Although Bangor’s property tax rate for 2024 is expected to drop, residents will likely see a nearly 10 percent increase in their tax bills because of climbing property values.
City councilors have discussed and revised the city’s spending plan since April, and they settled on a $123.2 million budget in their most recent proposal, which includes city and school expenses. The overall budget is 5.1 percent higher than last year’s, and councilors are expected to vote on it Monday night.
The city’s tax rate will fall from its current $20.40 to $19.15 for every $1,000 of property value. A Bangor home valued at $200,000 would pay $3,830 in property taxes.
While the proposed tax rate would be Bangor’s lowest since 2010, the city doesn’t want to mislead its residents when they receive a tax bill that is 9.9 percent higher, Finance Director David Little said. That increase is driven by the swelling sale prices of homes that are outpacing commercial properties, meaning homeowners absorb a bigger portion of the bill, he said.
“The taxable assessed value, between last year and this year, increased by $324 million,” he said. “That’s the driving factor that allows a lower mill rate, which helped mitigate the overall increase in the tax bill, but couldn’t eliminate all of the increase.”
On average, housing values in Bangor rose from 16 to 17 percent, and figures come from the city’s assessing department, which tracks sales and market trends, Little said. The budget proposes that a citywide revaluation be done.
Considering Bangor’s current tax rate, which is $20.40, a home valued at $200,000 received a $4,080 tax bill. Next year, a $200,000 home may be valued at $234,000, so the new $19.15 tax rate would result in a $4,481 tax bill.
Bangor’s proposed overall budget includes $66.49 million in city expenses, a 3.9 percent increase from last year, and $56.74 million in school expenses, a 6.5 percent increase. The Bangor School Committee approved its budget in early April.
On the city’s side, increases are primarily due to inflation, which has resulted in growing bills for electricity and utilities, Little said. Payroll and insurance increases also factored into the budget.
In mid-June, the projected tax rate was $19.10 for every $1,000 of property value, but it rose slightly after councilors agreed to make two changes. That includes switching a part-time public works position to full-time, which is estimated to cost around $35,000, Little said.
That employee will work with asset management software that Bangor purchased last year, which will map out a plan for plowing and scheduling sewer repairs, among other tasks. It’s intended to help the city run more efficiently as well as save money in the long term, he said.
The other cost added to the budget was $110,000 for a new park ranger program, where workers would patrol the waterfront and parks throughout the city seven days a week, Little said. The idea is to expand the city’s presence, keep areas clean and safe, and engage the public, potentially at the Bangor City Forest, he said.
Little highlighted that pending legislation, LD 1664, would increase reimbursement for general assistance from the state from 70 to 90 percent. If the bill passes and is signed by Gov. Janet Mills, it would mean an influx of revenue for the city — an estimated $360,000 — which would lower the average increase in the tax bill for the residential taxpayer to about 9.2 percent.
Little pointed out that building a budget during unprecedented times is challenging, and city officials and councilors looked at every number they could.
“We want people to know that we don’t just do all of this [budgeting] in one afternoon,” he said, and encouraged public feedback at Monday’s meeting. “There are limits to what we can cut without impacting the services that we provide to the citizens.”
