Press Release Regarding Tax Rate Increase

Greenville’s $6.05 increase in the Town portion of the tax rate is due to a combination of budget increases, separate warrant articles raised by taxation, and less available fund balance to reduce taxes. For the past 3 years, the Selectmen have used unreserved fund balance to reduce the tax rate, as Greenville’s ratio of unreserved fund balance to general operating expenditures was well above Department of Revenue recommendations. In doing so, the taxpayers enjoyed as much as a $6.50 reduction in the Town rate. While we are still above DRA’s recommended maximum percentage with the use of 300k this year (Greenville is at 19.61%, and DRA recommends a maximum of 17%), we have found that our cash position and ability to meet our obligations prior to the collection of 2nd issue tax bills would be compromised if we reduced our unreserved fund balance any further. We realize that this large upward correction of the tax rate is difficult for our taxpayers, and we will make efforts to reduce expenses wherever possible, and employ prudent and sustainable fund balance use to stabilize the tax rate going forward.

Greenville Board of Selectmen