Bangor’s tax rate will fall under the new budget, but rising property values could lead to higher tax bills for residents.
Bangor city councilors on Monday tentatively approved a new $138.8 million budget to support the city and school department in the next fiscal year. The spending plan is $8.2 million — or roughly 6 percent — higher than last year’s, according to budget documents Debbie Laurie, Bangor’s former city manager, prepared before her retirement last month.
The city’s expenses total $76.1 million, which increased by $5.3 million from last year. That money supports daily city operations and services including road maintenance, Bangor’s public safety departments and the library.
The Bangor School Department’s budget, which funds the city’s schools, totals $62.6 million — a $2.8 million uptick over last year.
City officials estimate the new city, county and school budgets, if given final approval later this month, would lead to an average residential tax bill in Bangor of $4,410, which is $319 more than last year.
The city’s tax rate is expected to drop 55 cents to $18 per $1,000 of valuation, but residents may see their tax bill rise due to the increasing value of homes and commercial properties in Bangor. This would be the fifth consecutive year the city’s tax rate has fallen since 2021, Bangor tax records show.
At more than $51 million, personnel costs make up the largest chunk of the city budget. Contractual and cost-of-living increases to employee wages and benefits account for nearly $4 million, 72 percent, of the overall city budget increases.
Other increases in municipal spending are tied to infrastructure improvements to city streets and sidewalks, which total $5.6 million, according to budget documents. The city also put $2 million to support the Community Connector, the regional bus service, and another $977,000 to improve the city’s parks and open spaces.
Councilors may tweak the budget in the coming weeks before giving it final approval at the next official meeting, which is set for June 23, according to the city calendar.
