Madawaska’s tax rate increases $1 to $23.80

MADAWASKA – Maine’s Homestead Exemption Act changes, increased local education costs and higher municipal expenditures have caused a 1 mill, or $1, tax rate increase in Madawaska.

Selectmen approved increasing the tax rate to $23.80 per $1,000 of property valuation, up from $22.80 last year. For residents with a $50,000 home, the increase will be $50.

Property taxpayers received their municipal tax bills last week.

One mill raises about $320,000 in Madawaska.

About half of the increase, according to town officials, was brought about by changes in the state’s Homestead Exemption Act. While the act increases a homeowner’s tax break from $6,500 to $13,000, the town gets reimbursed for only half of the exemption.

The local cost of education also rose, and the town’s expenditures also increased. The only line item that remained close to last year’s was the town’s share of the Aroostook County tax.

“We are not proud of that,” Town Manager Fred Ventresco said of the increase. “Costs are up locally and for the schools.

“The cost of fuel is causing some concerns,” he said. “We also had a major road project, on Beaulieu Road, and we had to pay for that.”

Ventresco said the bulk of the increase was because of the state’s action. The town is hoping for the best, but heating oil and fuel for vehicles and machinery have officials concerned.

“Energy prices are the big question mark,” Ventresco said. “We are hoping for better prices, and we are looking to conserve.

“There is also the question of possibly more people needing assistance,” Ventresco said. “We, and residents, are looking at a tough year.”

Madawaska’s one-third share of the local-state Beaulieu Road project was $150,000.

According to Linda Cyr, Madawaska’s bookkeeper, the town needed to raise $7,978.087. The new tax rate allows for that amount with $60,744 leftover for overlay, a fund for emergencies.

In total, including all expenditures, the town had a total assessment of $9,973,833. That’s was up about $552,000 from last year’s assessment of $9,420,665.

Cyr said the local cost of education is up by $277,984 and the town expenditures are up by $285,043.

She said the Homestead Exemption Act caused about one half of a mill increase, and the remainder was money approved at the annual town meeting in June.