Sagadahoc commissioners advance FY26 budget, set public hearing after debate over reserves and capital projects

Sagadahoc County commissioners voted 2-1 April 22 to advance the proposed fiscal year 2026 budget to a public hearing after a lengthy discussion about using reserve funds, cutting capital items and prioritizing emergency infrastructure.

The vote sent a revised budget to a public hearing scheduled for Monday, May 12 at 6 p.m., with commissioners approving a package of adjustments that the finance director said reduces the proposed increase to roughly a 9.8% tax-rate rise. The changes include taking $250,000 from the county's undesignated fund balance, adding $10,000 to a generator reserve, removing this year's proposed funding for several capital reserve items (including a planned cooling-tower appropriation and digitization of county records) and holding off on a computers replacement allocation. The proposal also keeps a 3.9% cost-of-living adjustment for nonunion employees and adds a one-year stipend of $7,500 for the county's emergency management director.

Why it matters: the revisions lower the immediate tax impact compared with earlier drafts but draw down amounts from reserves that county officials said they would prefer to keep for larger, multi-year stabilization. Commissioners debated whether to borrow, move reserve money now or defer capital work and how those choices would affect service levels and risk if urgent repairs arise.

Most important facts

- The commission voted to advance the FY26 budget to a public hearing: the motion passed 2-1.

- The finance director reported that applying $250,000 from the undesignated fund balance, plus a set of cuts and revenue adjustments, put the net increase in the 9.7—6 to 9.8% neighborhood depending on final line-item choices.

- Line-item changes the commission discussed and in many cases removed from this year's appropriation include funding for digitizing county records ($25,000 request), a cooling-tower reserve (about $70,000 requested to complete a repair estimated at roughly $120,000 total), an HVAC reserve ($8,000) and a $10,000 computer replacement line. Commissioners agreed to add $10,000 this year to a generator reserve and to pursue a grant that could fund roughly 75% of a new generator (vendor estimate for a full replacement ~ $141,800).

- The finance director said small departmental trimming yielded about $30,000 of savings but the larger gap could only be closed by tapping reserves, delaying capital, or finding new revenue.

- Commissioners discussed borrowing options: several banks declined unsecured lines of credit for capital projects or attached restrictive terms; staff said equipment financing is generally available but property financing often requires bonding or other constraints.

Discussion highlights

Finance director's review: The finance director told the board she reviewed each department line by line and found mostly small savings; the largest potential near-term changes were on the revenue side (probate and deeds fees) and a limited set of expense trims such as overtime, postage and an IT software line. She estimated probate revenues could be about $10,000 higher and deeds fee trends might add roughly $41,000 if state changes take effect, but she described that as uncertain and therefore excluded from the main projection.

Capital and emergency infrastructure: Commissioners spent substantial time on facility projects. Facilities staff and commissioners described an aging cooling tower that failed previously and will likely need replacement; staff said the full job is roughly a $120,000 project and the county now has about $43,750 on hand with roughly $70,000 still needed to complete it this summer. On a separate matter, staff and a vendor discussed generator options: replacement cost estimates circulated at about $141,800 (installation included) and the county was pursuing a grant that could cover roughly 75%; commissioners discussed lead times of months to a year for a new generator and high rental costs for temporary units during outages.

Reserves and budgets: Commissioners debated moving money from the county's 'unfunded liability' reserve into the budget to reduce the tax increase. One commissioner proposed reallocating $250,000 now to reduce the tax impact and move other small reserves into the commissioners' contingency so funds remain available for unanticipated needs. Staff replied that county law permits transfers from undesignated fund balance into reserve accounts but that some transfers after a budget is adopted may require extra process.

Emergency management: The board discussed a requested new position in the emergency management agency and, as an interim measure, agreed to add a one-year stipend of $7,500 for the emergency management director if approved in the final budget. Commissioners described the office as effectively a 24/7 function that lacks sufficient staff support.

Line of credit and borrowing: Staff said four banks were contacted; only one would offer a line of credit with very high rates and most lenders declined unsecured financing for property projects (they would accept equipment collateral). The finance authority suggested alternative options, but staff had not yet received definitive guidance.

Public process and next steps: The commission advanced the budget to a public hearing and members set that hearing for 6 p.m. Monday, May 12. The board's action was procedural (advancing the document to public comment) and does not constitute final adoption; commissioners will consider any public input and can amend the proposal before final approval.

Ending: The county will hold a public hearing on the proposed FY26 budget at 6 p.m. May 12; the commission advanced the revised proposal by a 2-1 vote at its April 22 special meeting.