Tuesday, August 9, 2011

Delinquency Rate Exceeds 10 Percent


Town Clerk Vera Parent reported at last night's Selectmen's meeting that she has collected 45% of the taxes committed for the fiscal year beginning July 1. With first-half property-tax payments due by July 29, she should have had 50%. A year ago she had 54% of the FY2011 commitment by the end of July, a figure that demonstrates the preference of some taxpayers to pay their full year's assessment up front. Undoubtedly there were prepayments this year as well. All of this means that at a minimum ten percent (and probably more) of the taxes due on July 29 were not paid.

Take the total FY2012 commitment of $1,848,973, divide by 2 (the other half is due in February), then multiply by 10%. The result is an underpayment of $92,449. The good news is that the shortfall has been offset almost exactly by the recent receipt of $92,124 from the State as partial reimbursement for the sand-salt shed constructed in 2006. The bad news is that tax receivables have swelled to over a quarter of a million dollars, calling into question the Town's ability and/or willingness to fund municipal and school spending at current levels. Selectmen are awaiting the final audit, coming shortly, for FY2011.

One area where the Selectmen are looking to cut is the Deputy Clerk's position. The Town Office budget drafted a week earlier limited the deputy's hours to 250 for the year for gross wages of $2,000. Last night Ms. Parent complained about the cut, saying that she feels "targeted." She was able to talk the Board back up to $2,500, which is still less than half what was paid the deputy in FY2011. Another $500 (or more) in previously announced cuts disappeared with new information from Central Maine Power about the costs of street lights. The Board is now right up against the $62,900 cap imposed by the townspeople, with no margin for unforeseen contingencies.

One suggestion made was to cut the line item for cleaning the Town Office. So bring your Germ-X wipes when you go to pay your second-half taxes.


[update 08-16-11, one week later:]

Last night the Selectmen were presented with Liza Virgin's letter of resignation as Deputy Clerk, effective August 19. A disappointed Town Clerk presumed that the limited hours offered by the Selectmen for the deputy's position were insufficient to entice Ms. Virgin to stay. The Town Clerk pointed out to the Board that it is she, not they, who will appoint a replacement.


No comments:

Post a Comment