MillinocketA Historical Perspective

Paper mill construction created Millinocket Population grew with influx of skilled workers to construct

the mill facility. Skilled craftsmen who built the mill stayed to make paper

for this energized industry. Millinocket, the Magic City, was born.

1898

The Value of GNPIn 1931, BDN editorial, “This industry in its infancy, means more to the people of Bangor and Eastern and Northern Maine than the average human intellect can comprehend.”

In 1938, Time Magazine wrote, “Many publishers in recent years have contracted for their newsprint on the condition it [the price] not be above that asked by Great Northern.”

In 2014, the Bangor Daily News wrote, “Industries don’t last in one place forever”.

2013 Summer

2014 Summer

Brookfield Building 2014

Population Demographic Comparison for 2000 and 2010 for Millinocket

The following pages are to illustrate the changes that the U.S. Census Bureau has documented for the years 2000 and 2010. This data can be used to focus on a strategic plan for Millinocket for Town and School services as well as create a dialogue for development of an economic development strategic plan for Millinocket and the surrounding region.

Population Growth for MillinocketUS Census Bureau Data

Population increased and decreased as Great Northern grew and declined. 2010 population is

below 1920 population.

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000 Population from Selected Dates 1910 to 2030

1920 1950 1960 1970 1980 1990 2000 2010 2030

Population is decreasing at a rate of about 15% per year. Current population is below the 1920 population for Millinocket. Projected population for 2030 is near the 1900 census level. Together, Medway, East Millinocket and Millinocket has a projected population of about 4,792 in the year, 2030 which is slightly above the population levels for Millinocket alone.

-

1,000

2,000

3,000

4,000

5,000

6,000

Population

2000 (5,203) 2010 (4,506) 2030 (2,555)

US Census Bureau

East Millinocket (1,823) (1,722) (1,332)

Medway (1,490) (1,348) ( 905)

-

500

1,000

1,500

2,000

2,500

Households

2000 (2,295) 2010 (2,167) 2030 (1,625)

US Census Bureau

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Families

2000 (1,556) 2010 (1,305) 2030 (979)

US Census Bureau

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Residents under the age of 18

2000 (21.1%) 2010 (15.5%)

This age group represents the residents who are at school age.

This age group typically represents those attending college or other post secondary education or training programs. This could be an

indicator of this group staying at home while obtaining an education, those not seeking higher education or those who entered the

workforce.

4.6%

4.7%

4.8%

4.9%

5.0%

5.1%

5.2%

5.3%

5.4%

5.5%

5.6%

Residents between ages of 18 & 24

2000 ( 4.9%) 2010 (5.5%)

This demographic typically makes up the age that create family units that would bring children into the community and would build new or purchase

existing homes.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Residents between ages of 25 - 44

2000 (25.0%) 2010 (17.8%)

This age group is increasing. This group typically have homes and are working in or in commuting distance from Millinocket.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Residents between ages of 45 - 64

2000 (29.7%) 2010 (36.6%)

This demographic is also increasing and represents the population leaving the workforce and entering retirement.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Residents over the age of 65

2000 (19.4%) 2010 (25%)

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

Total Valuation (Town)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

The last revaluation of the Town was 1993. If we completed a revaluation of the town the mil rate would decrease but the values of the properties, (mostly residential properties), would increase and the result would be some shifting of tax burdens, but with property values that reflect true to market rates.

0

5

10

15

20

25

30

35

Mil Rate

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Normally, it is recommended the Town to have 2 to 3 months in FB. The Fund Balance pays for town and school expenses from July 1, until taxes are paid after commitment. For FY 2014, the tax due date was mid September 2013, 2.5 months after the beginning of the year. Current Fund Balance is about $1.8 million and the Town and School together spend about $1.013 million a month. (The numbers below $0 is the total over spent School amounts.)

Changes in Fund Balance from 2003 to 2014

1 2 3 4 5 6 7 8 9 10

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

According to the Town and School auditor, the recommended amount for fund balance to reassure creditors that the Town can repay any loans is desired to be about 20% - 22% of the total town and school budget. Any amount lower could result in higher interest rates or the town or school being declined on any loan applications.

0.00

5.00

10.00

15.00

20.00

25.00

30.00Fund Balance as % of Total

Budget 2005 - 2014 Impacts to Credit Rating for Loans

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

The Town’s tax collection rates have been declining over the past few years and the amount of tax acquired and sewer lien acquired properties is increasing. The decreased tax collection rates increases the accounts receivable and overinflates the Town’s fund balance. (A sizable portion of the fund balance is in receivables and not in actual cash.)

0.00

20.00

40.00

60.00

80.00

100.00

120.00Tax Collection Rates

2005 to 2014

Reduced Valuation: FY 15 Budget Numbers

Tax Commitment Formula         

Budget PROPOSED FY 16         

Town Gross Expenditures FY 15 5,801,144.00  

Town Gross Revenues 2,432,736.00  

Town Net for Tax Commitment 3,368,408.00       

School Gross Expenditures FY 15 6,127,794.00  

School Gross Revenues 3,471,092.00  

School Net for Tax Commitment 2,656,702.00       

Overlay 40,702.00  

County Tax 234,311.00       

TOTAL PROPOSED NET BUDGETS 6,300,123.00  

Current Mil Rate FY 2013 $29.95 Mil Rate     

ESTIMATED TAXABLE VALUATION 161,552,500.00 0.03900

Reduced Valuation: Budget Reductions $1.6 Million

Tax Commitment Formula    

     

Budget PROPOSED FY 16    

     

Town Gross Expenditures FY 15 5,001,144.00  

Town Gross Revenues 2,432,736.00  

Town Net for Tax Commitment 2,568,408.00  

     

School Gross Expenditures FY 15 5,327,794.00  

School Gross Revenues 3,471,092.00  

School Net for Tax Commitment 1,856,702.00  

     

Overlay 50,000.00  

County Tax 234,311.00  

     

TOTAL PROPOSED NET BUDGETS 4,709,421.00  

Current Mil Rate FY 2013 $29.95 Mil Rate

     

ESTIMATED TAXABLE VALUATION 161,552,500.00 0.02915

Reduced Valuation: Budget Reductions $2 MillionTax Commitment Formula         

Budget PROPOSED FY 16         

Town Gross Expenditures FY 15 4,801,144.00  

Town Gross Revenues

2,432,736.00  

Town Net for Tax Commitment

2,368,408.00       

School Gross Expenditures FY 15 5,127,794.00  

School Gross Revenues

3,471,092.00  

School Net for Tax Commitment

1,656,702.00       

Overlay 50,000.00  

County Tax 234,311.00       

TOTAL PROPOSED NET BUDGETS

4,309,421.00  Current Mil Rate FY 2013 $29.95 Mil Rate

     

ESTIMATED TAXABLE VALUATION

161,552,500.00 0.02668

Town Employment Levels

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 09 10 11 12 140

10

20

30

40

50

60

70

80

90

Series1

1986 to 2014

Administrative Services

Town ManagementFinance

Town ClerkTax CollectorTax Assessor

General Assistance-WelfareHuman Resources-Personnel

Town CouncilKARE

Economic DevelopmentPublic Relations

Changes to Services

Web and Electronic ServicesCredit Card ServicesWebsite InformationOther Social Media

Public Access Television for MeetingsOther

Administrative Budgets

2013 Revenues and Expenses2016 Budget Reductions