Bangor’s property tax rate is nearly the same under the city’s new spending plan, but rising home values could lead to higher tax bills for residents.
Bangor councilors approved a new $131.7 million spending plan that covers both the city and school department on Monday, which is nearly 7 percent higher than last year’s. The city budget, totalling $71 million, increased by $4.5 million, and the Bangor School Department’s expenses, totaling $59 million, increased by $3 million from last year.
City staff estimate the new budget will lead to an average residential tax bill in Bangor of $4,091, which is $288 more than last year.
The city’s tax rate is expected to rise just 5 cents to $19.20 per $1,000 of valuation, but city staff cautioned residents may see their tax bill rise by 11 percent due to the increasing value of homes in Bangor.
For instance, a home previously valued at $200,000 would have received a $3,830 tax bill under last year’s $19.15 per $1,000 of valuation tax rate. But, that same home may now be valued at $230,000, meaning the homeowner will see a $4,416 tax bill with Bangor’s new $19.20 tax rate.
This is especially relevant now, as Bangor gears up for its first citywide revaluation in nearly 40 years, which is expected to take two years ending in July 2026.
Personnel costs account for $47.3 million of Bangor’s new spending plan. Contracted increases to wages and benefits for unionized employees and cost of living increases for non-union employees represent 79 percent of the rise in municipal spending.
Other notable increases to the city’s budget are tied to technology initiatives, water rate increases, capital funding and the Bangor Public Library.
Highlights in the city’s capital budget include more than $7.6 million for street, sidewalk and pedestrian infrastructure improvements, $10.8 million for Community Connector operations, and $848,000 to improve city parks and recreation areas.
The Bangor School Committee approved a revised version of its final budget earlier this month, which allocated $25.4 million for regular instruction and $11.9 million special education.
Like the city’s budget, the major drivers of the school department’s spending plan come from increases to teacher salaries. Additionally, the school department needs to hire seven new teachers and nine new ed techs to accommodate a swell in special education students.
