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.