Easton taxes are going up
By Kathy McCarty
Staff Writer
EASTON — A change in valuation brought about by the end of a TIF (tax increment financing agreement) for McCain Foods has had an impact on the town’s annual budget, resulting in a minimal increase to the mil rate.
“Last year’s budget was $925,187; this year’s budget is about $944,687,” said Town Manager Jim Gardner. “This translates to the town’s commitment last year being $629,138 and this year it’s $636,578 — a $7,000 increase to taxpayers.”
Gardner said the increase was mostly due to fuel costs and insurance.
“There were no wage increases this year. We tried to stay as flat as possible,” he said.
The town manager said the elimination of the 10-year TIF for McCain Foods back around 2008-09 saw the business’s property value go up by about $83 million, which had a direct impact on the town’s valuation figures.
“The town value went from $161 million to $240 million for assessment purposes. That had a direct impact on the school budget, since state contributions to school systems is largely based on valuation,” said Gardner.
The increase meant municipal leaders had some serious strategic planning to do, since state funding would be reduced for Easton schools as a result of the shift in valuation.
“In 1999 the mil rate was dropped from 20.35 to 14.65 (when the food processing plant obtained the TIF). What they forgot were school allocations. The state’s allocation for the school went from $770,000 to $195,000 — over $500,000 to make up,” he said. “The town has over a $500,00 gap to fill.”
The school budget was recently finalized, with town officials agreeing to use surplus funds to help bridge the shortfall.
“It was voted to take $250,000 out of surplus and to increase the mil rate by less than a point — mil rate remains under 16,” said Gardner.
Gardner said the town has dedicated accounts for things like equipment upgrades and that the surplus account is used to cut taxes and other emergencies.
“This should have happened in 2009. Town officials should have taken the mil rate to 17, with any extra money going into a dedicated education fund. We’ve held the mil rate at 14.65 for the past three years. Over the next three years we have to get back to 16.5,” said Gardner, noting no one knows the future of development in the community and what impact it could have on municipal figures when it comes to the budget.
“The County was $240,000 last year and was up to $251,000 this year,” he said.
He said while money was put aside in surplus, the mil rate should have been adjusted slowly.
“A 1-mil increase on a $100,000 home translates to $100 more per year in taxes for that property. This year’s increase was necessary to help get us back to where we should have been,” said Gardner.
