Receivables (unpaid taxes) increased from almost $206K in 2011 to over $225K.

Looks like some tax relief might be in order.

Proposed Wind Ordinance May Carry Legal Risk

As Peru voters examine the November ballot, they should be aware that adoption of the proposed Industrial Wind Energy Facility Ordinance [viewable in its entirety here] will leave some uncertainty as to whether grid-scale wind turbines will ever be sited in town.  The intent of the committee that wrote the ordinance is clear:  devise standards so strict that a developer could not possibly adhere to them.  That was the easy part.  Defending the ordinance in a court of law may be another matter.

If the ordinance passes, Peru will be following the same strategy adopted by the Waldo County town of Frankfort nearly a year ago--after certain landowners there had contracted with Eolian Renewable Energy LLC to host a wind farm.  Frankfort's ordinance was essentially a backdoor ban, and the affected landowners hired a Portland law firm to sue the Town in Superior Court [the original complaint filing can be found here].  In response, the Town asked the Court to dismiss all ten counts of the complaint.

Last week the Court granted the Town's motion to dismiss with respect to three counts, but denied with respect to the other seven.  In its opinion [posted here], the Court agreed with the plaintiffs that the following claims may have merit:

• The Wind Ordinance is an unconstitutional taking.
• The Wind Ordinance impermissibly interferes with plaintiffs' constitutional right to contract.
• The Wind Ordinance arbitrarily denies plaintiffs' constitutional right to equal protection in violation of the Maine Constitution.
• The Wind Ordinance denies plaintiffs' right to substantive due process.
• The Wind Ordinance is unconstitutionally vague.
• The Wind Ordinance was drafted and adopted in bad faith and with the sole discriminatory purpose of preventing plaintiffs from directly or indirectly establishing a Wind Energy Facility on the property.
• The Wind Ordinance is preempted by state law regulating wind energy development.

In a parallel action, the Court dismissed the plaintiffs' contention that the Wind Ordinance is "an illegally promulgated zoning ordinance."  [The order denying the plaintiffs' motion for partial summary judgment appears here.]

The Court will rule on the surviving claims at a later date.  Although the Court cannot be expected to tip its hand at this point in the proceedings, language on Page 17 of the Order on Defendant's Motion To Dismiss suggests that the Town may be in trouble:

"The law is clear on substantive due process and Plaintiffs have clearly stated a claim on this Count.  The complaint details the multiple ways in which the Wind Ordinance burdens prospective wind developers that, if factually accurate, may not be rationally related to any valid government purpose."

University of Southern Maine law professor Orlando Delogu has been following this case and offers his view (in an e-mail dated October 4):

"Tough ordinances that seem to regulate, but in reality bar wind energy from an entire town are ripe for challenge...particularly if there are areas within your town that are realistic sites for wind energy development.  Legal challenges cost money to defend--sometimes a lot of money, and take a long time to resolve.  Is Peru spoiling for this type of fight?"

The proposed ordinance has raised objections from EDP Renewables, the developer currently gathering wind data on Black Mountain in Peru.  The company's concerns are posted here.  To be taken most seriously is the charge of discrimination.  "The sound restrictions specified in the IWEF [ordinance]," writes Project Manager Katie Chapman, "if applied to non-wind activities, would limit or prohibit car, truck, snowmobile, farm equipment, timber equipment, or general commercial, recreational, or residential activities within Peru."

Draft Wind Ordinance Generates Concern

At their meeting on September 17, the Peru Selectmen read a letter from the former chair of the Peru Wind Power Committee concerning the possible legal risks stemming from a proposed local ordinance to regulate grid-scale wind farming in the Town.  The townspeople will vote on this ordinance at the November election.

The Lewiston Sun Journal reported on one section of the letter, which is posted in its entirety here.

Draft Wind Ordinance Ready for Review

Informational Meeting

Monday, September 10, 6 p.m.

former Peru Elementary School

Three proposed local ordinances, including an Industrial Wind Energy Facility Ordinance, will be discussed at the meeting.  The 28-page draft IWEF Ordinance is viewable here.

Interestingly, the Friends of Peru Elementary School, responsible for all building expenses, will not be getting even a token room-rental fee, despite the sink-or-swim status so graciously conferred on them by the Town in the past year or two.

