Present: Beatrice Davis, Chairman; Jerry Dougherty IV and John Allen, Selectmen
Visitors: Office Administrator Diane Falcey, Tax Collector/Town Clerk Jeannette Heidmann (joined at 3:55 p.m.)
Chairman Beatrice Davis called the session to order at 3:34 p.m.
Selectmen Dougherty reviewed with Selectman Allen how the worksheet Office Administrator Falcey generated is utilized, how the tax rate is determined via the budget information on that sheet and how unreserved funds can be used to reduce the tax rate. Selectman Dougherty warned that using unreserved funds artificially lowers the tax rate however Jackson has 1.1 million dollars in unreserved funds which means to some degree that taxpayers have been overtaxed by that amount. The town needs to have a cushion due to the many budgetary unknowns, including Donor Town status which could impact the town in 2013. He would like to be able to reduce the tax impact but folks need to recognize the rate will have to be reduced the same amount next year to keep the same tax rate. Office Administrator Falcey noted
Conway is discussing closing a school; Selectman Dougherty doesn’t see that impacting Jackson. It was noted that it may in some convoluted way cause the tuition rate to go up since Jackson is part of SAU 9. Chairman Davis pointed out folks are also going to want raises next year. If everything remains equal we know the tax rate will be $10.91 next year; if the Board reduces that to $10.25 then next year it will increase at least to $10.65 unless we reduce it the same by using funds from the unreserved fund balance. Selectman Dougherty wants to allow for a gradual increase over the next three years. A twenty-five cent increase is $75.00 for a $300,000 house; in order to make that rate the Board will need to take $152,000 out of surplus. The Board members agreed to this; Office Administrator Falcey agrees this is reasonable; this will reduce the tax rate by thirty-nine cents.
The Board was asked if it would consider using more of the unreserved funds to help pay for Dundee Road; there’s still over $900,000 left in unreserved funds. Chairman Davis wants the Board to be cautious; she commented that Road Agent Henry talks like the unreserved funds are the pot of gold at the end of the rainbow. The Board is being conservative. It was noted the reduction of unreserved funds by $152,000 won’t impact cash flow. Office Administrator Falcey noted the rates also assume everyone pays their tax bills and Jackson has more people outstanding right now than in recent years.
Selectman Dougherty, seconded by Selectman Allen, made a motion to reduce the tax rate to $10.25 by using unreserved funds in the amount of $152,000. The motion passed unanimously.
Town Clerk and Tax Collector Jeannette Heidmann joined the Work Session at 3:55 p.m. Office Administrator Falcey completed the tax rate document with the newly set rate and the Selectmen signed the document for the DRA. Office Administrator Falcey will send it in and the DRA will review it for approval tomorrow.
Selectman Dougherty reviewed the difference in fiscal years in regards to the School and Town budgets. This brought about a discussion about fiscal years, tax years and “closing the books”. Tax Collector/Town Clerk Heidmann noted the tax year is April 1st to March 31st but the town closes its books on December 31st (for January 1 through December 31). She gets many questions from realtors regarding what portion of the tax is being paid with which bill; she’d like to ask Town Counsel about this. The tax rate is set only once a year, the previous owner pays the bill and the new guy buys it. How much rebate does the former owner get? Selectman Dougherty noted this has nothing to do with the town. Tax Collector/Town Clerk Heidmann noted
that may be the case but the town should know its own tax year; Jackson bills twice a year six months apart; what time frame does the bill cover; the town needs to know what time frame is being paid. Selectman Dougherty reiterated how the old owner/new owner split the tax up is not the town’s issue. Tax Collector/Town Clerk Heidmann disagrees, noting the split would be based on what portion of each year the tax bill covers.
There being no further business, the Work Session adjourned at 4:07 p.m.
Respectfully submitted by:
Martha D. Tobin
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