Maine Islands Coalition Minutes November 12, 2004

Present
Sen. Dennis Damon Maine State Senator for District 28
Roger Berle, Chairman Island Representative, Cliff Island
Malcolm Donald Island Representative, Cranberry Isles
Grayson Hartley Island Representative, Islesboro
Mark Greene Island Representative, Town of Long Island
David A. Jermann Island Representative, North Haven
Pat McEachron Island Representative, Frenchboro
Marjorie E. Stratton Island Representative, Vinalhaven
Mark Tierney Island Representative, Little Diamond Island
Alden Finney Great Diamond Island
Malcolm Harrison Cranberry Isles
Eva Murray Matinicus
Joanne Whitehead Islesboro
Garrett Martin Genesis Community Loan Fund
Sherry Churchill Hancock County Planning Commission
Dana Leath Island Institute
Rob Snyder Island Institute
Kathy Westra Island Institute
Alyson Mayo Island Institute Fellow, Islesboro
Cyrus Moulton Island Institute Fellow, Cranberry Isles
Virginia Thorndike Observing Author, Belfast
Tele-conference
Rep. Hannah Pingree: Maine State Representative for District 36
Donna Damon Island Representative, Chebeague Island
Charles Enders Peaks Island

I. Maine Islands Coalition Membership/Organization for the Future

A. Membership

The group discussed the need to redefine who makes up the membership of the Coalition. Matinicus and Isle Au Haut still do not have a representative.

B. Attendance Options

In order to maintain legitimacy, the group discussed how to deal with substitute representatives. The idea was discussed of having each island elect a second person as a substitute in case the primary representative cannot attend the meeting. Mark Greene said that having a backup person was a great idea -he'd rather have someone representing each island than have an island go without representation if an original
representative couldn't participate. Roger Berle asked if people felt they should go back to the groups that appointed them and ask for someone else to be appointed, too. Mark Greene felt that it made sense at future meetings to have alternate representatives come with the primary representative in order to familiarize everyone with the Coalition. Roger Berle felt this would legitimize alternate representative,
though Malcolm Donald felt the process would become more bureaucratic. Mark Greene commented that each primary representative could find someone he or she trusts to go to the meetings. Leaving it more flexible to the islands might make it more likely that people come, Mark
Tierney pointed out.

Although she had no objection to any change, Marjorie Stratton pointed out that the Coalition had previously decided that the Boards of Selectmen would appoint the Coalition representatives and did not discuss alternates. Mark Greene expects his town would appoint someone new if he could not make it -he would like someone he trusts from Long Island to attend who is still a representative and responsible.

Roger Berle asked if the Coalition should just leave it alone, and Mark Greene proposed that if a representative cannot make it, then that representative should send a trustworthy substitute, but the elected member is still the representative. All agreed that this was fine.

C. Voting

The issue of whether the substitute can vote was brought up by Dennis Damon. He said it was important that people at the table were chosen by the community. It also is not good to leave a community out of a vote because someone cannot attend the meeting and the substitute cannot vote. David Jermann said that because it is a volunteer position, it is difficult to find substitutes. He would like to just tell his select board
when he cannot attend, and not have to find a replacement himself.

Malcolm Donald had been told by his town that he can't vote at Coalition meetings anyway because the town would not have voted on the issue yet at a public meeting. Many members felt this was a bit odd, and Marjorie Stratton said that the Coalition is an advisory board that does not have legislative power.

Some representatives were appointed by their neighborhood association while others were appointed by the selectmen. Mark Greene said that he is not worried of his vote at a Coalition meeting going anywhere if the town did not want what he did. At the Coalition, he acts as a private citizen. He hopes his town appointed him not because of a political position he might carry, but because he would bring a reasonable
position for the community. He told Malcolm Donald that he has been appointed a vote. Rob Snyder added that some decisions may require going back to the community, but some could be made at Coalition meetings. He felt there was some flexibility.

Malcolm Harrison proposed that the group reaches some type of consensus and then goes back to the communities to get authorization to make a vote. Pat McEachron and Malcolm Donald felt that would be a very slow process. Roger Berle felt the group should blast ahead as representatives of island organizations as a group that has a voice.

