Although the tax rate is increasing, Damariscotta's budget has stayed the same.

The new tax rate will have a four percent increase to cover increased costs from the school and county portions of the tax bill.

The Damariscotta 2014-15 tax rate was set Wednesday, July 16 during a board of selectmen and assessor's meeting and will be $15.80 per $1,000 of assessed valuation.

The tax rate was $15.10 in 2013-14.

One of the discussions during the meeting was whether or not to tweak the overlay amount, which was eventually set at a little more than $40,000, to try and keep taxes low.

But, the question became whether or not having a lower overlay would lower property taxes, with the trade off being less money available for abatements.

Jurate Barnes, Damariscotta assessor said that in most years the abatements don't total the overlay, but that money is still used.

“It varies from year-to-year, but typically we use about $12,000 in various abatements,” she said.

The money that isn't used for abatements isn't wasted, either, Town Manager Matt Lutkus said.

“That leftover money goes into the fund balance,” he said. “(The leftover money) can be used in future years to help keep the taxes low.”

Last year, there was $53,800 in overlay, which is a number the town should be comfortable with, Lutkus said.