The Lisbon town council during the annual budget meeting Tuesday.  Screenshot.

The Lisbon Town Council adopted an $9.1 million municipal budget for the fiscal year starting July 1 — a $247,616 or 2.7% increase over last year’s spending.

Homeowners will see a 67-cent or 2.9% decrease in their property taxes, bringing the tax rate down from $23.10 to $22.43 per $1,000 of assessed property value. This means a property tax bill for a $200,000 home would decrease by $134.

The version of the budget passed Tuesday is less than the spending plan originally proposed in March, which would have raised taxes by 7.1%.

“The major difference between the proposed budget in March and the updated budget is that we took out a lot of capital expenditure that we originally had in the budget,” Town Manager Diane Barnes said. “We will fund those through unassigned fund balance.”

Most of these are one-time expenses so they would not have any impact on the future budgets, said Barnes. “The major increase of $247,616 in this year’s budget is to add [a] mechanics position in the public works department, a half-time position in the [recreation] department and a police officer’s position which were previously deferred due to COVID-19.”

The town also added two new positions this year — one police officer and one firefighter.

Earlier this month, the council approved $18.1 million school budget, which represents a $448,345 increase over the previous year’s budget. Taxpayers will contribute about $7.79 million to the school budget, adding 36 cents to the tax rate.

The budget also includes a general fund revenue of $4,290,271, which is an increase of $897,412 or 26.5% from the previous year.

The major increases in this year’s budget are the revenue sharing and excise taxes, which have been raised by roughly $300,000. Moreover, the sewer fund revenue is $1,442, 072, representing an increase of $77,417 or 5.7% from the previous year.

Barns said the town’s unassigned fund balance sits at $3,195,275, as of June 2020. “We added to that approximately a $180,000 in overlay and $33,000 that we received in training expenses,” said Barnes.

“We are reducing it to 12% threshold as per the unassigned fund balance policy, which will allow the town to spend $1,179,750 to cover the capital expenses and it still leaves us with $40,973 to reallocate later if we need to.”

Only subscribers are eligible to post comments. Please subscribe or to participate in the conversation. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.