HALLOWELL — The Hallowell Board of Assessors has set the property tax rate for the 2023-24 fiscal year, which began July 1, at $23.05 per $1,000 of assessed valuation.

The new tax rate represents an 85-cent increase to last year’s rate, and will add $170 to the tax bill for a property valued at $200,000.

Assessors Bob Stubbs, Mark Walker and Diano Circo decided unanimously on the tax rate after deliberating on options during a meeting last Thursday.

Treasurer Dawna Myrick, Assessor’s Agent Rob Duplisea, Councilors Maureen AuCoin and Michael Frett and City Manager Gary Lamb were also in attendance.

“I wish to again thank Dawna and Rob for the hours of consultation and number crunching they have done,” Lamb said.

The increased property tax rate was driven by a $7.7 million municipal budget — a 4.5% increase from the previous fiscal year — that city councilors approved earlier this month. The spending plan prioritizes the Public Works Department and capital improvements.

Throughout the monthslong budgeting process, Hallowell officials focused extensively on one concern: the tax rate. Some said it was bound to increase due to inflation, while others urged more caution when appropriating funds.

In late July, preliminary calculations predicted a tax increase of 9.2%, which AuCoin said was “too high a burden on the property owners.”

During the third and final reading of the budget and after having made more changes to the budget, city councilors declared the property tax rate would not exceed 4%.

The 4% estimation at the time placed the tax rate at $23.10, which would have added $197.73 to the tax bill on a property valued at $200,000.

The final tax rate came out to be lower.

The $7,719,532 budget for 2023-24 is expected to allow the city to buy a new plow truck, police cruiser and excavator, and land for a new facility for the Public Works Department. Funds have also been appropriated for a fifth position in the department.