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City manager presents FY2026 budget recommending 2.8% increase; warns residential taxpayers face pressure
Summary
City Manager Deb Lohrey reviewed the manager-recommended FY2026 budget at the April 14 workshop, citing personnel costs as the primary driver, an estimated net ask of roughly $1.8 million and capital and program priorities including runway and wastewater work, parks projects, housing development and continued homeless response funding.
City Manager Deb Lohrey presented the fiscal year 2026 manager-recommended budget to the Bangor City Council at the April 14 workshop, saying the proposal starts from currently approved state and federal funding and maintains existing programs while not proposing program expansions.
"We continue to have a lot of pressure on our residential taxpayers," Lohrey said. She said personnel costs account for about 67% of the total budget and are the primary cost driver. The proposed budget asks for roughly $1.8 million more from taxpayers and includes both operating and capital spending plans.
Lohrey said the budget reflects some one-time relief from a pension‑obligation bond payment that is ending, which staff used to reduce pressure on property taxpayers. She said the city saw a more than $1 million increase in ‘‘main revenues’’ and increases in charges for services such as trash fees and ambulance billing. The manager also outlined a five‑year capital plan across departments and listed priorities including runway rehabilitation and terminal renovation at Bangor International Airport, wastewater capacity investments, parks and playground work (including Cascade Park improvements and Mansfield lighting), waterfront parcel redevelopment and continued support for downtown amenities and village partnership initiatives.
On housing and community health, Lohrey said the budget continues to fund homeless response work while proposing to realign the homeless response manager position into the public health department and to establish a syringe services program (SSP). The manager said she expects three housing developments to be under construction this summer.
Lohrey provided an early estimate for the municipal property tax rate: she said the budget currently projects a tax rate decrease of about 55 cents (roughly 3%), but cautioned that rising residential property valuations will create an average residential tax increase that she described in the workshop as "about a 7 and a half percent increase on the average residential home." Councilors raised concerns about fixed‑income residents: one speaker in the meeting noted many residents are on fixed incomes and said a proposed property tax increase would be a squeeze.
Lohrey outlined next steps: the budget book would be posted online the day after the workshop, the council would receive departmental briefings starting with the school department, and budget workshops would take place weekly on Wednesdays through April, May and into June. She asked councilors to raise requests for additional information during those meetings.
Councilors and staff discussed revenue and expense levers and potential structural changes; Lohrey said flattening the residential homeowner impact would require either $4.8 million in increased revenue or reduced expenses, which she said would entail substantial service changes.
The manager also provided a legislative and program update during the workshop and indicated additional items (opioid settlement funds update, council guidelines review and ARPA update) would return to the GovOps committee for fuller discussion and public meetings.
