HARPSWELL — Harpswell’s tax rate rose by 4 cents Thursday, but maintains its position as the lowest in Cumberland County.
This year’s property tax rate is $6.74 per $1,000 of valuation, 4 cents more than last year’s rate of $6.70. A property assessed at $200,000 will now have a tax bill of $1,348, up from $1,340 in 2019.
Harpswell’s Board of Selectmen made the small hike during a special meeting Thursday.
Harpswell’s tax rate is the lowest in Cumberland County, sitting well below Raymond, which has the second lowest tax rate at $12.60 per $1,000 of valuation.
Terri Sawyer, Harpswell’s deputy town administrator, said the town’s final tax rate stems from a combination of municipal, county, and school district taxes, none of which moved much.
Harpswell is able to sustain its low municipal tax rate because it doesn’t have municipal services like trash pickup and all three of its fire and rescue departments are volunteer, according to Sawyer.
In May, Harpswell selectmen adopted a $5.35 million municipal budget after carving out nearly $450,000. Town officials said the reduction was meant to ease the financial burden on residents in the midst of the COVID-19 pandemic.
The largest cut was toward recycling center upgrades, slated for funding through Harpswell’s capital budget this year. The funding would have replaced two compactors that have reached the end of their life cycle, add parking and improve user safety at the facility.
This year’s $46 million budget for Maine School Administrative District 75, which includes Topsham, Harpswell, Bowdoin and Bowdoinham, rose by 9.3%, but increased revenue means local average tax assessments among the district’s towns decreased by 1%.
Next year’s MSAD 75 spending plan is largely offset by $18.7 million in state aid to education, up 23.1%.
Chief among the $3.9 million spending bump is a $3.1 million (7.5%) increase in debt service. Of the $6.4 million in total debt service, $4.5 million comprises principal and interest payments for the new Mt. Ararat High School. Next year marks SAD 75’s first principal payment on the school.
Along with state aid, spending is also offset by $1.1 million in fund balance carryover, up 175%, aimed to help mitigate the impact on taxpayers.
The budget includes about $625,000 for all salary increases and an extra $100,000 for special education out-of-district placements. Cost decreases include a buy-out of state technology leases, saving nearly $123,000.
Cumberland County’s budget also rose 0.5% to $1.33 million.
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