MOUNT DESERT—The State of Maine has proposed a valuation of $3,857,050,000 for the Town of Mount Desert for 2027. This figure represents an 11.9% increase from the 2026 valuation for the town, home to approximately 2,200 residents.
The proposed valuation is significant for the town, which encompasses the middle third of Mount Desert Island and includes a substantial portion of Acadia National Park. The town's 39 square miles, or approximately 23,000 acres, contain villages such as Otter Creek, Seal Harbor, Northeast Harbor, Somesville, Hall Quarry, and Pretty Marsh, alongside a notable summer community. The town holds roughly 2,663 parcels of land.
For comparison, the proposed 2027 state valuations for neighboring communities are Bar Harbor at $3,041,150,000, Southwest Harbor at $1,318,650,000, Tremont at $975,300,000, and Trenton at $678,550,000.
This valuation is a critical factor in determining Mount Desert's financial obligations for the Hancock County budget, the MDI High School budget, and the AOS budget. It also influences the town’s school subsidies received from the state through revenue sharing. Mount Desert Assessor Kyle Avila detailed in an October 19 memo that the adjustment to the total taxable property value is based on the "ratio of assessed values to sales prices included in the 2024-2025 sales ratio study." Avila noted that an analysis of sales from that period indicates assessed values averaged 78% of the sales prices. The state valuation is calculated by adjusting the town’s reported total taxable property value as of April 1, 2025, through various calculations to reach the equalized taxable property value if assessments were at 100% of market value, according to Avila. The town’s last tax rate was $7.62 per thousand of valuation. The board has approved the Maine State Revenue Services’ proposed 2027 state valuation.
In other Selectboard actions, a proposed tax increment financing (TIF) district received positive comments, according to Town Manager Alex Kimball. The TIF district, discussed in broad terms at an October 5 workshop, aims to promote economic development within a defined municipal area. Under a TIF, new development increases property tax revenue, which is then dedicated to specific improvements and projects within that same district. Kimball explained on October 18 that the next step involves re-forming the town’s economic development committee. While he initially thought a proposal was needed this winter for a spring meeting, state data looking back two years provides additional time for development, though Kimball expressed concern about potential overlap with the comprehensive plan’s creation efforts.
The Selectboard also approved a sanitary sewer extension on New County Road. An engineering firm is working with landowners to develop a new lot and utility location by placing a 430-foot sanitary sewer extension into the street. The landowner will cover the cost for this underground, year-round service to two properties. An October letter from G.F. Johnston & Associates cited the need, explaining that the existing gravity sanitary system at 9 New County Road "is in failing condition," lacks frost protection, and shows cracking. This project also provides a new residential service connection for 11 New County Road, replacing a system that spans from the Las Piedras property through private lands to the main on Steam Boat Wharf Road.
Additionally, the board authorized the purchase of a 2026 GMC 3500 4x4 from O'Connor GMC for $54,477, with the wastewater superintendent authorized to proceed with the purchase. The vehicle serves as the town's plow truck and has been part of the Capital Improvement Plan for ten years, according to Henkel. Bids were solicited for the purchase.
Finally, the board reviewed and approved emergency medical services uncollectible account balance write-offs totaling $16,351.76. Bar Harbor manages billing for the Mount Desert Ambulance Service. A town employee explained during the meeting that if a collection agency is unsuccessful within the initial months, payment is unlikely, unless the outstanding amount affects an individual's credit report for future purchases such as a house. Approximately $15,440.86 in claims have aged out.
