BREWER – City councilors approved a budget Tuesday evening that reduced the tax and water rates and kept the sewer rate level, while maintaining the same level of service as the previous year.

At a time when most economic news is negative, City Manager Steve Bost said Brewer officials were particularly proud to pass their 2009 fiscal year budget.

“There was little debate, and it was approved unanimously, so I think everyone was very pleased with the direction it took,” Bost said Wednesday.

“With everything we hear from towns around us having to make real drastic cuts or increase tax rate, we did neither,” said Brewer Mayor Manley DeBeck.

The municipal budget of $12 million is a 6 percent increase over the 2008 fiscal year. The school budget, which still needs voter approval next week, represented more than $17 million, or 2.6 percent more than last year.

However, because the city has seen its tax base grow, especially on the commercial side, officials were able to bring the mill rate down slightly, to $17.95 per $1,000 of assessed value. Last year’s tax rate was $18.05.

“A dime doesn’t sound like much, but in today’s economy, every little bit helps,” DeBeck said.

Karen Fussell, Brewer’s finance director, also pointed out that because the city didn’t revalue any of its property, residents actually will see lower tax bills, not just a lower rate.

“We’re pretty proud of the trend of reducing our tax rate in the face of some big challenges,” she said, adding that it’s the sixth consecutive year Brewer has reduced its mill rate.

The Maritimes & Northeast Pipelines LLC expansion, a new Lowe’s retail store and the Cianbro facility on South Main Street are the three biggest additions to Brewer’s tax base.

“A lot of the development Brewer has seen in the past few years is now beginning to bear fruit,” Bost said.

As a result of new tax revenue, the city also was able to drop the water rate about 7 percent, although that still needs approval from the Maine Public Utilities Commission, Fussell said. The sewer rate, which had been rising steadily over the past several years, will stay the same.

The municipal budget increase of 6 percent is largely a result of higher utility costs, a 25 percent increase in general assistance funding, and costs for a new public safety building, according to Bost.

Debeck said the school budget increase of 2.6 percent is particularly noteworthy considering the department lost about $400,000 in funding from the state.

Voters will get the chance to approve the school budget with a referendum vote next Tuesday, June 10.

erussell@bangordailynews.net

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