Tax cap would choke Lincoln, officials say

LINCOLN – If the Palesky property tax cap initiative passes, Lincoln town government and most of the services it offers will practically cease to exist.

That was Town Manager Glenn Aho’s prediction Monday as he discussed the tax initiative’s potential impact upon the town and its $5 million annual budget. The initiative is on the Nov. 2 ballot.

“We really would not have enough money to fund any government,” Aho said. “I’m not trying to scare anybody, it’s just that the numbers are not there.”

Under the Palesky tax cap, which would cap property taxes at 1 percent, or $10 per $1,000 of assessed property value for residents and businesses, town property tax revenue would fall to about $1.9 million annually.

That would cost the town about $3.1 million in tax revenue, Aho said.

The town also pays about $3.4 million in school assessment and another $303,866 in county taxes. Subtract these $3.76 million in debts from the town’s total income of $3.77 million, and officials would have about $12,643 with which to pay for town services for an entire year.

“I really don’t know how local services would work under this initiative,” Aho said. “The town would have to disorganize” or cease to exist as an incorporated entity.

The town government would either have to pass its responsibilities onto county or state governments or institute a fee system charging residents for basic services, such as snowplowing, road repair, or public safety, Aho said.

The initiative, Councilor John Weatherbee said, goes too far, but it makes a basic point that all local, county and state governments have to respect.

Taxpayers “just can’t take any more taxes,” Weatherbee said. “It’s gone right out of sight, but something has to be done about the tremendous spending government is doing. … I’m wondering if we all can’t just tighten our belts a little bit.”

Even if the Palesky initiative fails, “I think it’s going to serve a good purpose towards holding taxes down,” he said.