BREWER, Maine — Brewer City Councilors are expected to vote on a budget next month that includes a nearly 3 percent increase in the property tax rate to help the city offset a large loss in taxable value.
The council will consider approval of a nearly $12.5 million fiscal year 2016 budget during its meeting on June 2. The budget is a roughly 1.4 percent, or $177,000, increase over the current one.
Brewer completed a city-wide revaluation, its first since 1960, last year. It resulted in a $10.7 million reduction in the city’s taxable assessed value, meaning a loss of about $224,000 in tax revenues, according to City Manager Steve Bost.
In response, city officials proposed to increase the mill rate hike to offset the lost revenue. Brewer held its taxes flat in the previous fiscal year.
If approved, the budget would increase the mill rate from $20.92 per thousand dollars of property value to $21.52. This means that for a $150,000 home, the taxes would increase from $3,138 to $3,228.
The city’s sewer and water rates will remain steady.
The city saved money in some areas, reducing the tax rate increase, according to Finance Director Karen Fussell. For example, the city has seen low claims for General Assistance, which allowed officials to reduce the service to part time.
On June 9, Brewer voters will hit the polls to approve or reject the Brewer School Department’s $20.9 million budget for the coming fiscal year. The Brewer School Department was eyeing cuts in April, facing a projected $248,000 budget shortfall. After meeting with Superintendent Jay McIntire about the possible cuts, municipal officials decided to increase the funding for the school department to avoid the reductions. That decision also contributed to the increase in the city’s mill rate.
Also featured on that ballot will be two proposed charter amendments.
One would eliminate the requirement that the school superintendent live in the city. Proponents argue scratching out the requirement will make it easier for the city to find a viable candidate for the job when the current superintendent’s contract expires. The residency rule was approved by voters at the ballot three years ago.
The other would create a provision in the charter that allows for school committee members to be recalled. A recall option already exists for city councilors. There has been some controversy surrounding the Brewer School Committee this year resulting from its decision not to renew McIntire’s contract.
In each of those charter amendment votes, a minimum of 30 percent of the voters who cast a ballot in the last gubernatorial race need to show up to vote. About 4,200 Brewer residents voted in the last election, so for the charter amendments to pass, a minimum 1,261 people need to vote, according to City Clerk Pam Ryan. If fewer people show up, then both charter amendments will fail even if a majority of those who cast votes support the measures.
The school budget vote is a majority decision and does not rely on a certain number of voters getting to the polls.
Follow Nick McCrea on Twitter at @nmccrea213.