Wiscasset property taxes to rise, but how much?
Wiscasset selectmen went against the advice of their auditor, voting 3-2 to take $1 million from the undesignated fund balance to apply to the 2016-17 tax commitment.
Chris Bachman from RHR Smith & Co. of Buxton recommended selectmen take no more than $600,000 from the $1.7 million fund balance, resulting in a 14.1 percent hike in property taxes. Taking more, he warned, could leave the town short of cash during the coming fiscal year.
A tax increase of that magnitude was too much for selectmen Ben Rines Jr, Jeff Slack and Judy Flanagan to allow. They voted to increase to $1 million the amount to take from the fund balance. Chairman Judy Colby and Selectman David Cherry dissented.
Town Manager Marian Anderson said this year’s town budget, including the operation of the schools and county bill, was just over $11.9 million. The school budget increased $385,000, while on the municipal side the EMS budget rose $191,000. The 2016-17 budget also included $228,234 to pay down the debt for leaving Regional School Unit 12, and an increase in the county appropriation.
Using $600,000 from the fund balance put the town’s mil rate at 18.71 per $1,000 on a $100,000 property, up from the current mil rate of 16.4. Taking no funds from the fund balance would have resulted in a 22 percent increase in property taxes.
Colby said residents had overwhelmingly supported both the EMS and the school budgets.
Rines responded the board hadn’t done a good job explaining what impact the budget would have on property taxes.
Slack quickly seconded Rines’ motion. “I would support going to $1 million. It’s cheap enough to borrow money if we need to,” he said.
Selectmen hope to set the mil rate when they convene at 5 p.m., Monday, Sept. 12 for a planned meeting with the EMS and police departments.
The mil rate is the amount of tax per dollar of the assessed value of a property. One mil represents one-thousandth of a dollar, or $1 in tax for every $1,000 of assessment.
In 2014, Wiscasset’s first year outside Regional School Unit 12, the mil rate was 17 per $1,000 and property taxes rose 4.6 percent.
Property taxes are based on a property’s assessment along with the town’s tax commitment; monies needed to run the town, schools, and for Wiscasset’s share of Lincoln County’s operational budget.
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