TURNER — Selectmen voted Monday to use $300,000 from the undesignated fund to offset property taxes and set the rate at $12.55 per $1,000 of valuation. It’s an increase of $1.15.
Residents at the annual Town Meeting in April authorized selectmen to use up to 20% of the $3.2 million in the undesignated fund to offset taxes. That would have been up to $642,056.
Part of the reason for the lower amount was to make sure there is enough money to cover three months worth of expenses, as recommended by Town Manager Kurt Schaub. That amount would be $2.89 million, according his calculations.
Using $300,000 leaves $2.91 million in the undesignated fund.
The town’s share of the school and county budgets is the primary factor driving up the tax rate, Schaub said.
The town must pay $7.23 million toward the Maine School Administrative District 52 budget this year. That’s 12.75% more than last year, according to Schaub.
The town’s share of the Androscoggin County budget this year is $803,016, a 12% increase compared to last year.
Combined, it is nearly $1 million more than the $903,780 the town paid last year.
Town appropriations are 7.25% higher this year compared to last year: $3.32 million last year and $3.56 million this year. It is an increase of $244,785, however an increase in town revenue is expected to cover the increase.
Schaub said the town is expecting less revenue-sharing from the state. It is not known from Maine Revenue Services how much that will be.
In other business, selectmen voted to raise $114,565 for the overlay account to cover property tax abatements. What is not used will go into the undesignated fund.
Schaub expressed concern that if a property owner of one of the highest valued properties in town, such Hillandale Farms, was to seek an abatement and succeed, it could be a big expense for the town and potentially deplete the overlay fund. If that happened residents would vote at a special town meeting on how to pay for it, Schaub said.
Usually, abatements do not exceed $20,000 in a given fiscal year, according to Schaub.
The Board of Selectmen raised $212,000 for the overlay account for fiscal year 2022 and $190,000 for fiscal year 2023. The town usually raises more money for the account than what is needed for abatements.
State law dictates that towns cannot raise more than 5% of their overall tax commitment for overlay. If Turner were to raise the full 5% allowed by state law, that would be $428,552, according to Schaub.
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