The Saco City Council will hold a public hearing Monday on a proposed city budget that will not significantly raise taxes or cut city services.

Kevin Sutherland, the city administrator, proposed a $25.6 million municipal budget that uses about $278,000 in reserves for one-time projects and programs.

The City Council is likely to add to the budget nearly $1.3 million needed to cover revenue losses in the school budget, as well as about $1,400 to cover an increase in the county tax bill.

The public hearing will begin at 6:30 p.m. in the City Hall auditorium.

The council will meet again for a May 4 workshop to consider changes to the budget before a final vote on May 9. The $34.2 million school budget will then be forwarded to voters for consideration on the June 9 ballot.

The budget proposed by Sutherland includes the addition of a part-time code enforcement officer to help handle the demand from development in the city. It also proposes adding a full-time facilities director who would oversee all city facilities. Currently, department managers oversee the facilities in which their departments are located. The proposed budget does not include money to pay for lifeguards at city beaches, but the council could consider adding that to the budget or funding lifeguards through umbrella rentals and concession sales.

If the council adopts the budget as proposed, the property tax increase on a home valued at $211,000 – the median for the city – would be essentially zero because of an increase in the state’s homestead exemption, Sutherland said. The homestead exemption allows residents to exempt a portion of their home’s assessed value from property taxes. The exemption increases this year from $10,000 to $15,000.

Sutherland said homeowners would see an increase of about $11 on their property tax bills if the budget is adopted without changes.

Budget documents, including an interactive calculator that shows how changes to the budget could affect taxes, are available on the city’s website.

 

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