Bangor approves new $123.2M city and school budget
Bangor residents will have the lowest tax rate since 2010 under the city’s new budget, but rising residential property values will lead to a 10 percent increase in property tax bills in 2024.
Bangor councilors approved a new $123.2 million spending plan that covers both the city and school department on Monday, which is 5 percent higher than last year’s. The city budget, totalling $66.49 million, increased nearly 4 percent and the school budget, totalling $56.74 million, increased by 6.5 percent. The Bangor School Committee approved its budget in early April.
While the new budget carries a tax rate of $19.15 per $1,000 of valuation — a $1.25 decrease from last year — Bangor residents’ tax bills will likely increase due to rising residential property values.
On average, housing values in Bangor rose from 16 to 17 percent, according to David Little, Bangor’s finance director.
This means a Bangor home valued at $200,000 received a $4,080 property tax bill last year when the city’s tax rate was $20.40. In 2024, however, a $200,000 home may be valued at $230,000, and the new $19.15 tax rate will lead to a $4,404.50 tax bill.
While Councilor Dan Tremble said the budget is “reasonable and responsible,” homeowners are going to bear the brunt of the tax increases because commercial property values have remained stagnant while home values across Maine have soared.
Multiple councilors commented on this budget being particularly difficult to compile after passing the spending plan without objection.
Councilor Gretchen Schaefer said Bangor isn’t unique to have its property tax rate decrease, yet tax bills will rise because property values are rising.
“It speaks to how much people want to be in Bangor,” Schaefer said. “People will pay a premium to buy a property in Bangor to be part of this city.”
Neighboring Brewer will see a similar trend after councilors approved a new $16.7 million municipal budget earlier this month that will lower the property tax rate, but the city’s increasing property rates will lead to higher taxes.
Many of the increases to the city budget are driven by inflation, which has resulted in growing bills for electricity and utilities, Little said. Hikes to personnel costs, including wage and benefits increases, are also included in the budget.
Some drivers of the city’s capital budget include road and pedestrian infrastructure improvements and funding for the Community Connector, the regional bus system that services Bangor, Brewer, Orono, Hampden, Old Town, Veazie and the University of Maine.
The city also set aside an additional $110,000 to fund a new park ranger program, where workers would patrol downtown parks, the waterfront and harbor, and downtown areas like West Market Square and the Kenduskeag Stream Trail seven days a week. The idea is to expand the city’s presence, keep areas clean and safe, and engage the public, potentially at the Bangor City Forest, Little said.