Several factors caused Mars Hill tax rate to rise
By Scott Mitchell Johnson
Staff Writer
MARS HILL — Mars Hill’s new town manager Karin Petrin said while she can’t rule out a future mil rate increase, she hopes it won’t be as significant a jump as this year’s figure.
By comparison, the 2011 mil rate was 20.0, in 2012 it was 21.04, and this year it is 25.75.
“Basically, the school budget increased an additional $250,000 (approximately), our county tax increased roughly $10,000, our municipal budget increased $13,000, and there was a calculation error with one of the TIF’s last year,” explained Petrin.
“The state adjusted our town’s valuation up, including the wind farm, which decreased the amount of funding and resulted in a lower contribution by the state for school aid,” she said. “There were also issues related to the transition from RSU to AOS to SAD which resulted in a budget shortfall of $371,000 in their carryover. The net result is a $250,000 contribution increase to the town’s budget.”
Petrin said state funding increases will not change the mil rate this year.
“We committed our taxes June 17 and sent out bills,” she said. “If the school receives additional funds, they may add them to their carryover for next year which will hopefully decrease next year’s mil rate.”
Mars Hill will undergo a re-evaluation beginning this fall with completion anticipated for the tax commitment for 2015.
“This will equitize the town and adjust our valuation locally, and with the state, which should assist with calculating our contribution levels for county and state aid and taxes,” said Petrin.
The town manager said she’s “very grateful for the patience and understanding that many community members have shown.”
“I did not contribute to the condition of the mil rate this year, but I did sign on the dotted line which set it,” Petrin said. “I am going to do my best to prevent increases of this magnitude in the future. I can’t promise there won’t be one, but I will do my best to keep it as nominal as possible.”
