Brewer residents will see their tax rate drop under the new $17.8 million municipal budget the city council approved on Tuesday.
The $17.8 million spending plan is 6.6 percent higher than last year’s, according to Stephen Bost, Brewer’s city manager. That bump is mostly due to inflation and rising labor and benefit costs, as the city’s six employee unions will begin new contracts on June 30 that carry boosted wages.
Nonunion employees will also receive a 5 percent raise under the new budget to keep up with rising cost of living and help retain staff.
The new budget lowers the city’s tax rate by $1.30, to $18.80 per $1,000 of assessed valuation. This means a $250,000 home will receive a $4,700 tax bill in fiscal year 2025, compared with $5,025 last year. Fiscal year 2025 runs from July 1, 2024, to June 30, 2025.
However, Brewer recently completed a citywide revaluation that is expected to increase the average single-family home value between 10 and 12 percent, according to the budget. With the dip in the city’s tax rate and the increase in home values, the average Brewer homeowner is expected to see their tax bills rise by roughly 3 to 5 percent.
Brewer’s $17.8 million general fund, which got a $1.1 million boost, makes up the vast majority of the city’s budget. With that category, the police and public works departments account for the highest spending and the largest increases in the budget.
The $3.1 million police department budget, which increased by 9.4 percent, includes a new $56,000 expense for an updated body and car camera system. The department’s rising expenses are mostly tied to higher wage and health insurance costs.
The $3 million public works budget also jumped by 6 percent due to employee wage adjustments and increases to health insurance.
More employees are joining the city’s health insurance plan and the level of coverage they need, Bost said. The budget anticipates a 10 percent increase in insurance premiums on Jan. 1, 2025, which would add more than $180,000 annually.
The rise in city spending will be offset by an estimated $1.1 million hike in non-property tax revenue, which is roughly 13 percent more than last year, according to Bost. The increase is driven primarily by a $875,000 increase in municipal revenue sharing from the state.
Councilors also accepted the new Brewer School Department’s $28.6 million budget on Tuesday in tandem with the municipal budget. The new spending plan is 7 percent higher than last year’s.
The major causes for the hike are increases in school personnel costs, repairs to buildings the department uses and more need for special education, according to budget documents.
Brewer’s new Penobscot County tax bill also saw a 1.4 percent, or $19,206, increase to $1.38 million.
