Saco administrator unveils $80.4 million FY2026 municipal budget; adoption set for May 12

City Administrator John Behanko and Interim Finance Director Judy Belanger presented the City of Saco’s proposed fiscal year 2026 municipal budget on March 24, outlining a $80,391,121 spending plan and a schedule that would lead to council adoption on May 12.

Belanger said the proposal “is presented to you at a total of $80,391,121. This is about a $6,700,000 increase or 9.2 over fiscal year 25.” The presentation broke the budget into operating and non‑operating sections and noted that property taxes remain the primary revenue source.

The nut graf: The proposed budget would raise the overall municipal tax rate to an estimated $14.20 per $1,000 of assessed value, a 15‑cent (1.1%) increase from FY2025, and asks the council to weigh tradeoffs between wage and benefit increases, supported entities, and capital priorities before final adoption.

Most of the operating increase is driven by personnel costs. The presentation lists salaries and benefits as 72% of the operating budget; the plan includes four new positions: a deputy city administrator for community development, two firefighters (hired midyear, expected January 2026 start), and a parks and recreation position. Belanger said payroll contingencies account for negotiated patrol salaries, market adjustments, and pay equity concerns.

Non‑operating items include the municipal transfer to the school department (treated as a non‑operating transfer in Saco’s municipal budget), debt service and capital outlay. Capital requests highlighted in the presentation include $300,000 proposed for dredging, $250,000 for dune restoration and sand replenishment, $200,000 for sheet‑pile wall installation on North Avenue and Main Street, and $175,000 set aside over two years for Dyer Library safety and parking improvements.

On supported entities, Administrator Behanko noted a net request increase of about $377,000 from community organizations, with the Dyer Library requesting an increase of $238,000 and Age Friendly requesting roughly an $88,000 increase. Behanko said the council should treat support for outside organizations as a policy decision for the council.

Belanger and Behanko warned that the FY2024 audit remained incomplete at the time of the presentation, and that the unassigned fund balance figure is unaudited and could change. Behanko recommended transferring $1.1 million of unassigned fund balance to a committed fund balance to preserve council control over one‑time expenditures in the coming year.

The administration scheduled department workshops for April, a formal public hearing on the budget for May 5, and final council action on May 12. The presentation emphasized recruitment, retention, and salary negotiations as central drivers of the budget and noted the council’s role in determining supported entity funding.

Less urgent items and next steps: staff will provide department‑level briefings in April; the council will review proposed motions and any amendments before the May 12 adoption vote.