Simko said he sees this avenue of funding as better than using property taxes, which is what some residents plan to propose since the state reimbursement from snowmobile registrations has fallen short of rising costs. Many larger towns across the state, including Millinocket, Rangeley and Carrabassett, raise funds locally through property taxes to help their trail grooming programs.

The use of the penalty funds, however, would not affect the mill rate because it’s "new money," Simko said recently.

Maine’s Tree Growth Tax Law allows landowners with 10 or more acres of forestland to be assessed at a cheaper rate based on the productivity value of the land rather than fair market value. Removal of the property from the tree growth program, however, results in a penalty, which is paid to the town.

Many of the trails of the Interconnecting Trail System are on land in the tree growth program. If that land is removed it could affect future use of the trail system, according to Simko. With that in mind, town officials, who believe it would be an appropriate use of the penalty funds, plan to seek approval from residents at the annual June town meeting.

Regardless of how the recreation is funded, town officials and local businesses recognize that more funds are needed to continue the winter sport that pumps thousands of dollars into the local economy.

"This industry directly or indirectly benefits everybody in the area," Craig Watt, president of the Moosehead Lake Region Chamber of Commerce, said Wednesday. Snowmobiling has a ripple effect in the community from jobs to the hospital. "It is the driving force in the winter economy in this area."

Watt said the mechanism used by the state to fund trail grooming is outdated and flawed. It no longer can be continued on the backs of volunteers with the amount of funding the state now makes available, he said.

Bob Hamer, the Chamber’s executive director, also sees a correlation between snowmobiling and the local economy. "We believe snowmobiling is part of the solution in how businesses can survive each year," he said Wednesday. "Without a commitment from the town and businesses, it’s not going to survive." He said some businesses that benefit from snowmobiling have contributed much out-of-pocket funds to trail grooming including the owners of Pittston Farm, Kokadjo Camps and Trading Post and Wilson’s on Moosehead Lake. Marie and Fred Candeloro of Kokadjo spent about $35,000 this year from their own pockets, he said.

Recognizing this commitment, Hamer said, "The Chamber does think it makes sense for the town to step up and help fund both the tourism market and snowmobile trail grooming." Two-thirds of the Chamber’s members say they depend on snowmobiling to have a positive bottom line, Hamer added.

This was the first winter the town had contracted with a private firm to do the trail grooming, at a cost of $26,181, the amount the town receives from the state for trail grooming. The town also transferred to the firm, run by Lauri and John Waitkus, two older snowmobile trail groomers that had a combined value of about $8,000.

But with the amount of snow this season and the rising cost of fuel and parts, actual expenses far exceeded the amount paid to the Waitkuses for the work. The couple, who hired and paid local people to groom the ITS, said they spent about $80,000 for trail grooming and equipment repair this season. The extra cost, they said, was absorbed through the profit they made on their Massachusetts-based business, N.E. Bridge Contractors Inc., which provides rigging and inspections for bridges.

In an effort to help offset the costs, the Waitkuses purchased a new snowmobile and raffled it off, donating the funds to the program.

"This is not a money making proposition," Simko said of the trail grooming program. "They’ve [Waitkuses] put a lot into it and it’s been a very expensive winter for them," he said.

While the Waitkuses said they would consider providing the service again next year, some discussion will be needed between them and the town about finances first, according to Lauri Waitkus.

Simko hopes the town can continue the relationship with the couple. "Most of the reports about the trails have been excellent," he said. "The final product is superior to previous years in my opinion." To continue to have the trails in good condition, there has to be more money pumped into the program and the penalty funds would help, he said.

The only drawback in using tree growth penalty funds would be not knowing from one year to the next what, if any, funds are available, according to Simko. In some years, there may not be any penalty funds and in other years there may be a significant amount, he said.

"It think it’s an appropriate way to help the program," the town manager said.
"This content originally appeared as a copyrighted article in the Thursday, April 03, 2008 edition of the Bangor Daily NEWS and is used here with permission."