At a special meeting July 12, the Edgecomb Board of Selectmen set a mil rate of $14.90, which represents a 12 percent increase for Edgecomb taxpayers.
According to Selectman Jessica Chubbuck, the increase in the mil rate does not reflect an increase in the town’s spending, but rather represents a lack of surplus funds available to help offset taxes. Last year, voters spent $130,000 from surplus to reduce the tax commitment to $13.15.
At Edgecomb’s town meeting in May, voters approved taking $437,905 from the surplus account to cover a two-year shortfall as the result of a tax commitment error, which did not leave anything available to reduce the current year’s taxes.
In March, the town’s auditor, Fred Brewer, discovered the error while working on the town’s audit. Brewer said the spending was approved by voters but never raised from taxes.
The board reviewed two different mil rate scenarios, the approved $14.90 and another of $15. The mil rate determines the property tax per $1,000 of property value.
“I don’t like either one of them,” said Selectman Stuart Smith. “But $14.90 is a psychological thing.”
Smith said he anticipates approximately $54,000 in overlay, which will begin the process of replenishing the surplus account.
“At this rate, in four years we will be back to where we were before,” Smith said.
The town could have seen a much higher increase in the mil rate if the board hadn’t been putting money away for a rainy day, Smith said.
According to Town Treasurer Claudia Coffin, tax bills will likely be mailed out by Aug. 1. It is anticipated that by sending the tax bills out early, the town’s cash flow will improve and the town will have to borrow less in the form of a tax anticipation note.
“There are always those who pay when they get their bills,” Smith said.
Based on the approved warrant at town meeting and after all the town’s revenues are figured in, Edgecomb residents will need to raise $3,100,045 from taxes. Edgecomb’s tax bill breaks down to 8.1 percent for county taxes, 67.7 for education, and 27.6 percent for its municipal government.