Mark Greene pointed out that he wanted the substitute that he sends to be able to vote, while Pat McEachron felt that her Select Board should determine the substitute. Roger Berle proposed one vote/island at the table. Garrett Martin asked if people can attend Coalition meetings as observers. He realized that notes and minutes are on the website, but wanted guidance on where else to direct people. Berle replied that people
can come and observe, but when it comes time to vote people must be careful who they count. Most members were okay with this.

II. Approval of minutes from 7/30/04

Motion: Mark Tierney made a motion to accept the minutes of the last meeting, seconded by Marjorie Stratton. All in favor.

III. Genesis Community Loan Fund-Garrett Martin

Garrett Martin of Genesis Community Loan Fund in Damariscotta gave an overview of the organization. He said that the organization makes loans to bridge the gap between what people receive for funds and what they actually need. The group has worked with Islesboro Affordable Property and the Boardman Cottage on Islesboro, and wants to focus even more on island communities and make them aware of Genesis's resources. In August, Genesis released a video entitled "Against the Tide" which focuses on the challenges of long term sustainability of community's population base and what solutions have been attempted. The video is the launching point for Genesis, Island Institute, The Maine Community Foundation and Maine Sea Coast Mission to bring a pool of money for island housing and facility projects. By December 9th, Jane's Trust, a foundation in Boston should announce the outcome of the review process.

Garrett Martin wanted to make the Coalition aware of this effort because he has heard from island communities. He said the islands are very aware of their issues and good at getting resources, but that there's more potential for a bigger pool of money if the islands work together. Genesis is looking for seed money from Jane's Trust to support this type of project. Garrett made sure that people had copies of the
"Against the Tide" video.

IV. Affordable Housing -Joanne Whitehead, Islesboro Affordable Property

Joanne Whitehead proposed having the Coalition help the islands look at Affordable Housing as a whole and to use a systematic approach instead of small pieces on individual islands. Roger Berle felt a subcommittee of the Coalition would be a good way to address this. Rob Snyder added that Jane's Trust is very interested in the Coalition and that Jane's Trust would see this as a positive move. Rob feels the group
should take up this effort. Roger Berle said that focusing on affordable housing further legitimizes who the Coalition is and what it does, and asked the group how to go about it.

Mark Greene felt affordable housing was tied into the Coalition's mission and that it should be an ongoing agenda item. Joanne Whitehead said that affordable housing goes beyond an agenda item and in order to really research the situation and to look at the issue as a whole. She felt that the islands might be able to work together and use the Coalition as a means of getting a better financial break.

Mark Tierny proposed that the group establish a subcommittee.

The Affordable Coast meeting touched upon this issue and Mark Greene mentioned that information from that meeting could be applicable to affordable housing. He felt the group should do some concrete thinking on actionable items to do in the future.

The question of what the Coalition would be doing was brought up by Malcolm Donald. He felt that a lot of issues start up and go all over the place and felt addressing the process and how the Coalition takes care of options would be a good topic to cover. Roger Berle said that the group should take it as far as it makes sense today, and then have an action plan for going forward -having a subcommittee tackle it.

Rob Snyder mentioned that Hannah Pingree was on the telephone and could enlighten us on the legislative side of affordable housing issues and if there was any current legislation on the topic, and if not, if something needed to be proposed.

Hannah Pingree said that affordable housing is in an upcoming bond, but islands are often not eligible. She asked how money can be raised for affordable housing. She knows several islands have done good projects. Legislatively, options include an increase in real estate transfer tax (such as on Nantucket) and a "mansions tax." Home sale values generate 1 or 2% tax and you can designate the revenues for affordable housing or property tax relief.

Rob Snyder asked how these taxes compared to a land bank. Roger Berle said that the one on Nantucket was implemented for conservation purposes, not affordable property. Hannah thought splitting funds could work-towns can use funds for property tax relief or affordable housing. Joanne Whitehead mentioned that on Block Island, they enacted a 1% summer rental tax that went directly to affordable housing. Hannah
said that this was not an option with the Maine Constitution. You have to tax all property at its higher and best use. Many towns want a local option sales tax -local communities have no ability to tax outside of property taxes which are all at the same rate.

