BATH — The Bath City Council adopted the proposed $17 million municipal spending plan for 2020-21, which carries an expected 2% tax increase for residents.
That would equate to an $80 increase in taxes on a home valued at $200,000, compared to the city’s current tax rate of $19.80 per $1,000 of valuation.
There was no debate before the council unanimously approved the budget. The budget will take effect on July 1.
While the city’s tax increment rose by less than .5%, the total property tax burden increases by 2% when combined with budget proposals from Regional School Unit 1 and Sagadahoc County.
RSU 1 initially proposed a $38.3 million budget last month, reflecting a 13% spending hike, but the district’s financial board revisited the budget and made $88,928 in cuts at its May 18 meeting, reducing the proposed tax increase to 2.1%.
The first $3.2 million principal bond payment on the new Morse High will largely cause the district’s debt service to rise from $3.4 million to $7.3 million. Salaries and benefits, accounting for nearly 60% of the budget, are increasing 3.94% to reach $22.8 million.
RSU 1 residents have two opportunities to vote on the budget — first at a June 30 district budget meeting and finally at the July 14 budget validation referendum.
Bath’s $341,182 spending increase from last year’s municipal budget is driven largely from an increase in insurance and personnel funds, according to Juli Millett, Bath’s finance director. The budget includes a 21.37% increase in workers’ compensation, professional services, salaries, health insurance and retirement contributions, totaling $82,000 more compared to last year’s budget.
The city’s sewer fund saw a 5.97% increase to pay for upgrades to the treatment plant, infrastructure and equipment. Millett said the city’s aging sewer system has undergone upgrades and repairs since 2017, which are in part federally funded.
Millett said the city is trying to keep taxes as low as possible for residents due to the COVID-19 pandemic. To offset necessary spending and stay within the City’s expenditure limitation, cuts to the capital and landfill budgets were made. In total, landfill spending decreased by $99,667, or 5.43% compared to last year.
Bath’s fire and rescue department also requested an additional full-time firefighter who will start in December, meaning only half of their salary is included in the new budget.
The full detailed budget is available on the city’s website, cityofbath.com, under the “government” tab.
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