TOPSHAM — Taxes in Topsham could be going up by more than 4% if a $12.7 million municipal spending plan is approved by voters next month. 

According to Town Manager Rich Roedner, the estimated 4.28% tax increase will likely be reduced once the assessor calculates anticipated increases in the town’s overall valuation by August.  

The tax rate is estimated to increase from $18.73 per $1,000 of assessed value to $19.53. That means a home worth $200,000 would see a $160 increase in its annual taxes. This doesn’t include any increases that may come from the School Administrative District 75 or Sagadahoc County budgets. 

The proposed $12,713,716 municipal spending for 2019-20 would be a $759,130 or 6.35% increase. The finance department spending is proposed to increase by $72,845, an 8% spike because selectmen are proposing to add a full-time staff member to the one-person department.  

The proposed budget also contains money for a full-time public works position, bringing staffing up to the level it was at a decade ago, Roedner said. A seasonal part-time position in the parks department will be increased to a full-time, year-round position to help maintain town-owned facilities. 

Topsham, like other communities, is facing higher costs for recycling that are now surpassing the cost of disposing of solid waste. 

The town is paying about $40 a ton for recycling this year — a rate that is expected to nearly triple next year.

Roedner said the town will continue the recycling program another year before considering making changes.

A new full-time firefighter position and overnight per-diem shift is also proposed for the fire and rescue department. Combined with the existing three full-time firefighters who work 24-hour shifts, Roedner said this should allow the department to provide better coverage overnight and operate two ambulances at night if needed.  

The cost of insurance is increasing by $176,000, Roedner said, because the town is entering contract negotiations with all three of its unions. Current contracts expire at the end of June. 

Municipal revenue sharing could also have a big impact on Topsham’s tax rate, but how much more money the state will decide to kick in is still being debated at the State House, Roedner said.  

In the early 1970s, the state prohibited towns from having their own income or sales taxes and committed to give towns 5% of the growth of income and sales tax. Under the administration of former Gov. Paul LePage, municipal revenue sharing dropped to 2%, according to Roedner.

Gov. Janet Mills is proposing to increase it to 2.5% next fiscal year, 3% in 2021, and to 5% in the following biennial budget, Roedner said. That could mean the town gets an additional estimated $125,000 in revenue sharing next fiscal year. This year it got $494,000. 

A public hearing on the budget takes place 7 p.m. Thursday at the Topsham town office. Residents can sound off on the draft May 15 town meeting warrant, which also includes a comprehensive plan update, a proposed medical marijuana business licensing program, and land use changes for medical marijuana storefronts and marijuana cultivating, manufacturing and testing.

dmoore@timesrecord.com