Tilton Selectboard buys down tax rate, but still up 3.7% due to rise in school rates

TILTON — While the town portion of the Tilton tax rate decreased $0.52, the total rate showed a small increase of 3.65%, to $13.33 per thousand, after using $200,000 from the town’s fund balance.

The Tilton Selectboard met on Nov. 25, for a special meeting, and Finance Director Tim Pearson said without the use of the fund balance, the tax rate was going to be $13.51, as presented by the state Department of Revenue Administration.

Pearson said in the meeting it has become apparent the town will not have any revenue from the sale of town property this year, and he had budgeted with the expectation of some revenue coming in. He recommended $200,000 be used from the town’s fund balance to buy down the tax rate to $13.33 per thousand.

The board voted 3-0 to use $200,000. Before the vote, selectboard member Katherine Dawson said, “It’s too bad we can’t get the school down a bit more.”

Drawing from the fund balance brings the total of that account to $847,561, which is about 5.5% of the town budget, and within the recommended percentage from staff at the DRA, albeit on the low end.

“We are at the minimum, but that is where the town tends to be,” Pearson said in an interview on Thursday.

The town benefited from a higher than expected revenue total, and also had additional growth in equalized value. He attributed much of this to the new Lake Estate hotel, but also said there are “a tremendous amount of building projects in town,” which include a new U-Haul storage facility.

Also in the works is construction of 240 apartments that will be built behind 3M, and 60 townhomes scheduled to be built along Route 11.

“Neither of those have started breaking ground, but they’re in the works,” Pearson said. “So, our equalized value will continue to grow.”

The tax rate is separated into five sections: town, county, local school, state school, and fire. The last section is unique to the town, as it shares a fire district with Northfield.

The town and county rates both dropped 14%, with the town going from $3.70 to $3.18, and county dropping to $0.86, from $1. The fire district rate showed a small drop from $2.06 to $2.04, or about 1%.

Pearson said other dynamics of the town portion include state revenues, as well as the fact they need to maintain a police department much larger than needed for the town’s 4,100 residents, due to the commercial population.

Pearson said the selectboard and town department heads have been very conscious about how to save money and manage the budget.

“We scrimp and save wherever we can,” Pearson said. “So, I think we have been successful on the town side. The municipal portion is really delivering for the people.”

He noted when comparing to surrounding towns like Belmont, Northfield, Sanbornton and Franklin, Tilton has the lowest overall tax rate.

The municipal portion of the budget only makes up 29%, and he noted that despite having big projects in town, it doesn’t solve all the budget problems.

“We are the small fry in some respects,” Pearson said. “The municipal portion doesn’t have as much of an effect as people would think.”

The Winnisquam Regional School District rate was the major catalyst in the total rate increase, going from $5.05 to $6.06 per thousand, or a 20% increase. The state school rate increased 13.33%, from $1.05 to $1.19 per thousand.

Pearson has no part in setting the school rate, but he knows Tilton’s student population has increased. He also noted in past years, the school district had significant fund balances at the end of the year, and this year they built the new Winnisquam Career Center without taking on any debt.

“That is going to generate revenue,” Pearson said. “In fact, it already has for the district.”

Pearson said while there wasn’t as much of the fund balance to reduce the school rate, the district had no debt to his knowledge.

He was not surprised the Winnisquam rate increased, saying it was due to two factors. The first is the district could not return as much money, but didn’t take on debt. The other is there is a sizable collective bargaining agreement for the teachers, which is a three-year agreement “front loaded” in its first year.

Pearson said he spends a lot of time thinking about the tax rate, as well as the town’s cash flow. He is a former business owner and knows how maddening it can be when rates “ping pong up and down.”

“It is important for business planning to know you can rely on the governing board to make good financial decisions by being frugal,” Pearson said. “That is how you can keep a rate as manageable as possible.”

Messages left with Winnisquam Business Administrator Rebecca Weldon and Superintendent Shannon Bartlett were not immediately returned.

According to Pearson, the Tilton-Northfield Water District was delayed in providing its financial information to DRA, which held up the tax rate being set until Nov. 25.

Tax bills were mailed on Nov. 26 and Nov. 28, and are due on Monday, Jan. 5. Bills are also available, and can be paid, at tiltonnh.org.