AUBURN — The city’s fiscal year 2013-14 budget remains unsettled after a lengthy City Council discussion Monday night.

Councilors managed to settle their Capital Improvements Plan budget at their regular meeting, slashing $594,000 in engineering work, vehicles and city maintenance. Those cuts won’t affect the bottom line this year, but will reduce debt payments the city will make next year.

But in their efforts to pare down their future debt, councilors pushed a handful of things back onto their 2013-14 fiscal year operating budget, namely, window repairs and asbestos removal at the Hasty Gymnasium.

The final result was an proposed property tax rate of $21.42 per $1,000 in property value, or a $275 increase on the annual taxes for a $150,000 home.

With the promises of more budget maneuvering coming at their June 17 meeting, councilors approved that budget on first reading by a 4-3 vote. They then tabled the remaining items on their regular agenda — allowing outside vendors to sell beer at the Liberty Festival and discussion about a city ambulance service — and called it a night just before 11 p.m.

Councilor Mary LaFontaine said they’ll take the budget up again June 17, when they can actually do something. One of the biggest questions about the budget should be settled next week, when a proposed 6.9 percent school spending increase goes to the polls. If voters approve on June 11, the school budget will increase to $38.4 million for the 2013-14 fiscal year — a potential 11 percent property increase for the schools.

“All of our cuts will come after the school budget is settled,” LaFontaine said.

Councilors had already negotiated their budget for city services such as police, fire and public works, down from the $930,000 spending increase first proposed in April to a $610,000 spending increase.

Much of Monday’s discussion centered on the capital plan and proposed borrowing. Councilors Leroy Walker and Tizz Crowley offered 20 amendments aimed at reducing the proposed $6.9 million borrowing plan.

“Whether we call it CIP, bond money or what you call it or where you pull it from, you’re just shifting it from right to left,” Walker said. “In my opinion, we’ll save money if we make these cuts.”

Councilors agreed to trim $150,000 to evaluate retaining walls around the city, $75,000 in maintenance work at the Mechanics Row Parking Garage, a $14,000 project to remove a heating oil tank at the Hasty Gym, plans to purchase street sweepers and dump trucks and a $55,000 plan to upgrade traffic signals.

Councilors also voted to adopt a policy to require all city vehicles be garaged in the city limits at all times. That would stop city employees from taking city vehicles home.

Those cuts trimmed that borrowing package from $6.5 million to $5.91 million, and councilors approved it by a 5-2 vote, with Councilors Crowley and Belinda Gerry in opposition.

One of the more controversial parts of the budget discussion had little to do with strict spending and more to do with future policy. Councilors defended an amendment to the budget that would require efforts to bring rail to Auburn be focused on bringing it downtown instead of near the Auburn Lewiston Municipal Airport. Councilors voted to add that requirement to the budget at their last meeting and they reaffirmed that decision Monday.

Chip Morrison, president of the Androscoggin County Chamber of Commerce, urged councilors not to close the door to any proposal.

One plan, promoted by the Maine Rail Transit Coalition, would send passenger rail from Portland to the Auburn airport before continuing north, to Bethel and on to Montreal.

Another option would be to run passenger service alongside the freight service on the Pan-Am rail lines between Portland’s Transportation Center north to downtown Auburn.

“I don’t believe those two ideas are mutually exclusive,” Morrison said. “In fact, they might be complementary in the long run and may be able to move forward at the same time.”

But others said it’s time to focus on bringing the train downtown.

“I think siting the rail downtown would be a statement,” said Jeremiah Bartlett of 107 Shepley St. “It would be drawing a line in the sand and then saying this is it, this is enough. We are going to invest in our downtown.”

Councilor Mary LaFontaine moved to reconsider the councilors’ earlier budget amendment, but only she and Councilor Robert Hayes supported that change.

staylor@sunjournal.com