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HomeMy WebLinkAbout2018-07-09 18-278 Resolve 07/09/201818-278 07/09/2018 18-278 City Manager Resolve N/A Title, Resolve Amending the FY 19 Budget to Include $271,425 in Additional State Homestead Revenues This resolve will amend the FY 19 Budget to include an additional $271,425 in state funds for the Homestead Program. In 2018, the State Legislature increased the Homestead Exemption to $20,000. At the time the Legislature increased the Homestead, they also included a provision to increase the reimbursements to the municipalities from 50% to 62.5%. In FY 2018, the State Legislature suspended implementation of the 62.5% and the reimbursement rate to municipalities remained at 50%. The FY 19 budget was built on the assumption that the Legislature would continue at the 50% level and not increase the Homestead reimbursement to municipalities. It was later discovered that the Legislature had not reduced the Homestead as they carry a budget surplus of over $1 billion. If approved, this order will increase the amount of revenues the City will receive from Homestead and reduce the amount needed from property taxes. The net affect will reduce the mil rate by .10 cents per thousand. The estimated mil rate will go from $23.05 per thousand to $22.95 per thousand. Recommend for passage In order to commit taxes in a timely manner, we will need to waive first reading. First Reading 07/09/201818-278 CITY OF BANGOR RESOLVE 07/09/2018 18-278 Weston Amending the FY 19 Budget to Include $271,425 in Additional State Homestead Revenues Whereas, On June 26, 2018 the City Council adopted an FY 19 budget; and Whereas, estimates included in the budget did not account for an increase in Homestead revenues that was approved by the State. Whereas, the Homestead Revenues are estimated to be $271,425 or roughly .10 cents on the mil rate. Be it Resolved by the City Council of the City of Bangor that, That revenues for the FY 2019 Budget be increased by $271,425 as a result of an increase in the amount of Homestead Revenues to be reimbursed by the State. Be it Further Resolved That the City Assessor is instructed to decrease the tax commitment by .10 cents per thousand of assessed valuation.