Error leads to under-assessment for tax rate in Calais last year
A miscalculation led to property taxes in Calais being at a lower rate than they should have been last year, it was reported at the May 25 meeting of the Calais City Council.
A miscalculation led to property taxes in Calais being at a lower rate than they should have been last year, it was reported at the May 25 meeting of the Calais City Council. Although the city should have received nearly half a million dollars more in taxes last year, it is not facing a budgetary shortfall, since expenses during the current fiscal year have been less than anticipated.
During the meeting, the council had voted to enter into an executive session to discuss a personnel matter. Councillor Michael Sherrard noted following the vote that the matter was rightfully a budgetary issue, which according to the city charter must be discussed in open session. The council then voted to exit the executive session. City Manager Mike Ellis informed the council that on May 19 he had received a call from the city's auditor concerning the assessment certification submitted for the current fiscal year, noting that it appeared that the city had under assessed taxpayers by about $438,000. Ellis explained that he has put measures in place to ensure that it doesn't happen in the future, including additional verifications and adding a notice on the annual budget submission.
Ellis explained that there is no shortage in revenues for the current year, as extended vacancies in the police and fire departments as well as underspending on capital improvement projects have offset the revenue shortfall. For the coming property tax bills, if the draft budget is approved, tax rates will return to what they should have been, back to $21 per thousand of assessed valuation, from the miscalculated rate of $19 per thousand. The city will include a notice explaining the error in the tax bills, which will emphasize that this is not a tax increase but rather restoring the tax rate from an erroneous decrease.
Mayor Artie Mingo called for a public hearing to consider an application for a special amusement permit for Murphy's Blue Star Saloon. No comments were received from the public, and the permit was approved, with all voting in favor. The public hearing on the water/sewer project bond ordinance was postponed until the June 8 meeting, as the public notice had not been advertised in time. The council approved the request by the International Festival Committee to hang welcome banners during the festival at both road entrances coming into town.
The city manager suggested that the second regular monthly council meeting for June be scheduled on Thursday, June 29, as is normally done for the closing of the fiscal year.