The new valuation for power company equipment, a decreased school budget, and an increase in surplus enabled Alna to drop its tax commitment approximately 9.6 percent for 2015.
The tax bills, to be sent out by Friday, Oct. 2, will reflect Alna’s new mil rate of 20.6, or $2,060 for every $100,000 of property value.
“This is tax commitment awesomeness,” Alna Town Clerk and Tax Collector Amy Warner said before selectmen signed the tax commitment form at their Sept. 23 meeting. Despite an increase in the municipal budget, the town was still able to drop its mil rate from the previous year’s mil rate of 22.8.
Alna has historically had one of the highest mil rates in Lincoln County. The decrease in the mil rate is largely due to the increased valuation in Central Maine Power Co.’s and Maine Electric Power Co.’s equipment. Independent appraiser William Van Tuinen was hired in April to conduct a survey of the power companies’ property and determined the equipment and land was severely undervalued.
The new valuation will increase the tax bill for the power companies by approximately $112,447, selectmen previously said. While the power companies have the ability to appeal the new valuation, selectmen anticipate the companies will be good corporate citizens and do not foresee a challenge to the valuation, Third Selectman Doug Baston said.
There was also a nominal decrease in Alna’s local contribution to RSU 12, due to a new cost-sharing formula instituted by the district. Alna’s local contribution to RSU 12 decreased by $6,641 from $898,625 in 2014-2015 to $891,984 in 2015-2016.
Due to an increase in Alna’s surplus account, $120,000 of surplus was applied to reduce the tax commitment, selectmen said. $100,000 in excise tax was also earmarked to reduce the tax commitment.
The increased revenue for the town offset the increased expenditures in the municipal budget, which rose by $55,832 from $627,765 in 2014 to $683,597 in 2015. It also offset the nominal increase in Alna’s county tax, which rose $3,489 from $91,578 in 2014 to $95,068.
Selectmen decided to raise $64,079 in overlay, an increase from previous years. In addition to voter-approved expenditures, selectmen are allowed by law to raise up to 5 percent of the town’s valuation in overlay, an account established to cover tax abatements.
