HOULTON, Maine — Taxes are once again on the rise in the Shiretown.
Last year, taxpayers saw a one-mil increase in property taxes, but this year the hit to people’s checkbooks will be even more painful.
Houlton Town Manager Eugene Conlogue told councilors Monday evening that the tax rate for 2013 was rising 1.8 mils to a rate of 21.75. For a homeowner with property assessed at $100,000, the tax bill would be $2,175 (an increase of $180).
The town council does not set the mil rate. Instead, that duty falls on the town’s tax assessor, Laureen Bither. However, the council could make additional cuts to its budget to offset any increase. That option was not discussed at Monday night’s meeting.
Property taxes have been slowly rising in recent years. In 2009, the mil rate was 19.25 and then it dropped in 2010 to 18.45. Over the past three years, it has crept up steadily to this year’s rate of 21.75.
One of the largest factors resulting in the tax increase is Houlton’s share of the RSU 29 school budget. Conlogue said the total increase to the town is $220,911. Reduced revenues from the state are another factor.
Fortunately, the state’s budget did not do away with the Homestead Exemption, which means property owners will be able to claim the credit on their tax bills in 2013.
“The bottom line is, we have a significant loss in revenue sharing for this year, and we are going to see another decrease next year and the year after,” Conlogue said.
In January, when the council adopted its budget, the town estimated its valuation would increase to about $292,000,000 based on new development in the Shiretown. After all the figures were tallied, however, the actual valuation came in at only $284,713,900.
“With all that said and done, we are losing just short of $119,000 in revenue sharing, plus the required additional money for the school, which results in $175,545 extra needed for the current fiscal year,” Conlogue said.
For the second straight year, the council agreed to reduce the Downtown Development TIF District’s and the Airport Development TIF District’s captured assessed value percentage from 100 percent to 66 percent. In so doing, the town is able to use some of that money to assist in minimizing the tax increase.
In recent years, the town has dipped into its undesignated fund balance (surplus) to help mitigate the tax increase. Unfortunately, the town’s reserve account has become “dangerously low” according to its most recent audit.
By setting the tax rate at 21.75 mils, the town should be able to add $134,790 to its reserve account in an effort to start replenishing some of he funds it has taken from the account in recent years.
Only one councilor, chairman Paul Cleary, criticized the tax increase.
“We based our budget on increased revenue,” Cleary said. “We shouldn’t be trying to balance a budget on increased revenues. Losing $119,000 in revenue, we can’t find (places to cut) that? We can’t find cuts to help offset a mil increase? It’s getting to the point where I can’t afford to live in my house anymore.
“When does the average homeowner say ‘enough, here have my house, I’ll go live someplace else?’” Cleary asked. “A 1.8-mil increase is a lot of money. Why can’t we find some things to cut?”
He said several things were brought forth a year ago as places to cut, but those cuts were never made for various reasons.
Councilor John Fitzpatrick agreed with Cleary.
“We do need to start cutting instead of just looking for more revenue,” Fitzpatrick said.
During the public comments portion of the meeting, Houlton Economic Development Director Lori Weston and Houlton resident Phil Bernaiche both praised the community for another successful Fourth of July celebration.
In other agenda items, the council:
• Approved a liquor renewal license for Miriam Zuraik, doing business as The Vault Restaurant.
• Accepted $1,450 in donations from area businesses and individuals as the final payments on the Dallas Henderson Memorial Sign.
• Approved an application for the Aroostook Riders ATV Club for a game of chance poker run on July 27 as part of the Wings and Wheels event.
• Tabled action on a change to the fee schedule for the town cemetery.
The next regular council meeting will be Monday, July 22, at 6 p.m.
