Gardiner council approves FY26 budget, sewer increase and several local measures in unanimous votes

The Gardiner City Council on June 18 voted unanimously on a package of budget, permitting and land-use items, including final adoption of the FY26 general fund budget, appropriation of enterprise and tax-increment finance (TIF) accounts, a 4% sewer-rate increase and several property and licensing approvals.

Councilors said most items were the result of months of work by staff and committees, and recorded unanimous votes on each motion. The measures are procedural steps to implement the city manager’s recommended spending plan and several development- and licensing decisions.

The council approved the second and final read of the FY26 general fund budget and authorized the city manager to enter contracts needed to implement it. The body also adopted FY26 appropriations for enterprise accounts (ambulance and wastewater) and the TIF funds.

Other council actions included: accepting a KVCOG (regional planning) proposal to support a comprehensive-plan update, approving a deed restriction modification for Libby Hill Business Park Lots 18 and 20 related to construction/timeline obligations on resale, approving a permanent mural on the rear wall of 343 Water Street (Stonebrook Bread and Books), certifying the June 10 MSAD 11 school budget referendum results, authorizing a victualer’s license for McDonald’s, approving a list of recommended FY25-to-FY26 carry-forward items and setting FY26 tax due dates and the delinquent interest rate.

The council approved a 4% increase to the sewer rate effective with the July–September 2025 billing cycle.

Councilors and staff repeatedly described the votes as the culmination of the budget process, which included public hearings and committee review. All recorded votes were described in the meeting as unanimous. No formal roll-call vote-by-name appears in the transcript for each motion; the council repeatedly asked staff to “record a unanimous vote.”

The meeting also included routine items such as department reports and minutes review. Several items discussed in more depth—such as a crosswalk request on Highland Terrace, staff recruitment for the wastewater plant and a city legal-services RFP—were not final actions and are the subject of separate items or follow-up work.

Votes at a glance

- Approve permanent mural, 343 Water St. (Stonebrook Bread and Books). Motion: “I move the approval of a permanent mural on the backside of 343 Water Street.” Mover: Councillor Gaye Grant; second: Councillor Veronica Babcock. Outcome: approved, unanimous.

- Accept KVCOG comprehensive-plan proposal. Motion: “I move to accept the KV CAR comp plan update proposal.” Mover: Councillor Tim Cusick; second: Councillor Rusty Greenleaf. Outcome: approved, unanimous. Proposal in packet estimates a $40,000 total cost with $30,000 supplied by grant funding and a potential city share up to roughly $10,000.

- Approve deed restriction modifications, Libby Hill Business Park Lots 18 & 20. Motion: “I move to approve the deed restriction modifications for Libby Hill Business Park, Lots 18 And 20 as presented in the council package regarding the completion deadlines and payments owed for the facility construction.” Mover: Councillor Mark Cohn; second: Councillor Gaye Grant. Outcome: approved, unanimous. The item clarifies how PILOT-related fees are handled at closing and resets the construction-completion timeline for a new purchaser.

- Approve FY26 general fund budget (second and final read) and authorize city manager to implement contracts. Motion by Councillor Veronica Babcock; second: Councillor Debbie Kimball. Outcome: approved, unanimous.

- Approve FY26 enterprise and TIF budgets (ambulance, wastewater, TIF). Motion by Councillor Gaye Grant; second: Councillor Veronica Babcock. Outcome: approved, unanimous.

- Set FY26 property tax due dates and interest; authorize Property Tax Club and prepayments. Motion by Councillor Tim Cusick: set due dates 09/15/2025 and 03/16/2026 with an 8.5% interest rate on delinquent accounts and to allow participation in the Property Tax Club; also authorized acceptance of prepayments for taxes not yet committed at 0% interest. Second: Councillor Rusty Greenleaf. Outcome: approved, unanimous.

- Approve interim city manager’s recommended carry-forward items (FY25 to FY26). Motion by Councillor Gaye Grant; second: Councillor Debbie Kimball. Outcome: approved, unanimous.

- Approve 4% sewer-rate increase starting with July–September 2025 billing. Motion by Councillor Tim Cusick; second: Councillor Mark Cohn. Outcome: approved, unanimous.

- Approve victualer’s (victualler’s) license for McDonald’s. Motion by Councillor Rusty Greenleaf; second: Councillor Mark Cohn. Outcome: approved, unanimous.

- Certify MSAD 11 school budget referendum results (06/10/2025). Motion by Councillor Veronica Babcock; second: Councillor Debbie Kimball. Outcome: approved, unanimous.

What comes next

Several adopted items require administrative follow-up: implementation of the budget and associated contracts by the city manager’s office; revising deed documents for Libby Hill lots at closing; utility billing changes to reflect the new sewer rate; and coordination with committees and staff on the KVCOG-led comprehensive-plan process. Several items discussed but not decided (notably the Highland Terrace crosswalk) were left for further study and cost estimates by public works and staff.

Sources: Gardiner City Council meeting transcript, June 18, 2025 (motions, roll-call introductions, committee reports and staff presentations).