Peru Wind Power Committee to Meet

wind turbines at Spruce Mtn. in Woodstock

MINUTES OF MAY 31 MEETING

MINUTES OF MAY 22 MEETING

MINUTES OF MAY 15 MEETING

MINUTES OF MAY 8 MEETING

MINUTES OF MAY 1 MEETING

MINUTES OF APR. 24 MEETING

MINUTES OF APR. 17 MEETING

MINUTES OF APR. 10 MEETING

MINUTES OF APR. 4 MEETING

MINUTES OF MAR. 20 MEETING

MINUTES OF MAR. 13 MEETING

MINUTES OF MAR. 6 MEETING

MINUTES OF FEB. 28 MEETING

MINUTES OF FEB. 21 MEETING

MINUTES OF FEB. 14 MEETING

MINUTES OF FEB. 8 MEETING

MINUTES OF FEB. 1 MEETING

MINUTES OF JAN. 18 MEETING

MINUTES OF JAN. 4 MEETING

MINUTES OF DEC. 14 MEETING

MINUTES OF NOV. 30 MEETING

MINUTES OF NOV. 16 MEETING

Now that Peru voters have approved (by nearly a 4-to-1 margin) a 180-day moratorium on industrial wind-power development, a citizens' committee will begin work on a local ordinance to regulate such development in the future. Right now primary permitting authority rests with Maine's Department of Environmental Protection (DEP). The voting on November 8 clearly shows that the townspeople would like permitting standards that are more restrictive than DEP's.

The Peru Wind Power Committee will meet on Wednesday, November 16th, at 6 p.m. at the Town Office. Volunteers wishing to join the Committee are encouraged to attend. Those wishing to voice comments or questions are also invited. It is anticipated that the Committee will meet biweekly for several months; all meetings will be open to the public. Once the Committee has prepared a draft ordinance, it will be presented at a minimum of two public hearings, allowing for feedback from the community and further revision, if necessary. A final draft will be submitted to a townwide vote by referendum, most likely on Primary Day next June.

DEP regulations remain in effect in Peru unless and until the Town votes to adopt a local ordinance. The moratorium prevents any development of an industrial wind-power facility and tables any permit application for such development until the expiration date next May. The November vote gives the Board of Selectmen the authority to extend the moratorium at its discretion as deemed necessary.

Delinquency Rate Exceeds 10 Percent

Town Clerk Vera Parent reported at last night's Selectmen's meeting that she has collected 45% of the taxes committed for the fiscal year beginning July 1. With first-half property-tax payments due by July 29, she should have had 50%. A year ago she had 54% of the FY2011 commitment by the end of July, a figure that demonstrates the preference of some taxpayers to pay their full year's assessment up front. Undoubtedly there were prepayments this year as well. All of this means that at a minimum ten percent (and probably more) of the taxes due on July 29 were not paid.

Take the total FY2012 commitment of $1,848,973, divide by 2 (the other half is due in February), then multiply by 10%. The result is an underpayment of $92,449. The good news is that the shortfall has been offset almost exactly by the recent receipt of $92,124 from the State as partial reimbursement for the sand-salt shed constructed in 2006. The bad news is that tax receivables have swelled to over a quarter of a million dollars, calling into question the Town's ability and/or willingness to fund municipal and school spending at current levels. Selectmen are awaiting the final audit, coming shortly, for FY2011.

One area where the Selectmen are looking to cut is the Deputy Clerk's position. The Town Office budget drafted a week earlier limited the deputy's hours to 250 for the year for gross wages of $2,000. Last night Ms. Parent complained about the cut, saying that she feels "targeted." She was able to talk the Board back up to $2,500, which is still less than half what was paid the deputy in FY2011. Another $500 (or more) in previously announced cuts disappeared with new information from Central Maine Power about the costs of street lights. The Board is now right up against the $62,900 cap imposed by the townspeople, with no margin for unforeseen contingencies.

One suggestion made was to cut the line item for cleaning the Town Office. So bring your Germ-X wipes when you go to pay your second-half taxes.

[update 08-16-11, one week later:]

Last night the Selectmen were presented with Liza Virgin's letter of resignation as Deputy Clerk, effective August 19. A disappointed Town Clerk presumed that the limited hours offered by the Selectmen for the deputy's position were insufficient to entice Ms. Virgin to stay. The Town Clerk pointed out to the Board that it is she, not they, who will appoint a replacement.