Property Taxes May Go UP
No Matter What
by Nancy Wood
1/14/10, Page 1

Despite the best efforts of Selectboard and School Board, Charlotters will most likely see property tax increases next year.

Both Boards are striving to keep budgets flat with the current year. Difficult decisions are being made. But in both cases increases are inevitable.

On the municipal side, the budget under discussion, including a new appropriation of $25,000 for a Trails Reserve fund, will result in a tax rate of about 18 cents per hundred dollars of appraised values. This is close to what was estimated at Town Meeting a year ago for 2009-2010, but, thanks to budget surpluses in the last two years, the Selectboard was able to return $250,000 to the taxpayers by reducing the municipal rate to 15 cents. It is unlikely that there will be a similar surplus to apply during 2010-2011.

The school board is also asking for sacrifices to keep a flat budget. It is considering reductions that could affect the 5th-6th grade staff, drama, after-school sports (B teams) and summer school, while including in the budget the first debt payment of $175,000 on the $2.8 million bond for the bare-bones reconstruction project. Despite this possible zero-percent increase in the budget taxpayers can expect a 9.3% increase in the school tax rate for CCS. Depending what happens with the CVU budget, the overall increase in education taxes for resident homeowners can be expected to be about 7 %, and for non-residential property it will be close to 4%.

As with the town budget, a portion of these increases can be attributed to little or no carry forward of a prior year surplus. The very small change in the common level of appraisal (CLA) from 100.85 to 100.24 has minimal effect. The main reasons for the school tax increases are the tough economy, slow growth in the statewide equalized grand list and reduced revenues from all taxes on the state level. In response the state is expected to increase the education tax rates in each of the next three years. Also there will be no increase in the per-student base amount the state sends to local schools.

Governor Douglas will present his budget to the Legislature on January 19. Of special interest to Charlotters will be his possible proposals for the Current Use program and for funding of land conservation and affordable housing.

The CCS School Board will be finalizing its budget on January 19, and the Selectboard will complete its on January 25. Both meetings include an opportunity for public comment.