Meredith property tax rate projected to come in about $12.80

MEREDITH — At a workshop yesterday, Director of Administrative Services Brenda Vittner projected the town portion of the 2010 property tax rate at $4.20 per $1,000 of assessed value, three cents less than the 2009 rate.

Vittner reported that the total amount to be raised by property taxes was $7,697,915, or $367 less than a year ago. That figure incorporates $4,510,178 in revenues from sources other than property taxes and applies $500,000 from the undesignated fund balance (rainy day fund). Vittner explained that the fund balance stood at $3,639,476 when the year began. Moreover, she estimated that by year end, revenues would top estimates by $17,550 and unexpended appropriations would total $425,662. Consequently, while $500,000 would be taken from fund balance to set the tax rate, $443,211 would be added to it, leaving a balance of $3,582,687 at year end, well about the 7.25-percent of gross appropriations recommended by the financial community and established by the selectmen.

Selectmen Miller Lovett, who each year admonishes the board for using the fund balance to lower the tax rate, said "this is a good use of fund balance in hard economic times." But, he added "if you know you can apply fund balance, you're being as tough on the operating budget as you need to be."

Selectman Peter Brothers reminded Lovett that the board crafted "a very austere budget" and, anticipating that non-property tax revenues might fall short of estimates, declined to spend almost $426,000 that was appropriated.

Vittner projects the local school portion of the tax rate to climb from $4.54 to $4.95 while the rate of the statewide education property tax drops eight cents, from $2.40 to $2.32. She also projects the county assessment to decrease by a nickel from $1.38 to $1.33.

Altogether Vittner estimates the combined tax rate will rise from $12.54 to $12.80 (2.1-percent). She expects that the New Hampshire Department of Revenue Administration will set the tax rate in time to mail tax bills before the end of the month, with payment due by the end of the year.