AUBURN – Better-than-expected revenue from the state will mean lower property taxes in Auburn.
The city received $3.78 million in revenue-sharing funds from the state in the 2006-07 fiscal year. That’s about $800,000 more than expected, according to Finance Director Chris Trenholm.
The money will be used to reduce the tax commitment by $800,000, Trenholm said. “That’s an across-the-board reduction, for every taxpayer.”
It should reduce the property tax rate by about 50 cents per $1,000 of value. That translates to taxpayer savings of about $80, on average, Trenholm said.
He said the reduction would be figured in the tax bills mailed to property owners later this summer.
Revenue-sharing is expected to increase again for the coming budget year, fiscal year 2007-08, based on state forecasts. Auburn is expected to get $3.96 million in that fiscal year, $184,000 more than in the 2006-07 year.
But Trenholm said the city is not budgeting those forecasts.
“Revenue-sharing depends on state income and sales tax revenue, and they’re forecasts,” he said. “If they end up bringing in less sales tax than they expect, we’ll get less. We want to leave ourselves some wiggle room now, just in case.”
Trenholm said the increases are due to a rise in the city’s assessed valuation. A city’s share is determined by dividing its valuation by its overall property taxes and multiplying the result by its population.
“Our population is stable, so the determining factor for us is our assessed value,” he said.
State revenue-sharing for Lewiston looks to increase about $16,000 for the 2007-08 year, from $5.12 million in the 2006-07 fiscal year to $5.14 million.
Turner, Lisbon and Poland would see significant increases in 2007-08, based on state forecasts. Turner would receive an additional $33,000, Lisbon an additional $90,000 and Poland an additional $172,000.