LISBON – Based on warrant articles recommended by selectmen and the School Committee, Town Manager Curtis Lunt projects a scant 1-percent increase in the tax rate.
The tax rate now is $24.25 per $1,000 of valuation. Lunt projects it will go up by 25 cents.
“This is a maximum projection and since the tax rate is not set until August by the tax assessor and Town Council, the rate projected, due to uncertain revenues, may be less,” Lunt said.
The tax rate was reduced by 4 percent in the 2005-06 budget and has increased over the past decade by less than inflation, he said. Factors that contribute to the tax rate are the municipal budget at a 4.8-percent increase and the school budget at a 4.71-percent increase.
Offsetting these increases are additional state funding for schools and a projected $150,000 in new construction value, Lunt said.
Three-quarters of the school budget increase is attributed to salaries and benefits and 77 percent of the municipal budget increase is due to union wage increases, county taxes, hydrant rental, and fuel and electricity increases, Lunt said.