LUDLOW, Maine — A tax increase is likely on the way for residents following last Tuesday’s annual town meeting.
According to Town Manager Diane Hines, a group of 21 voters approved a total municipal budget of $260,836, which is an increase of $10,317 (4 percent) over last year. Selectmen will set the mill rate at the Wednesday, Aug. 10 meeting, but Hines said the taxes will likely be going up because of the increased budget.
At $55,000, the General Government account is an increase of $5,000 over last year. Hines explained that increase was due to additional meetings selectmen will be required to attend as part of the town’s withdrawal process from SAD 70, as well as a 2-percent raise for the town manager.
General Government had been funded at $50,000 for the past three years (20013-15). Prior to that, it was set at $55,000. Hines added she agreed to cut back her working schedule by four hours to 28 hours per week as a cost savings measure for the town, but it also means fewer hours that the town office will be staffed.
By a vote of 34-28, residents also narrowly approved a 15-year loan in the amount of $185,000 through the USDA Rural Development fund to rebuild gravel roads and pave the Ludlow Road west of the French Road. That construction work is expected to begin in the near future.
One item that generated significant discussion at the town meeting was an attempt by residents to resurrect a plan to give a 5 percent discount for early payment of property tax bills.
However, because that item was not a warrant article, included in the printed town report, that discussion and vote to implement never should have transpired, according to Hines.
During discussion on Article 4, which read “To see if the town will vote to determine the rate of interest on taxes and the date interest begins.” Selectmen recommended 7 percent beginning 90 days from postmark.
A motion was made to amend the article to include language that offered a 5 percent discount for taxes paid within 30 days. Several years ago, the town included a discount for prompt and early payment of taxes. But in order to have that in place, additional funds need to be raised because the amount of money needed to run the town has to be raised. That discount was discontinued in 2013.
“This [motion] had nothing to do with Article 4, but the moderator let it go through,” Hines said. “When we have voted in the discount in the past we have had to vote in the funds to cover the discount so that the taxes are collected. The amount has ranged from $10,000 to $12,000. Every taxpayer pays for this amount, but only a few can take advantage of the discount since all previous year’s taxes must be paid in full.”
Hines said she contacted Rebecca Warren Seel, senior staff attorney/legal services department, from the Maine Municipal Association for legal advice on the amendment. Seel stated in her e-mail to the town that discounts were allowed by Maine Statute, but they must be the subject of a specific warrant article in order for the town to have legal authority to approve it.
“Since there was no warrant article in the July 26 town meeting warrant calling for a town meeting vote to set a discount rate for early payment, it is my opinion that a court would find that the floor amendments approving a discount under Article 4 were not legal,” Seel stated in her e-mail to the town. “Anyone reading the warrant would not have had advance notice that the topic of a discount would be discussed and voted upon.”
She advised the town that no discount should be offered based on that vote. A special town meeting, however, could be called to approve such a discount, provided it was done before the property taxes are committed. Voters would also have to stipulate which account the lost revenue from early payment of taxes to balance the budget.
Earlier in the day, 62 voters cast ballots for two open seats on the town’s Board of Selectmen. Joyce Folsom and Laura Geiger were successfully elected to the Board of Selectmen. Folsom collected 45 votes, while Geiger had 37. Incumbent David Stevens received 17 votes.
