Portland City Council reviews fiscal impact of proposed minimum wage increase

The Remote Finance Committee Meeting held on June 18, 2025, in Portland, Maine, focused primarily on the fiscal impact of proposed changes to the minimum wage. The committee discussed the implications of raising the minimum wage and how it would affect various wage brackets within the city’s workforce.

During the meeting, it was confirmed that the council would review the fiscal impact assessment presented by Bridal, the city’s finance officer, before making a final decision on the matter. The council is expected to take action on this issue during their next meeting scheduled for July 14, 2025. This timeline is crucial as it allows for the potential inclusion of the wage change on the upcoming ballot.

Bridal outlined that there would be no fiscal impact in the fiscal year 2026 due to adjustments in the proposal's effective dates. However, starting in fiscal year 2027, the estimated impact on the municipal mill rate would be approximately 67 cents over a three-year period. For homeowners with properties valued at $500,000, this translates to an additional cost of about $333 over the same period.

The analysis provided by Bridal included a breakdown of employees by wage categories, revealing that over 600 workers earn between $15 and $20 per hour, primarily consisting of part-time and seasonal employees. The committee noted that the wage adjustments would likely lead to requests for raises among those earning between $20 and $30 per hour to maintain wage differentials.

Councilor Pelletier raised questions regarding the types of jobs affected by these wage changes, highlighting that many of the impacted workers are temporary or seasonal employees, including election workers and those involved in event management.

The meeting concluded with an acknowledgment of the complexities involved in wage adjustments and the importance of considering the fiscal implications for both the city and its employees. The committee expressed appreciation for the detailed fiscal analysis and the collaborative effort in navigating the budgetary challenges ahead.