Spencer board calls for increase in tax rate for proposed budget

Published 12:00 am Wednesday, May 27, 2015

By David Purtell

david.purtell@salisburypost.com

The Spencer Board of Aldermen voted to use an increased tax rate for this year’s proposed town budget during a workshop Tuesday.

The rate increase takes the tax rate from 62.8 cents to 65.5 cents per $100 of valuation. If finalized by the board in June, the new rate would be the first property-tax rate increase for the town since 2011.

A public hearing on the budget will be held during the board’s regular meeting June 9.

Town staff recommended the tax rate be set at 65.3 cents, which would have resulted in a revenue neutral budget — but due to this year’s property revaluations, the estimated property tax revenue would still be about $13,000 less then the current fiscal year that ends June 30.

The board members decided the difference between the rates, $2 for a house valued at $100,000, was small enough to justify going with the higher rate.

Five board members and  Mayor Jody Everhart were in favor of using the new tax rate. Alderman Reid Walters was not at the workshop.

The proposed budget will include a 2 percent cost of living adjustment for town employees — which totals $19,500 overall. The budget also includes a $500 annual raise for the six aldermen — they each currently make $2,000 a year for their service. Town Manager Larry Smith said the raise would bring the aldermen’s pay closer to the statewide standard for towns the size of Spencer.

The mayor and aldermen agreed the pay raise for town employees is important to keep morale up.

Mayor Pro-Tem Jim Gobbel said he is in favor of not including the pay hike for aldermen in the final budget.

The proposed budget will also include four new radios for the Fire Department along with two new Self Contained Breathing Apparatuses — five new SCBAs were original proposed by the Fire Department.

Alderman Jeff Morris said he’s seen progress in Spencer in recent years and that it’s important to keep things going in the right direction.

Contact Reporter David Purtell at 704-797-4264.