Sagadahoc County budget shows 16.2% increase; commissioners set 3.7% COLA for nonunion

Sagadahoc County Finance Director Jill Ferdy told the Budget Advisory Committee on Feb. 28 that the countys preliminary FY2026 budget shows a 16.22% increase driven mainly by deferred capital projects, emergency-stability measures, depleted reserves and falling revenues.

Ferdy said commissioners set a 3.7% cost-of-living adjustment (COLA) for nonunion staff for budget purposes and are not recommending general wage increases this year beyond contractually obligated adjustments in collective bargaining agreements. "At this point, we feel that it's prudent to look at wages every three years," she said, noting the county could still act sooner if local labor markets require it.

The budget office cites four primary cost drivers: urgent capital projects (notably the flat roof, the cooling tower and the generator), steps to shore up emergency operations and the commissioners contingency, an aging employee base with retirements that increase unfunded liabilities, and a decline in recurring revenue streams following the COVID-era real estate surge. Ferdy also said the draft budget assumes no federal funding in FY2026 and that any federal receipts would be applied to reduce the following year's tax levy.

Ferdy said the budget remains "very lean" despite the percentage increase and urged departments to highlight any federally funded line items during their presentations so grant-dependent costs are visible. She also asked department heads to flag one-time versus recurring requests so the committee can distinguish needs from near-term capital or contingency demands.

The committee will continue department-by-department hearings; administrators said they planned to publish the digital budget book for the public hearing cycle so commissioners and the public can compare budget scenarios and see the projected multi-year impacts of decisions the committee considers this spring.

Ending: The county is moving through a preliminary budget cycle with a high near-term increase driven largely by deferred maintenance and risk mitigation. Department presentations, further commissioner guidance and potential grant outcomes will shape the final levy recommendation for FY2026.