AUBURN — People late in paying their property taxes won’t get a discount on late fees, the City Council voted Monday.
Councilors approved their 2012-13 fiscal year budget Monday night. It calls for a 0.3 percent increase in the municipal property tax. That amounts to 2.44 percent increase in the total tax rate when combined with school budget approved by voters last month.
Combined with the School Department’s $35.9 million budget, Auburn would need to collect $40.8 million in property taxes, a 2.44 percent increase over the current tax rate.
The new tax rate would be $19.86 per $100,000. That would amount to a $71 tax payment increase on a $150,000 home.
Councilors also voted to stick with past practice of splitting tax payments. Residents can pay the first half on Sept. 15 and the rest on March 15.
People who don’t pay their taxes by March 15 risk being charged interest. That’s been 7 percent for the last two years.
Councilor Belinda Gerry urged councilors to reduce that interest rate to 5 percent.
“All we are doing it taxing people that can’t pay on money they don’t have,” Gerry said.
Her colleagues said the city does offer chances to people to make smaller monthly payments and avoid paying interest.
“As long as they make those payments, there will be no interest assessed,” Councilor Tizz Crowley said.
A majority of councilors agreed with Crowley, and the council voted 5-2 to set the interest rate at 7 percent. Gerry and Councilor Leroy Walker voted in favor of lowering the rate.
Municipal spending for fiscal year 2012-13, including programs shared with Lewiston and county taxes, would be $36.4 million. That’s a $748,752 increase compared to the current budget.
The municipal budget calls for a $588,482 increase in spending but funds four new positions — an assistant city manager, a fire chief, a planner and purchasing officer.
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