KINGFIELD — The Board of Selectmen voted to set the tax rate for 2024-25 during its meeting Sept. 3, increasing the mil rate from 18.00 to 19.25, or $19.25 per $1,000 of property valuation.

To mitigate the tax burden, the board applied $300,000 in surplus funds to reduce residents’ tax bills. Selectperson Kim Jordan inquired about ways to reduce taxes next year.

Town Manager Leanna Targett explained that tax reductions in the future would require either finding more value or utilizing additional surplus funds.

However, Chairman Wade Browne cautioned that increasing property valuations could have adverse effects in the long term. “Finding more value would hurt the town when it came to the district budget, since that is based on valuation,” Browne said.

Targett, who said she has served the town for 19 years, highlighted the importance of maintaining a $1 million buffer in the general fund account. She noted that the town must make $200,000 monthly payments to MSAD 58 and emphasized the need to have at least three months’ worth of funds on hand to cover any emergencies. “If we had no other money coming in, we still have to make the school payments,” Targett said.

During the meeting, Browne also addressed issues with TRIO software but confirmed that the board ultimately followed the assessor’s recommendation on the tax rate. TRIO is a software package for local governments in Maine that helps with tax collection and billing. “We need a motion to go with the 19.25 that is what our assessor is asking us to do,” Browne said. The motion was approved unanimously.

Looking ahead, Selectman Christopher Rushton voiced concern about the rising tax rate, describing it as a “statewide problem.”

Targett emphasized the need for new revenue sources. “It would be great to say if we lowered the municipal budget or the school budget, we could lower our mil rate, but I have yet to see that happen,” she stated.

While there were suggestions to refund surplus money to taxpayers, Targett noted that the current tax rate had already been set.