The New Ipswich Select Board voted to use about $250,000 of fund balance to reduce the anticipated 2023 tax rate by 50 cents, but the tax overall tax rate this year is still anticipated to increase by more than $2.

In a special meeting on Friday, the board met to discuss the tax rate, with the purpose of determining how much fund balance to use to offset the municipal portion. At the start of the meeting, the town had approximately $1.78 million in unexpended fund balance for the year. The board voted to retain approximately $1.53 million, or 10 percent of the total town budget, in the fund, and use the remainder to reduce the tax rate, according to Town Administrator Debbie Deaton.

The $253,786 from the fund balance reduced the municipal portion of the tax rate from $4.97 per $1,000 of valuation to $4.47 per $1,000, a 50-cent decrease. With the decrease, the total tax rate for New Ipswich for the coming year is anticipated to be $25.70 per $1,000 of valuation. This compares to last year’s rate of $23.51 per $1,000, an increase of $2.19. Under the new tax rate, a homeowner with a property valued at $250,000 could expect to pay a tax bill of $6,425 for the year, compared to a bill of $5,877.50 last year for a home of the same value.

All four sections of New Ipswich’s tax rate rose this year, including the municipal rate. Deaton said last year’s municipal rate was $4.08, although the increase this year is skewed, because in 2023, the town elected to use a total of $350,000 in unexpended fund balance to lower the rate. Before adjustment, the 2022 municipal rate was $4.78, compared to this year’s unadjusted rate of $4.97.

The local education portion of the tax rate saw the largest rise, increasing from $17.01 in 2022 to $18.11 this year. The county rate rose from $1.12 to $1.31, and the state education portion rose from $1.30 to $1.81.

Deaton said the town has sent the tax rate to the state for verification, and expects to deliver tax bills in early November.

Ashley Saari can be reached at 603-924-7172, Ext. 244, or asaari@ledgertranscript.com. She’s on X @AshleySaariMLT.