The Bath City Council on Wednesday night passed a $19 million municipal budget plan that’s expected to contribute to a 4% property tax increase.
Rising personnel and utility costs were blamed for the budget’s 5% spending increase over the current budget.
The cost of municipal employee salaries rose $619,668, or about 10%. City Manager Marc Meyers said the city conducted a salary survey last year, which led to pay bumps aimed at retaining current employees and attracting new ones. The council on Wednesday also agreed to a new contract with the police union that includes pay raises and is expected to add about $50,000 to the budget.
The price of gas rose 125%, while oil rose 69% and electricity rose 36%, for a combined $170,375 hike. That was offset by an expected $100,000 energy savings due to new LED streetlights.
On the revenue side, the general fund is expected to see a $900,000 increase due to hikes in state revenue sharing and interest income. A 20% water rate hike and a 10% sewer rate hike that will both take effect later this year were also factored in.
Capital funds increased $158,707, or about 13%, due to anticipated road and sidewalk repairs. The city also plans to hire three new workers: a firefighter, a maintenance steward for the downtown area and another steward to maintain city parks and the Riverwalk.
The municipal budget tax impact is about 1.5%, while the school impact would be about 1.8% and the county impact is about 0.7%. The 4% combined hike means property taxes on a $300,000 home would increase about $250. Bath voters must still approve the school budget during a vote June 13.
Higher personnel and utility costs were also drivers of increases to the Bath-area Regional School Unit 1 budget.
City Councilor Roo Dunn defended the city services funded by the budget.
“Regardless of whether you own your home, rent or live in a condominium complex, your city services are there,” he said. “Public streets get plowed, you have fire protection, EMS and police with record response times. You’ve got parks, recreation, road maintenance. It’s a long list that goes on and on.”
He also defended the school budget.
“I want to live in a town where my neighbors and my neighbors’ children are engaged, interested and curious,” he said. “I don’t mind paying school taxes because you do it for every child, every family, and we do it every year we live in this city.”
Bath’s projected tax increase is lower than those in other communities like Brunswick, which is expected to see a 7% hike.
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