By Anthony Brino
Staff Writer
MARS HILL, ME — The town is ready to move into the next fiscal year with municipal spending aiming to hold the line for taxpayers at least on the town’s side of the budget.
“Our budget is pretty much behind us,” said Mars Hill Town Manager Dave Cyr.
The town council and budget committee approved a $1.6 million spending plan in early January and were set to ratify it at a Jan. 17, 2017 council meeting, ahead of the start of the town’s 2017 fiscal year in February.
With increased revenue and decreased expenses, “It essentially is a budget that holds the line on taxes,” Cyr said. “At the end of the day, we’re going to have raise an additional $5,000 over last year in taxes.”
The budget will have $722,100 devoted to taxes, 2.2 percent more than last year, and revenues of $951,483, which is up almost 20 percent (or $156,272) compared to last year.
That mean’s the town’s side of property taxes will stay just about the same, although the budget does not include a projection of the town’s 2017 mill rate with estimates for the MSAD 42 school district or the county government. Last year, Mars Hill’s mill rate was $16.5 per $1,000 of property value, including the school district and county assessments.
A number of the town’s expenses are lower this year, including administration (down $13,652), public works (down $13,200) and highway department operations (down $3,000). The town’s health insurance costs of $94,500 are also down by $18,500 this year.
The reduced administration and health insurance costs are partly due to the retirement and departure of two of the town’s six employees, Cyr said. The two new employees started at lower salary levels and with health insurance benefits that are in place for new employees, who unlike former and longtime employees do not have full family coverage included in their compensation package.
Cyr said that the additional revenues stem from increases in the excise tax, state funding through municipal revenue sharing, the business equipment tax exemption and the homestead exemption.
Areas in the budget that are getting a boost include the Mars Hill Community Center, which houses the town’s recreation programs at the former Aroostook Central Institute and is receiving $29,050 (up $3,590).
In other Mars Hill news, the town is waiting to hear back from the state government on its application for another Tax Increment Financing deal with McCrum Lands, LLC, a family of businesses that include County Super Spuds.
The arrangement with the company’s new potato storage center could generate up to $50,000 for the town over 10 years, while limiting both the business and town’s tax burdens, and would join three other TIF arrangements in Mars Hill going back to 2000. If the state signs off on the TIF project, the facility’s property taxes will effectively be set at a lower rate through 2036, saving approximately $12,000 per year, half of which will be returned to the town as “municipal TIF revenue” that could then be directed toward investments such as downtown revitalization, according to the town’s application.
Mars Hill is also waiting to finalize funding from the Maine Department of Transportation to build a sand and salt shed, which is set to begin construction this spring.
On March 20, the town will have its municipal elections. Among the open positions are the town council seat currently held by Frank Mahan, who is not running again; two seats on the MSAD 42 board of directors; two seats on the Mars Hill Utility District board; and one seat on the WTA Hansen Memorial Library board.
