NO TAX RATE INCREASE FY13 Budget Proposal to be Considered by Lewiston City Council

NO TAX RATE INCREASE FY13 Budget Proposal to be Considered by Lewiston City Council
Editor: David Mills


LEWISTON, ME - At a regular meeting of the Lewiston City Council on Tuesday, May 1st, at 7 p.m., councilors will consider adopting a FY13 budget that maintains the City’s current property tax rate!

As originally proposed in March by City Administrator Ed Barrett, the tax rate would have increased 19 cents due to funding for the City’s capital needs, particularly street paving and cost increases in General Assistance related to changes in State law.  Since then, the Council has been meeting twice each week to review the proposed budget and evaluate changes to it.

As a result of these efforts, the Council is poised to approve $344,234 in reductions to the property tax levy through a combination of expenditure reductions and revenue increases, allowing the coming year’s property tax rate to remain the same as this year.

In addition, property owners who have received the homestead exemption will see that exemption increase from $8,500 to $8,800 as a result of an increase in the City’s ratio of assessed to market value.  For homeowners with a homestead exemption, this will result in an actual property tax reduction in the amount of $77.37 for the coming year.

In addition to maintaining the property tax rate, the proposed budget will allow the City to return to funding a portion of annually recurring capital purchases to its operating budget in such areas as street paving, minor building and facility maintenance, and vehicle replacement.

The budget will maintain all current service levels and programs.

Several uncertainties remain regarding the General Assistance program.  This State-mandated program, which is municipally administered, will be impacted by changes at the State level including a new 60-month limit on eligibility for the State/Federally funded Temporary Assistance to Needy Families (TANF) program and the recent line-item veto of the additional State funding required in the coming year to meet the State’s statutory financial commitment to the program.  While the City has attempted to take these changes into account by increasing funding for the program by about $650,000, of which $100,000 will be supported by local taxpayers, the potential remains for the Legislature to make other program changes that will further shift costs to the City.  Should this happen, the budget could potentially be reopened and changed.
                                                                                             
Prior to adopting the budget, the Council will hold a public hearing at which interested residents may provide comments and/or recommendations about the budget.

For further information, contact: Ed Barrett, City Administrator, 513-3121 ext 3800.