Caribou council approves $723,697 in 2025 municipal expense reductions and reallocates ARPA funds to police wages

The Caribou City Council on Monday approved a package of spending reductions and fund transfers intended to reduce the city’s 2025 municipal shortfall.

Councilors approved a principal reduction to the 2025 expense budget of $723,697 based on recommendations from the city manager and department heads, plus additional reductions of $194,007.90.77 from the property tax relief fund and $46,039.20 from specific line items identified in the packet. The council also approved moving $67,488.64 from ARPA funds to the police wages expense line as previously authorized by the council.

City Manager Penny Thompson reviewed the numbers, saying departmental vacancy savings and deferred capital purchases account for much of the proposed reductions. Finance director Carl reported the city’s assets and fund balances earlier in the meeting and answered council questions about year-to-date collections and liabilities.

Several councilors emphasized that the reductions were intended to avoid layoffs and to share fiscal burden across municipal operations. Councillor Bagley noted that vacant positions would likely remain unfilled rather than creating layoffs. Councillor Kelly and others discussed the mix of expense versus capital reductions and cautioned against excessive deferral of capital projects.

The council voted unanimously on the measures; Councillors Bagley, Kelly, Deputy Mayor Smith, Terrio and Watson each voted "Aye." The motion passed without recorded nay or abstentions. Council members asked staff to verify final arithmetic and return an official accounting of the reductions to reflect small numerical adjustments mentioned during the discussion.