Grayson Hartley suggested establishing a subcommittee interested in researching this topic to report to board on findings as an agenda item at a future meeting. The board could react and vote if necessary.

Motion: Grayson Hartley made a motion to set up a subcommittee to work on and research the affordable housing issue, seconded by Mark Tierney. All in favor.

V. Tax Reform

Mark Greene asked for a straw vote on whether a 1% tax was worth pursuing.

Dennis Damon said if they knew what constituents felt, perhaps it could provide an impetus for moving forward on it. David Jermann feels that North Haven would be in favor of it, though he is not personally. Mark Tierney, Mark Greene, Pat McEachron, and Roger Berle all favored it. Marjorie Stratton wants more information, including specific language before she makes a decision. The Coalition unanimously decided
it was an idea to consider.

Dennis Damon mentioned the pressure on islands and coastal communities by increasing property taxes are forcing people to move more and more inland. Donna Damon mentioned that Chebeague is having another property revaluation and has heard of a possible 50% increase. Some people are already paying $10,000-$15,000 for family land. Charles Enders said that if the state continues to have property value be the basis
for tax assessment and tax bills, it will put increasing pressure on island communities. The goal is to reduce pressure on traditional island communities (one that recognizes the importance of long term residents) so looking at something less shocking than property values would be beneficial; Charles suggested basing it on income.

Marjorie reminded the group that the Coalition thinks of tax reform in its impact on coastal and island communities, but tax reform has to be good for the whole state. It can't just pinpoint and be good for coastal communities. Donna Damon mentioned that a local option could get around that. Hannah Pingree said that having something work for the entire state is the number one barrier to passing property tax relief. Charles Enders said that Maine residents need to get their representatives to move toward the center, as opposed to going to extremes, not getting anywhere, and having another citizen initiative develop. Donna Damon felt an increase in sales tax by 1 or 2% would decrease property taxes, but a lot of different parts need to come together to decrease property taxes. Grayson Hartley commented the most costly item is the county tax and we have no control over it. With increased state valuations taking place every year, more and more costs will go to taxpayers. Nobody wants to talk about it. He asked what could be done statewide to reform county government to get it back to the people? Waldo County had four to five meetings for a $5,000,000 budget. Nobody goes to the public meetings -and the budget passes. Island communities are getting clobbered by county government and need to look at it in terms of reform.

Dennis Damon felt that what people pay needs to be reviewed. County government does little with property, but does a lot with regards to your person. Different towns in the same county pay drastically different amounts (e.g. in Hancock County Cranberry Isles paid $127/person while Aurora residents paid $19/person), with islands usually receiving less services. Since property valuation is so high, some believe
islanders have more money to pay higher county taxes, which is not true. Inland communities with ponds and lakes suffer from this higher county tax burden as well. Islesboro and Mount Desert Island both want to secede from their respective counties due to the high county tax level they pay, but Grayson Hartley doesn't think seceding is the way to deal with it. He feels regionalization could work.

Dennis said another problem with taxes and laws is the practice of having one government level direct another level to do something, and then have another level pay for it. If the state requires incarceration of state laws, the state should pay for it, not municipalities.

Hannah Pingree mentioned the need to look at all the taxes --local, county, and state. Charles Ender mentioned that Maine is #2 in the nation for overall tax burden -taxes are a very high percentage of income. The sales, income, and property taxes are not balanced, and wondered if it made sense to make each tax 1/3 of the total tax amount.

Tax relief could come from expanding taxed services in Maine. Many are exempt now (movies, ski lift tickets, haircuts), and there is talk in the legislature of expanding services. There is a lobbying force behind all taxes, though.

Dennis Damon commented that sales tax could stay at the same percentage or decrease if taxed services were increased. Even raising sales tax 1% (back up to 6%) could have brought $122 million into the state - it would have paid for schools and additional money for the circuit breaker.

