Staff Writer

 Biddeford taxpayers face a tax increase from bond payments for infrastructure repairs and the high school renovation project.

The tax rate will increase 8.8 percent if the city council approves proposed municipal and school budgets. The combined $57.25 million budget is a 5.8 percent increase over the current budget.

Finance Director Curt Koehler said the tax increase is due to the $32 million high school renovation bond, $4 million road bond and $4.9 million bond for a combined sewer overflow system.

The 8.8 percent increase translates to a $1.30 increase of the mil rate. Koehler said the increase would mean an addition of $260 to the tax bill for a $200,000 home.

City councilors last week were presented the combined $57.25 million budget, which includes $24.17 million for the city, $31.8 million for schools and adult education and $1.28 million in county taxes. Koehler said the amount of money owed to the county increased $6,000 from the current year because of valuation changes.

City Manager John Bubier in a letter sent to councilors said his proposed budget is the fourth consecutive manager’s budget with no impact on the city tax rate. He said six to 12  municipal positions must be cut to achieve that goal, which was set forth by the council. 

Bubier said the number of positions cut will depend on insurance company reimbursements for ambulance services. He told councilors he anticipates six to eight positions will be cut “for sure.”

Bubier said he cut more than $1.3 million from requests from departments.He also eliminated two part-time positions requested for general assistance. That work will be covered using shared staff from the city clerk’s office.

Non-property tax revenues showed a “modest increase” over last year and Bubier anticipates a continuation of that trend, he said. The increase is due in part to interest rates inching up, higher fees for state licenses, more building fees from larger projects at the University of New England, increases in insurance fees for ambulance services and a modest rise in Maine revenue sharing.

Council President Bob Mills said it is unfortunate the tax increase comes at a time when many families are still struggling with a tough economy. He said the city must maintain adequate services that residents have come to expect, including snow removal.

“It’s unfortunate we’re facing a 9 percent increase on taxes, but we’re maintaining both the city and school budgets at a zero percent tax increase,” he said.

Mills said he would have preferred to spread the tax increase over the past several years because taxpayers may be more receptive to graduate changes. Taxpayers knew they would see a jump in taxes when they approved “desperately needed” bond projects during the past couple elections, he said.

“I’m hoping as we go through the budget cycle we can possibly reduce the 9 percent lower. I’d like to get it down to 4 or 5 percent,” he said.