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Current Tax Rate Estimate for FY2002-2003 School and Municipal Budgets As of 4-3-02, the current municipal budget proposal under consideration for the Town of Greenville would increase our current budget by only .24 mils – an increase of approximately $30,511. This change is due to some additional cuts in the expenditure side, a review of the revenue side which now shows a projected increase of about $20,000, and an error in the calculation of LAST year's total expenditures, which resulted in a reduction in the difference between this year's total and last year's total of about $26,000 (my error – sorry). On the municipal side, the Board of Selectmen have endorsed the proposal to have the $15,000 for the municipal building reserve come from unappropriated surplus, thereby NOT affecting the current tax commitment. This will likely appear as a separate warrant article for the voter's consideration for using surplus for this purpose. Also, three items have been added as "additions" to the budget, which will be asked separately of the voters, and considered separately by the budget committee. The first is a value for the revaluation reserve begun last year. The appropriation last year was $25,000: I have suggested $15,000 for this year. The projected cost for a full revaluation in 3-5 years will be upwards of $120,000. Funding this reserve now is an effort to reduce that cost in future years. The second two additions have to do with recycling. There is concern by the Board of Selectmen (and myself) that the landfill is filling up too quickly due to the addition of recyclable materials. The Board is considering adding a mandatory-recycling ordinance to the Town meeting warrant this June. To help implement such an ordinance, two additional costs have been estimated. To have curbside pickup of recyclables once per month IN ADDITION to the weekly pickup of garbage, we have received a quote of $6,900. To facilitate citizen participation in this program, we have estimated the cost to buy each household one large recycling bin to be placed outside for curbside pickup once per month. Although I have yet to receive a firm quote, I have estimated that one-time cost at $5,000. I do believe this will increase our revenue from commodities, and I have increased that revenue line conservatively by $3,000. The attached municipal spreadsheet details these costs and revenues. As it stands, at $125,000 per mil, the municipal budget increase of $30,511 would raise the mil rate by $.244 per $1,000 valuation. With the projected additions to the budget, the total increase would rise to $49,776, or a mil rate increase of $.39 per $1,000 value. The school budget proposed April 2 would increase the cost to taxes by $273,232. At $125,000 per mil, this would be a mil rate increase of $2.19 per $1,000 value. The school board directed the administration to keep the mil rate increase to no more than $1 per $1,000 of value. If this happens, the total projected mil rate increase would be $1.244 per $1,000 of value, increasing our mil rate from $20.20 to $21.44. If the municipal additions are included, the mil rate would increase to $21.59. These respective percentage increases are 6.16% and 6.88% increase. If the overlay climbs from roughly $20,000 to $64,000, this would add roughly another $.35 per $1,000 of value. This would increase the mil rate range from $1.59 to $1.74, or a final mil rate of $21.79 or $21.94. These percentage increases would be $7.87% and 8.61%, respectfully. These mil rate increase projections are based on a total town valuation of $125 million. This is about $6 million more than last year's total assessed value. The projected change is based on the anticipated result of adjusted neighborhood land values and reduced depreciation rates for residential structures. If the total assessed value for the Town does not grow by this amount, the mil rate will grow larger to compensate.
Respectfully Submitted; John Simko |