Cumberland’s tax rate will increase to $25.18 per $1,000 of assessed value this fiscal year, an increase of 8.3% from last year’s. For a home valued at $500,000, the tax rate increase of $1.93 would mean an additional $965 on the property tax bill this fall.

The Town Council approved the change — which was unexpected throughout the recent budget process — at a meeting on Monday. Previously, town staff and the council anticipated the tax rate increase would be closer to 3%.

The adjustment was needed after the town assessor found the taxable value of the town was approximately $3 million less than anticipated in the budget process. The tax rate is determined by looking at local spending and the town value that can be taxed.

With the town, school and county budgets already approved and less value in the town than expected, the town must meet the budget by increasing taxes to compensate for the shortfall.

Town Manager Matthew Sturgis said the high tax rate signals that the town will need to conduct a revaluation soon. Cumberland’s certified assessment ratio for this fiscal year is 57% of market value. If the assessment ratio was brought to 100%, the tax rate would drop significantly.

Additionally, with such a low assessed ratio, tax exemption programs are reduced accordingly by 57%. For example, the homestead exemption, which is up to a $25,000 reduction in the value of a house for property taxes, would be reduced to $14,250.

At the Town Council meeting, Cumberland residents pushed back against the increase, as well as the budget process that preceded it.

“Shouldn’t we figure out what we have, and spend what we have?” said Keith Light during public comment.

Residents also expressed frustration at School Administrative District 51, which is shared with North Yarmouth, wanting the district to reduce its budget.

The town does not decide the school district’s $53.82 million budget breakdown, though Cumberland residents did narrowly vote to approve it in June, 911-757. While North Yarmouth voted against the SAD 51 budget by 410 votes against and 373 in support, combined with Cumberland’s tally the budget passed.

The Town Council determined the municipal budget of $15.96 million in May and which residents do not vote on. Ultimately, the Town Council said they had already examined the town budget closely over many months and could not find a way to feasibly reduce it further.

“I’m probably the most conservative person up here when it comes to spending taxpayer money. But this is a good, responsible town budget. And the school owns the aggravation here, not us,” Councilor Michael Edes.