BREWER – All city residents will see smaller property tax bills this year – unless they made home improvements.
“Most homeowners will see a decrease,” finance director Karen Fussell said Wednesday. “The city is going to have another mill rate reduction – it’s moderate – it’s 10 cents.” And “there will be no revaluations this year,” so property values will remain the same as last year.
“We’re very happy to be able to say that,” she said.
The property tax rate is projected to lower to $17.95 per $1,000 of assessed value, from $18.05.
Major investments in the city by Cianbro, Maritimes and Northeast Pipeline, Lowe’s and Bangor Hydro-Electric Co. mean lower taxes for residents, the finance director said.
“The rest is in decks and sheds” and other home improvements, Fussell said of the nearly $40 million increase in city property value that has been added to the books over the last year.
In addition, city leaders are applying to the Public Utilities Commission for a water rate decrease of 7.3 percent. The anticipated decrease is the result of a debt that expired this year.
“This has been a long time coming,” Fussell said. “The PUC has to approve the rate decrease,” which is expected to occur late this summer or early fall.
The average annual water bill, which was $422 this year, would drop to $391, if approved, she said.
“And the other thing we’re very pleased about is our sewer rate is not going to change,” the finance director said, adding that sewer rates have increased every year for the last decade.
The projected 2009 municipal budget shows an increase from $11,319,543 to $11,987,402, a $667,859 increase or 5.9 percent. The $17,069,622 draft school budget is 2.62 percent larger, or $436,404 more, than last year’s $16.6 million budget. And with the $781,810 Penobscot County assessment and $87,500 in overlay, the total Brewer budget is $29,926,334 for 2009, an overall increase of 3.95 percent.
The increases are “largely unavoidable costs of the new public safety building,” Fussell said, listing electricity, heating fuel and gasoline and increases in general assistance as the other major increases.
The city also saw a decrease in health insurance costs, she said.
The budget includes adding a part-time assistant librarian and a full-time detective for the Police Department to replace one working for federal Drug Enforcement Agency based in Bangor.
“This position is completely funded by the asset forfeiture-seizure reserve account,” Fussell said.
The City Council created the asset forfeiture-seizure reserve account in April 2004, which allows the Police Department to receive the proceeds from the sale of forfeited or seized assets or cash for any law-enforcement-related expenditure.
City Council is holding a special budget hearing at 6:30 p.m. Thursday, May 29, for those who want more specifics about the budget. Because the city and school budgets exceed state spending limits enacted as part of LD 1 in 2005, they will need special approval. City councilors will consider the budget and exceeding the amount at their June 3 meeting and, for the first time ever in Brewer, residents will vote by referendum on the school budget.
“The state has reduced their EPS [Essential Program and Services] caps; they’re reducing that money,” Fussell said. “As a result Brewer, which is one of the few in the state below EPS [in years past], is over by about $395,000.”
The June 10 school budget referendum is being held in conjunction with statewide elections.
City Manager Steve Bost said he’s very proud to offer this budget to city residents.
“When we’re able to maintain the level of services in a period of economic uncertainty and reduce the cost to taxpayers, we see that as a positive,” he said. “Department heads, as well as Karen [Fussell], have stepped up as they do every year.”
nricker@bangordailynews.net
990-8190
Major Brewer city budget increases for 2009, compared with 2008 figures
Electricity ? $57,451, an increase of 13 percent
Gasoline ? $25,451, an increase of 38 percent
Diesel ? $14,915, an increase of 20 percent
Heating fuel ? $50,959, an increase of 40 percent
Chemicals, salt, sand ? $14,1150, an increase of 7 percent
General assistance ? $19,550, an increase of 24 percent
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