Grand Isle tax rate set to drop Closing of elementary school brings cut of more than 14 mills

GRAND ISLE – The recent decision to close the Grand Isle Elementary School has brought about massive savings for residents, who were told Monday night at their annual town meeting that the town’s property tax rate would drop by 14.26 mills this year.

For the last several years, the town has had the distinction of having one of the highest property tax mill rates in Maine. This past year, the property tax mill rate was 39.75. The new rate will be 25.49 mills.

For a resident with property valued at $50,000, the savings will be $713. Under the old rate, the property tax bill would have been $1,987.50, and the new mill rate will bring the property tax bill down to $1,247.50.

The annual session lasted nearly two-and-one-half hours for the school and town budgets.

Some 50 residents attending the town meeting and annual budget meeting for the Grand Isle School Department, however, did not get only positive news Monday. Users of the municipal sewer system are facing a 51 percent increase in user fees.

Sewer user fees will be going up from $68.44 per three months to $103.05. That is an increase of $140 per year.

There also is the possibility that municipal water rates could increase. Residents gave selectmen the approval to file for a rate increase with the Maine Public Utilities Commission. The decision could take six months to a year.

Residential rates could go from $60 to $80 per quarter, a 34 percent increase.

“If the budget is approved as it has been proposed, you will see a big mill rate decrease,” Administrative Assistant Gerald Blier told residents Monday night. “The town will still have over $400,000 in surplus if this budget is approved.”

Last year, the town had to raise $427,000 from property taxes. This year, the assessment from property taxes will be $291,963.

Last year residents raised $387,314 for education. On Monday night, residents approved $135,528 for education costs. They also agreed to use $20,500 of this year’s budget balance to lower the amount to be raised by property taxes to $115,028.

For the first time in several years, the school department budget had a balance at the end of the year. Along with using $20,000 of the balance to lower taxes, residents agreed to use $18,000 for a school bus purchase reserve fund, and $50,666 as a reserve for future tuition payments and $25,000 for a special education reserve fund.

The total school budget approved Monday was $454,628. The state will pay $321,100 of the amount.

Much of the discussion at the annual session involved the repair of roads and the increased sewer user fees. Several people at the session believed the increased sewer fees were too large.

Of the total $253,025 in approved expenditures, state revenue sharing will pay for $88,500, excise tax collections will bring in $28,000, interest on surplus money will bring in $5,600, miscellaneous revenues will pay for $4,000, and the unappropriated surplus of $43,250 will be used to lower taxes.

Of the expenditures approved for the municipality, $83,676 will come from property taxes.