LIVERMORE FALLS — Residents will be asked Tuesday, Aug. 19, to consider approving a proposed $100,000 tax-increment finance district budget that is expected to raise taxes on a $100,000 property by $30.

The amount is estimated to increase the tax rate from $20.80 per $1,000 of valuation to $21.10 per $1,000 valuation, Town Manager Kristal Flagg said Monday. The tax rate has been kept stable at $20.80 for the past four years.

The special town meeting will be held at 6:30 p.m. at the Town Office.

Selectmen voted 4-1 on Aug. 5 to put the $100,000 proposed TIF budget before voters, she said. Selectmen Chairwoman Louise Chabot and fellow selectmen Ron Chadwick, Laurie Sanborn and Mary Young were in favor of the vote, Flagg said. Selectman Jim Collins was opposed.

That vote followed a proposal to send a $65,000 TIF budget to voters, which would have allowed the tax rate to remain stable. It failed 2-3, with Chabot and Collins in favor and Chadwick, Sanborn and Young opposed, she said.

Concerns raised by some selectmen prior to the passing vote were that the state valuation of the town is two years behind, she said.

The fear is whether the town will get less state revenue sharing and a lower education subsidy, and will have to pay increased county taxes if more of the valuation is not sheltered, she said.

The increase over the $65,000 comes from the majority of the board adding $35,127 to the proposed budget for economic development activities. The latter does not specifically target any project.

Voters authorized town officials in February to capture up to 90 percent of the new value of Central Maine Power Co.’s $14 million upgrade at its substation on Moose Hill Road. The amount that could be captured could possibly be less than 90 percent, but not more.

Under the 30-year TIF plan, the town can shelter $13.26 million of valuation this year with $13 million attributed to CMP’s upgrade and $265,300 to Lamb Block Associates LLC, which owns the Lamb Block building on Depot Street within the TIF district.

In July, Chabot, Chadwick, Collins and Flagg met with consultant John Cleveland of Community Dynamics Corp. of Auburn to discuss a proposed TIF budget. At that meeting, Flagg said, in order to hold the line on taxes, the town could use $50,000 of the $248,000 available. She had worked out a preliminary budget for the $50,000.

After working with the assessing agent since then, the amount taken without raising taxes could be $65,000, Flagg said Monday.

Selectmen previously directed Flagg to keep the tax rate down.

The remainder of the TIF funds that could be captured would go into the general fund to help with municipal expenses.

The proposed estimated TIF budget covers $3,375 for dues/payment for economic development agencies; $7,148 for a percentage of the treasurer’s wages and Flagg’s wages for time spent on the TIF; $7,350 for the expense of the auditor and assessor’s work, $1,000 each, plus $5,350 for Community Dynamics’ work in continuing to guide the town through the TIF process.

There is also $36,000 in the proposal for capital projects. Of that amount, $32,000 is to cover the town’s remaining share of a sidewalk grant and $4,000 to pay the town’s share of constructing a building over the bar rack at the wastewater treatment plant.

There is also $11,000 allocated for Community Dynamics’ fees, which voters approved last year to be taken out of surplus to hire a consultant to help town officials create a TIF district application.

Voters also previously approved taking the sidewalk share from surplus. Instead of dipping into surplus, if voters approve, those items would be covered by TIF funds.

dperry@sunjournal.com