JAY — Selectpersons voted unanimously Monday to increase the tax rate by 25 cents to $14 per $1,000 of property valuation.

Last year’s rate was $13.75.

The increase will give the town an overlay of $410,000, Chairman Steve McCourt said.

It means a house valued at $100,000 would see an increase of $25 in its tax bill, he said.

Both the municipal budget and Jay’s share of the RSU 73 school budget decreased this year, but the state reduced the amount it would give to the town for revenue-sharing, roads and for the school, Town Manager Ruth Cushman said.

Last year, with the tax rate at $13.75, there was a $201,816 overlay, McCourt said.

This year, if the rate was set at $13.75, the overlay would have been $156,449 because of lost revenue, he said.

The overlay is used for abatements or in case of emergency, Cushman said.

A resident asked about the money in surplus.

In mid-August, Cushman said there was $5.75 million in the town’s undesignated fund. Of that amount, $412,000 was used to reduce the tax commitment, she said Monday.

The town’s auditors say the town needs to increase its overlay this year.

“We had a meeting with Verso Paper today,” Cushman said. They believe the value of the mill and its property in Jay is too high, she said.

The town’s experts and the mill’s experts met to discuss the issue, she said. The town has a specialized industrial assessing firm that focuses on assessing the paper mill and its properties.

“We can’t shave it too close,” Cushman said of the overlay in case the town has to grant an abatement to the mill.

There has been no abatement request filed.

“(Verso representatives) were very reasonable. They are not out to devastate the town,” she said.

Residents said the town should be proactive and have a plan in place, just in case the mill ever leaves the town.

Cushman and others assured residents that “the sky is not falling” and it is a discussion over valuation and nothing more.

The first half of the tax bill will be due on Oct. 1.

Prior to the selectpersons’ meeting, voters approved borrowing up to $865,000 to improve sewer lines and associated equipment during a state Route 4 road construction project.

They also amended an administrative ordinance that among other issues made the Board of Selectmen gender neutral by renaming it the Board of Selectpersons.

They also approved transferring up to $100,000 from the undesignated fund to remove underground diesel tanks at the Highway Garage and install an above-ground, dual-compartment tank for both gas and diesel. This will allow gas-operated vehicles as well as diesel-fueled vehicles to fill up at the garage.

During the regular board meeting, selectpersons awarded the contract for the fuel island, tank installation and removal to Precision Tanks Inc. of Jay.

The company’s price is $93,490. Other prices received were Portland Pump Co. of Scarborough at $108,975 and A.L. Doggett of Gray at $94,500.

Once the bids were received, they were sent back so that they could submit a price that compared apples to apples, Cushman said.

dperry@sunjournal.com

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