Staff Writer
ASHLAND – Ashland’s 2008 budget is up slightly from last year’s, coming in at $1,355,396, compared to just over $1.2 million for 2007.
Despite the increase, the mil rate will remain the same as last year’s 20 mil figure. “Our sales ratio has dipped to 71 percent of what the state deems normal for residential properties,” said Jim Gardner, town manager.
According to Gardner, the state has also reduced the Homestead Exemption.
“The state says this year it won’t give half of the $13,000; instead it will only give half of $10,900,” he said.
In an effort to determine what could be done to resolve such issues, Gardner said town and state officials met to discuss taxes.
“Town officials met with state members of the Taxation Department – sat down with taxation assessment officials. Options included raising property values through a townwide revaluation or by a certain percentage each year until we reached 90 percent,” said Gardner.
Gardner said the town didn’t want to burden taxpayers with higher property values, and thus more taxes, at this time.
New construction has helped the community’s tax base, said Gardner.
“The nice thing we’re seeing is new growth, which brings on new valuation,” said Gardner.
Over the next few years, Gardner believes Ashland residents will benefit from that new valuation.
“What we’re doing in growth – new school, businesses – the budget is down this year. My hat is off to our superintendent and school board. They’ve done a great job,” said Gardner.
Gardner said solid waste and fuel were two of the top items driving the increase in this year’s budget over last year’s figure.
“The largest increase – the one that kicked us – was for solid waste. Over the last three years it’s gone up. It started at about $112,000 and is up to $172,567 this year. That’s an increase of 24.973 percent this year,” said Gardner. “If you take that, coupled with fuel prices up, insurance and cost-of-living increases – those items are all in there and pushed the budget.”
In addition, Gardner said Council voted to put on another police officer.
“That took us up about $30,000 to $35,000,” said Gardner. “That’s the bad news.”
Gardner said new development – both residential and commercial – and the fact that activity has picked up at the mills has prevented the need for an increase in the mil rate.
“The mil rate won’t be affected this year. It was 20 percent last year and should remain that – even possibly go down in the future, if new growth continues to add valuation to the tax base,” said Gardner.
A revaluation was last done, according to Gardner, in 1972.
“A total revaluation costs around $90,000 to $100,000. By spreading it out, we’ll see where we can get from there. New valuation is a tool to offset taxes,” said Gardner.
Rather than do a total revaluation, Gardner said the process may be done over time. But any funds raised beyond what the town needs will go back to taxpayers.
“If valuation brings taxes up, for example, $40 on a home, and the town only needs $25 of it, the $15 difference can go back to the property owner – stabilize taxes through a drop in the mil rate,” he said.
Gardner noted there are plans for construction of five new homes in the community, as well as several businesses opening this year.
“The mill has returned to planing wood – activity has picked up there. Family Dollar will be open sometime in the near future. The Conservation Department has notified us they will be building onto the Department if Inland Fisheries and Wildlife building,” said Gardner. “That’s awesome news.”
Gardner promises he and town officials will continue to do whatever they can to meet the needs of the community without raising taxes.
“We’re going to work very hard, even with exemptions going down and costs going up. I believe between me and the Council we’ll be able to hold the mil rate at 20, same as last year,” said Gardner, who added he plans to serve as town manager for at least three more years, following the renewal of his contract in January. “We’re doing good, people are smiling.”
With county and school figures now in, officials were expected to meet July 8 to officially set the town’s 2008 budget and mil rate.
