(Editor’s note: This story includes corrected figures for the tax rate.)
SCARBOROUGH — The Scarborough Town Council kept its goal of increasing the mil rate no higher than 3 percent for the Fiscal Year 2022 budget, approving a net budget of $73.5 million with an anticipated tax increase of 2.78 percent on May 26.
With a 2.09 percent increase, a $300,000 home in Scarborough with a $15.27 per $1,000 of property value tax rate will equal $4,581 in property taxes as of May 2021.
The current mil rate for FY 2021, which ends June 30, is $14.86.
Although the actual mil rate increase for FY 2022 is 2.78 percent, the increase could be as low as 2.09 percent, contingent on receiving additional funds for education from the state, according to town spokeswoman Allison Carrier. That would bring the tax rate down to $15.17 per $1,000 of property value, with property taxes for a $300,000 down to $4,551.
“In the event this additional revenue is received (general purpose aid for schools),” she said, “the Town Council expressed the intention of allocating any additional school funding to reduce the tax (50%) and fund a School Capital Reserve Account (50%).”
“Every time we turn around, there’s a new revenue source that has opened up to us, which is an experience that I’ve never gone through,” Councilor John Cloutier, and chair of the finance committee, said. “It is something to be thankful for but also cautious about in the future in that sometimes the rain can stop and the tides can shift the other way.”
After the initial reading of the proposed FY22 budget on April 14, the Town Council requested a $3.4 million reduction to that proposal in order to meet its target mil rate, said Town Manager Tom Hall.
The sole public commenter, Susan Hamill, a resident who lives in the Pine Point area, said she was pleased with the council meeting its goal for the mil rate increase but feels that the town should be cautious about spending, adding that spending is up 12 percent this year.
“At the end of the day, yes, I am happy that my taxes will only go up 2 percent this year, but I am very worried about what happens when all the free money goes away and we taxpayers will be called on to make up the difference,” she said.
Councilor Don Hamill said he believes that the town needs to build fiscal discipline.
“I think that, even in good times, that’s the time to really exercise some austerity,” he said. “It seems counterintuitive but that’s something that I am really committed to and I know other councilors and the public are as well.”
Describing this year’s budget as “restorative,” Councilor Jonathan Anderson said decisions made for the FY21 budget had an impact on the FY22 budget.
Growth is a contributing factor to budget increase, said Councilor Betsy Gleysteen.
“It looks like things like excise tax are definitely on an upward trajectory with more people in town,” she said.
Cloutier and other councilors said this year’s budget process saw a collaborative effort with the school’s side and the town.
This year’s proposed school budget was approved for $49.9 million, voters will have the final say at the school budget referendum election which will take place June 15.
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