Skowhegan approves FY26 spending package; debate erupts over transfers from capital reserve accounts

Skowhegan — Voters at the Town of Skowhegan’s annual meeting on June 9 approved a broad slate of fiscal 2026 appropriations across municipal departments but reserved pointed questions and criticism for the select board’s use of capital reserve funds earlier in the year.

The meeting approved a series of budget articles covering general government, public safety, public works, wastewater, solid waste, parks and capital projects. Most articles were approved by voice vote after the moderator called for hands; several were counted when the margins were close.

Key approved amounts included $2,814,424 for general government (Article 3), $2,748,278 for the police department operating budget (Article 4), $1,618,886 for the fire department (Article 6), $1,283,410 for solid waste and recycling (Article 11) and a package of capital reserve appropriations across departments (Articles 17–31). The meeting also approved Article 48, which allowed the town to use up to $1 million from the undesignated fund balance, including a $150,000 allocation to roads and sidewalks and $850,000 to reduce the tax commitment.

A vocal portion of the meeting focused on Article 49, a warrant item that authorizes the select board to transfer an amount not to exceed 1% of the town budget to meet unanticipated expenses and emergencies. Many residents asked whether the board’s earlier decision to move funds from capital reserve accounts to cover costs on the town’s ball field project had complied with the one-percent rule or exceeded it. Several members of the public called for a legal opinion and greater transparency. Select Board members said they had consulted the town’s auditors and were seeking a formal opinion from the Maine Municipal Association (MMA); the board also said an interim town manager had been tasked with following up.

“You can’t just say, ‘Oh, it’s a debt account, it’s a debt account to who?’” one resident asked during the Article 49 discussion, calling for a documented legal explanation and clearer accounting. Select Board members and staff repeatedly said they were pursuing outside legal and auditor guidance and that the interim town manager would follow up with the public.

Other departmental debates

- Solid waste and recycling (Article 11): Transfer-station manager Cindy and other residents discussed disposal costs and commercial hauling. Select board members noted that roughly 71% of the town’s disposal bill reflects commercial-hauler volume, and staff described steps to expand recycling trailers and work with businesses to reduce disposal costs. Cindy said recent revenue from recyclables averaged roughly $40,000–$50,000 per year but cautioned that disposal rates were rising.

- Public works (Articles 12–14 and 23–24): The public works department outlined a multi-year program of road and sidewalk projects. Residents and the department head said operations were constrained by funding; Jason, the road commissioner, said the budget had been trimmed and two roads removed from the plan to keep the overall tax impact down.

- Wastewater and pollution control (Article 10 and 18): Donny Zalewski, the newly appointed head of wastewater operations, described the plant as 53 years old and said reserve funds were needed for maintenance, pump stations and engineering studies required to secure future grant or bond funding.

Procedural note and next steps

There were multiple roll-call-style standing counts during the meeting for contested items; in most cases the moderator announced the result without a recorded hand-count total. For Article 49, residents requested written legal guidance about how and when the select board may repurpose reserve funds. Select board members said they would request a formal opinion from MMA and update the public.

Votes at a glance (selected items)

- Article 3 — General government: $2,814,424 — APPROVED - Article 4 — Police department operating budget: $2,748,278 — APPROVED - Article 5 — Police officers (amended): $251,000 for 2 officers — APPROVED (see separate article) - Article 6 — Fire department: $1,618,886 — APPROVED - Article 10 — Wastewater and pollution control: $994,264 — APPROVED - Article 11 — Solid waste and recycling: $1,283,410 — APPROVED - Article 17 — Capital expenditures/debt retirement: $1,896,262 — APPROVED - Article 18 — Pollution control capital reserve: $420,000 — APPROVED - Article 48 — Use up to $1,000,000 from undesignated fund balance (including $150,000 to roads): APPROVED - Article 49 — Authorize select board to transfer up to 1% of town budget between categories (language as printed): APPROVED; generated extended public debate and requests for legal clarification

Ending

Select board members said they will follow up with the town’s interim manager, auditors and MMA for formal guidance about capital reserve transfers and will report back to the public. Department heads who spoke at the meeting also signaled they would continue applying for grants and seeking operational efficiencies to offset future cost pressures.