FORT FAIRFIELD, Maine — Fort Fairfield may need to take drastic steps to prevent a future financial crisis and regain community trust, according to a consultant hired by the town.
Residents were told in September that Fort Fairfield went from having $946,000 in the bank in June 2020 to only $199,000 in June 2022. The town owed $1,275,000 in short-term debt. The revelation came after the departure of former town manager Andrea Powers, whom residents and several town councilors had accused of not providing accurate and timely financial statements.
Former town manager Dan Foster stepped up as an interim leader then, telling residents that he would get the town on financial track and find the root causes of what happened.
In February, the town hired Perham-based consultant Catherine Ingraham, who has released a report detailing 13 recommendations for how the town can be more transparent with residents and prevent future communication issues that could lead to financial problems.
The town paid Ingraham $2,500 for her services.
Ingraham’s recommendations include adding a probationary period and an emphasis on transparency to the town manager’s contract; requiring a 4-to-1 council vote on crucial items like the annual budget and major spending; hiring a human resources director; and placing a public comment period at the end of town council meetings, in addition to one at the start.
“[Residents] value transparency, open communication, the ability to participate and town officials that take time to speak with community members,” Ingraham said in the introduction to her findings.
Town councilors still need to hear resident comments before deciding whether to adopt some or all of Ingraham’s recommendations. A public forum will be held later this month, with a survey open online until July 1.
But in the meantime, Foster already can imagine a future where more checks and balances will be needed for future town leaders, including a town manager.
Ingraham recommended a probationary period for future town managers, for which town councilors would establish the timeframe. She said that a manager’s contract should include “fostering open and transparent dialogue” in the list of job duties.
“It’s disheartening to have to put that into a contract, but unfortunately, people feel the need because of what happened before,” Foster said.
Similar reasons are behind Ingraham’s recommendation that four out of the five town councilors, instead of three, should vote in favor of the fiscal year budget, spending over $250,000, hiring a town manager or renewing any employee contracts for those actions to be final.
In June 2022, town councilors passed a total budget of $7,739,591, which included figures not publically shared in previously recommended budgets. That budget passed with a 3-to-2 vote.
For years, residents had also felt ignored when voicing concerns about the town’s new ambulance service. That budget jumped to more than $1.4 million in 2022 compared to $982,255 in 2020, when the town added ambulance services along with fire.
Residents’ concerns led to town councilors approving a budget advisory committee, consisting of residents who do not work for the town. That group was one of many who pushed for more transparency on town finances.
Now, Foster is proposing an $878,324 fire and ambulance budget, which the council will vote on Wednesday evening. His total town budget proposal for the 2023-2024 fiscal year is $7,420,355, a major decrease from the surprise budget passed last year. If the budget passes, it would include a $1 million tax anticipation note to allow the town to pay off debt by February 2024 and stay caught up on bills, including the county tax.
To allow more public feedback in the budget process and other town matters, Ingraham said that the council should consider putting a comment period at the end of their meetings.
That is something residents have suggested many times before, Foster said. They want to ask questions of councilors after hearing important votes and information, not just before actions are taken, he noted.
“Citizens want the opportunity to be engaged. They have felt that their voices aren’t being heard,” Foster said.
Foster said that community members can view Ingraham’s full recommendations on Fort Fairfield’s website prior to the planned public forum.
