OTISFIELD – Selectman Lenny Adler told board members Wednesday night that no one knows what effect the Palesky tax cap will have on communities.
Fire Chief Garry Dyer wanted to know what the board learned from a meeting it attended in Cumberland late last week about the proposed tax cap.
Selectmen attended a meeting organized by the Portland law firm of Jensen Baird Gardner & Henry to assist public officials in planning strategies in anticipation of Maine voters approving the tax cap in November. The proposal would cap the property tax rate at $10 per $1,000 of assessed property value.
“Are you planning a meeting to tell residents how Palesky will affect us?” Dyer asked.
“We are not allowed to try to influence voters,” Adler said.
“We’re all for lower taxes but if that means eliminating hours at the town office or getting rid of the Fire Department, the public needs to know,” Dyer said.
“Nobody knows exactly what effect it will have,” Adler said. “It is pretty difficult to determine the impact it will have.”
Adler also noted the proposal has several areas in which legal questions are being raised.
Selectman Mark Cyr noted that if it is adopted it will be a law that legislators change.
“No one knows how it will affect any community,” Selectman Tom Nurmi said. “That’s the problem.”
The proposal will be voted on in a statewide referendum Nov. 2.
Adler quoted a few charts in the report Jensen Baird Gardner & Henry gave officials last week and said they suggest Otisfield will lose between $222,000 and $560,000 in tax revenue.
Selectmen agreed to have a copy of the report available at the town office for the public.
Growth Council of Oxford Hills Executive Director Brett Doney updated selectmen on council activities and was questioned about plans the council is making if the tax cap is approved. Cyr noted municipal funds dedicated to the growth council could be cut by all communities.
“We have no plans in place right now,” Doney said. “We are in the same situation as the towns. We continue to explore grant opportunities.”
Doney brought with him a draft strategic priorities plan from the council to get input from towns for the final plan slated for release in November.
Cyr noted the council has been involved in many failed businesses and asked where the money comes from for these businesses.
“All town monies are used for business and community development for business attraction and retention,” Doney said.
He noted the majority of council real estate is privately funded and funded through specific requests to municipalities. Cyr also asked about the tech park scheduled for development in Norway.
“We’re waiting to hear about a grant for the park infrastructure,” Doney said. “If we get the grant, construction (on the infrastructure) will start next summer.”
Nurmi asked if the council is pursuing tenants for the park and Doney said it is, but it is difficult because the council cannot tell perspective tenants when it will be completed. Doney said he has had two companies with “warm interest” in the park but noted if he could have given them a completion date they would be the first two tenants.
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