The Scarborough Town Council and Board of Education are aiming to have the town-wide property revaluation be the only source of tax increases on residents.
The town and schools have been directed to cut a total of $3.3 million from the town’s combined $87.4 million municipal and school budget proposal, which would result in a 0.9% tax increase. Using a portion of the town’s fund balance would get them to zero.
Due to the town-wide property revaluation, Scarborough taxpayers will see an estimated average tax increase of 4.2% on top of taxes stemming from the budget. The roughly 1,800 households in town who were enrolled in a short-lived state program that froze taxes for seniors could see a 7% increase, as they saved an average of 3.8% in tax increases as part of the program, according to the town’s assessor.
The town has already taken $1 million off its $24.8 million portion of the proposal and the school department has trimmed its $56.9 million portion by $1.1 million. At a workshop last week, the council directed the town to come up with another $400,000 and the schools to find another $800,000.
“A $3.3 million reduction; $1.9 million to the school, $1.4 million to the town,” said Town Councilor Jon Anderson, chair of the finance committee, at the May 1 workshop. “There seem to be different pathways they can take to get there.”
For example, Anderson said, the schools could forgo all non-state-mandated new positions, saving roughly $660,000, while the town could defer funding for some capital projects and studies to next year.
Anderson noted the council isn’t being tasked to give town and school staff specific items to cut, but he wanted to provide examples of what it would take to meet the request.
“Cutting little things here and there aren’t going to get us there,” he said. “It’s having to step back and look at the bigger picture.”
Councilor Don Hamill said he wants to see a greater cut than $3.3 million as he would prefer the town not use the fund balance, which consists of excess funds from past budgets, such as lower spending than expected or unpredicted revenues.
“Doing that without taking anything out of the fund balance is good,” Hamill said. “It’s moving in the right direction, but (the budget) needs to be lower for me, and I’m sure that’s no surprise.”
Councilor Jean-Marie Caterina was in favor of using the fund balance, describing it as giving taxpayer money back to the taxpayers.
“As long as it’s not causing a deficit or causing issues … then use it, that’s what it’s there for,” Caterina said, later adding, “My concern is if we cut too much (from the budget) we’re going to do some damage somewhere.”
Councilors ultimately decided to see what a $3.3 million cut of the original proposal would require and from there determine the final decision.
The Scarborough Town Council will hold a public hearing on the combined budget at its meeting Wednesday, May 15, where they will be asked whether to pass the municipal budget and send the school budget to a referendum vote in June.
Revaluation notices will be mailed to property owners in Scarborough by the end of the month
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