04/16/2013

Public hearing on $33.2 million combined municipal budget scheduled for Monday, April 29

The Town Council will hold a public hearing April 29, 2013 on a $33.2 million combined municipal budget for 2013-14.

The budget includes spending for town, school, county and Community Services and poses a 3.5 percent hike in taxes, and increase of 56 cents per $1,000 of assessed valuation, up from $15.84 in 2012-13.

In his monthly report to the council April 8, Town Manager Michael McGovern outlined several changes to the municipal and school budget proposals since staff first presented them in late February.

Changes since February: School, Community Services

The Community Services budget, which was presented with no spending increase earlier this year, is set to increase by $9,994 due to concerns about the fitness center, McGovern said. [download director's narrative]

The school budget is $50,000 more than initially proposed because of School Board decisions to retain a nurse's position at Pond Cove School, and to add $40,000 to the contingency line as a hedge against future losses in state revenue. A $23,000 loss in state subsidy, announced after Superintendent Meredith Nadeau submitted her proposed budget in February, is another change to the school budget that will be presented for public hearing.

Budget summaries

The school budget, $22,528,078 compared to $21,765,817 for this year, is up 3.5 percent and accounts for 46 cents of the proposed 56-cent increase in the tax rate.

A school-budget validation vote is scheduled for Tuesday, May 14.

The Community Services budget, $447,000 compared to $437,006 this year, is up 2.3 percent but will not increase the tax rate.

The Cumberland County assessment, $1,061,728, compared to $998,136 for this year, is up 6.4 percent and accounts for 4 of the 56-cent proposed tax-rate increase.

The town budget, $9,032,063 compared to $8,865,608 this year, is up 1.9 percent and accounts for 6 cents of the proposed 56-cent tax-rate increase.

Town budget changes

The Town budget increase is less than the 2.4 percent originally put forward by McGovern. A reduction in assessment for waste disposal and a retirement from the Police Department are reducing the budget by $63,410, but a contribution of $16,457 for land acquisition brings the net savings to $46,953.

The contribution of 1 cent per $1,000 of townwide assessed valuation for land acquisition reflects the "Pennies for Open Space" recommendation of the Future Open Space Preservation Committee last fall.

Budget summary and tax imact: [download]

	FY 2013	FY 2014	$ Change	% Change
	BUDGET	BUDGET	FY 13  to FY 14	FY 13  to FY 14
EXPENDITURES
TOWN SERVICES	$         8,865,608	$       9,032,363	$         166,755	1.9%
COUNTY ASSESSMENT	$            998,136	$       1,061,728	$            63,592	6.4%
SCHOOL DEPARTMENT	$       21,765,817	$    22,528,078	$         762,261	3.5%
COMMUNITY SERVICES	$            437,006	$          447,000	$              9,994	2.3%
Local Homestead Exemption	$            149,000	$          157,000	$              8,000	5.4%
	$       32,215,567	$    33,226,169	$      1,010,602	3.1%
			$                     -
REVENUE			$                     -
TOWN SERVICES	$         3,306,400	$       3,398,500	$            92,100	2.8%
SCHOOL DEPARTMENT	$         2,842,679	$       2,820,506	$          (22,173)	-0.8%
TOTAL	$         6,149,079	$       6,219,006	$            69,927	1.1%
			$                     -
NET TO TAXES			$                     -
TOWN  SERVICES	$         5,559,208	$       5,633,863	$            74,655	1.3%
COUNTY ASSESSMENT	$            998,136	$       1,061,728	$            63,592	6.4%
SCHOOL DEPARTMENT	$       18,923,138	$    19,707,572	$         784,434	4.1%
COMMUNITY SERVICES	$            437,006	$          447,000	$              9,994	2.3%
Local Homestead Exemption	$            149,000	$          157,000	$              8,000	5.4%
TOTAL	$       26,066,488	$    27,007,163	$         940,675	3.6%
			$                     -
TAX RATES (Rounded to nearest ¢)			$                     -
TOWN SERVICES	$                   3.37	$                 3.43	$                0.06	1.8%
COUNTY ASSESSMENT	$                   0.61	$                 0.65	$                0.04	6.6%
SCHOOL DEPARTMENT	$                 11.50	$              11.96	$                0.46	4.0%
COMMUNITY SERVICES	$                   0.27	$                 0.27	$                     -	0.0%
OVERLAY	$                       -		$                     -
SUBTOTAL			$                     -
Local Homestead Exemption	$                   0.09	$                 0.09	$                     -	0.0%
TOTAL	$                 15.84	$              16.40	$                0.56	3.5%
			$                     -
TAX RATE VALUATION BASIS	1,645,700,000	1,648,500,000	$      2,800,000	0.2%