Ashland’s mil rate sees slight increase
By Kathy McCarty
ASHLAND — Residents will notice a slight increase in their tax bill this year, due to a one-point increase in the mil rate.
“Tax bills are up slightly this year, with the mil rate up from 17.25 last year to 18.25 this year,” said Town Manager Jim Gardner.
Gardner explained what the increase will mean for property owners.
“For someone with a $100,000 home, last year their taxes would have been $1,725; this year their taxes will be $1,825. The average home owner will see roughly a $100 tax increase,” he said.
Gardner said there were several reasons for the increase.
“Like every other community, we got whacked with the Homestead Exemption hit. We’ve never been at full 100 percent valuation, so we never got the full Homestead deduction. Now there’s even less of a deduction; that increase affected our mil rate,” he said.
Another factor involves the school system and the community’s failure to combine with other school systems, as the state had required.
“We’re getting penalized for not consolidating. We already have five towns whose children go to our schools. And given our location, we’re limited in whom we can consolidate with. We’re already working with Presque Isle — sharing a superintendent,” said Gardner.
The new school was another reason taxes are up.
“Another thing that drove the mil rate up this year — we have full payment on the school, as opposed to last year when we just paid the interest (on the loan),” he said.
The school budget was also up this year, affecting the community’s final budget.
“One increase this year was the school’s share of the budget. Last year it was $714,700; this year it was $811,800. That’s nearly a $100,000 increase for the school system,” said Gardner, noting voters were aware that when payments began on the new school, taxes could go up. “Voters approved the school and how it was to be paid for.”
Town officials continue to work to keep costs down. This year’s budget is down over $60,000 from last year’s.
“The town’s budget last year was $1,303,693. This year it’s $1,240,046. We’ve made some cuts, including a police officer position. Since 2008, the town’s budget is down about $115,000,” said Gardner.
Also helping was the fact the county’s budget was down a couple thousand from last year’s figure, said Gardner.
“If folks are wondering why taxes are up, taxpayers voted on part of it (the school), and the reduction in the Homestead Exemption is another part,” said Gardner.
The town manager credited the Town Council for its efforts to control spending.
“The Council held the line hard. Town staff received no increases; we’ve even gotten to the point we’re cutting positions,” he said.
Despite the economic situation over the past year, Gardner continues to think positively.
“We’re waiting on Fraser’s move (what the future holds for the Ashland mill). There’s been some interest in the site. Northeast Pellets will be starting up later this year. If we can get both mills operating, that will help. We’re also hoping the school will bring economic development to the area. It’s a great bargaining tool when attracting businesses (to have a new school),” said Gardner.
He’s looking forward to things turning around.
“I’ve been here through the worst of times. I want to stay around to see the community recover and prosper again. I signed a new three-year contract, through 2014. I want to be here to lead us into good times,” said Gardner.
