An increase was anticipated. Final rate confirmed following completion of tax commitment process.
An Interim Town Manager was announced at the August 17 Select Board Meeting. Chris Bolduc, Assistant Town Manager for Cumberland, will provide part-time, temporary Town Manager support for North Yarmouth while the Select Board conducts search to find candidate to permanently fill role. The position had been vacant since April. Former Town Manager, Rosemary Roy, was on personal leave since April 12 until her resignation on July 20.
First priority for Bolduc was completing tax commitment for town. Issues related to budget shortfalls as well as impacts associated with Undesignated Fund transfers will need to be addressed.
An increase from the FY21 mil rate of 16.55 was expected to be between 16.75 – 16.96. However, the actual mil rate could not be confirmed until the tax commitment process was completed. Lower projected revenues and expenditures higher than budgeted contributed to the need for the increase. To correct budget shortfall, the final rate was set at 17.10. Tax bills printed on August 19 reflect this new rate.
Select Board Chair, Brian Sites, stated one anticipated revenue source was American Rescue Plan funds (ARP). Federal guidelines for using ARP were not available when it was added to projected revenue during previous budgeting cycle. Restrictions on qualified uses were announced in May. ARP can only be used for specific items related to COVID, such as to cover previous year revenue shortfalls from items such as excise taxes. Additionally, Wescustogo Hall and Community Center Account had a negative balance.
North Yarmouth is preparing to begin budgeting process for FY23. Sites is working to schedule a joint Budget Committee and Select Board meeting and will be sending a letter to the Board outlining “where we are, where we need to go, and what we need to do.” One potential item will be reviewing practices related to Undesignated Funds and possible impact for future mil rates.
Due to staff vacations, the soonest the meeting could possibly be scheduled is August 26.
The tax increase will likely add to frustrations associated with recent reductions to the Homestead and Veterans exemptions.
Sites emphasized although the perception of the immediate impact is negative, the long-term outlook for the North Yarmouth is “fiscally really sound.” He added residents should contact the Board with any questions. More information will be coming as the Board moves throught the budgeting process.