BANGOR – The City Council on Monday is expected to approve a $64.2 million spending package that would increase the city’s property tax rate by 1.3 percent.
With the most recent numbers all but certain, it looks as though the city’s new tax rate will be $23.75 per $1,000 in property value, up from last year’s $23.45.
On an $80,000 home, the tax increase would translate into an added $24 on next year’s tax bill.
The latest figures come after months of budget workshops, which trimmed the expected tax increase from nearly $1 to 30 cents, according to City Manager Edward Barrett.
The $32.8 million municipal budget is up 3.3 percent from last year, Barrett said. The $31.4 million school budget marks a 5.5 percent increase from last year.
In terms of the budget’s effect on the tax rate, the city’s share will decrease 1 percent to $10.54 per $1,000 in property value. The school’s share will increase 3 percent to $12.24. The county share will increase 7 percent to 97 cents.
While many of the spending numbers have remained the same in recent weeks, estimates on the city’s assessed value have increased to $1.5 billion. Early projections had estimated the increase in the city’s value at $22 million. This week, those projected increases rose to $49 million, with the arrival of updated numbers from the city assessor, Barrett said.
The council must approve a budget by July 1, or the city manager’s proposed budget, which increases the tax rate by 4.1 percent would take effect. Monday’s meeting marks the council’s last regular meeting before that date.
High health insurance and energy costs are the major contributors to increases in the budget, Barrett said, adding that the failure of the state to keep pace with increases in school costs are in large part responsible for the rise in the school budget.
No services will be cut in the new budget, Barrett said.
Other notable increases in this year’s budget include $175,000 for sidewalk repair, an increase of $25,000 from last year.
The council meeting will begin at 7:30 p.m.
In a closed-door session before Monday’s meeting, the council is also expected to consider an appeal of a recent finding in a developer’s lawsuit against the city.
A local group opposed to the developer’s plans for a 224,000-square-foot Wal-Mart Supercenter north of Stillwater Avenue has urged the council to contest the judge’s ruling that a city ordinance used to reject the project was unconstitutionally vague.
Also a party to the lawsuit, Bangor Area Citizens Organized for Responsible Development has already appealed the judge’s ruling. The ruling reversed the city planning board’s April 3 denial of the project.
The board’s majority based its denial on a finding that the project would adversely affect the Penjajawoc Marsh, a valuable wildlife habitat near the site.
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