HOULTON, Maine — Town Councilors on Monday evening introduced a measure to transfer $165,000 from the municipal surplus account in an effort to reduce taxes, holding firm to the suggestion despite some disagreement over whether that figure was the best choice to institute tax relief.
The town customarily sets its tax rate in July, and in the past, the town has dipped into its surplus fund to offset taxation and hold or lower the tax rate.
During the approximately 45-minute meeting, Town Manager Butch Asselin offered the council three options. Councilor Jane Torres, who was acting chairman on Monday evening for an absent Matt Carr, told the group that Asselin recommended the second option, which would increase the tax rate from 21.75 to 22.25 mills.
At the same time, it would use $165,000 in surplus funds to cover the remaining half-mill needed to balance the budget and provide an overlay of $66,000. According to information provided by the town, homestead properties would see a net tax decrease of $66 on a $100,000 valuation, while commercial properties would see a tax increase of $50 for every $100,000 valuation.
Councilor Sue Waite York, however, requested that the council consider option three, which would have used $300,000 from the fund balance and kept the tax rate at 21.75. It also would have provided an overlay of $60,000. Homestead properties would see a net tax decrease of $108 on a $100,000 valuation, while commercial properties would see no increase or decrease in taxes.
Waite York said that she felt that the town needed to pursue option three in order to “give business people a break.”
Asselin said that he took a “middle of the road approach” when crafting the options, considering the amount of money that the town’s auditor suggested they keep in the surplus account each year.
The other option, according to town officials, was to increase the tax rate by one mill from 21.75 to 22.75, which would provide an overlay of $67,000. Homestead properties would see a net decrease of $23 on a $100,000 valuation and commercial properties would see a tax increase of $100 for every $100,000 in valuation. That option was not discussed by councilors Monday.
Waite York’s suggestion did not successfully move forward, but councilors voted to move forward with the second option to be presented during a public hearing on Aug. 8.
