SACO — Residents will get a nice surprise when they open their tax bills 

The tax rate for the 2018 fiscal year is $19.38 per $1,000 of assessed property value, which is 4 cents below last year’s tax rate, according to a recent memo from City Administrator Kevin Sutherland. 

At budget time, the new tax rate was quoted as being $19.63 per $1,000, but two factors have driven this number down, according to Sutherland. 

One factor is the market rate, or what people are willing to pay for homes, is higher than what Sutherland assumed during the budget process. By law, municipalities have to assess properties within 91 percent and 106 percent of the market rate, according to Sutherland. 

Another factor is the School Department received $707,000 more in funding than originally expected from the state. 

According to a recently enacted state budget bill, school districts which passed an annual budget prior to the final state numbers coming out and did not add a provision to authorize the school board to use any additional state funds received must apply 50 percent of the additional funds to reduce the school district’s required local contribution — which should reduce local taxes — according to a press release from the Maine Department of  Educations.

This means that half of the extra revenue, or about $354,000 will be used toward offsetting local property taxes.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.