Lewiston council signals support for proposed FY26 budget; tax rate rises $1 to $32.77, fund balance drops to 9.73%

Director Roy told Lewiston City Council members at a budget workshop that staff had reduced proposed spending and adjusted revenues to produce a $1 increase in the city's tax rate to $32.77 per $1,000 of assessed value and to lower the estimated fund balance to 9.73%.

"In front of you is the new tax rate sheet. Got it down to a dollar increase, so the tax rate would be $32.77," Director Roy said, summarizing the principal change staff had made to reach the target. Roy also told the council, "we'll be using 7,400,000.0 which will leave us at 9.73% of fund balance."

The staff adjustments described to the council included: a $50,000 reduction tied to a lower contribution from the City of Auburn (line 09/11); removal of uniform and boot allowance line items for positions that remain frozen; a $20,000 reduction to winter salary projections based on a five-year comparison after dropping the lowest year; a $299,000 reduction in the salary reserve because of an expected carryforward from the current fiscal year; removal of $9,000 previously held in the general fund for an armory floor item; a $75,000 reduction in the salt-and-sand line using a five-year normalized average; an increase of $200,000 in projected garage charge revenue; and reclassification of a $13,009.16 software item into fund balance.

Council members also reviewed a set of additions and one-time costs the draft budget would cover. Director Roy said staff had added $400,000 for local homeless shelter funding and included payment for bulletproof vests. The council discussed whether the vests could be paid from the police department's drug forfeiture account; Roy said the chief had previously used significant forfeiture funds for equipment and lockers and advised caution about depleting that account.

Nate Labe, Director of Economic and Community Development, answered council questions about the NECAC tax-increment financing (TIF) district and whether citywide wayfinding signs could be paid from TIF proceeds. "I don't think that first payment of TIF funds in in the fall is going to cover the entire wayfinding projects," Labe said, explaining that the TIF's increment grows over multiple years and that alternatives include borrowing for the signs and repaying with future TIF receipts.

Several council members voiced support for the draft. Council President Chittum said he interpreted the lack of objections as assent: "I'm hearing roaring silence that that to me says that we as a council are comfortable with all of the elements of the fiscal 28 '26 budget" (remarks as recorded). Councillor Neillane and others thanked staff for last-minute adjustments.

At the same time, Councillor Nejean raised longer-term concerns about capital and maintenance strategy, warning against repeatedly contracting out work rather than building in-house capacity. "We've been putting off the car wash since 02/2007," Nejean said, and argued that deferring maintenance leads to higher long-term costs.

The council did not take a formal vote on the budget at the workshop. Councillor Harriman noted the final vote is scheduled for May 6. "That vote is Tuesday May 6 it will be our final vote on the budget," Harriman said. The only formal motion made at the meeting was to adjourn; it was moved, seconded and approved by voice vote with unanimous assent.

The workshop also flagged two procedural and policy points for follow-up: staff must finalize calculations for what the NECAC TIF will actually yield before any TIF-funded expenditures are confirmed, and any transfer of money from fund balance into a TIF or other fund would require a future council action.

Council members and staff said they hope this will be the last budget workshop before the scheduled final vote; no ordinance, appropriation, or other binding action on the budget was passed at this meeting.