Saco council adopts FY2026 budget after votes on supported entities, housing and transit funds

The Saco City Council on May 12 adopted the city’s fiscal year 2026 municipal budget, approving $39,918,235 in gross municipal expenditures as amended and approving related capital and tax measures, the council voted 7-0.

The final budget action followed more than two hours of amendment votes that trimmed some increases for supported nonprofit agencies, added targeted one‑time and reserve funding for housing and active‑transport projects, approved transfers for building repairs at local cultural institutions, and directed staff to notify the Maine Department of Economic and Community Development about reduced TIF captures for three development districts.

The water resource recovery department’s FY2026 operating budget was approved as a separate vote: the council adopted gross expenditures of $5,659,659 and a sewer user rate of $9.81 per unit, a 14.7% increase in the rate, and approved associated appropriations, the motion passed 7-0. The change was presented to the council as revenue‑neutral within the enterprise fund and intended to cover rising operating and infrastructure costs.

Most contentious budget debate centered on the city’s “supported entities” line and how broadly the city should subsidize social‑service and community organizations. Councilor Johnston moved a presubmitted amendment to strike proposed fee increases tied to chapter 147 (rental/code inspections) and later pressed for caution about adding new recurring support without a policy; the amendment to delay those inspection fee increases passed 7-0. Councilor Hatch then offered an amendment to roll select supported‑entity allocations back to FY2025 levels, saying the change was grounded in principle: "I firmly believe that as council members, we took an…