Rangeley Select Board approves draft FY 2025–26 budget, authorizes $1.375 million fund-balance draw; TIF capture discussed

The Rangeley Select Board voted April 7 to accept a draft fiscal year 2025–26 budget, to budget a $1,375,000 draw from unassigned fund balance and to authorize use of the town’s general reserve to pay for an upcoming property revaluation.

Mark, staff member, presented a worksheet the board used to project a mill rate under several assumptions and explained the calculation method: “this entire tool is designed to replicate what the certificate of assessment looks like,” he said. The worksheet assumes a 2% overall valuation increase for FY 2026 and uses that and other revenue estimates to show what mill rates and fund-balance use would produce a target mill rate of 12.23.

The presentation laid out three central fiscal points: projected ending unassigned fund balance (estimated between about $5.2 million and $5.7 million), the board’s 25% fund-balance policy (which equals about $3.0 million given budgeted expenditures of roughly $12.0 million), and a recommended budgeted use of fund balance of $1,375,000 (described in the meeting as “1.375”). Mark told the board that, under the scenario shown, that level of budgeted use would produce an overlay of about $25,000 and would be consistent with keeping the mill rate near 12.23 if the other assumptions hold.

Board members asked about timing and pace for reducing the town’s unassigned fund balance. Joe, staff member, and Mark said the plan is to reduce the excess over a multi-year period — described in the meeting as generally three years — with a larger reduction the first year, a moderate reduction the second year and a smaller reduction the third year so taxpayers do not face a sudden, steep increase.

The board also discussed the town’s tax-increment financing (TIF) capture. Joe said the number being recommended for planning purposes is about $602,004 (variously cited in discussion as roughly $602,000–602,400). Mark and other staff noted the actual amount the town can capture depends on the assessor’s certified valuations inside the TIF district; achieving a $602,000 capture would require an estimated 3% increase in property values within the district under the figures shown. Mark said the board will revisit the TIF capture when the select board meets in July and the assessor’s figures are certified.

Separately, the board approved a housekeeping motion to use the town’s general reserve (distinct from the general fund) to pay for a revaluation planned for this fall; the balance in that reserve was described in the meeting materials as approximately $208,000.

Votes at a glance

- Motion to enter executive session under Maine law for legal consultation (MRSA Title 1, Chapter 13, §405(6)(C)): moved by Sam; seconded by Ethan; motion carried. - Article RP1 (budget article): vote to incorporate funds with $1,375,000 from unassigned fund balance and estimated revenues as presented (FY 2025–26 draft figures): moved by Ethan; seconded by Sam; motion carried. - Motion to accept the FY 2025–26 draft budget as proposed: moved by Ethan; seconded by Sam; motion carried. - Motion to use general reserve to fund the town revaluation project: moved by Sam; seconded by Jay; motion carried. - Motion to approve minutes of March 17 (with one member’s abstention recorded/clarified in the minutes): moved by Sam; seconded by Jake; motion carried with an abstention noted and later corrected in the record.

Why it matters

The board’s decisions set the town’s near-term tax strategy: how much of the current unassigned fund balance will be used to offset property taxes and how aggressively the town will draw down reserves over the next several years. The TIF capture number and the certified property valuations the assessor provides in July will affect final mill-rate calculations and how much revenue the town can rely on from the TIF district.

What board members said

Cindy, Select Board member, expressed concern about taxpayer reactions to a revaluation and the pace of changes in assessed values; she said residents have told her they are “scared” about the potential shifts. Mark and other staff responded that budgeting a planned draw from fund balance does not mean the town will necessarily spend the full amount — actual results will depend on final spending and revenue performance — and that multi-year, phased reductions are standard practice to avoid sudden tax spikes.

Next steps

Staff said they will update the worksheet and R P 1 materials with finalized figures (including the TIF plan and any revised RSU assessment) and present finalized tax-capture figures and valuation data when the assessor’s certified numbers are available in mid-July. The select board will adopt the final mill rate and tax commitment at the statutory meeting later this summer.