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2012 Mill Rate

After careful consideration, and some lengthy debate, the Board of Selectmen has voted to set this year’s mill rate at $13.50. This is a 1.89% increase over last year but in alignment with the Federal Government’s published number of 1.8% for the Consumer Price Index which is generally agreed to be a fair indicator of how the cost of goods and services increase from year to year.

Ideally we would have liked to keep the mill rate flat, especially considering the tough financial times we are in. Unfortunately budget increases over the past year have made that impossible.

The formula used to determine the mill rate is fairly simple. Below is a brief explanation along with some pointers on how you can participate in the process should you choose to.

Mill Rate = (Total Operating Budget – Allowable Deductions) / Assessed Value of Waterford Property

The total operating budget is made up of the following components:

  • The Town’s municipal operating budgetfor 2012 is $1,235,010. This is an increase of $67,835 over last year. The increase was driven by several factors, some of which include:
  • $33,812 was added to the Highways & Bridges / Winter Roads accounts.
  • $23,658 was added to partially reimburse the forestry account for the purchase of the plow truck.
  • $8,250 was added for the computerization of the tax cards.
  • $8,150 was added to pay for emergency repairs to the westerly arch at Elm Valve Cemetery.

This budget is voted on during the Annual Town Meeting in March. All Waterford property owners are welcome to attend this meeting. Residents who are registered to vote in Waterford are allowed by Maine State law to cast votes.

  • Waterford’s share of the SAD #17 budget for 2012 is $1,694,175. This is an increase of $49,175 over last year. This budget is voted on annual during a district wide vote. There are public budget meetings held prior to the annual vote at several local schools. For more information on how to participate in the budgeting process please contact the Superintendent’s office. Voting is open to all registered voters in the Oxford Hills school district.
  • Waterford’s share of the Oxford County budget for 2012 is $194,180. This is an increase of $13,180 over last year. This budget is voted on annually by a budget review board that is appointed by the County Commissioners. There are public budget meetings held prior to the annual vote.

We are pleased to report that Selectmen Richard Hunt will be a voting member of the Oxford County Budget Committee for the 2013 tax year. This will be the first time, in recent memory, that Waterford has had representation in this process.

  • The budget overlayis monies above and beyond those already described above. The purpose of the overlay is to protect communities from budget overruns due to things like increases in fuel prices during the winter plowing season. The State of Maine restricts the maximum amount of the overlay to no more than 5% of the total budget. The budget overlay for 2012 is $57,772, $32,526 less than that raised in 2011.

Finally, we would like to note that the mill rate for this year would have been higher had the Waterford Board of Selectmen, the Finance Committee, and the Town’s Department Heads not identified several cost saving initiatives, including:

  • $15,000 – Revenue received to correct a billing error dating back to 2005.
  • $12,000 – Monies received from the sale of tax acquired properties.
  • $10,000 – Savings resulting from the competitive bidding of the Town’s general insurance policy.
  • $10,000 – Savings resulting from a change to our medical plan that was unanimously indorsed by the Town’s employees.
  • $17,100 – Revenue for mutual aid services provided to the Town of Albany for 2011. This money has been earmarked for future equipment purchases for the Fire Department.
  • $20,000 – Revenue for mutual aid services to the Town of Albany for 2012. Once again, this money has been earmarked for future equipment purchases for the Fire Department.

2012 Municipal Tax Rate Calculation - Short Form
Item / Description
MUNICIPAL VALUATION
1 / Land Value / $192,729,459
2 / Building Value
3 / Personal Property / $1,403,978
4 / Total Taxable Valuation / $194,133,437
5 / Total Homestead Valuation / $4,118,305
6 / Total Homestead Valuation / 2 / $2,059,153
7 / Total Valuation Base '11 (4 + 6) / $196,192,590
APPROPRIATIONS
8 / Municipal Appropriation / $1,235,010
9 / County Appropriations / $194,180
10 / MSAD Appropriations / $1,694,175
11 / Budget Overlay / $57,722
12 / Total Appropriations = (8 + 9 +10 + 11) / $3,181,087
ALLOWABLE DEDUCTIONS
13 / Maine Municipal Revenue Sharing / $60,985
14 / Homestead Reimbursement / $27,799
15 / Taken from Savings / $31,903
16 / Rolled from CY 2011 Budget / $19,894
17 / Other (Excise, Etc) / $419,705
18 / Total Allowable Deductions / $560,286
RAISED FROM TAXES
19 / Appropriations (12) - Deductions (18) / $2,620,801
20 / Mill Rate per Assessed $ (19 / 4) / $2,620,801 / / / $194,133,437 / = / $0.01350
21 / Mill Rate per Assessed $1,000 (12 x 1000) / $13.50
22 / Mill Rate for 2011 / $13.25
23 / Percent Increase In Tax Bill / 1.89%

Best Regards,

Randy S. Lessard ’14 (Chairman)Richard T. Hunt ’15Wyatt E. Andrews ‘13