Hannah said the best action is people contacting legislators and weighing in on tax reform issues. Show up at public hearings, email, and call representatives. The more islanders can weigh in, the easier it will be to reform taxes.

Dennis Damon advocated for balance of taxes. Currently, the percentages are close to sales tax bringing in 24%, income tax with 34%, and property tax with 43%. Increasing sales tax and reducing property tax could make it fairer, and he will press for this in the upcoming legislature. Also, the three levels of government have redundancies. One way to look at that is to permit an intergovernmental advisory group and have the three levels sit at the table to see their cost efficiency in purchasing and addressing problems.

Some Coalition members felt a PSAP (public safety answering point) could help reduce taxes. Hancock County has two PSAP's because they want them, not because they need them.

Charles Enders agreed with Donna Damon that sales tax on meals and lodging would not keep people away from visiting Maine, but that it would hit the Maine population. Donna felt that most people wouldn't forego a purchase on something because sales tax is 1% higher. Charles felt that increasing the sales tax to fix the high property tax issue might just make sales tax out of whack instead of the property tax. He felt
balancing them as much as possible was a good idea. Also, incorporating efficiency mechanisms into the government, and providing incentives to do so (as businesses do) could help to reform taxes.

Dennis Damon commented that increasing sales tax and its exportability to people coming to Maine will diminish if Maine's environment changes a lot -if we allow activities that take away from Maine's scenery, heritage, and coast. Environmental degradation will keep people from coming here and are that is the type of thing to look at for the long term. A 1% tax doesn't matter.

Pat McEachron brought up Proposition 13, and how it made student to teacher ratios increase significantly. She felt that as part of a School Administrative Unit (SAU), Frenchboro's portion was in line with other schools at first. As the centralized piece grew larger and larger, Frenchboro kept getting the short end of stick because mainland services were not available to those on Frenchboro. Pat recommends looking at
what percentage of services islands receive when they decide on a funding formula.

It is difficult for islands to consolidate. Mark Greene was thrilled when Long Island became a town because the state did not force their school to consolidate. The school is part of the town meeting budget. If an island school consolidates, they get their part back and have no control over it. He is not against consolidation, but it does not always save money as many think.

VI. Impact of land conservation on the islands

Pat McEachron brought up land conservation and how it is significantly affecting Frenchboro (which consists of seven islands with one inhabited by people). Maine Coast Heritage trust owns 900acres and 3 miles shore frontage and does not pay the full tax rate. 250 acres are under a conservation easement to Acadia so they pay a lower tax rate. Of the six uninhabited islands, more than half of the land is owned by tax-exempt organizations, or is under the tree growth formula. The increase in land conservation and lack of incoming taxes is becoming more and more of an issue and is affecting the Town of Frenchboro's tax base.

Although property valuations exempt portions of land when the town is assessed to allow for more realistic property valuations, Frenchboro is still left with reduced taxes to fund basic town functions. Pat wondered if there was anything to help municipalities with issue.

Several island representatives at the meeting felt their communities have too much property on the open market and are supportive of land conservation, so no one had suggestions on how to deal with this issue. Mark Greene commented that having undeveloped land it is a problem many in southern Maine would love to have.

Pat commented that Maine Coast Heritage Trust (MCHT) has been helpful with a tax base of $100,000. Anything can impact the town significantly. The salmon pens provide 10% of Frenchboro's tax base, so if they were to close down, it would greatly impact the town. The Nature Conservancy and Audubon pay taxes at a reduced rate, and non-profits are not paying any. Rob Snyder thought MCHT was going to release land to the town for affordable property to counter this specific problem, but it hasn't happened yet. Pat wondered if the state could help places that have small tax-base because of non-taxable land. Dennis Damon commented that it was a fairly complicated issue.

Rob Snyder commented that tremendous amounts of the coast are in forest management that is not being managed and wondered if anything was anything underway to scrutinize that policy.

