Committee urges commissioners to aim for under 10% tax increase after budget discussion

A Sagadahoc County budget advisory committee voted to urge the county commissioners to target a tax-levy increase below 10%, after more than an hour of discussion about looming retirements, reserve balances and options for funding capital needs.

The motion — described in the meeting as "urging the commissioners to get below 10%" — was made, seconded and recorded as approved with committee members saying one person did not vote; individual votes were not read into the record.

The committee said several near-term personnel departures will create a known unfunded liability. A county staff member told the committee they are “now aware of 3 that are definitely happening before the end of this fiscal year, and that will pretty much wipe out our current reserves.” The meeting transcript shows current reserves at roughly $84,000 and an estimated payout for the confirmed retirements of about $70,000, which the staff member said would leave about $15,000 in that reserve account.

Committee members and staff discussed possible sources to cover those obligations and to reduce the projected levy increase. A county staff member said the organization expects a surplus from unfilled positions this year of “roughly $300,000,” and suggested using between $200,000 and $250,000 of that surplus to offset the levy. One resident from Woolwich told the committee, “we would really love to see it get down to 10% or less.”

Capital needs were a separate focus. The committee discussed a proposed backup generator and related electrical work. Aaron, the facilities director, was asked to investigate costs for renting a generator and installing a transfer switch, and to report back on whether equipment would be universal or site-specific.

Committee members discussed alternative funding approaches for larger capital items, including a short-term line of credit to cover construction timing, and possible bond or lending programs through state entities. A staff member said they had reached out to the county's bank for illustrative interest costs but had not yet received a quote. One commissioner noted the advantage of a line of credit could be timing: interest and principal payments would begin only once construction starts.

The committee also discussed potential revenue from communications towers. Members said there are three towers that could each bring about $40,000 annually, but acknowledged the timing is weather-dependent because installation relies on crane availability.

On personnel and positions, the committee discussed an EMA programs coordinator role. Phil met with MCOG director Matt Eddy, and staff reported "there really wasn't much overlap between the two positions." Committee members said the current budget year is likely not the time to add a new position.

Committee members repeatedly emphasized preserving a prudent undesignated fund balance. A staff member said an ideal range is 12% to 15% of the budget and noted the county "can't legally have more than 20% of our budget." Committee members asked staff to continue seeking internal cuts to reach the lower tax-increase target and to bring updated figures to the next meeting.

The committee tentatively scheduled its next meeting for May 9; staff and members will confirm the date and whether the county's public-hearing clock (for levy adoption) starts on May 6. The committee recorded its motion urging the commissioners to target a levy increase below 10% and asked departments to look for further reductions before the commission meets to set the levy.