BRUNSWICK

The Brunswick Town Council on Monday set a Sept. 5 hearing on amending the town budget in an effort to reduce a tax increase to 2.5 percent.

The amendment aims to siphon money from other sources to reduce the tax rate.

After the town crafted its original budget, the state cut the homestead exemption reimbursement rate, leaving the town with a $200,000 shortfall and pushing the tax rate to 3 percent. Town Manager John Eldridge, at a previous council meeting, was tasked with compiling a list of sources that could be used to offset the shortfall.

School funds

Money totaling $628,000 had been kicked back to the Brunswick School District by the state. At that time, the council decided that $400,000 would go toward funding teaching positions and other expenditures that had been left unfunded in the school budget. Of the remaining money, $200,000 would be used to cover the homestead shortfall to lower the tax increase 2.5 percent from 3 percent, while the remaining $28,000 was apportioned to the district’s budget for next year.

Auto excise tax

On Monday, Finance Director

Julia Henze suggested the $200,000 come from auto excise tax, at a rate of $100,000, adding the projections of revenue from that source have been stronger than previous years. Henze also suggested taking $50,000 from the general fund balance and the remaining $50,000 from money generated by interest.

Improving the town

If the council votes not to amend the budget, the average taxpayer would lose about $30 or less, Henze said. Vice Chairwoman Kathy Wilson said the option of keeping the money in the budget should be considered, and the $200,000 could be used for something to benefit the entire town, such as fixing a sidewalk or paving a road.

Mere Point property

Resident Jean Powers, who has been outspoken about the .5 percent increase, said voters expected the money would be used to offset the tax impact, and funds should be taken from another source to reduce the tax impact. Powers suggested money come from the $550,000 sale of the formerly embattled Mere Point property, or taken from the general fund balance.

Councilor Jane Millett agreed the money should be taken from the sale of the property.

Councilor Steve Walker warned the town needs to invest in what kind of community they want to have in 50 years, and if money is not set aside for water access property, the town will miss out on opportunities. Wilson supports using the money from the sale of Mere Point to pay for municipal water access.

Eldridge said the .5 percent decrease would be only for this year and funded by a onetime source that will need to be made up next year.

The homestead exemption provides a reduction of up to $20,000 in the value of a home for property tax purposes. To qualify, a person must be a permanent resident of Maine, the home must be the permanent residence, and the applicant must have owned a home in Maine for the 12 months prior to applying and an application must be filed on or before April 1 with the municipality where the property is located, according to information on the state’s website.

According to the Maine Center for Economic Policy, the average amount of money saved by the exemption is $313 for about 213,000 people in the state.

jlaaka@timesrecord.com