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Saco council approves first reading to reallocate $186,615 for firefighter retirements
Summary
The City Council voted 6-0 to approve a budget amendment on first reading that reallocates $186,615 from payroll contingency to cover retiree payouts and related fringe costs in the Fire Department; the item will return for a second reading on June 2.
The Saco City Council on May 19 approved, on first reading, a transfer of $186,615 from payroll contingency to cover unanticipated costs tied to firefighter retirements in fiscal year 2025.
Councillor Hatch moved the amendment and Councillor Hewitt seconded. "We had a total of five firefighters retire in fiscal year '25 with a combined total of 173 years of service," city staff said during the discussion, explaining that the transfers pay accumulated leave and termination payouts. The council voted 6-0 to advance the measure to a required second reading on June 2.
City staff clarified the accounting: the motion reallocates $154,293 to Fire Department wages accounts and $32,322 to general administration fringe-benefit accounts; funds will come from payroll contingency. Councillor Johnston asked for clarification about whether this represented new staffing or simply payouts; staff and the fire chief confirmed the change covers retirement-related payouts rather than adding positions.
The council and staff also discussed a longer-term budget structure to avoid year-to-year distortions from large retirement buyouts. One councilor suggested creating a dedicated "leave-of-termination" fund that departments would seed annually to smooth the impact of lump-sum retirement payments; staff indicated the idea could be considered during next year’s budget process.
The motion passed by roll call vote 6-0 and will return June 2 for final adoption.
