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The City of Lewiston is an EOE. For more information, please visit our website @ www.ci.lewiston.me.us and click on the Non-Discrimination Policy. 27 Pine Street Lewiston, Maine 04240 Telephone (207) 513-3017 Fax (207) 784-2959 City of Lewiston Maine City Council Resolve January 22, 2013 Resolve, Expressing the Opposition of the City Council of the City of Lewiston to Proposals to Shift the Burden of Funding State Government to the Property Tax and Property Tax Payer. Whereas, the State Administration has submitted a proposed budget for the coming biennium that will dramatically shift the burden of funding state government to the property tax by eliminating or significantly modifying long-standing property tax relief programs; and Whereas, the proposal to suspend municipal revenue sharing would result in a $4 million revenue loss to the City of Lewiston, representing 12.5% of the City’s general fund operating budget and $2.18 on the property tax rate; and Whereas, the proposal to redirect the excise tax on tractor trailers will reduce the City’s revenues by an additional $370,000 or 20 cents on the tax rate; and Whereas, eliminating the homestead exemption in FY 15 for those under 65 will increase taxes for no longer qualifying residents by $227 in that year if the City’s tax rate remains unchanged; this represents a tax increase of over 10% for most of those losing the exemption; and Whereas, low and moderate income residents under the age of 65 who now qualify for the state property tax circuit breaker program will no longer qualify for it in the coming budget year; and Whereas, starting in the second year of the biennium, the business equipment tax reimbursement program, under which businesses are fully reimbursed for property taxes they pay on certain business equipment, will be eliminated with most qualifying property transferred to the business equipment tax exemption program; under this program, the City will only be reimbursed by the state for 60% of the taxes due, reducing City revenues by an estimated $897,000 in FY15, or 49 cents on the tax rate; and Whereas, if enacted, these changes will reduce City revenues by at least $4,370,000 in FY 14 and $5,267,500 in FY 15, excluding certain impacts on the school budget; and ---PAGE BREAK--- The City of Lewiston is an EOE. For more information, please visit our website @ www.ci.lewiston.me.us and click on the Non-Discrimination Policy. 27 Pine Street Lewiston, Maine 04240 Telephone (207) 513-3017 Fax (207) 784-2959 Whereas, to replace these revenues through property taxation, the City’s tax rate would have to increase by approximately $2.38 in FY 14 and an additional $0.49 in FY 15 before considering any other expenditure increases that may be required; and Whereas, alternatively, reducing expenditures by this amount would require eliminating all capital expenditures and dramatically reducing staff over and above the almost 20% reductions that have been implemented since 2002; and Whereas, further staffing and expenditure reductions of this magnitude would undermine our ability to provide basic public services; and Whereas, even a balance between tax increases and spending cuts would result in much higher property taxes in return for services that would no longer meet resident expectations or needs; Now, therefore, be It Resolved by the City Council of the City of Lewiston that the City Council hereby expresses its strong opposition to provisions included in the recently proposed state budget that would significantly shift the burden of funding state government to the property tax and property tax payer. These proposals will dramatically increase property taxes in Lewiston, taxes which often are unrelated to the ability of property owners to pay, and will require spending reductions which will call into question our ability to protect the health and welfare of our community and provide our residents with basic government services. Be it Further Resolved, that The City Clerk is directed to provide copies of this Resolve to the members of the Legislature representing the City of Lewiston, members of the Appropriations Committee, the Governor, the Speaker of the House, the President of the Senate and the Legislative leadership.