The Saco City Council voted unanimously to accept the proposed $73.3 million municipal budget on May 13. The good news is that the FY25 budget, which begins July 1, will see a decrease in the mil rate, from $14.75 to $14.07 per thousand dollars of assessed value. That will translate into lower property taxes for most city residents.
Although the new budget is increasing over $1.1 million from the current fiscal year, the property tax rate will reduce the tax bill for approximately 85% of residential taxpayers in Saco.
Some residents could see their tax bill drop by more than $350, Saco City Administrator John Bohenko said.
“We will see that people who have a median price home will have a reduction in taxes by $360,” Bohenko said. “If you have a higher assessment, your reduction will be higher, and if you have a lower assessment, your reduction will be lower.”
City Council said the median household price in Saco this year was $515,000.
The reduction in tax rate is primarily due to the return in TIF funds and $3 million in new revenues, according to the city’s budget presentation.
On May 13, Councilor Nathan Johnston (Ward 7) said that this was the first year he had not submitted an amendment to the budget, which moved forward with few changes.
“Overall, I can support the budget, and I do appreciate the administrator’s efforts to try and keep the burden on the taxpayer as low as possible,” Johnston said.
New revenues to offset taxes include use of general fund balance, state revenue sharing, transfers from the Enterprise Fund, and motor vehicle excise taxes. Other revenues to offset taxes include interest earnings, transfers from the Ambulance Fund, and building permits.
Cost pressures in the Saco budget include increases in utilities, personnel, operations, and capital improvements.
On June 11, voters will be asked to vote on the proposed $52.2 million school budget, as well as a bond to build two new schools at the cost of $140.7 million. The state will pay $101 million of that price.
“Hopefully, we’ll be well on our way to addressing some outdated and much needed solutions for our schools,” Johnston said. “I definitely entered this budget cycle ensuring at all costs that we don’t have a large impact on the taxpayer.”
The election will take place at the Thornton Academy Linnell Gymnasium.
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