Caribou considers its own stimulus package for employees, local businesses
Courtesy / City of Caribou
Caribou, in Aroostook County, may give $500 bonuses to city workers for use at local businesses.
As governments everywhere try to resuscitate critically ill economies, the city of Caribou is considering an injection of cash that may benefit its workers as well as local businesses.
The City Council on Tuesday took up a proposal to pay as much as $40,000 in bonuses to municipal employees, but with a requirement that they spend the money at Caribou-based companies. Employees who worked full-time in 2019 or 2020 would be eligible for $500 in gift cards valid at the merchants; part-timers would receive $250.
To receive the one-time fringe benefit, a qualified employee would choose a variety of gift cards from a list of over 300 businesses providing them, according to a city memo.
The bonus is intended “to show appreciation to employees for their work and help the local economy” during the pandemic, City Manager Dennis Marker wrote in the memo.
Caribou, the second-largest city in Aroostook County, has a population of 7,600 and spends about $10 million annually on municipal services. But Caribou tightened budgets in 2019. Departments reduced expenses by over $200,000 and increased revenue over projections by $156,000.
Much of the resulting $300,000 surplus was earmarked for a rainy-day fund and to offset future taxes, but the council wanted to use some money to say thanks to city employees. Then the coronavirus outbreak occurred. Like other Maine cities and towns, Caribou has found itself grappling with the pandemic’s economic impact.
Although he’d like to consider surplus bonuses as an employee incentive in the future, Mayor Mark Goughan said, the current payout would also provide a business boost for Caribou.
“We’re not setting policy. This is a one-time deal,” he told the council. “Thus the name [for the bonus] ‘stimulus package.’”
Tuesday’s discussion of the package was a first reading. The council may vote on the measure at a May 4 meeting.
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