LIVERMORE FALLS — Selectmen on Tuesday evening, Sept. 10, by a 3-2 vote approved a tax rate of $25.95 per $1,000 of assessed value for 2024/2025, an increase of $1.70 over the current rate.

Livermore Falls Select Board approved a tax rate of $25.95, an increase of $1.70 at a special meeting on Sept. 10. Pictured from left during the meeting are Selectmen Bruce Peary, Jim Long, William Kenniston, Jeffrey Bryant and John Barbioni. Pam Harnden/Livermore Falls Advertiser

Chair William Kenniston, Jeffrey Bryant and John Barbioni voted in favor while Bruce Peary and Jim Long were opposed.

Last year the rate was raised $1.25 over the previous year.

The budget voters approved this year has a new chart of accounts that makes it hard to determine the differences from last year.

Assessing agent Paul Binette  from John E. O’Donnell & Associates of New Gloucester first provided information on how the tax rate is determined.

The tax rate is total town spending divided by total town’s taxable value, Binette, who has worked with Livermore Falls since 2010, said. He provided data comparing 2023 to 2024 used in determining the rate.

Appropriations for county tax municipal and education all increased, the data shows. The total spending in 2023 was close to $5.9 million whereas the total spending this year is $7.46 million, Binette noted. “It’s quite an increase,” he stated.

Revenues from Maine revenue sharing and other sources were about $1.77 million last year compared to almost $2.95 million this year, the data showed, leaving $397,463 more to raise through taxation this year.

Monies previously collected may be drawn from to lower the commitment, Binette said. “And by drawing from that and lowering our commitment, we’re allowed to lower the tax rate,” he stated.

Binette provided four options for the board to consider:

• A rate of $27.65 using nothing from the undesignated fund balance with an overlay of $21,002, an increase of $3.40.
• A rate of $26.50 using $200,000 from the fund balance with an overlay of $19,837, an increase of $2.25.
• A rate of $26.20 using $250,000 from the fund balance with an overlay of $17,359, an increase of $1.95.
• A rate of $25.95 using $300,000 from the fund balance with an overlay of $23,628, an increase of $1.70.

Using the last option, a homeowner with a $100,000 home with the Homestead exemption would pay $209.06 more in taxes this year, Binette said.

When asked, Binette said many senior citizens applied for the Maine Tax Stabilization program which froze taxes committed to them in 2022 for 2023. It was intended to stay frozen for 2024 and 2025 but the Maine Legislature did away with the law, he noted.

Those who applied to the program will see a larger rate increase this year, there is nothing the board can do, Binette noted.

The tax increase will be $2.95 per $1,000 in property valuation for those who signed up for the program, Town Manager Carrie Castonguay said.

“The state of Maine has the highest per capita of senior citizens in the United States,” Peary said. “Per capita, we have more senior citizens in the state of Maine than there are in California, Texas and Florida. So I’m sure that’s one reason why they did away with it was because they weren’t getting a whole lot of money.”

Binette confirmed the state reimbursed towns for the difference in tax revenue from the stabilization program.

Long asked about projections for next year with a revaluation started and the CMP corridor coming through.

Assessments are definitely going to rise, there will be a 100% assessment ratio where taxpayers will have the full $25,000 homestead exemption, Binette said.

Figures for random properties selling recently showed one selling for $390,000 which was valued at $120,000, another selling for $190,000 valued at $76,000 and one selling for $245,000 valued at $111,000, Castonguay said. “That should give you an idea why we are at 65% ratio,” she noted.

Long checked with other towns to see the length of time they saved money for in undesignated fund balances. The average was two months, he noted. During the past year, Livermore Falls fund balance only dropped below 700,000 for about a week before the tax bills went out in October, he said. “The average in the general fund was $1.5 million throughout the year, so we have a pretty good cushion from that perspective,” he stated.

A tax rate of $25.95 would be an increase of about 7%, Long said. He preferred an increase of 2% or 3%.

Binette cautioned that, with a rate that low funds would not be available in the undesignated fund next year to offset appropriations.

Last year $400,000 was taken from the undesignated fund balance, Long’s suggestion would take $485,000, Castonguay noted.

“Three hundred thousand is doable but pushing it,” Sharon Bailey, chair of the Budget Committee said. There are some things known to be over budget, she added.

Kenniston said he doesn’t like raising taxes, would default to Binette and Castonguay as he doesn’t know the numbers. “I am OK with $300,000, any more than that makes me nervous,” he noted.