A resolution passed by the City Council in September pledging 100 percent of all new state funding to tax relief has been looming over the budget debate in Westbrook.

Now that the council is faced with city and school budgets that propose to use at least some of that additional funding, councilors have different opinions as to the intent of the resolve and how much of the extra money could go to tax relief.

Splitting along party lines, Republican councilors said they believed the intention of the resolve was to spend all addition state money directly on tax relief. However, Democratic councilors said they didn’t belief the resolve was a mandate to flat fund the city and school budgets.

“That pledge was a recommendation that we are working to reduce taxes wherever we can,” said Councilor Brendan Rielly. “None of this is being treated as found money and being used for new things.”

However, Councilor Gary Groves said he strongly believed that the council made a promise to the residents in September, and he wants to see that promise kept. He said he believed the council needed to cut the school and city budget by $2.1 million to make sure the council’s promise is kept. He said he was not sure where those cuts would come from.

“I just feel we made a commitment to the community of Westbrook,” Groves said. “We made a commitment that we were going to take the funding and that 100 percent of it was going to go back to tax relief and I’m not changing my position on that. I feel we owe that to the community.”

“The Westbrook City Council publicly and forcefully declares its intent to dedicate 100 percent of the new funding made available to the city as a result of the passage of referendum Question 1 directly to the reduction of the mil rate for its citizens and businesses,” read the resolve passed by a 6-0 vote by the City Council. Council President Jim Violette was absent from that meeting.

While the School Committee did not pass a similar resolve, School Superintendent Stan Sawyer was present at the meeting, and he said he supported the council’s actions. “I strongly support that the money is turned back to the citizens,” said Sawyer.

In January, Westbrook learned that the city would be receiving approximately $2.1 million in additional state aid to education. Sawyer has proposed using $980,000 of that money for school spending, while returning the balance to the city for tax relief.

Mayor Bruce Chuluda, who in November issued a directive that all budgets in the city be flat-funded, said he still strongly feels that all of the extra state money should go to reduce the city’s tax rate.

Councilor Drew Gattine said he believed the intent of the resolve was to promise the residents that the money would not be spent on new programs. “I don’t think that resolve put the school or the city on warning that they needed to be flat funded,” Gattine said. “We cannot deliberate considering we have an extra $2.1 million to spend. But I think we should spend the money to fund the city and the schools adequately.”

Increased costs for salaries and benefits have led to the need for some of that extra money to be spent on things other than tax relief, Rielly said. “There are costs we can’t contain,” Rielly said. “The only thing that would prevent us from reducing the tax rate lower is the cost of keeping the employees we have.”

Rielly said he believed the council could fulfill its promise simply by taking the $2.1 million in additional state money and applying it directly to the current tax rate. Doing that would lower the city’s tax rate $1.75 from $23.76 to $22.01. Then, the council could consider the city and school budgets starting from that new tax rate.

Like Rielly, Violette said he would like to see the council apply the $2.1 million directly to the current tax rate and then consider the city and school budgets afterward.

The combined budgets would increase the tax rate, Violette said. But when all was said and done, the city would still end up with a lower tax rate than last year.

“This way, we would send a clear resolution to the taxpayers that we did what the resolution stated,” said Violette.

Rielly said the end result would most likely be a smaller tax decrease. “My goal is to have about a 40 cent reduction on the tax rate,” Rielly said. “I think we can do that and still have functioning departments.”

Councilor John O’Hara agreed with Groves and said the money should be used solely for tax relief. “I think the resolution had the good faith of the council and the School Department,” he said. “Now that the funds are here, I clearly think there’s division among the two sides where that money should be spent.”

O’Hara said he understood the cost of education, but he added he was concerned about the effect of rising taxes on senior citizens, and he wanted to provide them with some tax relief.

“Every citizen in Westbrook does not have a student in the school system, but every homeowner is a taxpayer and I think this time around they should see some relief from that money,” said O’Hara. “Clearly, the senior citizens of this community deserve this break this time around as all homeowners do.”

Groves said it was important that the council keep its word and use 100 percent of the money for tax relief. He said if the money doesn’t go to property tax relief, it could spur citizens to petition for another tax cap bill similar to the Palesky bill that was rejected by voters in November.

O’Hara said he wanted to send the school budget back to the School Committee for them to identify more areas to cut the budget. He said both the schools and the city are going to have to find things that they can live without. “All of us are going to have to do more with less,” he said.

During a meeting Monday night, Councilor Ann Peoples said while she wanted to see property tax relief, she did not want to see the school budget cut to the point that it affected school operations.

“I very much believe the intent of LD 1 was to return the money to the community,” she said. “I believe that we need to provide property tax relief to the citizens, but I also don’t think that we ever imagined we would cause the School Department not to get what is obviously necessary for them to continue operating.”

Councilor Suzanne Joyce said she has been struggling with the issue. “I am doing everything I can so we will have a decrease in our tax rate,” Joyce said. “I voted for that (resolution), and I’m responsible.”

Joyce said she believed as much money as possible should go to tax relief, but she was not sure where the city and school budgets could be cut to do this. “I don’t know how school can go down another million,” Joyce said. “I challenge anyone to show me how to do that without jeopardizing our programs and our students.”

Sawyer said the School Department is faced with approximately $900,000 in increased costs for salaries and benefits this coming year, and it would be impossible for the school to be flat-funded without drastically effecting programs and personnel.

Sawyer said the current school budget would provide $875,000 to the city for tax relief. “We’re certainly making efforts to pass on as much money as we can,” Sawyer said.

Chuluda said he is firm in his belief that the money should go to tax relief. “I truly believe that while our education system is important, we can’t continue to pile increased costs and expect our entire population to support that,” Chuluda said. “I need to worry about everyone in the city. I truly believe that there are plenty of people out there who are supportive of the position I’m taking.”

No matter what happens with the extra money, Rielly said he felt residents would have lower tax bills this year.

“At the end of the day, I think you’re going to see a tax decrease,” said Rielly. “That’s my goal, and I believe we’re going to accomplish it.”