Changes affecting your 2011 Tax Bill

We are pleased to report that through the combined work of Selectmen, Finance Committee and town department heads, we have been able to hold municipal spending below 2007 levels for the fourth year in a row.

Unfortunately, due to continued increases in Waterford’s portion of the School and County budgets, it was necessary for Selectmen to increase this year’s mill rate from $12.75 (2009, 2010) to $13.25. This means that for every $100,000 of assessed property value, the average tax bill will increase by approximately $50.

It would be an oversimplification of the issues at hand to blame the county or school district for the increase. It is clear that both agencies have worked hard to control their costs. However, it is also clear that Waterford’s portion of both of these budgets has increased for the 10th year in a row and there are no indicators that suggest that this trend will change.

The size of the county and school budgets is not the only factor driving our tax increase. Both budgets are allocated based on the State’s assessment of property values. Although the State recognizes that property values are down everywhere, it also maintains that the values in Waterford are not down as much as they are in other portions of the county. This means that our value, as a portion of the total county value, is actually increasing. Since this is the criteria uses to allocate both the county and school budgets, we end up seeing an increase in our portion even if the overall budgets decrease.

Property owners may also see other changes in their tax bills as the Homestead exemptions are down slightly this year (State formula). Also, owners with property in Tree Growth may also see an increase as the State’s value for hardwood, mixed wood and softwood are all up this year.

Looking Forward – Selectmen, Finance Committee and town department heads all remain committed to doing our best to control the mill rate at the lowest possible levels. Some of the things we will be focusing on during the coming year include:

Higher Level Of Involvement At The County Level – All three Selectmen recently attended the Oxford County Budget Committee nomination meeting. Although it was our intention to see if we could get Richard Hunt elected to the committee, we were not able to secure enough votes to ensure that Waterford received representation. The good news is Richard has committed to attending all county budget meetings in order to monitor the process with the hope that he may get elected next year.

Increased Level of Competitive Bidding for Town Services – Before asking the residents for more money for the municipal budget, Selectmen have an obligation to ensure that we are spending in a cost effective manner. Although competitive bidding is the norm on very large purchases such as the new plow truck, it is not very widely used at smaller dollar levels. It is our intention to expand this significantly over the next 12 months in order to make sure that every taxpayer is getting the most from every dollar spent. A recent example includes a bidding of the Town’s liability insurance, which decreased the cost of the policy by approximately $10,000.

As always, we remain committed to spending your money responsibly. Should you have any ideas you would like to share, please feel free to email me at rslessard@waterfordme.org. I will share your thoughts and ideas with the other members of the Board of Selectmen.

Best Regards,

Randy Lessard
Chairman – Waterford Board of Selectmen