Fort Fairfield lowers mill rate, but taxes will rise

6 months ago

Despite a lower mill rate than last year’s, Fort Fairfield taxpayers will see an increase in their 2025 property tax bills.

The Fort Fairfield Town Council voted Sept. 17 to ratify a mill rate of 18.95, which is 1.84 mills lower than last year’s rate of 20.792. However, state valuation and town budget increases will bring higher taxes.

“The average taxpayer would see an increase of $140 on their 2025 tax bill,” Town Manager Aaron Huotari said. 

This is the fourth year Fort Fairfield has seen a lower mill rate. The 2022 rate of 26.5 dropped to 24.3 in 2023, which fell further last year to 20.792. 

Councilors passed a $4.29 million budget in June for the 2025-26 fiscal year, which was about $260,000 more than the previous year, due largely to police department expenses. 

In addition, the town previously increased its property values by 15 percent to keep its Maine certified ratio at 100%, Huotari said.

Maine Revenue Services measures how municipal property assessments line up with market values to arrive at the certified ratio. If that number is near 100%, residents receive the full state $25,000 homestead exemption.

Along with budget increases that included payroll, employee benefits and insurance, the town saw a reduction of about $400,000 in state revenue sharing, Huotari said. The 18.95 mill rate will help, but will still leave a shortfall of $350,734. 

Divided among taxpayers, the figure will result in roughly $140 more per tax bill, he said.  

Councilors passed the mill rate unanimously with little discussion.

“We knew going in we were going to have a reduction in state revenue,” Councilor Pat Canavan said. “This is the end result.”

Huotari also updated the group on blighted and tax-acquired properties. The town sent notices of impending foreclosure to 15 residents, six of whom have since paid their taxes, and will foreclose on the nine remaining properties.

Officials sent notices of unpaid 2024 taxes to 209 property owners on Sept. 5, 47 of whom have paid, he said. The other 162 people have 30 days to pay their taxes before the town will initiate liens.

Staff also issued letters asking owners of several blighted and dangerous structures to remove them, Huotari said. Two have been removed, and two other owners expressed interest in the town’s incentive program.

To spur homeowners into cleaning up blight, the town rolled out a plan last year to offer funds from its commercial demolition debris program to interested residents. More than 90 percent of the $8,000 allotment remains, Huotari said.

In other business, councilors approved a Fort Fairfield Fire Department fee schedule.

Changes included increases for the pumper truck due to increased maintenance and fuel costs, Chief Michael Jalbert said. 

The intent isn’t to bill for every call, Jalbert said, but to defray costs for certain out-of-town responses or to obtain restitution in cases such as arson.

The next regular council meeting is slated at 6 p.m. on Wednesday, Oct. 15, in the council chambers.