MECHANIC FALLS – A consulting firm hired by the Maine Municipal Association is taking a look at 10 communities throughout the state to determine the impact of a proposed 1 percent property tax cap.

PolicyOne Research Inc. of Portland expects to receive data by the end of the month from the towns and cities, which include Mechanic Falls and Mexico.

“The magnitude of the impact will be quite different for each town,” said Jim Damicis, co-owner of PolicyOne.

“We’re not making statistical extrapolations, but we’ll come up with a profile for each town, using the same methodology,” he said. “In terms of what we get from the towns, we’ll report them as is.”

PolicyOne will prepare summary reports on each town and turn them over to MMA in September, Damicis said.

The Maine Municipal Association plans to use the information during a series of public meetings about the tax-cap referendum on November’s ballot, said Geoff Herman, director of federal and state relations for the MMA.

“We want the freshest data we can get,” said Herman. “We want to make sure that the information we provide is justifiable and anyone can replicate it.”

The MMA opposes the referendum and will probably look into legal options if voters approve it, Herman said.

Each town was chosen to represent a geographic area, a population level or an economic distinction, he said.

Mechanic Falls, with a population of about 3,000, was chosen for its small-town characteristics that include a heavy school burden, said Herman.

According to figures from Town Manager Dana Lee, Mechanic Falls voters allocated 66 percent of their property taxes to school expenses this year. The town is conducting its own financial analysis, in addition to participating in the statewide survey.

Mexico has about the same population but was chosen for its heavy dependence on the wood products industry, Herman said. The paper mill, which employs many of Mexico’s residents, sits in neighboring Rumford.

Bangor was chosen to represent a larger population and service community, while Gorham reflected a more suburban community, he said.

The consulting firm created templates and worksheets so the towns and cities could use standardized spending categories and replicate the numbers independently, Damicis said.

The worksheets also take municipalities through the complexities of the debt-service level allowed outside the 1 percent – or 10-mill – cap, and how to adjust it for the total value of town property.

After towns come up with bottom-line numbers, the second step in the survey asks how they would provide public services with that budget, Damicis said. That may be done by recommendations from town managers, elected officials or independent citizen groups, said Herman.

“These will all be potential losses, based on the potential passage,” Damicis said. “The service impact will be estimates. Ultimately, we won’t be able to tell because of local town meetings or the local government structure.”

Herman acknowledged that there would be some subjectivity involved in deciding which services towns would provide, and how to divide tax revenue between schools and municipal functions.