LIVERMORE — Town assessor Paul Binette shared several scenarios with the board prior to the vote to set a tax rate of $15.25 per $1,000 valuation.
“Setting the tax rate is a two-fold process,” Binette said.
“Do you want to use moneys from the undesignated fund balance to offset the tax rate,” he asked. “$100,000 is left from last year. There were no tax abatements, it’s still available this year.”
Taking $100,000 from the undesignated fund balance could drop the tax rate to between $15.55 and $15.80 per thousand while doubling the amount used from that account could drop the rate to $15 per thousand, Binette said.
The general fund is $1.7 million at present, he said.
It is recommended to keep enough at minimum in the fund to pay all bills for 3 months, which is $1.048 million, Binette said.
“Available is about $650,000 to use to reduce the tax burden at your discretion,” he said.
Selectperson Scott Richmond asked about the state cutting revenue sharing.
“It’s already been cut. In March the Department of Maine Revenue Service provided $203,000 for Livermore,” Binette said. “On Aug. 8, they reduced that to $179,000, about a $24,000 downfall.”
The decrease might be attributed to the lack of fuel and lodging taxes, he said.
If it gets worse could the state cut it back more, Richmond asked.
With the revaluation completed this year, there is a 12% increase in valuation, Binette said.
Selectperson Benjamin Guild asked what the tax bill would be on a $150,000 home if the $100,000 were used.
At a tax rate of $15.55, it would be $2,550 this year compared to $2,437 last year, Binette said.
“It would be about $112 more,” he added.
“It gives us an idea. I like the idea of looking at $200,000 from the undesignated fund, Guild said. “We don’t know the situation with the state.”
The town used to have to borrow money all the time, Richmond said.
“We’re basically taking money from people to run the town,” Selectperson Brett Deyling said. “The less we ask of them the more likely we’ll be paid.”
Using $150,000 from the fund would lower the rate $1 to $15.25 and provide an overlay of $29,968, Binette said after making some quick calculations.
“I’m not expecting $30,000 in abatements after a reval,” he said.
Last year abatements of $700 were given, Binette added.
The board voted to use $150,000 from the undesignated fund balance and set the tax rate at $15.25 per $1,000.
Later in the meeting, Binette said he had not included Homestead Exemption in his calculations which would have given an overlay of $17,136.
“I’m okay with that,” he said. “Increasing the amount used from undesignated funds to $160,000 would give an overlay of $27,136.”
The board agreed to stick with what it had previously decided.
In other business, the board approved the $159,875 bid submitted by Pike Industries, Inc. of Fairfield for work on Waters Hill Road.
It’s from the cemetery to Norlands Road, Selectperson Chairman Mark Chretien said.
“The front section has already been rebuilt. We’ll overlay everything next year,” he added.
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