Marjorie Stratton commented that on Vinalhaven, MCHT just put the land under forest management and never submitted tree growth plan. The town tried to follow the letter of the law (Tree Growth Law) and gave the trust a penalty. The town of Vinalhaven fined MCHT $130,000 for not submitting their plan.

VII. Solid Waste Issues, Sherry Churchill, Hancock County Planning Commission

Sherry Churchill works with Hancock County on solid waste management and recycling, and also works with the Maine Resource Recovery Association. She announced the yearly conference for state stakeholders which will take place May 2-3, 2005 at Atlantic Oaks in Bar Harbor. She plans to have a halfday dedicated to island issues and to provide a space to share problems and ideas unique to island
communities. Sherry requested input from Coalition members on what their islands were doing for waste management in order to put it in a database. She also wanted to know how she could cater the conference to islanders. She would like input on what to include in the 2 ½ hours of the conference dedicated to island issues. She is especially looking for creative ideas that have worked on the islands, and what people are doing related to waste management and who is paying for it. Dana Leath will follow up with island representatives to
collect this information and then will share it with Sherry.

VIII. Cost of Living Study

The Cost of Living study discussed at the last meeting was brought up by Dana Leath. The subcommittee consists of Doug Boynton, Charles Enders, Garrett Martin, and Marjorie Phyfe. The subcommittee is tasked with exploring the feasibility of an island cost of living study and identifying what question the study is trying to answer. Garrett Martin has not had a chance yet to follow up with state legislators about
what data is needed. Roger Berle re-volunteered the subcommittee and prompted them to move forward.

IX. Internet Access

Malcolm Harrison commented that island internet access is inferior to mainland access, and that job opportunities would dramatically increase if high speed internet access on islands was improved. He spoke with the University of Maine and said they were responsible for establishing state-wide internet service to university schools, libraries, and research institutions. He is interested in pursuing this, but recommended
that the Coalition develop a comprehensive plan for all the islands to present to the university. Dennis Damon commented that there is a certain convenience to high speed internet access, but that the issue goes beyond that. As we look at the state picture of economic development, transportation is not just roads and ferries -it's also data transportation. He feels this would help sustain the islands. Dana Leath will follow up with island representatives for a computer tech contact from their community interested in discussing this issue.

XI. Working Waterfront Coalition

Rob Snyder stated that the Working Waterfront Coalition is working to get a bond passed for $20 million to help coastal organizations bridge the gap of economics for fishermen over five years. They are reaching out to farming and forestry to gain friends and support in other areas. Building a coalition with those other groups will widen the base of support.

When Rob was asked what the Coalition could do to help, he shared that a letter of support would be great. Rob commented that Dennis Damon's and Hannah Pingree's support helped them to get as far as they have gotten.

Motion

Roger Berle asked for a motion for a letter of support for the Working Waterfront Coalition, seconded by Malcolm Donald.

XII. Subcommittee for Affordable Housing

Dana Leath proposed having an island representative chair the subcommittee and then other interested island residents, who either are or are not island reps, could be part of the subcommittee. Rob proposed someone from Island Institute and Genesis be on the subcommittee. Roger Berle felt that three to five people would be a good amount of people to have on the subcommittee.

Marjorie Stratton wanted someone from Vinalhaven to be appointed by the select board for the subcommittee, and Joanne Whitehead wanted to ask the Town of Islesboro to appoint her to the subcommittee.

Roger Berle said that the chair of each subcommittee will make sure that there's a sign of progress once a month and will email the Coalition an update on progress.

XIII. Next Meeting

A. Agenda

Grayson Hartley felt that having so many agenda items (fourteen on the draft agenda) was overwhelming. He thought three to four items would be appropriate along with an "other" category. Mark Tierney requested property revaluation as an agenda item for the next meeting. Joanne Whitehead mentioned winter employment on islands as an important issue to address.

Rob Snyder asked for requests for guest speakers. David Jermann commented that he liked having State representatives at the meeting. Mark Tierney suggested that the governor attend the meeting.

B. Next meeting date

Friday, February 4, 2005, 10:00am-2:00pm at the Island Institute
Minutes prepared by Alyson Mayo, Island Institute Fellow, Islesboro