By Renee Worthing 

Staff Writer

Three-quarters through the 2007-2008 fiscal year, which ends June 30, Kennebunk’s Finance Director Joel Downs said Kennebunk’s current net operating expenses are projected to be about four percent over budget, mostly due to snow removal and gas and diesel prices.

“The highway department is 185 percent over budget,” Downs said. “That is strictly fuel.”

Downs said when the budget was prepared in January 2007, the town anticipated gas prices would be $2.35 in 2008.

“That was actually a low point,” he said. “In the summer of 2006, gas was as high as $3, but it went down.”

Downs said the town budgets for 10 snowstorms per season, but said an unexpected 10 additional storms so far this year pushed the snow removal budget $160,000 over budget. Depending on the amount of salt and manpower use, he said each snowstorm costs the town between $15,000 and $20,000.

Downs said the parks and recreation department has used all of its budget.

“They still have roughly four months of operation,” he said, adding the department needs another $3,500 before the town closes the books. “I think they can find it internally.”

Downs said higher than anticipated gas and diesel prices for the parks and recreation vehicles contributed to the over budget status of the department.

The parks and recreation department operates a 28-passenger bus, a 72-passenger bus and an 84-passenger bus to transport recreation department participants to various venues.

“The buses are used for everyone from children to senior citizens,” Parks and Recreation Director Brian Costello said. “They go to the teen center, swimming, on senior trips, track meets and everything else.”

Also part of the fleet of parks and recreation vehicles are two trucks and a Ford Crown Victoria.

Costello said the Crown Victoria, which was once a police cruiser, is now a general use vehicle.

“I use it to run errands for the recreation department,” he said, adding other town employees use the car,as well

“Anyone who needs it, uses it,” Costello said.

Downs also said two lawsuits drove the town’s legal expenses about $15,000 over budget.

A lawsuit between the Kennebunk, Kennebunkport and the state of Maine regarding a shift in school funding is “on the back burner” as the town awaits the outcome of Gov. John Baldacci’s proposed school reorganization plan, Downs said,

Downs said the police department typically strives to use 69 percent of its budget by this point, but said it has used about 72.5 percent. He said the three percent rise translates to about $40,000 in wages.

He said overtime due to staffing issues is responsible for the police department being over budget.

Ambulance wages are “where they should be,” Downs said.

“The ambulance department is running two percent under budget,” he said.

He also projected declining revenues, including a $100,000 shortfall in anticipated vehicle excise tax.

“We budget $200,000 in excise tax, but people aren’t buying cars,” Downs said.

He said building permits were also projected to see a shortfall of about $30,000.

“The economy is slowing down,” he said.  

Interest on outstanding tax liens is also down about $15,000, Downs said.