Select Board sets mill rate at 11.9 after debate over overlay size

The Select Board voted unanimously Aug. 6 to set the town's 2025 mill rate at 11.9 and to adopt an overlay to round the rate. The board debated three overlay options presented by the assessor before approving an amount to finalize tax bills.

The overlay is a discretionary portion of the tax computation that the board can use to round rates and support unanticipated shortages such as tax abatements or lower‑than‑expected collections. The assessor presented three overlay scenarios in the packet; the board discussed estimated impacts on a sample $350,000 house and the distribution of tax changes among town, county and school portions of the property tax.

Board members asked staff questions about the overlay's purpose and legal limits. The town manager and others noted guidance from the Maine Municipal Association that overlay is typically treated as part of unassigned fund balance and is generally not intended to be used as a revenue‑generating mechanism. The board discussed the recent revaluation and how changes in total assessed value affect mill rates.

After discussing options and potential impacts on lower‑value households, a member moved to adopt the overlay figure presented during the meeting and set the mill rate at 11.9. The motion was seconded and passed on a 5‑0 vote. The town manager said final paperwork and signatures would be completed to allow tax bills to be prepared and mailed.

The Select Board directed staff to prepare the required signature documents and indicated at least three board members would need to sign to finalize tax billing.