LIVERMORE FALLS — Residents voted by a 2-1 ratio Tuesday to approve a $100,000 tax-increment finance district budget. The move was expected to raise taxes by $30 on $100,000 property.
Voters authorized town officials in February to capture up to 90 percent of the new value of Central Maine Power Co.’s $14 million upgrade at its substation on Moose Hill Road. The amount that could be captured can be less than 90 percent but not more.
Under the 30-year TIF plan, the town could shelter $13.26 million of valuation this year with $13 million attributed to CMP’s upgrade and $265,300 to Lamb Block Associates LLC, which owns the Lamb Block building on Depot Street and is in the TIF district.
The entire amount that could be used under the TIF this year is $248,000. Now, $148,000 of it will go into the town’s general fund for municipal expenses.
About 26 residents attended the meeting, including the five selectmen and Town Manager Kristal Flagg.
Darryl Brown moderated the meeting.
Former Selectman Bill Demaray made an amendment to reduce the $100,000 budget to $65,000. It would have kept the tax rate at $20.80 per $1,000 of value, the same as the past four years.
He said it was not the time to be raising taxes when there are so many tax liens on properties and people are losing their homes because they cannot pay the taxes.
Selectmen Chairwoman Louise Chabot asked Nate Libby of Community Dynamics to explain the $100,000.
He said the $65,000 is only 27 percent of what could be captured while the $100,000 was 40 percent of it.
The lesser budget would not allow for any other funds for economic development projects other than administration costs and some other items, Libby said.
The $100,000 covers $35,127 for economic development activities that are unknown at this time.
The rest of the money covers $32,000 for a sidewalk on Park Street that voters initially approved last year to come out of surplus.
It also pays for a part of Flagg’s and Treasurer Sue Sapiel’s wages for time spent on the TIF, $4,000 to help pay to construct a building over a new piece of equipment at the Livermore Falls Wastewater Treatment Plant. It also covers the cost of Community Dynamics Corp.’s consulting fees of about $16,000 for helping town officials put together a TIF application for the state and continued guidance. Voters approved about $11,000 of that amount to come from surplus last year.
The $43,000 for the sidewalk and consulting services will now stay in the town’s surplus.
Other costs associated with economic development will also be paid for through the TIF budget.
When asked to explain what will happen if the town didn’t shelter more of CMP’s value and capture more than 27 percent — the $65,000 — the town could end up receiving less state revenue sharing and education subsidy and pay more for county taxes in the future.
Demaray said the town receives less revenue-sharing every year and the governor is trying to do away with it. Jay is undergoing a major revaluation and if Verso Paper Corp.’s mill’s valuation drops, it is expected Livermore Falls and Livermore will have to pick up a higher share of the RSU 73 budget, he said.
“I don’t feel we should raise taxes now,” Demaray said. “I think we should wait and see what happens and keep the tax rate stable.”
Some residents were concerned that if a higher percentage of value of the substation upgrade is not captured this year, it will be difficult to capture it in future years and taxes will rise even more.
A higher amount can be captured next year, Demaray said. The only limitation is that no more than 90 percent can be captured, he said.
It either affects the tax rate today or it affects it when the town has no choice but to raise taxes, Selectman Mary Young said.
“We feel we can control it some” this way, Chabot said.
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