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Unorganized Territory Municipal Cost Components

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Unorganized Territory Municipal Cost Components UNORGANIZED TERRITORY MUNICIPAL COST COMPONENTS FISCAL YEAR 2020-2021 2 An Act To Establish Municipal Cost Components for Unorganized Territory Services To Be Rendered in Fiscal Year 2020-21 Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and Whereas, prompt determination and certification of the municipal cost components in the Unorganized Territory Tax District are necessary to the establishment of a mill rate and the levy of the Unorganized Territory Educational and Services Tax; and Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore, Be it enacted by the People of the State of Maine as follows: Sec. 1. Municipal cost components for services rendered. In accordance with the Maine Revised Statutes, Title 36, chapter 115, the Legislature determines that the net municipal cost component for services and reimbursements to be rendered in fiscal year 2020-21 is as follows: Fiscal Administration – Office of the State Auditor $245,718 Education 12,923,626 Forest Fire Protection 150,000 Human Services - General Assistance 65,000 Property Tax Assessment - Operations 1,175,334 Maine Land Use Planning Commission - Operations 599,144 TOTAL STATE AGENCIES $15,158,822 County Reimbursements for Services: Aroostook $1,660,229 Franklin 1,178,763 Hancock 236,850 Kennebec 12,125 Oxford 1,396,537 Penobscot 1,597,454 Piscataquis 1,347,370 Somerset 1,828,286 Washington 1,348,371 TOTAL COUNTY SERVICES $10,605,985 3 (Blank Page) 4 COUNTY TAX INCREMENT FINANCING DISTRIBUTIONS FROM FUND Tax Increment Financing Payments $3,721,137 TOTAL REQUIREMENTS $29,485,944 COMPUTATION OF ASSESSMENT Requirements $29,485,944 Less Deductions: General Revenue State Revenue Sharing $100,000 Miscellaneous Revenues 10,000 Transfer from Fund Balance 819,663 TOTAL GENERAL REVENUE DEDUCTIONS $929,663 Educational Revenue Land Reserve Trust Interest $80,000 Tuition/Travel 150,000 Special - Teacher Retirement 230,000 TOTAL EDUCATION REVENUE DEDUCTIONS $460,000 TOTAL REVENUE DEDUCTIONS $1,389,663 TAX ASSESSMENT BEFORE COUNTY TAXES AND OVERLAY (Title 36 § 1602) $28,096,281 Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved. SUMMARY This bill establishes municipal cost components for State and county services provided to the unorganized territory that would be paid for by a municipality. The municipal cost components constitute the property tax for the unorganized territory. 5 (Blank Page) 6 TABLE OF CONTENTS General Analysis Municipal Cost Components Budgets Before County Taxes and Overlay Five Year Analysis ..........................................................................................................10 Municipal Cost Components Budgets After County Taxes and Overlay Five Year Analysis ..........................................................................................................11 Aggregate Unorganized Territory County Mill Rate Analysis .............................................12 Charts and Graphs Historical MCC Percentages with UT County Taxes - Net of Revenue Fiscal Years 2016-2021 ........................................................................................................15 Historical MCC Amounts with UT County Taxes - Net of Revenue Fiscal Years 2016-2021 ........................................................................................................16 Selected State Agencies Component – Education – Fiscal Years 2016-2021 with Linear Trendline ...........................................................................................................17 EUT Student Enrollment by Category for School Year 2020 ..............................................18 Historical EUT Student Enrollment for School Years 2015 to 2020....................................18 Selected State Agencies Components Other than Education - Fiscal Years 2016 to 2021 with Linear Trendline for Maine Revenue Service ...............................................................19 State Agency and County Budget Totals – Net of Revenue with Linear Trendlines for Fiscal Years 2016 to 2021 ..............................................................................................20 Historical County Municipal Cost Component Percentages for Fiscal Years 2016 to 2021 ...............................................................................................21 East Coast All Grades Conventional Retail Gasoline Prices Dollars Per Gallon for the Period December 1997 to February 2020 with Linear Trendline .............................22 East Coast All Grades Conventional Retail