By KEITH EDWARDS
Staff Writer Friday, May 11, 2007

enlarge Staff photo by Joe Phelan

Peggy and Jim Mansir are in the process of building a new house in north Augusta near the Sidney line. The Mansirs like living Augusta because of the short commutes and easy access to services.

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But the couple who've called Augusta home for the last 31 years say there is more to life than property taxes.

Like time spent relaxing at home, instead of battling rush-hour traffic and burning tanks of gasoline in a long commute.

Having things like grocery stores, libraries, the YMCA, and hospitals close by. And easy access to services, in particular a full-time ambulance rescue crew, which Peggy Mansir credits with saving Jim's life when he had heart problems.

"When we were looking for property, taxes didn't really figure into it nearly as much as other things did," Peggy Mansir said. "I know we pay a lot in Augusta but we also get more services. And we're close to everything -- grocery stores, the hospital, our work. It bothers me that Augusta gets a bad rap. We've loved living in Augusta. It's a lot more livable place than people realize."

IS IT WORTH THE PRICE?

So, is Augusta really an expensive place to live?

By some measures, property tax rates for one, it does cost more to live in Augusta than in many surrounding communities.

A Maine Revenue Services formula used to equalize property tax rates so the rates of each municipality can be compared to each other indicates Augusta's "full value" property tax rate is $17.04 for every $1,000 of property value. That's one of the highest in Kennebec County, lower only than Gardiner and Waterville, two other "service center" cities in central Maine.

Service-center communities, so called because they often provide infrastructure for shops and services used by residents from many area municipalities, tend to have higher taxes and a higher level of services, such as trash pick-up and full-time police and fire departments.

"Your service centers are almost always going to have higher taxes than your outlying towns," said Bill Sprague Jr., of Sprague and Curtis Real Estate in Augusta, which sells homes in numerous central Maine communities.

"It's a trade-off," he said. "Yes, the taxes might be higher, but you don't have commuter costs, and the time to get to and from places. You'll hear a lot about taxes, but the cost of commuting can outweigh that easily. And if you need to run out for supplies, and you live out of town, it could take 20 minutes versus five minutes. If you have kids who have dance lessons or hockey games or are active at the Y, mom and dad can spend a lot of time on the road."

BEYOND THE NUMBERS

Residents and observers say it is important to look more closely both at the numbers, and beyond them, to get an accurate picture of what it costs to live here.

The economics of living in Augusta can look considerably better for someone who also works here. Little or no commute equals less gas burned, less wear and tear on vehicles, and more time to do other things.

"I can be home from work in two minutes; there is something to be said for that," said Craig Garofalo, 25, who bought a house in a Brooklawn Avenue neighborhood in Augusta three years ago and works as a loan officer in Augusta for Kennebec Savings Bank. "I got a great deal for what I was looking for. At the time, some people didn't want to be in the city, so the housing market here was great."

Statistics seem to back up observations that a similar house would cost less in Augusta than in the municipalities surrounding the city.

The average residential sales price for homes in Augusta from 2005 to 2007 was $119,383, according to data provided by Maine Revenue Services. During that same period, the average residential selling price in Manchester was $187,853. In Hallowell, it was $165,326. And across the Kennebec River in Chelsea, it was $124,960.

"In general, I think houses in-town are cheaper for the same amount of house than in the outlying towns," said Christopher "Kit" St. John, executive director of the Maine Center for Economic Policy, an Augusta-based independent economic policy group.

"Some groups make a big deal about Augusta and other service centers having high (tax) rates," he said. "But my observation is (that) it appears the same house on a couple of acres in, say, Litchfield is a good deal more expensive than a comparable house in Augusta or Gardiner."

HOME VALUES VERSUS TAXES

Higher home values can lead to higher taxes, even in towns with a relatively low property tax rate, noted Michael Rogers, supervisor of municipal services for Maine Revenue Services.

For example, the town of Belgrade's full value tax rate is $8.62 per $1,000 of property value. That's roughly half Augusta's rate. However, from 2005 to 2007, the average home sales price in Belgrade was $182,047, much higher than in Augusta.

The tax bill for a given property is determined by both the tax rate and the value of the property.

When Tammy and Dan McLaughlin were considering where they should live when they decided to move out of Farmingdale about a year and a half ago, they considered Augusta, where they both work. However, they chose a move to Mount Vernon, where they said home prices were similar, but property taxes are far cheaper.

"Prices, as far as real estate goes, were comparable in Mount Vernon and Augusta," said Tammy McLaughlin, who works in education consulting. "But taxes are a world apart. My husband and I both work in Augusta, so Augusta would be the most logical place for us to live."

Each of their commutes to Augusta takes about 25 minutes, in good weather.

Beyond higher taxes in Augusta pushing them elsewhere, Tammy McLaughlin said the privacy of their country setting in Mount Vernon also was a draw. She also said she hasn't been happy with some recent policy decisions by Augusta city leaders, such as decisions she said would allow the construction of new pharmacies at the expense of affordable housing.

The couple have a 2-year-old and another child due soon.

THE TRUE COST

Determining the "expense" of living in one spot versus another isn't as simple as looking at two different tax rates and picking the lower of the two numbers.

The true cost of living somewhere can't be determined without first considering what things are important in a particular place, and how much value those things have.

Sprague, for example, noted for home-buyers with kids, the quality of local schools is often a major factor in where they decide to live. Those nearing retirement may have other priorities, placing a high value on factors such as proximity to services and amenities.

"Everyone's different," Sprague said. "People have all kinds of different needs and wants. Also, at different stages of our lives, we may have different needs."

The Mansirs have two adult children and see the new home they are building on Bog Road as their future "retirement home." They, too, considered properties in several other area municipalities when they were looking for land upon which to build their home. They chose to stay in Augusta.

"If we picked Sidney or West Gardiner, we'd have lower taxes, but we'd also have fewer services," Jim Mansir said. "We all moan about taxes, more than we should. Taxes are not the only factor you should be considering. We wanted to be close to town. Close to services you need like the Y and the hospital. So you don't have to spend so much time in your life driving."

Keith Edwards -- 621-5647

kedwards@centralmaine.com