HOULTON, Maine — While the municipal auditor told town councilors Monday that the community was in good shape financially, he also suggested ways that administrators could continue to maintain that status.
Auditor Ron Smith of RHR Smith and Company of Buxton reviewed the town’s financial status through the first eight months of the 2018 budget year.
He said that the town was on firm financial footing, but added that he believed the community could not continue to maintain a flat tax rate.
“The good news is that your expectations for the 2018 budget are being met or exceeded in a favorable way,” he said. “You started the year with $1.8 million in carryover funds, and you will end the year the same way.”
Councilors dipped into the surplus earlier this month, he acknowledged, to provide $120,000 to the public works department to buy two used dump trucks.
“We still believe that your revenue projections and expenses are going to come in at less than you budgeted for most departments,” said Smith.
He told the town that the public works department equipment line item will likely be overspent by the end of the year, which he said town officials already were aware.
Smith acknowledged that over the past few years, the town has maintained the same mill rate in order to keep property taxes as low as possible for residents. The current tax rate is $22.25 per $1,000 of property value.
“It just isn’t sustainable,” he said. “Not with rising expenses and cost of living increases and other things. At this point in time, I believe you are going to have to raise your mill rate.”
He said the town needed to continue to stockpile surplus funds for unforeseen expenses and to provide funds for matching grants and other items.
Smith told councilors he believes the town could “go up at least a couple of mills” over the next three years. The town is due for a town wide revaluation in 2020, however, which he said could benefit the community.
“I believe it is definitely time for that to happen,” he said.
The last revaluation took place in 2005.
Councilors voted to accept the audit during the brief meeting.
