Tax Rate and Conservation Funding are on Selectboard Agenda,
by Nancy Wood,
August 8, 2010...

At the August 12 meeting, the Selectboard will discuss the level of funding for the Conservation Fund, and set the tax rate for this fiscal year (July 1, 2010-June 30, 2011). Town Clerk Mary Mead has prepared three scenarios for the tax rate discussion: one with $90,000 surplus from FY2010 applied to reduce taxes and 2 cents (about $184,000)going to the Conservation Fund; another with the $90,000 surplus and one cent going to the Conservation Fund (about $92,000); and one without the surplus and with 2 cents to the fund.

At the March 2010 Town Meeting, the estimated tax rate in the Town Report was based on a 2-cent contribution to the Conservation Fund for this year. However, according to Board Chair Charles Russell, the Selectboard has the discretion to set a lower level of funding. At the March 2006 Town Meeting the voters authorized "the Selectboard to increase the tax rate by no more than two cents for a period of ten years to maintain the Conservation Fund."

The municipal tax rate will increase from 9% to 21% depending on the scenario chosen. With the education tax, the overall increase in residential rates would range from 3% to 4.3%. The increase in non-residential rates is less.

The large increase in municipal rates is primarily due to the smaller surplus. Last year $250,000 in prior year surplus was given back to the taxpayers. Another factor is due to depreciating property values, which led to a reduction of about 0.2% in the Grand List. As voted by the Town, there is no increase in the actual Selectboard budget.

Summary of Fiscal Year 2011 Tax Rate Alternatives - Three Scenarios for Discussion by Selectboard August 9, 2010:

No Surplus and 2-cents Conservation: Municipal Tax Rate, 0.1918; % Increase, 20%; Total Res. Tax Rate, 1.5354; % Increase, 4.3%; Total Nonres. Tax Rate, 1.539, % Increase, 2.7%

$90,000 Surplus and 2-cents Conservation: Municipal Tax Rate, 0.1820; % Increase, 14%; Total Res. Tax Rate, 1.5256; % Increase, 3.7%; Total Nonres. Tax Rate, 1.529; % Increase, 2.1%

$90,000 Surplus and 1-cent Conservation: Municipal Tax Rate, 0.1720; % Increase, 9%; Total Res. Tax Rate, 1.5156; % Increase, 3.0%; Total Nonres. Tax Rate, 1.519; % Increase, 1.4%

Prior year (Fiscal Year 2010) Tax Rates: Municipal Tax Rate, 0.1592; Total Res. Tax Rate, 1.4716; Total Nonres. Tax Rate, 1.498

Grand List – 2009: 9,279,373
Grand List – 2010: 9,263,019
% Decrease: -0.18%