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Rangeley hearing: consultant warns mill rate could rise about 17% without offsets; residents urge caution
Summary
At a public hearing on the proposed 2627 budget, the town—s finance consultant said not using fund-balance offsets could lift the mill rate about 17%. Budget committee members and residents urged phasing projects and using reserves to shield year-round taxpayers.
The Rangeley Board of Selectmen opened a public hearing on the proposed 2627 municipal budget and heard a stark projection from the town—s finance consultant that the mill rate could rise roughly 17% if the board does not use additional fund-balance offsets.
Mark Roy, the board—s CPA and finance consultant, told the meeting the worst-case scenario "looks like it would be 17% higher than last year," putting the mill rate near $14.22 compared with $12.15 this year if the town used no additional reserves to offset the budget.
That projection prompted repeated concern from budget committee members and residents. "A 17% increase is not manageable for me," said Leanne (committee member), who described hearing from year-round residents and retirees who would face large, potentially unaffordable tax increases.
Town staff and board members noted options to soften the impact. Jerry (town staff) said the board is not "stuck" and can choose how much of the unassigned fund balance to apply; he recommended prioritizing smaller, targeted offsets and phasing large capital projects across years to avoid a single-year tax shock.
The hearing also reviewed the town—s fund-balance policy: a minimum of one month (8.3% of operating expenditures), a target of two months (16.66%) and a maximum of 25%. Roy said the unassigned fund balance could be around $4 million by year-end but cautioned that heavy use of reserves this year would reduce flexibility in future years.
Committee members urged a careful tradeoff: using some reserves now could reduce immediate pain for taxpayers but would accelerate depletion of savings and might force larger increases in subsequent years. Several recommended bringing a specific fund-balance offset plan back to the board for a vote before finalizing the mill rate.
The board did not adopt a final tax decision at the hearing; members said they would consider the options and bring adjusted budget articles and reserve-usage proposals to upcoming meetings and the town warrant process.
