The Gorham Town Council approved a $37.2 million budget last week with few comments from residents.
The budget will lower the tax rate 40 cents for every $1,000 of valuation, from $20 to $19.60.
Maureen Finger said the exact tax rate wouldn’t be available until August when the Assessing Department reports its valuation figures. The tax rate decreased because of an addition $2.3 million the schools received fromt the state, $1 million of which the schools returned for tax relief.
“It’s the amount the School Department is giving back from increased state aid,” she said about the reason for the tax rate drop.
The Town Council adopted, 6-1, the joint municipal and schools budget on last week, with Town Councilor Matt Robinson opposing. Local property taxpayers will pay for $16.8 million of the town’s total budget.
With debt combined with town spending, the municipal budget increased 8.4 percent to $10.2 million, up $795,000 over the present year. The School Department budget went up 4.9 percent to $26.1 million, an increase of $1.2 million.
The Town Council’s motion to approve the budget included language to allow the town to exceed a limit imposed by a cap in state law for municipalities and model budget for the schools determined the state’s new Essential Programs and Services school funding model.
The council exceeded its municipal property tax cap by $374,000, from $4.2 million to $4.6 million. Finger said Gorham went over the limit because of new debt approved by voters to rehab the Shaw School.
The council also approved raising the school side of the budget by $928,890 over the state’s Essential Programs and Services model budget. Items not covered in the model included $722,294 in debt service and $376,936 in extra curricular activities.
Gorham will pay $677, 471 in county taxes, up $17,494 from $659,977. The county tax represents a 2.7 percent hike.
Finger said the town side of the tax rate would account for $5.27, an increase of 69 cents. The school side of the tax is $13.05, a decrease of $1.15. The town’s Cumberland County tax impacts the tax rate 77 cents, an increase of 3 cents. The town’s overlay – money used for property tax abatements – combined with the tax increment financing impact accounts for 51 cents, up 3 cents, on the tax rate.
The Gorham School Department handed the town $1 million for local property tax relief of the extra $2.3 million it received in state subsidy. Finger said its impact was lessened by the state not funding increases in the homestead exemption, which added 13 cents for each $1,000 in taxable valuation to the municipal side of the tax rate.
Steve Morin, a member of the school committee, told the Town Council that the homestead exemption was a stickler this year. “The state giveth and the state taketh away,” Morin said in reference to extra school money and the state’s lack of funding for the homestead exemption increase.
A parent, Dave Daigler, spoke in favor of the schools’ extra curricular activities in which young people learn the importance of teamwork. He urged the town council to support the school budget.
Three other parents joined two School Committee members also urging the Town Council to approve the school budget as presented. “Healthy schools make a healthy town,” said Mark St. Germain, one of the parents who spoke at the hearing.
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