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CITY MANAGER’S OFFICE
WEEKLY MEMORANDUM
TO: Mayor MacLean, Councilors and Department Heads
FROM: Anne Davis, Interim City Manager
DATE: September 11, 2009
RE: Weekly Memo
UPCOMING MEETINGS
Next Week's City Meetings are available on our Calendar
Interim City Manager’s Report
We are sorry to say that there is no way around it, the City of Gardiner’s tax due date is Tuesday, September 15th. I hope some perspective on taxes will make the day better for our residents.
“Death and taxes”, we have all heard it before. Several famous authors have uttered these lines. The first citation seems to be Daniel Defoe in The Political History of the Devil, published in 1726. His sentiment may be why he placed his famous character, Robinson Crusoe, on a deserted island in his novel published in 1719. Apparently Benjamin Franklin had this to say in a letter to a friend, "'In this world nothing can be said to be certain, except death and taxes." So, where do our tax dollars go?
This year, Gardiner City Council approved a budget of $6,824,915. The Gardiner City Assessor set our tax mil rate to $17.20 to cover the budget. A mil rate just means that for every $1,000 that your house is assessed, you will pay $17.20. The municipal expenditures for this fiscal year actually amount to $8,437,787. Using non-property tax revenue we can subtract $1,612,872 to end up with the $6.8 million budget. Our total bill for educating our children is $3,042,060 and our bill from Kennebec County is $334,848. This accounts for almost 40% of the municipal budget. 17% of our taxes will be spent on our Public Works Department. $1,444,114 is levied to pay for our fuel depot, public works, solid waste disposal (garbage), street lights and water/sewer. Public Safety (dispatch,
fire, police, supervision) needs 13% or $1,071,085 of the budget in order to operate. The mill fire cost this department more than $5,000 in overtime alone and this does not include all the equipment and vehicles we need to purchase in order for this department to put out that fire.
Fiscal services (debt service, contingency, health insurance/benefits, municipal building and tax overlay) account for 11% of tax money or $973,509. Our community services (library, Boys & Girls Club, community programs, general assistance, health & welfare, parks and planning and development) cost the city $812,822 or about 10% of the budget. Administration costs are $759,349 or 9% of the budget. Most of what happens in City Hall falls into this category.
Try this mathematical exercise. Apply these percentages to your tax bill. If your bill is around $2,000 then about $800 is going to education and county bills. $340 helps keep our roads plowed and our infrastructure maintained. $260 assures you that when you need emergency services, a house fire extinguished or a police officer to respond immediately the city can pay for them. In order to maintain a fleet of city vehicles and maintain a government staffed with wonderful employees, you pay $220. You can use a great public library, enjoy our parks, send your kids to the Boys & Girls Club and help with the development of our waterfront for about $200. The cost of actually having a government entity where you live costs you about $180.
None of this memo will make it easier to pay your taxes, but it may help to explain where it all goes. If you plan on paying your taxes on the due date, I hope that you will allow some time to enjoy a cup of Utility Clerk Kathy Cutler’s homemade wassail available at City Hall from 8am-4:30pm. Try to save a smile for our front office staff, they all have to pay taxes as well!
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