Gasoline Prices – Short Term Movements for the Periods May 2016 to February 2020 with Linear Trendline .....................................23 Fiscal Year 2021 County Municipal Services Budgets by Function ....................................24 Schedule of County Services Cost Per Capita by County ....................................................25 7 Fiscal Year 2021 MCC Budget Analysis State Services ........................................................................................................................28 County Services and TIFs .....................................................................................................31 County Budget Analysis 2010 Census: Maine Profile ..................................................................................................38 State Valuation Unorganized Territory by County for Tax Years 2018-2020 .....................39 UT - Analysis of Budget Proposals – Counties, Totals by Service Categories ....................40 UT - Analysis of Budget Proposals – Counties, Totals by County .....................................41 Aroostook County - Demographics and Analysis of Budget ................................................42 Franklin County - Demographics and Analysis of Budget ...................................................44 Hancock County - Demographics and Analysis of Budget ..................................................46 Kennebec County - Demographics and Analysis of Budget ...............................................48 Oxford County - Demographics and Analysis of Budget .....................................................50 Penobscot County - Demographics and Analysis of Budget ................................................52 Piscataquis County - Demographics and Analysis of Budget ..............................................54 Somerset County - Demographics and Analysis of Budget..................................................56 Washington County - Demographics and Analysis of Budget .............................................58 Appendix Funding State and County Services in the Unorganized Territory Tax District ............. 62-64 8 GENERAL ANALYSIS 9 MUNICIPAL COST COMPONENTS BUDGETS BEFORE COUNTY TAXES AND OVERLAY Six Year Comparison Ended June 30, 2021 % Increase % Increase % Increase % Increase % Increase 2016 2017 (-)Decrease 2018 (-)Decrease 2019 (-)Decrease 2020 (-)Decrease 2021 (-)Decrease State Agencies Fiscal Administrator $ 254,952 251,277 (1.4) 225,510 (10.3) 233,077 3.4 243,730 4.6 245,718 0.8 Education 12,129,121 12,288,717 1.3 12,264,663 (0.2) 12,335,556 0.6 12,851,922 4.2 12,923,626 0.6 Forest Fire Protection 150,000 150,000 - 150,000 - 150,000 - 150,000 - 150,000 - DHHS - General Assistance 55,750 65,000 16.6 65,000 - 65,000 - 65,000 - 65,000 - Maine Revenue Service 950,000 935,000 (1.6) 1,031,446 10.3 1,246,676 20.9 1,470,866 18.0 1,175,334 (20.1) LURC - Operations 529,025 544,194 2.9 549,577 1.0 569,905 3.7 588,000 3.2 599,144 1.9 Subtotal of State Agency 14,068,848 14,234,188 1.2 14,286,196 0.4 14,600,214 2.2 15,369,518 5.3 15,158,822 (1.4) Less Deductions General (2,509,945) (1,903,945) (24.1) (1,090,000) ( 42.8) (490,000) (55.0) (560,000) 14.3 (929,663) 66.0 Educational (418,317) (419,049) 0.2 (425,768) 1.6 (385,000) (9.6) (385,000) - (460,000) 19.5 Total State Agencies 11,140,586 11,911,194 6.9 12,770,428 7.2 13,725,214 7.5 14,424,518 5.1 13,769,159 (4.5) County Services Aroostook 1,216,139 1,251,259 2.9 1,288,800 3.0 1,413,226 9.7 1,511,803 7.0 1,660,229 9.8 Franklin 1,029,624 998,235 (3.0) 888,252 (11.0) 953,878 7.4 976,795 2.4 1,178,763 20.7 Hancock 223,152 236,660 6.1 238,750 0.9 241,550 1.2 239,050 (1.0) 236,850 (0.9) Kennebec 12,115 10,669 (11.9) 12,823 20.2 11,595 (9.6) 10,870 (6.3) 12,125 11.5 Oxford 1,247,937 1,257,130 0.7 1,273,300 1.3 1,262,600 (0.8) 1,459,650 15.6 1,396,537 (4.3) Penobscot 1,033,536 1,067,291 3.3 1,071,109 0.4 1,152,652 7.6 1,125,982 (2.3) 1,597,454 41.9 Piscataquis 1,008,711 962,139 (4.6) 1,014,232 5.4 965,963 (4.8) 1,156,857 19.8 1,347,370 16.5 Somerset 1,463,162 1,679,712 14.8 1,663,297 ( 1.0) 1,624,102 (2.4) 1,618,913 (0.3) 1,828,286 12.9 Washington 870,612 978,140 12.4 1,008,408 3.1 1,032,764 2.4 1,032,529 (0.0) 1,348,371 30.6 Total County Services 8,104,988 8,441,235 4.1 8,458,971 0.2 8,658,330 2.4 9,132,449 5.5 10,605,985 16.1 TAX COMMITMENT BEFORE TIF 19,245,574 20,352,429 5.8 21,229,399 4.3 22,383,544 5.4 23,556,967 5.2 24,375,144 3.5 TIF TAX COMMITMENT 2,800,000 2,027,000 (27.6) 3,957,568 95.2 3,522,650 (11.0) 3,867,519 9.8 3,721,137 (3.8) TOTAL TAX COMMITMENT BEFORE COUNTY TAXES & OVERLAY $ 22,045,574 22,379,429 1.5 25,186,967 12.5 25,906,194 2.9
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