Town Council/Finance CommitteeBudget WorkshopMarch 2, 2017

2017‐18 Budget Environment

Town of Brunswick, Maine

26,020  27,609  29,663  31,539  32,735  33,621  33,471  33,320  33,302  33,491  35,571  35,764  36,526  37,696 

15,518 16,138 

17,457 18,332 

18,914  19,309  19,220  18,867  18,975  20,001 20,786  21,003 

21,711 22,370 

1,015 1,008 

977 

999 1,053 

1,088  1,150  1,171  1,187 1,183 

1,249  1,333 1,360 

1,411 

 $‐

 $10,000

 $20,000

 $30,000

 $40,000

 $50,000

 $60,000

 $70,000

Thousands

Town of BrunswickBudgeted Expenditure Trends

CountyMunicipalSchool 5.36%

2.58%0.86%

3.15%

Percentage increase from prior year

5.17%

7.47%

5.76%3.60%

Percentage increase from prior year

 $‐

 $5

 $10

 $15

 $20

 $25Lewiston

Waterville

Bangor

Sanford

Lisbon

Aubu

rn

Brew

er

Bath

Portland

Bidd

eford

Augusta

Cumbe

rland

Brun

swick

Saco

Yarm

outh

Topsha

m

Westbrook

South Po

rtland

Cape

 Elizab

eth

Gorha

m

Scarbo

rough

Freepo

rt

Kittery

Old Orcha

rd

Windh

am

Falm

outh

Kenn

ebun

k

Maine Revenue ServicesEstimated 2014 Full‐Value Tax Rates

Average 

Source:  Maine Revenue Services ‐ http://www.maine.gov/revenue/propertytax/municipalservices/fullvalue.htm

2014 Full‐Value (Equalized) Tax Rate derived by dividing 2014 Municipal Commitment by 2016 State Valuation with adjustments for Homestead and BETE Exemptions and TIFs.

$17.93

$1,410,855

$1,517,700

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Town of BrunswickState Valuation (000) and County Tax

State Valuation (000) County Tax

Governor LePage’s proposed biennial budget – municipal implications in 2017‐18

• Repeal of state/municipal General Assistance Program• Homestead Exemption limited to resident taxpayers 65 years 

and older• Homestead Exemption state reimbursement reduced from 

62.5% to 50%• BETR to BETE conversion – 25% of property shifted in FY 2018• Multiple changes to education funding, including:

– System Administration costs out of EPS formula– Elimination of three year averaging of student counts– 3% surcharge delayed & changed– Calculation of 55% funding obligation altered

Other proposed changes for future years, with municipal budget impact

• Revenue sharing permanently reduced to 2% of state sales and income tax revenues – currently set to return to 5% in FY 2020

• Two‐way telecommunications services personal property to be taxed by municipalities effective with FY 2019

• BETR to BETE conversion – 50% of property values shifted in FY 2019; 75% in FY 2020, and 100% shifted in 2021