Milton budget features another property tax increase
Milton Town Council heard the first presentation of the fiscal year 2025 budget July 18, and while the town is running a $13,000 surplus, plans once again call for an increase in property taxes.
Town Manager Kristy Rogers told council the recommended 3.3% increase – from $0.324 per $100 of assessed value to $0.335 per $100 – will enable the town to balance its budget, continue to provide services and not have to use funds from the town’s real estate transfer tax or reserve funds, as it had to do in FY 2024. The increase of $0.11 per $100 was recommended by the town’s financial consultants at PFM Consulting as part of a long-range fiscal plan.
If approved, this will be the third straight year Milton increases property taxes; although, this one is much smaller than the 17% increase in FY 2023 and the 9% increase in FY 2024. Council recently passed an ordinance that ties potential increases to the Consumer Price Index, in the hopes that it will keep increases lower and more incremental.
The town’s revenue projections are $4.2 million, with the majority of that coming from property taxes, 66%, and fee and fines, 27%. Besides an increase in property taxes, the budget also calls for an increase in application fees and for utilities and trash. Rogers said in FY 2024, the town was still experiencing inflation, which affected operating costs and competitive wages. Another factor affecting wages was the police department joining the Fraternal Order of Police, creating a standardized contract for the department.
Rogers said the main goal with this year’s budget is to restore balance to the town’s general fund – Milton’s general fund includes all departments except utilities, which has its own budget – after having to use $726,000 in reserves in FY 2024 to help balance the budget. It has been a longstanding goal of Rogers to want to get the town away from relying on using transfer tax revenue to help with the budget, in part due to the unpredictable nature of the real estate market.
The budget has a very modest capital improvement plan component, which includes upgrades to the town’s app and website, street improvements, the purchase of a utility truck and projects that have been funded through outside funds, such as the $1.78 million water main replacement project that would replace 3,900 linear feet of existing mains underneath Carey, Walnut, Magnolia, Reed and Mill streets; building a $3.8 million water tower on town-owned land on Federal Street; and a $579,000 rehabilitation of the Chandler Street water treatment facility. All three projects are funded with state funds and were approved at referendum in January.
Milton does have a utility fund, which is kept separate from the general fund because utility revenue is restricted in its use. Rogers said the utility budget has a surplus of $44,000.
All told, Rogers said goal this coming fiscal year, which starts Tuesday, Oct. 1, is to continue to try to set Milton up for the future, through exploring new revenues, such as a potential gross rental receipts tax and/or a parking impact fee, completing negotiations for a union contract with the police department and continuing long-range planning.
The way the town’s budget process is laid out is Rogers gives an initial presentation in July, followed by council and the finance committee making changes. A public hearing will be held in August, followed by additional revisions before council votes on the budget in September. Council will begin its deliberations at its Monday, Aug. 5 meeting.
