Uncertainties about state revenue sharing are clouding the budget process that is just beginning in Westbrook.

On Wednesday, City Administrator Jerre Bryant was between meetings with city department heads, discussing their concerns heading into budget season. However, past the local level, Bryant sees their biggest challenge as “the uncertainty regarding revenue” from the state.

“It seems like every category of revenue that has to do with the state is somehow in question,” he said. “Unfortunately, by the time we have to adopt a final budget, my guess is we’re not going to have many answers to those questions.”

The City Council is scheduled to vote to adopt the fiscal year 2015-16 budget during the first week of May.

Gov. Paul LePage’s proposed $6.3 billion state budget, rolled out in January, would reduce revenue sharing to municipalities, reduce the income tax, increase the sales tax, and allow the taxation of the properties of large nonprofit organizations worth more than $500,000.

Bryant said that, similar to the last few years, municipal revenue sharing is the major problematic piece – some $1 million – but this year, there is more “entwined” with LePage’s proposed budget, including uncertainties in general assistance funding and proposed taxation of nonprofit organizations.

“We may pass a budget with full knowledge that with subsequent state action, we may have to come back,” he said.

Mayor Colleen Hilton’s proposed budget will be presented to the City Council on March 9. Following the initial meeting, the city’s Finance Committee will go through the budget through the month of March.

City Councilor Michael Foley, who chairs the Finance Committee, said Wednesday that he’ll be “looking to minimize any increased spending in an effort to prepare for major challenges ahead involving the state budget proposed by Gov. LePage.”

“This year we will be in a generally manageable position, but not knowing what the future brings, it is important that we understand the potential for major changes in revenue from the state,” he said.

City Council President Brendan Rielly said Wednesday that he’s concerned about LePage’s budget proposals, which he said impose more obligations on municipalities, while cutting revenue.

“I don’t think most people are aware how much of our local budget is driven by the state and federal governments,” he said.

As an example, he said, all speeding ticket money goes to the state, despite the fact that the city pays police officers to issue tickets, pays for their vehicles and gas, and pays officers to go to court, often on overtime.

“It’s amazing to me that we’ve been able to avoid any tax increase for the past four years despite all the cuts in revenue sharing and other cuts from the state,” he said, referring to Westbrook’s tax rate.

This year’s municipal budget of $23,400,605 was up $270,621 from last year, but revenue was also up about $185,000.

Combined with this year’s school budget, Westbrook’s property tax rate remained flat, at $17.20 per $1,000 of valuation. The fiscal year 2014-15 ends June 30.

Rielly, a Democrat, also takes issue with LePage’s proposal to tax large nonprofit organizations throughout the state, an act that could hurt some award-winning programs in Westbrook, such as My Place Teen Center.

LePage was in Westbrook just last week to celebrate the accomplishments of the teen center, and then led a town-hall-style session on the budget at the Performing Arts Center.

Locally, public safety overtime costs have emerged as a budget issue. Between police, fire, and dispatch at Westbrook Public Safety, the city is projecting to spend $340,000 in overtime costs above what was included in the fiscal year 2014-15 budget. The fire department was budgeted $280,000 for overtime this year, but is slated to spend $480,000.

Westbrook Fire Chief Andrew Turcotte is scheduled to discuss the fire department’s overtime at a Finance Committee meeting on Monday, Feb. 23, at 7 p.m. in Room 114 at Westbrook High School.

Bryant said that while the discussion is centered on the word “overtime,” it is really a staffing issue.

“What level of service do we want to support, and are we adequately staffed to deliver that, given the impacts we’ve seen over the last three to four years on the overtime budget,” he said. “For a variety of reasons, we’ve encountered significant overtime expenditures.”

For the fiscal year 2014-15 budget, the city funded four new full-time positions at the fire department, with the goal to cut down on overtime costs. However, union contracts, regulations on staffing minimums, and other factors have played into the difficulties.

The city will use higher than expected revenues, most notably in excise taxes, to offset the overtime costs for this year.