ORONO, Maine — With the proposed municipal, county, school and sewer budgets increasing for next year, town leaders are telling residents to expect higher property tax bills.
The current tax rate of $24.40 for every $1,000 in assessed property value is expected to increase by 45 cents to $24.85, Town Manager Sophie Wilson said Monday in a budget summary email.
Those who qualify for the Homestead Exemption will receive an “additional savings of $124.75 on their property tax bill in the coming year (at the projected tax rate),” her email states.
The proposed municipal budget of $8,278,315 for the next fiscal year, which starts July 1, represents a net increase of $380,673 over the current budget, according to Wilson.
“The largest drivers of this increase are related to growing response demands in public safety that necessitated additional staffing ($108,200) and a planned two-year increase in debt retirement costs ($110,000),” Wilson said in her email.
As proposed, the budget “represents a similar service level and capital improvement investment as provided” in the current budget year, which ends June 30, she said.
The council is scheduled to finalize the budget at its June 27 meeting.
The proposed $12.8 million budget for Regional School Unit 26 that residents approved in a budget validation referendum Tuesday is $566,375, or 4.62 percent, more than this year’s budget. Residents also voted to continue the school budget referendum process for another three years.
The Penobscot County budget increased by $10,235 to $539,394.
Sewer rates also are going up, “for the first time in more than five years, in order to ensure appropriate funding will be available,” the town manager said. “The proposed increase of $0.06 [per] 100 cubic feet of water consumption will raise an additional $20,000 per year in departmental revenue.”
The increase would “result in an annual increase of $4.80 for average residential users (2,000 cubic feet per quarter of use),” Wilson said.
Town leaders also are suggesting the Village Center District Tax, which historically has been 50 cents per $1,000 of taxable valuation for property located within the district, be decreased to zero for the coming year. The town is working to eliminate the tax, which is used to reinvest in the designated business district.
“Council will weigh the comments it receives prior to adopting the budget on June 27, 2016, with or without revision,” Wilson said.